WGU MBA First Half of Exams

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Goods offered are exactly the same and buyers and sellers are so numerous that they have no influence on the market price

A Market must have what two characteristics to be perfectly competitive:

electronic data interchange

A computerized means of integrating order processing with production, inventory, accounting and transportation

Forward discount

A condition under which the forward rate of one currency relative to another currency is higher than the spot rate.

Forward premium

A condition under which the forward rate of one currency relative to another currency is lower than the spot rate.

Purchasing power parity (PPP)

A conversion that determines the equivalent amount of goods and services that different currencies can purchase.

Institution-based view

A core perspective. Success and failure of firms are constrained by institutions

Resource-based view

A core perspective. Success and failure of firms is determined by their environment

Balance of payments

A country's international transaction statement, which includes merchandise trade, service trade and capital movement.

Common denominator

A currency or commodity to which the value of all currencies are pegged.

State-owned enterprise

A firm owned and controlled by the state (government).

Multinational enterprise (MNE)

A firm that engages in foreign direct investment (FDI).

Price leader

A firm that has a dominant market share and sets "acceptable" prices and margins in the industry.

LLL advantages

A firm's quest for linkage (L) advantages, leverage (L) advantages, and learning (L) advantages. These advantages are typically associated with multinationals from emerging economies.

OLI advantages

A firms quest for ownership (O) advantages, location (L) advantages, and internalization (I) advantages via FDI.

Currency swap

A foreign exchange transaction between two firms in which one currency is converted into another at Time 1, with an agreement to revert it back to the original currency at a specified Time 2 in the future.

Forward transaction

A foreign exchange transaction in which participants buy and sell currencies now for future delivery.

Floating (flexible) exchange rate policy

A government policy to let supply-and-demand conditions determine exchange rates.

Fixed exchange rate policy

A government policy to set the exchange rate of a currency relative to other currencies

Institution-based view

A leading perspective in global business that suggests that the success and failure of firms are enabled and constrained by institutions.

Theocratic law

A legal system based on religious teachings.

Common law

A legal tradition that is shaped by precedents and traditions from previous judicial decisions

Civil Law

A legal tradition that uses comprehensive statutes and codes as a primary means to form legal judgments.

Depreciation

A loss in the value of the currency.

the wealth effect

A lower price level raises the real value of households' money holdings

the interest rate effect

A lower price level reduces the amount of money people want to hold.

Expatriate manager

A manager who works abroad, or "expat" for short.

Equity mode

A mode of entry (JV and WOS) that indicates relatively larger, harder-to-reverse commitments to overseas markets.

Non-equity mode

A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets.

Currency board

A monetary authority that issues notes and coins convertible into a key foreign currency at a fixed exchange rate.

Joint venture (JV)

A new corporate entity created and jointly owned by two or more parent companies.

Build-operate-transfer (BOT) agreement

A non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.

Semiglobalization

A perspective that suggests that barriers to market integration at borders are high, but not high enough to insulate countries from each other completely.

Capital flight

A phenomenon in which a large number of individuals and companies exchange domestic currency for a foreign currency.

Democracy

A political system in which citizens elect representatives to govern the country on their behalf.

Totalitarianism (dictatorship)

A political system in which one person or party exercises absolute political control over the population.

Radical view on FDI

A political view that is hostile to FDI.

Pragmatic nationalism on FDI

A political view that only approves FDI when its benefits outweigh its costs.

Free market view on FDI

A political view that suggests that FDI unrestricted by government intervention is the best.

Turnkey project

A project in which clients pay contractors to design and construct new facilities and train personnel.

Clean (free) float

A pure market solution to determine exchange rates.

Local content requirement

A requirement stipulating that a certain proportion of the value of the goods made in one country must originate from that country.

Counterattack

A set of actions in response to attack.

International premium

A significant pay raise when working overseas.

Peg

A stabilizing policy of linking a developing country's currency to a key currency.

Sovereign wealth funds (SWFs)

A state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets.

Wholly owned subsidiary (WOS)

A subsidiary located in a foreign country that is entirely owned by the parent multinational.

Bretton Woods system

A system in which all currencies were pegged at a fixed rate to the US dollar.

Gold standard

A system in which the value of most major currencies was maintained by fixing their prices in terms of gold.

Post-Bretton Woods system

A system of flexible exchange rate regimes with no official common denominator.

Import tariff

A tax imposed on imports.

Scenario planning

A technique to prepare and plan for multiple scenarios (either high or low risk).

Emerging markets

A term that is often used interchangeably with "emerging economies."

Product life cycle theory

A theory that accounts for changes in the patterns of trade over time by focusing on product life cycles.

Theory of comparative advantage

A theory that focuses on the relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.

Game theory

A theory that studies the interactions between two parties that compete and/or cooperate with each other.

Factor endowment theory

A theory that suggests that nations will develop comparative advantages based on their locally abundant factors.

Strategic trade theory

A theory that suggests that strategic intervention by governments in certain industries can enhance their odds for international success.

Theory of national competitive advantage of industries (diamond theory)

A theory that suggests that the competitive advantage of certain industries in different nations depends on four aspects that form a "diamond."

Theory of mercantilism

A theory that suggests that the wealth of the world is fixed and that a nation that exports more and imports less will be richer.

Theory of absolute advantage

A theory that suggests that under free trade, a nation gains by specializing in economic activities in which it has an absolute advantage.

Currency hedging

A transaction that protects traders and investors from exposure to the fluctuations of the spot rate.

Horizontal FDI

A type of FDI in which a firm duplicates its home country-based activities at the same value chain stage in a host country.

Vertical FDI

A type of FDI in which a firm moves upstream or downstream at different value chain stages in a host country.

Downstream vertical FDI

A type of vertical FDI in which a firm engages in a downstream stage of the value chain in a host country.

Upstream vertical FDI

A type of vertical FDI in which a firm engages in an upstream stage of the value chain in a host country.

Beijing Consensus

A view that questions Washington Consensus' belief in the superiority of private ownership over state ownership in economic policy making, which is often associated with the position held by the Chinese government.

Sarbanes-Oxley Act

A wave of accounting scandals starting in 2001 resulted in this act, which increases U.S. federal government scrutiny of the production of financial statements.

Bargaining power

Ability to extract favorable outcome from negotiations due to one party's strengths.

When work has been done and collectability of cash can be reasonably assured

According to accounting rules, when should revenue be recognized?

Competitive dynamics

Actions and responses undertaken by competing firms.

First-mover advantage

Advantage that first movers enjoy and do not share with late entrants.

Location

Advantages enjoyed by firms operating in a certain location.

Price-earnings Ratio Market Value of Shares/ Net Income

Amount investors are willing to pay for each dollar of earnings; indication of growth potential

Ownership

An MNE's possession and leveraging of certain valuable, rare, hard-to-imitate, and organizationally embedded (VRIO) assets overseas in the context of FDI.

North American Free Trade Agreement

An alliance that merges Canada, Mexico and the United States into a single market

disclosure

An alternative way to report information, describing details in a narrative note

Predatory pricing

An attempt to monopolize a market by setting prices below cost and intending to raise prices to cover losses in the long run after eliminating rivals.

Trade surplus

An economic condition in which a nation exports more than it imports.

Trade deficit

An economic condition in which a nation imports more than it exports.

Mixed economy

An economy that has elements of both a market economy and a command economy.

Command economy

An economy that is characterized by government ownership and control of factors of production.

Market economy

An economy that is characterized by the "invisible hand" of market forces.

Dumping

An exporter selling goods below cost.

Attack

An initial set of actions to gain competitive advantage.

Reverse innovation

An innovation that is adopted first in emerging economies and is then diffused around the world.

Voluntary export restraint (VER)

An international agreement that shows that exporting countries voluntarily agree to restrict their exports.

International Monetary Fund (IMF)

An international organization that was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements.

Nongovernmental organization (NGO)

An organization that is not affiliated with governments.

