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