Intro to Bus Ch. 6-10

Why do small businesses have difficulty getting started in global business?

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. The bureaucratic paperwork can threaten to bury a small business

What are challenges of working at home?

1. Getting new customers 2. Keeping work and family separate 3. Abiding by city ordinances 4. Managing risk

What are the disadvantages of a high bureaucracy?

1. Less empowerment 2. Higher costs 3. Delayed decision making 4. Less responsiveness to customers

What are the advantages of a high bureaucracy?

1. More control by top management 2. More chances for advancement 3. Greater specialization 4. Closer supervision

What does Theory Y state?

1. Most people naturally like work 2. Most people work towards their goals 3. The depth of a person's commitment to goals depends on the perceived rewards for achieving them 4. Under certain conditions, most people seek responsibility 5. People are capable of using a relatively high degree of imagination, creativity, and cleverness to solve problems 6. People are motivated by a variety of rewards

Why do people take the entrepreneurial challenge?

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

What are different ways to departmentalize?

1. Product 2. Function 3. Customer group 4. Geographic location 5. Process 6. Hybrid forms

What are some characteristics of an effective manager?

1. Results 2. WHEN (give employees a deadline then leave them alone) 3. Why 4. Follow up 5. Growth (of company, of group, and you)

What is the order of Abraham Maslow's hierarchy of needs from top to bottom?

1. Self-actualization needs (the need to develop to one's fullest potential) 2. Esteem needs 3. Social needs 4. Safety needs 5. Physiological needs

What are some examples of hygiene factors?

1. Supervision 2. Working conditions 3. Interpersonal relationships 4. Salary

What are the characteristics of a high bureaucracy?

1. Tall 2. Narrow span of control

What does theory X state?

1. The average person dislikes work and will avoid if possible 2. Workers must be forced, controlled, directed, or threatened with punishment to make them put forth effort to achieve the organization's goals 3. The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security 4. Primary motivators are fear and punishment

What 6 things should the mission statement address?

1. The organization's self-concept 2. Its philosophy 3. Its long-term survival needs 4. Its customers needs 5. Its social responsibility 6. The nature of its products or services

What are some characteristics of micro managers?

1. They care about HOW things should be done 2. NOW (impatient) 3. WHAT (what should be done) 4. They hover 5. Compliant (they get bent out of shape when you don't follow their orders, even if you're doing it right)

What are Fayol's principles?

1. Unity of command (one boss) 2. Hierarchy of authority 3. Division of labor (specialization) 4. Subordination of individual interests to the general interest (team first) 5. Authority (managers have the right to give orders and the power to enforce obedience) 6. Degree of civilization (traditional period; thought that goes into the shape of the period) 7. Clear communication channels (should be transparent and open communication) 8. Order (people and belongings should be kept orderly) 9. Equity (people should be treated equally) 10. Espirit de corps (spirit of the body, moral of the firm)

What are the characteristics of a low bureaucracy?

1. Wide, flat 2. Wide span of control

What are some examples of motivators?

1. Work itself 2. Achievement 3. Recognition 4. Responsibility 5. Growth and advancement

Small Business Administration (SBA)

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

Small business

A business that is independently owned and operated, is not dominant in it's field of operation, and meets certain standards of size in terms of employees or annual receipts

Entrepreneurial team

A group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product

What are the two main entrepreneurial attributes?

Being a risk taker and working hard

Micropreneurs

Business owners who are interested in maintaining a balanced lifestyle while doing the kind of work they want to do

What is the top reason why employees voluntarily leave their jobs?

Disengagement

Who came up with the two managerial assumptions Theory X and Theory Y

Douglas McGregor

What does the "controlling" aspect of management entail?

Establishes clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if not

What is job enrichment based on?

Herzberg's higher motivators such as responsibility, achievement, and recognition

When is autocratic leadership effective?

In emergencies when absolute followership is needed

What is the many constant in the lives of Gen Xers, Millennials, and Ge Zers?

Inconstancy

What is a disadvantage of online business?

It is easy for copycats to copy products

Is the management of charities, government agencies, churches, schools, and unions the same or different as the management of small and large businesses?

It is the same

Venture capitalist

May ask for a big stake in your company in exchange for the cash to start your business

What motivating factors did Frederick Herzberg come up with?

Motivators and hygiene factors

Mission statement

Outlines an organization's 6 fundamental purposes

Enterprise zones

Specific geographic areas to which governments attract private business investment by offering lower taxes and other government support

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources (good management is a top-down approach)

What is the trend today in regards to span of control?