Cartel (trust)

An output- and price-fixing entity involving multiple competitors.

Heckscher-Ohlin theory

Another name for factor endowment theory

Resource mobility

Assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry.

- Preference of individual employees - Size of the rewards for high performance - Method of motivating individual job performance - Objectivity of the evaluation process that determines the rewards

Before designing an incentive pay plan to motivate performance, it is important to consider the

First-mover advantages

Benefits that accrue to firms that enter the market first and that late entrants do not enjoy.

Late-mover advantages

Benefits that accrue to firms that enter the market later and that early entrants do not enjoy.

BRICA

Brazil, Russia, India, and China.

Greenfield operations

Building factories and offices from scratch (on a proverbial piece of "green field" formerly used for agricultural purposes).

Administrative policy

Bureaucratic rules that make it harder to import foreign goods.

Global Business

Business around the globe.

Import

Buying from abroad.

Set price levels to encourage rapid sales

Cash flow

Agglomeration

Clustering of economic activities in certain locations.

Collusion

Collective attempts between competing firms to reduce competition.

financial docs that allow comparison of financial statements across years and between companies and are prepared by dividing all financial statement numbers by sales for the year

Common-size financial statements

The bottom billion

Concentrated in Africa and Central Asia - 58 small countries, stuck at the bottom in terms of growth, incomes and human development

Opportunity cost

Cost of pursuing one activity at the expense of another activity, given the alternatives (other opportunities).

Sunk cost

Cost that a firm has to endure even when its investment turns out to be unsatisfactory

United States, Canada, Australia, Japan & United Kingdom

Countries currencies under managed float since 1970s?

Brazil, Mexico & South Korea

Countries currencies under managed float since 1990s?

Current account = balance o trade + net factor income from abroad + net unilateral transfers from abroad

Current account balance equation

permissive

Definition of bargaining unit, retiree health insurance or pension, ground rules, settlement of grievances or charges, drug testing, labeling are ________ subjects.

Availability of close substitutes, necessities vs. luxuries, Definition of the market, time horizon

Determinants of price elasticity of demand?

- Human resources - Physical resources - Business continuity

Disaster plans should cover:

Negative

Do completmentary goods have positive or negative cross price elasticity?

External

Do gains/losses reported on the income statement arise from internal or external activities?

Positive

Do substitute goods have positive or negative cross-price elasticity?

Base of the pyramid (BOP)

Economies where people make less than $2,000 per capita per year.

Co-marketing

Efforts among a number of firms to jointly market their products and services.

Consumption + Investment + Govt. Purchases + Net Exports

Equation for GDP

[(Training Benefits - Training cost)/Training Cost] x 100

Equation for ROI%

Value to buyers - Amount paid by buyers

Equation for consumer surplus

Amount received by sellers - cost to sellers

Equation for producer surplus

Consumer surplus + Producer Surplus

Equation for total surplus

(revenues-expense= net income)

Equation to calculate net income

Copyright

Exclusive legal right of authors and publishers to publish and disseminate their work.

Trademark

Exclusive legal right of firms to use specific names, brands, and designs to differentiate their products from others.

Patent

Exclusive legal right of inventors of new products or processes to derive income from such inventions.

Multimarket competition

Firms engage the same rivals in multiple markets.

Tacit collusion

Firms indirectly coordinate actions by signaling their intention to reduce output and maintain pricing above competitive levels.

discovery learning, experiential learning, observational learning, structured learning, group learning

Five Key learning preferences

- Conduct a Needs Assessment - Develop Learning Objectives - Design the Training Program - Implement the Training - Evaluate the Training

Five Steps to Effective Training

collaborating, accommodating, competing, compromising, avoiding

Five conflict management strategies

Institutional framework

Formal and informal institutions governing individual and firm behavior.

Institutions

Formal and informal rules of the game.

skills, responsibilities, effort, working conditions

Four categories of compensable factors

visual, auditory, tactile, kinesthetic

Four different sensory modalities

brand name awareness, perceived brand equity, brand associations, brand loyalty

Four element of brand equity

- Separate people from the problem - Focus on interests, not positions - Create options for mutual gain - Insist on objective criteria

Four fundamental principles of integrative negotiation:

positive reinforcement, negative reinforcement, punishment, extincition

Four type of reinforcers

Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly

Four types of market structures

Natural-resources, market, efficiency, innovation

Four types of strategic goals in finding a location to enter

Protecting and Maintaining form, offer convenience, communicate use and benefits, communicate quality or premium nature

Functions of packaging

Institutional transitions

Fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect firms as players.

Gross national product (GNP)

GDP plus income from non-resident sources abroad

Gross national income (GNI)

GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP.

More elastic demand

Good with close substitutes: more or less elastic demand

Internal Revenue Service (IRS)

Gov't agency that establishes rules to define exactly when income should be taxed. It has no role in setting financial accounting rules; and a company's financial statements are not used in determining how much tax the company must pay

Subsidy

Government payment to domestic firms.

Antitrust policy

Government policy designed to combat monopolies and cartels.

Competition policy

Government policy governing the rules of the game in competition.

Strategic trade policy

Government policy that provides companies a strategic advantage in international trade through subsidies and other supports.

Expropriation

Government's confiscation of foreign assets.

Know-how, problem solving, accountability, working conditions

Hay Group Method based on four main factors

"Four Tigers"

Hong Kong, Singapore, South Korea and Taiwan

2 years, Comparative side-by-side format

How many years worth of balance sheets does a company usually provide and how are they typically formatted?

sourcing

ID qual indv & labor markets to recruit from

50%

If at least ______ of workers sign a union authorization card, the NRLB requires the employer to recognize the union without a secret ballot election

Decrease

If demand is elastic, a price increase causes total revenue to _______

Increase

If demand is inelastic, a price increase causes total revenue to ______

perfectly inelastic

If the price elasticity of demand equals 0, the demand is _____

Unit Elastic

If the price elasticity of demand equals 1, the demand is _______

perfectly elastic

If the price elasticity of demand equals infinity, the demand is _______

Inelastic

If the price elasticity of demand is less than 1, the demand is ________

Elastic

If the price elasticity of demand is more than 1, the demand is ________

Unit Elastic

If the price elasticity of supply equals 1, the demand is _______

elastic

If the price elasticity of supply equals infinity, the demand is _______

Inelastic

If the price elasticity of supply equals zero, the demand is _______

inelastic

If the price elasticity of supply is less than 1, the demand is ________

elastic

If the price elasticity of supply is more than 1, the demand is ________

Prisoners' dilemma

In game theory, a type of game in which the outcome depends on two parties deciding whether to cooperate or to defect.

Asset turnover is computed as sales divided by assets and is interpreted as the number of dollars in sales generated by each dollar of assets

In terms of ROE, define efficiency.

Assets-to-equity ratio is computed as assets divided by equity and is interpreted as the number of dollars of assets a company is able to acquire using each dollar invested by stockholders

In terms of ROE, define leverage.

Return on sales is computed as net income divided by sales

In terms of ROE, define profitability.

By order of liquidity

In what order are assets typically listed on the balance sheet?

FDI inflow

Inbound FDI moving into a country in a year.

Oligopoly

Industry dominated by a small number of players.

Negative income elasticity

Inferior goods have negative or positive income elasticity?

Accounting information

Info that is intended to be useful in making decisions about the future.

Informal institutions

Institutions represented by cultures, ethics, and norms

Formal institutions

Institutions represented by laws, regulations, and rules.

Intellectual property

Intangible property that is the result of intellectual activity.

Services

Intangible services being traded.

Intrafirm trade

International transactions between two subsidiaries in two countries controlled by the same MNE.

Foreign portfolio investment (FPI)

Investment in a portfolio of foreign securities such as stocks and bonds.

Foreign direct investment (FDI)

Investment in, controlling, and managing value-added activities in other countries.

Critical Incidents Technique

Job Analysis Method: Job experts describe episodes of good, average and poor performance. circumstances, action, consequences

Task Inventory Approach

Job Analysis Method: Job experts generate a list of 50-200 tasks that are then grouped in categories reflecting major work functions.

Structured Interview Technique

Job Analysis Method: Job experts supply information about the job and workers that distinguishes superior performance.

Structured Questionnaires

Job Analysis Method: Written questionnaires that assess information about worker inputs, work output, job context and job characteristics.

Job Elements Analysis Method

Job Analysis Method: a group of job experts list and rate the important worker characteristics that influence success in the job, including knowledge, skills, abilities and personal characterstics

horizontal

Job enlargement is _________ job expansion.

vertical

Job enrichment is _________ job expansion.

Knowledge, Skills, Abilities, Other Characterstics

KSAO. job related worker characteristics

theory of liquidity preference

Keynes's theory that the interest rate adjusts to bring money supply and money demand into balance

Reaction, Learning, Behavior, Results

Kirkpatrick's four levels of training and learning evaluation

Knowledge spillover

Knowledge diffused from one firm to others among closely located firms.

Antidumping law

Law that makes it illegal for an exporter to sell goods below cost abroad with the intent to raise prices after eliminating local rivals.

Antitrust law

Law that outlaws cartels (trusts).

Cognitive Learning Objectives

Learning objectives that increase some type of knowledge

Current and Long-term

Liabilities are divided into which 2 categories on the balance sheet?

More elastic demand

Long time horizon: more or less elastic demand

Elastic Demand

Luxuries - inelastic or elastic demand?

- right to identify business objectives - right to determine the uses of material assets - right to take disciplinary action for cause

Management rights cover three areas:

Strategic risk, Operational risk, Financial risk and Compliance risk

Managing human resources strategically helps organizations manage four types of risk:

the profitability of each dollar in sales and turnover is the degree to which assets are used to generate sales

Margin NOTE: Companies with a low margin can still earn an acceptable level of return on assets if they have a high turnover.

Customers

Marketing focuses on the ________.

Current Ratio Current Assets/ Current Liabilities

Measure of liquidity; number of times current assets could cover current liabilities

Mode of entry

Method used to enter a foreign market.

- Company performance - Reduced merit increases - Reductions in head count - Reduced benefits - Pay freezes

Most common way employers fund variable pay programs

Kirkpatrick's training evaluation model

Most well known and frequently used model for assessing training effectiveness. reaction, learning, behavior, results

Mutual forbearance

Multimarket firms respect their rivals' spheres of influence in certain markets, and their rivals reciprocate, leading to tacit collusion.

more elastic demand

Narrowly defined market: more or less elastic demand?

Inelastic Demand

Necessities- inelastic or elastic demand?

Deadweight cost

Net losses that occur in an economy as a result of tariffs.

L-I-C-C-M-A-G-IO-R - Link goals to org mission & strategy - Identify subgoals for each unit/department/group/individual - Communication goals & expectations - Create work processes and assign resources - Measure progress - Assess individual, group, unit performance - Give feedback - Identify & Overcome obstacles - Reward Goal Achievement

Nine steps of the performance management process

Positive Income elasticity

Normal goods have positive or negative income elasticity?

Triad

North America, Western Europe, and Japan.

Asset Turnover Sales/ Total Assets

Number of dollars of sales during the year generated by each dollar of assets

Return on Equity Net Income/ Stockholder's Equity

Number of pennies earned during the year on each dollar invested

Return on Sales Ratio Net Income/ Sales

Number of pennies earned during the year on each dollar of sales

-Imminent danger situations -Fatalities & Catastrophes - Complaints - Referrals of hazard information from others -Follow-ups -Planned or programmed investigations

Order of Priority for OSHA Inspections

The International Accounting Standards Board (IASB)

Organization that was formed to develop a common set of worldwide accounting standards. Its standards are increasingly accepted worldwide, but FASB rules are still the standard in the United States.

FDI outflow

Outbound FDI moving out of a country in a year.

R&D contract

Outsourcing agreement in R&D between firms

Equation for computing price elasticity of demand

Percentage change in quantity demanded divided by the percentage change in price

Equation for computing cross-price elasticity of demand

Percentage change in quantity demanded of the first good divided by the percentage change in pice of the second good

Equation for computing the price elasticity of supply

Percentage change in quantity supplied divided by the percentage change in price

Debt Ratio Total Liabilities/ Total Assets

Percentage of funds needed to purchase assets that were obtained through borrowing

person needs

Performance appraisals/customer surveys/individual assessments/performance issues/skill inventories: sources for collecting _______ analysis information

- Organization as a whole - Organization subunits - Work teams or groups - Work Processes - Projects

Performance managers focus on these five things:

Trade embargo

Politically motivated trade sanctions against foreign countries to signal displeasure.

Collusive price setting

Price setting by monopolists or collusion parties at a level higher than the competitive level.

Private

Private Ownership or State ownership: Entry is determined by entrepreneurs, owners and investors

State

Private Ownership or State ownership: Exit is determined by government officials and bureaucrats. Firms deemed too big to fail may be supported by taxpayer dollars indefinitely

Private

Private Ownership or State ownership: Exit is forced by competition. A firm has to declare bankruptcy or be acquired if it becomes financially insolvent

Private

Private Ownership or State ownership: Financing is from private sources and public shareholders if the firm is publicly traded

State

Private Ownership or State ownership: Financing is from states sources such as direct subsidiaries or banks owned or controlled by governments

State

Private Ownership or State ownership: Management appointments are made by government officials and bureaucrats who may use non-economic criteria

Private

Private Ownership or State ownership: Management appointments are made by owners and investors larely based by merit

Private

Private Ownership or State ownership: Manager's compensation is determined by competitive market forces.

Private

Private Ownership or State ownership: Maximize profits for private owners who are capitalists and maximize shareholder value if the firm is publicly listed

State

Private Ownership or State ownership: Optimal balance for a fair deal for all stakeholders. Maximizing profit is not the sole objective. Protecting jobs and minimizing social unrest are legitimate goals.

State

Private Ownership or State ownership: entry is determined by government officials an bureaucrats

State

Private Ownership or State ownership: manager's compensation is determined politically with some consideration given to the sense of fairness and legitimacy in the eyes of the public.

Identify price and cost levels that allow the firm to maximize profit

Profit

by acquiring new customers, enhancing the profitability of existing customers and extending the duration of customer relationships

Profits can be obtained through relationships in the following ways:

Moral hazard

Recklessness when people and organizations (including firms and governments) do not have to face the full consequences of their actions.

Comparative advantage

Relative (not absolute) advantage in one economic activity that one nation enjoys in comparison with other nations.

Balance Sheet

Reports a company's assets, liabilities, and owners' equity

Import quota

Restriction on the quantity of imports.

Cross-market retaliation

Retaliatory attacks on a competitor's other markets if this competitor attacks a firm's original market.

Identify price levels that enable the firm to yield targeted ROI

Return on investment

Intellectual property rights (IPR)

Rights associated with the ownership of intellectual property.

Political risk

Risk associated with political changes that may negatively impact domestic and foreign firms.

Economic system

Rules of the game on how a country is governed economically

Specific, Measurable, Achievable, Relevant, Time-Bound

SMART stands for:

Export

Selling abroad.

Trust, openness, honoring promises, respect, collaboration and recognizing the market as the raison d'etre

Six values required by organizations striving to become more market oriented:

Target exchange rate (crawling band)

Specified upper or lower bounds within which an exchange rate is allowed to fluctuate.

Strategic hedging

Spreading out activities in a number of countries in different currency zones to offset any currency losses in one region through gains in other regions.

Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, Postpurchase Evaluation

Stages of the Consumer Buying Process

Identify price levels that help stabilize demand and sales

Status Quo

organizational needs

Strategic Plans/Performance appraisals/customer surveys/employee surveys/restructuring plans/efficiency measures: sources for collecting ______________ analysis information

Contender

Strategy that centers on a firm engaging in rapid learning and then expanding overseas.