To expand the span of control

What are the two management approaches according to William Ouchi?

Type J and Type A

When do cross-functional teams work best?

When leadership is shared

Vision

a broad explanation of why the organization exists and where it's trying to go; gives the organization a sense of purpose and a set of values that unite workers in a common destiny

ISO 14001

a collection of the best practices for managing and organization's impact on the environment

materials requirement planning (MRP)

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

Business plan

a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner

ISO

a nongovernmental organization established to promote the development of world standards to facilitate the international exchange of goods and services

six sigma quality

a quality measure that allows only 3.4 defects per million opportunities

job enrichment

a strategy that motivates workers through the job itself

hierarchy

a system in which one person is at the top of the organization and there is a ranked ordering from the top down of managers and others who are responsible to that person

virtual corporation

a temporary networked organization made up of replaceable firms that join and leave as needed

organization chart

a visual device that shows relationships among people and divides the organization's work

Entrepreneurship

accepting the risk of starting and running a business

staff personnel

advise and assist line personnel in meeting their goals; include people in marketing research, legal advising, IT, and HR

inverted organization

an organization that has contact people at the top and the chief executive officer at the bottom of the organization chart

bureaucracy

an organization with many layers of managers who set rules and regulations and oversee all decisions

SWOT analysis

analyzes the organization's strengths, weaknesses, the opportunities and threats it faces

Gantt chart

bar graph showing what projects are being worked on and what stage they are in at any given time

Type A

based on American culture, which includes a focus on individual rights and achievements

Hawthorne effect

based on Elton Mayo's experiments; people's tendency to behave differently when they know they're being studied

Type J

based on the culture of Japan, which includes a focus on trust and intimacy within the group and family

computer-aided manufacturing (CAM)

bring computers into the production process

decision making

choosing among two or more alternatives

scientific management

coined by Frederick Taylor; studies tasks performed in a job and the time needed for each; views people as machines

job enlargement

combines a series of tasks into one challenging and interesting assignment

brainstorming

coming up with as many solutions as possible in a short period of time with no censoring of ideas

benchmarking

compares an organization's practices, processes, and products against the world's best

computer-integrated manufacturing (CIM)

computers control the entire production process

quality

consistently producing what the customer wants while reducing errors before and after delivery to the customer

operations management

converts or transforms resources, including human resources like technical skills and innovation, into goods and services

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

expectancy theory

developed by Victor Vroom; states that employee expectations can affect motivation

strategic planning

done by top management and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them

engagement

employees' level of motivation, passion, and commitment

human relations skills

enable managers to work through and with people; include communication and motivation

hygiene factors

factors relating to the job environment that could cause dissatisfaction if missing but would not necessarily motivate employees if increased

motivators

factors that make employees productive and give them satisfaction

flat organizational structures

fewer layers of management and a broad span of control

extrinsic reward

given by someone else as recognition for good work

empowerment

giving employees the authority to make a decision without consulting the manager and the responsibility to respond quickly to customer requests

enabling

giving workers the education and tools they need to make decisions

cross-functional self-managed teams

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

line organization

has direct two-way lines of responsibility, authority, and communication running from the top to the bottom, with all people reporting to only one supervisor

Chief Operating Officer (COO)

implements CEO's changes

external customers

include dealers (who buy products to sell to others) and ultimate customers (end users) such as you and me

middle management

includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

supervisory (first line) management

includes those directly responsible for supervising workers and evaluating their daily performance

internal customers

individuals and units within the firm that receive services from other individuals or units

Chief Executive Officer (CEO)

introduces change into an organization

participative (democratic) leadership

involves managers and employees working together to make decisions

equity theory

looks at how employees' perceptions of fairness affect their willingness to perform

job rotation

makes work more interesting and motivating by moving employees

autocratic leadership

making managerial decisions without consulting others

free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

tall organizational structures

many layers of management and small span of control

control function

measures performance relative to planned objectives and standards, rewards people for work well done, and takes corrective action when necessary

enterprise resource planning (ERP)

newer version of MRP; combines the computerized functions of all the divisions and subsidiaries of the firm into a single integrated software program that uses a single datebase

Chief Financial Officer (CFO)

obtain funds, plans budgets, collects funds, etc.

centralized authority

occurs when decision making is concentrated at the top level of management

decentralized authority

occurs when decision making is delegated to lower-level manager and employees more familiar with local conditions than hq management could be