Dodger

Strategy that centers on cooperating through joint ventures with MNEs and sell-offs to MNEs.

Extender

Strategy that centers on leveraging homegrown competencies abroad.

Defender

Strategy that centers on local assets in areas in which MNEs are weak.

Blue ocean strategy

Strategy that focuses on developing new markets ("blue ocean") and avoids attacking core markets defended by rivals, which is likely to result in a bloody price war or a "red ocean."

Capacity to punish

Sufficient resources possessed by a price leader to deter and combat defection.

More

Supply is more or less elastic in the long run?

Adjust price levels so the firm can increase sales volume to match organizational expenses

Survival

Merchandise

Tangible products being traded.

antidumping duty

Tariffs levied on imports that have been "dumped" (selling below costs to "unfairly" drive domestic firms out of business).

R - R - V - O - C - Receiving - Responding - Valuing - Organization - Characterization by value

Taxonomy of Affective Learning Objectives

R - U - A - A- E - C - Remembering - Understanding - Applying - Analyzing - Evaluating - Creating

Taxonomy of Cognitive Learning Objectives

O - I - P - A - O - Observing - Imitating - Practicing - Adapting - Originating

Taxonomy of Psychomotor Learning Objectives

Technology spillover

Technology diffused from foreign firms to domestic firms.

Extraversion, conscientiousness, emotional stability, agreeableness, openness to experience

The Big Five Personality factors are:

idea generation, screening, concept testing, business analysis, product development, test marketing, commercialization ISCBPTC

The Seven Phases of the new-product development process

Opportunism

The act of seeking self-interest with guile.

Balance of Trade

The aggregation of importing and exporting that leads to the country-level trade surplus or deficit.

FDI flow

The amount of FDI moving in a given period (usually a year) in a certain direction.

Scale of entry

The amount of resources committed to entering a foreign market.

Infant industry argument

The argument that if domestic firms are as young as "infants," in the absence of government intervention, they stand no chances of surviving and will be crushed by mature foreign rivals.

Location-specific advantages

The benefits a firm reaps from the features specific to a place.

Spot transaction

The classic single-shot exchange of one currency for another.

Globalization

The close integration of countries and peoples of the world.

Regulatory pillar

The coercive power of governments.

Obsolescing bargain

The deal struck by MNEs and host governments, which change their requirements after the initial FDI entry.

brand insistence

The degree of brand loyalty in which a customer strongly prefers a specific brand and will accept no substitute

Spread

The difference between the offer price and the bid price.

Cultural distance

The difference between two cultures along identifiable dimensions such as individualism.

working capital

The difference of current assets-current liabilities

Absolute advantage

The economic advantage one nation enjoys that is absolutely superior to other nations.

Bandwagon effect

The effect of investors moving in the same direction at the same time, like a herd.

Institutional distance

The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries.

Resource similarity

The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm.

Factor endowment

The extent to which different countries possess various factors of production such as labor, land, and technology.

The greater the price elasticity of demand

The flatter the demand curve, __________

Group of 20 (G-20)

The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems.

Free trade

The idea that free market forces should determine how much to trade with little or no government intervention.

Protectionism

The idea that governments should actively protect domestic industries from imports and vigorously promote exports.

Risk management

The identification and assessment of risks and the preparation to minimize the impact of high-risk, unfortunate events.

Market imperfection (market failure)

The imperfection of the market mechanisms that make transactions prohibitively costly and sometimes make transactions unable to take place.

Liability of foreignness

The inherent disadvantage that foreign firms experience in host countries because of their non-native status.

Cognitive pillar

The internalized (or taken-for-granted) values and beliefs that guide individual and firm behavior.

Property rights

The legal rights to use an economic property (resource) and to derive income and benefits from it.

Classical trade theories

The major theories of international trade that were advanced before the 20th century, which consist of (1) mercantilism, (2) absolute advantage, and (3) comparative advantage.

Modern trade theories

The major theories of international trade that were advanced in the 20th century, which consist of (1) product life cycle, (2) strategic trade, and (3) national competitive advantage of industries.

Foreign exchange market

The market where individuals, firms, governments, and banks buy and sell foreign currencies.

brand equity

The marketing and financial value associated with a brand's strength in a market

Normative pillar

The mechanism through which norms influence individual and firm behavior.

Bounded rationality

The necessity of making rational decisions in the absence of complete information.

Market commonality

The overlap between two rivals' markets.

Concentration ratio

The percentage of total industry sales accounted for by the top four, eight, or twenty firms.

Country-of-origin effect

The positive or negative perception of firms and products from a certain country.

Currency risk

The potential for loss associated with fluctuations in the foreign exchange market.

offshore outsourcing

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product or service will be sold

offshoring

The practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company (e.g., in a wholly owned subsidiary) or a third party (e.g., subcontractor)

Foreign exchange rate

The price of one currency in terms of another.

Bid rate

The price to buy a currency.

Offer rate

The price to sell a currency.

Competitor analysis

The process of anticipating rivals' actions in order to both revise a firm's plan and prepare to deal with rivals' response.

Investing activities

The purchase and sale of long-term assets such as land and equipment are known as _______________.

Demonstration (contagion or imitation) effect

The reaction of local firms to rise to the challenge demonstrated by MNEs through learning and imitation.

Internalization

The replacement of cross-border markets (such as exporting and importing) with one firm (the MNE) locating and operating in two or more countries.

Management control rights

The rights to appoint key managers and establish control mechanisms.

Dissemination risk

The risk associated with unauthorized diffusion of firm-specific know-how.

Political system

The rules of the game on how a country is governed politically.

Legal system

The rules of the game on how a country's laws are enacted and enforced.

Gross domestic product (GDP)

The sum of value added by resident firms, households, and governments operating in an economy.

Quota

The weight a member country carries within the IMF, which determines the amount of its financial contribution (technically known as its "subscription"), its capacity to borrow from the IMF, and its voting power.

- Aligns organizational goals with individual goals and organizational processes - Gives employees clear goals and feedback - Generates useful data

Three Main Benefits of Performance Management

recognition, preference, insistence

Three degrees of brand loyalty

Organizational analysis, task analysis and person analysis

Three levels of needs assessments

single rate system, pay grades and broadbanding

Three most common job pricing systems

Not communicating a performance plan, a lack of accountability and human biases and errors

Three most common obstacles to effective performance management

Anticipatory, Encounter, Settling In

Three phases of Socialization

compliance strategy, collaboration strategy, avoidance strategy

Three primary labor relations strategies

culture, geography and institutions

Three reasons that a country is either developed or underdeveloped

patents, copyrights and trademarks

Three types of intellectual property

Cognitive, Affective, Pschomotor

Three types of learning objectives

superior value for their money

To have a competitive advantage, a company must ultimately be able to give customers ____________.

- Recognize and reward high performers - Increase the likelihood of achieving corporate goals - Improve productivity - Move away from an entitlement culture

Top four reasons organizations give for tying pay to performance ar

FDI stock

Total accumulation of inbound FDI in a country or outbound FDI from a country across a given period (usually several years).

Nontariff barrier (NTB)

Trade barrier that relies on nontariff means to discourage imports.

Tariff barrier

Trade barrier that relies on tariffs to discourage imports.

participant reactions, learning assessments, training transfer back to job

Training evaluation includes:

Piracy

Unauthorized use of intellectual property.

Dirty (managed) float

Using selective government intervention to determine exchange rates.

Norms

Values, beliefs, and actions of relevant players that influence the focal individuals and firms.

Washington Consensus

View centered on unquestioned belief in the superiority of private ownership over state ownership in economic policy making spearheaded by the International Monetary Fund and the World Bank

Strong

Weak or strong dollar: Foreign tourists find it more expensive when visiting the US

Weak

Weak or strong dollar: Governments, firms and the individuals outside the US holding dollar=denominated assets suffer from value loss on their assets

Weak

Weak or strong dollar: Higher prices on imports contribute to higher price level and inflation level in the US

Strong

Weak or strong dollar: Lower prices on foreign good help keep US level high and inflation level low

Weak

Weak or strong dollar: The US can print more dollars to export its problems to the rest of the world

Strong

Weak or strong dollar: US consumers benefit from low prices on imports

Weak

Weak or strong dollar: US exporters find it easier to compete on price abroad

Strong

Weak or strong dollar: US exporters have a hard time competing on price abroad

Weak

Weak or strong dollar: US face higher prices on imports

Weak

Weak or strong dollar: US firms faces less competitive pressure to keep prices low

Strong

Weak or strong dollar: US firms find it easier to acquire foreign targets

Strong

Weak or strong dollar: US firms in import-competing industries have a hard time competing with low-cost imports

Strong

Weak or strong dollar: US tourists enjoy lower prices abroad

Weak

Weak or strong dollar: US tourists find it more expensive when traveling abroad

Weak

Weak or strong dollar: foreign firms find it easier to acquire US targets

Weak

Weak or strong dollar: foreign tourists enjoy lower prices in the US

65%

What % of the world's foreign exchange transactions are in USD$?

80%

What % of the world's foreign exchange transactions are in dollars?

long-term bank loans, mortgages, and bonds

What are 3 common sources of long-term debt?

valuable, rare, hard to imitate and organizationally embedded

What are VRIO assets?

selling goods, providing services, Earning interest by providing loans

What are some common business activities that generate revenue?

1. Summary of accounting policy 2. Additional info about summary totals 3. Disclosure of info not included in summary 4. Supplemental disclosure required by FASB or SEC

What are the 4 general types of accounting notes?

Gains, Losses, Revenues, and Expenses

What are the 4 primary item categories listed on the income statement?

Relative price differences & PPP, Interest rates & money supply, productivity & balance of payments, exchange rate policies, investor psychology

What are the five determinants of foreign exchange rates?

cost of goods sold; selling, general, and administrative expense, depreciation expense, income tax expense, and interest expense

What are the key expense items commonly found on the income statement?

cash, accounts receivable, and inventory

What are the most common current assets?

Property, plant, and equipment (PPE)

What are the primary long-term assets?

Regulatory, normative and cognitive

What are the three 'pillars' of institutions?

Mercantilism, Absolute Advantage & Comparative Advantage

What are the three classical trade theories?

Common law, civil law & theocratic law

What are the three legal traditions?

Product Life Cycles, Strategic Trade, Diamond

What are the three modern trade theories?

The balance sheet, the income statement, and the statement of cashflows

What are the three primary financial statements?

spot transactions, forward transactions and swaps

What are the three primary types of foreign exchange transactions?

The wealth effect, the interest- rate effect and the exchange rate effect

What are the three reasons that the aggregate demand curve slopes downward?

New force in recent times, a long-running historical evolution, a pendulum swinging between extremes

What are the three views of globalization?

1) to predict a company's future profitability and cash flows 2) to identify and improve potential problem areas

What are the two main purposes of financial statement analysis?

China

What country doesn't fix their currency?

information on the accounting assumptions used in preparing the statements and supplemental information not included in the statements themselves

What information do the notes to accounting statements provide?

Assets = Liabilities + Owners' Equity

What is the accounting equation?

Income from Continuing Operations

What is the best measure of sustainable profitability?

Common stockholders are the true owners of a business; Preferred stockholders give up some of the rights of ownership enjoyed by common stockholders in exchange for some of the safety promised to creditors

What is the difference between a common stockholder and a preferred stockholder?

states that the financial results of an economic entity should be reported separately from the financial results of other entities, even though all those entities may be controlled by the same person

What is the entity concept?

Product Life Cycle Theory

What is the first dynamic trade theory?

Cash

What is the first item that is usually listed on a U.S. balance sheet?

Long-term assets

What is the first item that is usually listed on a non-U.S. balance sheet?

Mercantilism

What theory has strengths: Forerunner of modern-day protectionism?

Absolute Advantage

What theory has the strengths: Birth of modern economics, forerunner of the free trade movement, defeats mercantilism intellectually?

Product Life Cycle

What theory has the strengths: First theory to incorporate dynamic changes in patterns of trade, more realistic with trade in industrial products in the 20th Century?

Strategic Trade

What theory has the strengths: more realistic and positively incorporates the role of governments in trade, provides direct policy advice?

Comparative Advantage

What theory has the strengths: more realistic guidance to nations interested in trade but having no absolute advantage, explains patterns of trade based on factor endowments?

National Competitive Advantage of Industries (Diamond)

What theory has the strengths: most recent most complex and most realistic among the various theories, it directly connects research on firms, industries and nations?

Strategic Trade

What theory has the weaknesses: Ideological resistance from many "free trade" scholars and policy makers, invites all kinds of industries to claim they are strategic?

Mercantilism

What theory has the weaknesses: Inefficient allocation of resources, reduces the wealth of the nation in the long run?

Product Life Cycle

What theory has the weaknesses: The United States may not always be the lead innovation nation, many new products are now launched simultaneously around the world?

National Competitive Advantage of Industries (Diamond)

What theory has the weaknesses: has not been comprehensively tested, overseas demand may stimulate the competitiveness of certain industries?

Comparative Advantage

What theory has the weaknesses: relatively static assuming that comparative advantage and factor endowments do not change over time?

Absolute Advantage

What theory has the weaknesses: when one nation is absolutely inferior there is no advice, when there are many nations it may be difficult to find an absolute advantage?

explicit cost and implicit cost

What two types of costs make up total cost?

the exchange rate effect

When a lower price level reduces the interest rate, investors move some of their funds overseas in search of higher returns - this movement of funds causes the real value of the domestic currency to fall in the market for foreign-currency exchange.

When value has been delivered to customers (typically only after the required work has been performed and after the collection of cash is reasonably assured)

When should revenue be recognized on an income statement?

1. Rapid Advancements in the IT field 2. the international integration of worldwide business 3. Increased scrutiny associated with large corporate accounting scandals

Which 3 factors have combined to make right now a time of significant change in accounting?

virtue

Which ethical standard: A company valuing honesty that quickly recalls products that might be defective or dangerous

Common Good

Which ethical standard: Ensuring that suppliers do not employ child labor or provide unsafe working conditions

rights

Which ethical standard: If a supervisor tells an employee to handle a toxic substance without appropriate protective gear

utilitarian

Which ethical standard: Southwest Airlines cuts all employees' pay rather than laying anyone off

fairness

Which ethical standard: debate over the appropriateness of CEO salaries and bonuses that are hundreds of times larger than the pay of the average employee.

companies report the intangibles that they have purchased from other companies but not the intangibles that they have developed themselves

Which intangible assets are reported on the balance sheet?

Income from discontinued operations and extraordinary items

Which items are considered "below-the-line" items?

FASB

Which private body establishes accounting rules in the U.S.?

External Users

Who is financial accounting information primarily prepared for and used by?

Reduces Dissemination risks, provides tight control over foreign operations, facilitates the transfer of tacit knowledge through "learning by doing"

Why do firms prefer FDI to Licensing (3 reasons)?

Enhance employability & advance career, better preparation to be expat, competence in interacting with foreign suppliers/partners/competitors/employees

Why study global business?