Incubators

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

job simplification

produces task efficiency by breaking a job into simple steps and assigning people to each

intermittent process

production run is short and the producer adjusts machines frequently to make different products

assembly process

puts together components to make a product

staffing

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

restructuring

redesigning an organization so it can be more effectively and efficiently serve its customers

line personnel

responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel

goal-setting theory

says setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanies by feedback, and if conditions in the organization pave the way for achievements

departmentalization

setting up individual departments to do specialized tasks

conceptual skills

skills that involve the ability to picture organizations as a whole and the relationship among its various parts

matrix organization

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

Objectives

specific, short-term statements detailing how to achieve the organization's goals

mass customization

tailoring products to meet the needs of individual customers

knowledge management

tasks include finding the right information, keeping it in a really accessible place, and making information known to everyone in the organization

technical skills

the ability to perform tasks in a specific discipline or department

production management

the activities that help firms create goods

Goals

the broad, long-term accomplishments an organization wishes to attain

ISO 9001

the common name given to quality management and assurance standards

production

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

economies of scale

the fact that companies can reduce their production costs by purchasing raw materials in bulk, which makes the average cost of goods decrease as production levels rise

purchasing

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

core competencies

the functions that the organization can do as well as or better than any other organization in the world

top management

the highest level, consists of the president and other key company executives who develop strategic plans (CEO, COO, CFO)

employee experience

the level of satisfaction at every step along an employee's path throughout their time with a company

chain of command

the line of authority that moves from the top of the hierarchy to the lowest level

span of control

the optimal number of employees a manager supervises or should supervise

intrinsic reward

the personal satisfaction you feel when you perform well and complete goals

facility layout

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

process manufacturing

the physical or chemical change of materials

real time

the present moment when an event takes place

tactical planning

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

contingency planning

the process of preparing alternative courses of action the firm can use if its primary plans don't work out

facility location

the process of selecting a geographic location for a company's operations

operational planning

the process of setting work standards and schedules necessary to implement the company's tactical objectives

statistical process control (SPC)

the process of taking statistical samples of product components at each stage of the production process and plotting those results on a graph

statistical quality control (SQC)

the process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning

informal organization

the system that develops spontaneously as employees meet and form cliques, and relationships outside the formal organization

computer-aided design (CAD)

the use of computers to design products

form utility

the value producers add to materials in the creation of finished goods and services

program evaluation and review technique (PERT)

users analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project

networking

uses communications technology and other means to link organizations and allow them to work together on common objectives

lean manufacturing

using less of everything than in mass production (less human effort, less manufacturing space, less investment in tools, less engineering time to develop a new product)

just-in-time (JIT) inventory control

when supplies deliver raw materials just as production begins

organizational (corporate) culture

widely shared values within an organization that provide unity and cooperation to achieve common goals

high-context culture

workers build personal relationships and develop group trust before focusing on tasks

low-context cultures

workers view relationship building as a waste of time that diverts attention away from tasks

telecommunication

working from home via computer

The Theory of Social and Economic Organizations

wrote by Max Weber; felt that firms would do well if employees did what they were told and the less decision making the better

What does the "planning" aspect of management entail?

1. Anticipating trends and determining the best strategies to achieve goals 2. Major goal is to please customers

What organizational issues do firms have to make decisions about?

1. Centralization vs. decentralization 2. Span of control 3. Tall vs. flat structures 4. Departmentalization

What does the "leading" aspect of management entail?

1. Creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner 2. Empower employees by giving them freedom to be self-directed and self-motivated

What is the rational decision making model?

1. Define the situation 2. Describe and collect needed information 3. Develop alternatives 4. Decide which alternative is best 5. Do what is indicated 6. Determine whether the decision was a good one and follow up

What does the "organizing" aspect of management entail?

1. Designing the structure of the organization and creating systems where everyone and everything work together to achieve goals 2. Many of today's organizations are being designed around pleasing the customer at a profit, so they must remain flexible

What are 2 other names for enterprise zones?

1. Empowerment zones 2. Enterprise communities

What does a business plan consist of?

1. Executive summary 2. Company background 3. Management team 4. Financial plan 5. Capital required 6. Marketing plan 7. Location analysis 8. Manufacturing plan 9. Appendix

Angel investors

Private investors who invest their own money in potentially hot new companies before they go public

Market

Consists of consumers who have unsatisfied wants and needs who have resources to buy

Intrapreneurs

Creative people who work as entrepreneurs within corporations by using a company's existing resources to launch new products

management by objectives (MBO)

Peter Drucker's system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.

Small Business Investment Company (SBIC) Program

Private investment companies licensed by the SBA to lend money to small businesses