Effectiveness

______ is the degree to which long-term customer relationships help achiee an organization's objectives.

Efficiency

______ refers to minimizing the resources an organization use to achieve a specific level of desired customer relationships

Permissive

______ subjects may be negotiated but don not have to be.

Mandatory

_______ subjects are those required by The National Labor Relations Board.

Illegal

_______ subjects may not be negotiated.

fractional reserve banking

a banking system in which banks hold only a fraction of deposits as reserves

workplace tort

a civil wrong in which an employer violates a duty owed to its customers or employees

acceptance

a clear expression of the accepting party's agreement to the terms of the offer

negligent hiring

a company is considered responsible for the damaging actions of its employees if it failed to exercise reasonable care in hiring the employee who caused the harm

professional employer organization

a company that leases employees to companies that need them

trading company

a company that links buyers and sellers in different countries

external reference price

a comparison price provided by others

idea

a concept, philosophy, image or issue

allowance

a concession in price to achieve a desired goal

sunk cost

a cost that has already been committed and cannot be recovered

indifference curve

a curve that shows consumption bundles that give the consumer the same level of satisfaction

brand loyalty

a customer's favorable attitude toward a specific brand

value

a customer's subjective assessment of benefits relative to costs in determining the worth of a product

code of ethics

a decision making guide that describes the highest values to which an organization aspires

strategic business unit (SBU)

a division, product line or other profit center within the parent company

import tariff

a duty levied by a nation on goods bought outside its borders and brought into the country

commission errors

a failure to follow sound, established operational and ethical practices

Employee Retirement Income Security Act of 1974

a federal law that protects employees' retirement benefits from mismanagemen

Fair Labor Standards Act of 1938

a federal law that sets standards for minimum wages, overtime pay, and equal pay for men and women performing the same jobs

multinational enterprise

a firm that has operations or subsidiaries in many countries

monopoly

a firm that is the sole seller of a product without close substitutes

equal employment opportunity

a firm's employment practices,must be designed and used in a manner that treats employees and applicants consistently regardless of their protected characteristics such as sex and race

Lifelong learning

a formal commitment to ensuring that employees have and develop the skills they need to be effective in their jobs today and in the future

vendor analysis

a formal, systematic evaluation of current an potential vendors

improshare

a gainsharing plan based on a mathematical formula that compares a performance baseline with actual productivity during a given period with the goal of reducing production time

normal good

a good for which an increase in income raises the quantity demanded

inferior good

a good for which an increase in income reduces the quantity demanded

Giffen good

a good for which an increase in the price raises the quantity demanded

inferior good

a good for which other things being equal an increase in income leads to a decrease in demand

normal good

a good for which, other things being equal, an increase in income leads to an increase in demand

capital requirement

a government regulation specifying a minimum amount of bank capital

embargo

a government's suspension of trade in a particular product or with a given country

demand curve

a graph of quantity of products expected to be sold at various prices if other factors remain constant

demand curve

a graph of the relationship between the price of a good and the quantity demanded

supply curve

a graph of the relationship between the price of a good and the quantity supplied

labor union

a group of at least two employees who band together as a single entity to address pay, hours, and working conditions with their employer

market

a group of buyers and sellers of a particular good or service

product line

a group of closely related product items viewed as a unit because of marketing, technical, or end-use considerations

cartel

a group of firms acting in unison

marketing channel

a group of individuals and organizations that direct the flow of products from producers to customers within the supply chain

market growth/market share matrix

a helpful business tool, based on the philosophy that a product's market growth rate and its market share are important considerations in determining its marketing strategy

job enrichment

a job design approach that increases a job's complexity to give workers greater responsibility and opportunities to feel a sense of achievement

contingent assessment methods

a job offer is made contingent on passing the assessment. ie ref checks, med & drug tests, background checks

customer lifetime value

a key measurement that forecasts a customer's lifetime economic contribution based on continued relationship marketing efforts

omission errors

a lack of written rules

discovery learning

a learning preference for exploration during learning. Prefer subjective assessments, interactional activities, informational methods and active-reflective activities

observational learning

a learning preference for external stimuli such as demonstrations and diagrams to help facilitate learning. tend to prefer information and active-reflective activities

structured learning

a learning preference for processing strategies such as taking notes, writing down task steps and so forth. related to preferences for subjective assessments.

group learning

a learning preference to work with others while learning. Related to preferences for action and interactional learning.

experiential learning

a learning preference with a desire for hands-on approach to instruction. tend to prefer active learning activities

trademark

a legal designation of exclusive use of a brand

collective bargaining agreement

a legal written contract between organized labor and an employer that is enforceable through the negotiated grievance and arbitration procedure

quota

a limit on the amount of goods an importing country will accept for certain product categories in a specific period of time

test marketing

a limited introduction of a product in geographic areas chosen to represent the intended market

socialization

a long-term process of planned and unplanned, formal and informal activities and experiences through which an individual acquires the attitudes, behaviors and knowledge needed to successfully participate as an organizational member

mission statement

a long-term view, or vision, of what the organization wants to become

marketing concept

a managerial philosophy that an organization should try to satisfy customers' needs through a coordinated set of activities that also allows the organization to achieve its goals

competitive market

a market in which there are many buyers and many sellers so that each has a negligible impact on the market price

monopolistic competition

a market structure in which many firms sell products that are similar but not identical

oligopoly

a market structure in which only a few sellers offer similar or identical products

competitive market

a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker

vertical marketing system

a marketing channel managed by a single channel member to achieve efficient, low-cost distribution aimed at satisfying target market customers

income elasticity of demand

a measure of how much the quantity demanded of a good responds to a change in consumers' income, computed as the percentage change in quantity demanded divided by the percentage change in income

price elasticity of demand

a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price

cross-price elasticity of demand

a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in price of the second good

price elasticity of supply

a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price

GDP deflator

a measure of the price level calculated as the ratio of nominal GDP to real GDP times

elasticity

a measure of the responsiveness of quantity demanded or quantity supplied to a change in one of its determinants

price elasticity of demand

a measure of the sensitivity of demand to changes in price

cut score

a minimum assessment score that must be met or exceeded to advance to the next assessment phase or to be eligible to receive a job offer

Other characteristics

a miscellaneous category for worker characteristics that are not knowledge, skills or abilities including personality traits, values and work styles

natural monopoly

a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms

business process reengineering

a more radical rethinking and redesign of business processes to achieve large improvements in speed, service, cost or quality

brand

a name, term, design, symbol or other feature that identifies one seller's product as distinct from those of other sellers

modified rebuy purchase

a new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified.

prisoners' dilemma

a particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial

joint venture

a partnership between a domestic firm and foreign firm or government

strategic alliance

a partnership that is formed to create a competitive advantage on a worldwide basis

balanced scorecard

a performance measurement system that translates the organization's strategy into financial, business process, learning and growth and customer outcomes. sequential.

downsizing

a permanent reduction of multiple employees intended to improve the efficiency or effectiveness of the firm

job fairs

a place where multiple employers and recruits meet to discuss employment opportunities

Hay Group Guide Chart - Profile Method

a point-factor system is used to produce both a profile and a point score for each position. know how problem solving accountability working conditions

affective commitment

a positive emotional attachment to the organization and strong identification with its values and goals

internal reference price

a price developed in the buyer's mind through experience with the product

F.O.B. destination

a price indicating the producer is absorbing shipping costs

cash discount

a price reduction given to buyers for prompt payment or cash payment

seasonal discount

a price reduction given to buyers for purchasing goods or services out of season

Financial Accounting Standards Board (FASB)

a private body established and supported by the joint efforts of the U.S. business community, financial analysts, and practicing accountants

negotiation

a process in which two or more parties make offers, counteroffers and concessions in order to reach an agreement

gainsharing

a program in which the firm shares the value of productivity gains with employees

trade (functional) discount

a reduction off the list price a producer gives to an intermediary for performing certain functions

workplace bullying

a repeated mistreatment of another employee through verbal abuse; conduct that is threatening, humiliating or intimidating; or sabotage that interferes with the other person's work

straight rebuy purchase

a routine purchase of the same products under approximately the same terms of sale by a business buyer

supply-chain management

a set of approaches used to integrate the functions of operations management, logistics management, supply management and marketing channel management so products are produced and distributed in the right quantities to the right locations and at the right time

global mindset

a set of individual attributes that enable you to influence individuals, groups and organizations from diverse socio/cultural/institutional systems

direct ownership

a situation in which a company owns subsidiaries or other facilities overseas

exclusive dealing

a situation in which a manufacturer forbids an intermediary from carrying products of competing manufacturers

Nash equilibrium

a situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen

shortage

a situation in which quantity demanded is greater than the quantity supplied

surplus

a situation in which quantity supplied is greater than quantity demanded

equilibrium

a situation in which the market price has reached the level at which quantity supplied equals quantity demanded

target market

a specific group of customers on who an organization focuses its marketing efforts

product item

a specific version of a product that can be designated as a distinct offering among a firm's products

ability

a stable and enduring capability to perform a variety of tasks (verbal or mechanical ability)

action plans

a strategy for proactively addressing an expected talent shortage or surplus

corporate strategies

a strategy that determines the means for utilizing resources in the various functional areas to reach the organizations goals

dominant strategy

a strategy that is best for a player in a game regardless of the strategies chosen by the other players

Position Analysis Questionnaire

a structured job evaluation questionnaire that is statistically analyzed to calculate pay rates based on how the labor market is valuing worker characteristics. a copyrighted, standardized, structured job analysis questionnaire. 6 sections covering 187 job elements.

talent philosophy

a system of beliefs about how an organization's employees should be treated

sensory modality

a system that interacts with the environment through one of the basic senses. visual, auditory, tactile, kinetic.

job evaluation

a systematic process that uses expert judgement to assess differences in value between jobs

job analysis

a systematic process used to identify and describe the important aspects of a job and the characteristics a worker needs to perform the job well. need to be reliable and valid.

demand schedule

a table that shows the relationship between the price of a good and the quantity demanded

supply schedule

a table that shows the relationship between the price of a good and the quantity supplied

good

a tangible physical entity

performance improvement plan

a tool to monitor and measure an employee's deficient work products, processes and/or behaviors to improve performance or modify behavior. F acts to define prob O bj to help emp resolve S olutions to help emp reach obj A ctions to take if not corrected + overall efforts to help emp succeed

workers' compensation

a type of insurance that replaces wages and medical benefits for employees injured on the job in exchange for relinquishing the employee's right to sue the employer for negligence

simulation

a type of work sample that gives candidates an actual job task to perform or simulates critical events that might occur to assess how well a candidate handles them

integrative negotiation

a win-win negotiation in which the agreement involves no loss to either party

explicit employment contract

a written or verbal employment contract

full competence

ability to analyze problems associated with the job

partial proficiency

ability to apply more advanced principles on the job

limited ability

ability to perform simple tasks without direction

freight absorption pricing

absorption of all or part of actual freight costs by the seller

serial socialization

accessible and supportive organizational members serve as role models and mentors

assessment goals

accuracy, fit, ethics, legal compliance

Railway Labor Act

act that governs employment relations for airlines and railroads

Labor Management Reporting and Disclosure Act of 1959 (Landrum-Griffin Act)

act that outlined a Bill of Rights for union members and sets up procedures for union elections, discipline and financial reporting

supply chain

activities associated with the flow and transformation of products from raw materials through to the end customer

physical distribution

activities used to move products from producers to consumers and other end users

cost-based pricing

adding a dollar amount or percentage to the cost of the product

cost-plus pricing

adding a specified dollar amount or percentage to the seller's cost

job enlargement

adding more tasks at the same level of responsibility and skill related to an employee's current position

markup pricing

adding to the cost of the product a predetermined percentage of that cost

Purchasing power parity (PPP)

adjustment made to the GDP to reflect differences in the cost of living

special-event pricing

advertised sales or price cutting linked to a holiday, a season or an event

human resource planning

aligning the organization's human resources to effectively and efficiently accomplish the organization's strategic goals

leniency error

all employees are given high ratings regardless of performance

labor market

all of the potential employees located within a geographic area from which the organization might be able to hire

indirect financial compensation

all the tangible and financially valued rewards that are not included in direct compensation including free meals, vacation time and health insurance

indirect financial compensation

all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time and health insurance

union shops

all workers in a unionized workplace are forced to join the union and pay dues

recency effect

allowing recent events and performance to have a disproportionately large influence on the rating

telecommuting

allows employees to work from home and link to the company's offices via computer.

National Labor Relations Act of 1947 (Taft-Hartley Act)

amended the Wagner Act to clarify what are considered unfair labor practices by unions and employees

collusion

an agreement among firms in a market about quantities to produce or prices to charge

General Agreement on Tariffs and Trade

an agreement among nations to reduce worldwide tariffs and increase international trade

tying agreement

an agreement in which a supplier furnishes a product to a channel member with the stipulation that the channel member must purchase other products as well

strategic channel alliance

an agreement whereby the products of one organization are distributed through the marketing channels of another

Asia-Pacific Economic Cooperation

an alliance that promotes open trade and economic and technical cooperation among member nations throughout the world

Southern Common Market

an alliance that promotes the free circulation of goods, services and production factors, and has a common external tariff and commercial policy among member nations in South America

European Union

an alliance that promotes trade among its member countries in Europe

Association of Southeast Asian Nations

an alliance that promotes trade and economic integration among member nations in Southeast Asia

licensing

an alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing

reciprocity

an arrangement unique to business marketing in which two organizations agree to buy from each other

critical incident appraisal method

an assessor discusses specific examples of the target employee's positive and negative behaviors with the employee

current asset

an asset that is expected to be used within one year of the balance sheet date

decertification election

an election to determine if a majority of employees want to no longer be represented by a union

presenteeism

an employee physically comes to work but does not function at his or her full potential

errors of commission

an employee receives an undeserved reward

errors of omission

an employee who deserves a reward doesn't receive one

reasonable accommodation

an employer is required to take reasonable steps to accomodate a disability unless it would cause the employer undue hardship

flexible spending account

an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pretax basis

adverse impact

an employment practice has a disproportionate effect on a protected group regardless of its intent

employment at will

an employment relationship which either party can legally terminate at any time for just cause, no cause, or evan a cause that is morally wrong as long as it is not illegal

World Trade Organization

an entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies and governments about trade rules around the world

value analysis

an evaluation of each component of a potential purchase

arbitration

an impartial third party acts as both judge and jury in imposing a binding decision on both negotiating parties

appreciation

an increase of the value of currency

industrial distributor

an independent business organization that takes title to industrial products and carries inventories

search firms

an independent company that specializes in the recruitment of particular types of talent

accountability

an individual is expected to provide a regular accounting to a superior about the results of what she or he is doing and will be held responsible for the outcome

independent contractor

an individual or business that provides services to another individual or business that controls or directs only the result of the work

central bank

an institution designed to oversee the banking system and regulate the quantity of money in the economy

service

an intangible result of the application of human and mechanical efforts to people or objects

Online job boards

an internet site that helps job seekers and employers find one another

just-in-time

an inventory management approach in which supplies arrive just when needed for production or resale

medium of exchange

an item that buyers give to sellers when they want to purchase goods and services

store of value

an item that people can use to transfer purchasing power from the present to the future

job task

an observable unit of work with a beginning and an end

continuous performance appraisal

an ongoing performance appraisal process that involves the employee in evaluating his or her performance and setting performance goals and provides continuous coaching and feedback

succession management

an ongoing process of systematically identifying, assessing and developing organizational leadership to enhance performance

corporate identity

an organizaion's unique symbols, personalities and philosophies

pay follower

an organization that pays its front-line employees as little as possible

employer image

an organization's reputation as an employer

sole sourcing

an organizations decision to use only one supplier

multiple sourcing

an organizations decision to use several suppliers

new-task purchase

an organizations initial purchase of an item to be used to perform a new job or solve a new problem

market orientation

an organizationwide commitment to researching and responding to customer needs

dysfunctional stress

an overload of stress resulting from a situation of under- or over-arousal continuing for too long

implicit employment contract

an understanding that is not part of a written or verbal contract

workplace violence

any act of threat of physical violence, harassment, intimidation or other threatening disruptive behavior that occurs at the workplace

compensable factor

any characteristic used to provide a basis for judging a job's value

Employee Wellness Programs

any initiative designed to increase company performance or employee performance or morale through improved employee health

reinforcers

anything that makes a behavior more likely to happen again

exit inteviews

asking separated employees why they left to acquire information that can be used to improve conditions for current employees

situational interviews

asks how the candidate might react to hypothetical situations

integrity tests

assess attitudes and experiences related to reliability, trustworthiness, honesty and moral character

background checks

assess factors including personal and credit characteristics, character, lifestyle, criminal history and reputation. contingent method.

cognitive ability test

assess general mental abilities including reasoning, logic and perceptual abilities. evaluative method.

psychomotor tests

assess strength, physical dexterity and coordination

sensory tests

assess visual, auditory and speech perception

collaborating

attempting to work with the other person to find some solution which fully satisfies the concerns of both parties

spot awards

awards given immediately when a desired behavior is seen

demand deposits

balances in bank accounts that depositors can access on demand by writing a check

consideration

bargained-for exchange between the contract parties - something of value must pass from one party to the other

variable pay

bases some or all of an employee's compensation on employee, team, or organizational

raw materials

basic natural materials that become part of a physical product

stereotype

believeing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way

stereotype

believing that everyone in a particular group shares certain characteristics or abilities or will behave in the same way

scientific management

breaks work down into its simplest elements and then systematically improves the worker's performance of each element

Competencies

broad worker characteristics that underlie successful job performance

investiture socialization

builds newcomers' self-confidence and reflects senior employees' valuing of newcomers' knowledge and personal characteristics

corporate social responsibility

businesses showing concern for common good and valuing human dignity

multiple hurdles

candidates must receive a passing score on an assessment before being allowed to continue in the selection process

shared service center

centralizes routine, transaction-based HRM activities

functional modifications

changes affecting a product's versatility, effectiveness, convenience, or safety

automatic stabilizers

changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action

product modification

changes in one or more characteristics of a product

quality modifications

changes relating to a product's dependability and durability

aesthetic modifications

changes relating to the sensory appeal of a product

bona fide occupational qualification

characteristic that is essential to the successful performance of a relevant job function

uniform geographic pricing

charging all customers the same price, regardless of geographic location

differential pricing

charging different prices to different buyers for the same quality and quantity of product

price skimming

charging the highest possible price that buyers who most desire the product will pay

cost of living allowances

clauses in union contacts that automatically increase wages base on the U.S. Bureau of Labor Statistics' cost of living index

union models

closed shop agency shop open shop

horizontal channel integration

combining organizations at the same level of operation under one management

vertical channel integration

combining two or more stages of the marketing channel under one management

Customary benefits

commonly provided benefits that are viewed as an entitlement by employees insurance, retirement plans

internal job posting systems

communicate information about internal job openings to employees

total compensation statement

communicating total compensation in detail through a written summary of employee direct and indirect compensation

private warehouses

company-operated facilities for storing and shipping products

performance rating methods

compares employee performance to a set of standards to identify a number or letter rating that represents the employee's performance level. essay appr, critical incident, graphic, behavior anchored, behavior obs scale, forced choice, checklist, work standards, mgmt by obj

performance ranking methods

compares employees to each other in some way. forced ranking, paired comparison, forced distribution.

race norming

comparing an applicant's scores only to members of his or her own racial subgroup and setting separate passing or cutoff scores for each subgroup

work standards

comparing an employee's performance to output targets that reflect different levels of performance

gap analysis

comparing labor supply and demand forecasts to identify future talent needs

what emp will do

compensation perf mgmt

Direct financial compensation

compensation received in the form of salary, wages, commissions, stock options or bonuses

direct financial compensation

compensation received in the form of salary, wages, commissions, stock options or bonuses

labor relations strategies

compliance collaboration avoidance

centralized

concentrate power and decision making authority at higher levels of the organization

value conscious

concerned about price and quality of a product

dysfunctional

conflict that focuses on emotions and differences between both parties

high potential error

confusing potential with performance

stakeholder perspective

considering the interests and opinions of all people, groups, organizations, or systems that affect or could be affected by the organizations actions

offer

contains the terms and conditions of employment as proposed by the employ and usually specific requirements for accepting the offer such as a signature and a deadline

fixed costs

costs that do not vary with changes in the number of units produced or sold

fixed costs

costs that do not vary with the quantity of output produced

variable costs

costs that vary directly with changes in the number of units produced or sold

variable costs

costs that vary with the quantity of output produced

works councils

council of elected workers that participate in shared workplace governance

rights arbitration

covers disputes over the interpretation of an existing contract and is often used in settling grievances

Occupational Safety and Health Administration

created by the Occupational Safety and health Act to set and enforce protective workplace safety and health standards

learning objectives

created to identify desired learning outcomes. types: cognitive, affective, and psychomotor

Informal rules

cultures, ethics, and norms play an important part in shaping the success and failure of firms around the globe

talent inventories

databases summarizing each employee's competencies, qualifications, languages spoken, and anything else that can help the company understand how the employee can contribute

problem-focused coping strategies

deal directly with the cause of stress

quantity discounts

deductions from the list price for purchasing in large quantities

business strategy

defines how a firm will compete in its marketplace

derived demand

demand for business products that stems from demand for consumer products

inelastic demand

demand for business products that stems from demand for consumer products

joint demand

demand involving the use of two or more items in combination to produce a product

reserves

deposits that banks have received but have not loaned out

intrinsic motivation

derived from an interest in or enjoyment from doing a task

performance plan

describes desired goals and results, how results will be measured and weighted and standards will be used to evaluate results

affirmative action plan

describes in detail the actions to be taken, procedures to be followed and standards to be met when establishing an affirmative action program

ergonomics

designing the work environment to reduce the physical and psychological demands placed on employees

product development

determining if producing a product is technically feasible and cost effective

inventory management

developing and maintaining adequate assortments of products to meet customers' needs

international marketing

developing and performing marketing activities across national boundaries

line extension

development of a product that is closely related to existing products in the line but is designed specifically to meet different customer needs

organizational chart

diagram illustrating the chain of command and reporting relationships in a company

wage differentials

differences in wage between various workers, groups of workers, or workers within a career field

reward differnentiation

differentiating rewards based on performance rather than giving all employees the same reward

performance management

directs and motivates employees, work groups and business units to accomplish organizational goals by linking past performance with future needs, setting specific goals for future behavior and performance, providing feedback and identifying and removing performance obstacles

organizational citizenship behaviors

discretionary behaviors that benefit the organization but that are not formally rewarded or required

competitive advantage

doing something differently from the competition that leads to outperformance and success

prestige sensitive

drawn to products that signify prominence and status

procedure

drive actions

contest socialization

each socialization stage is a contest in which one builds a performance record

tournament socialization

each stage of socialization is an elimination round and a new hire is out of the organization if he or she fails to pass

Training transfer

effectively using what is learned in training back on the job

nonprice competition

emphasizing factors other than price to distinguish a product from competing brands

price competition

emphasizing price as an issue and matching or beating competitors' prices

forced ranking method

employees are ranked in order of best to worst performance

variable socialization

employees do not know when to expect to pass to a different status level and the timeline may be different across employees

multi-crafting

employees gain proficiency in two or more trades

card check

employees sign a card of support if they are in favor of unionization.

non-exempt employees

employees who do not meet any of one of the FLSA exemption tests and are paid on an hourly basis and covered by wage and hour laws regarding minimum wage, overtime pay and hours worked

exempt employees

employees who meet one of the FLSA exemption tests, are paid on a fixed salary basis and are not entitled to overtime pay

worker adjustment and retraining notification act of 1988

employers with at least 100 employees must give at least 60 days notice of closings or mass layoffs of 50 or more preople

immigration reform and control act of 1986

employers with at least 4 employees must verify the employment eligibility of everyone hired

COBRA of 1986

employers with group health plans and 20 or more employees in the prior year must offer continued health and dental coverage to terminated employees for a period of time

price disrimination

employing price differentials that injure competition by giving one or more buyers a competitive advantage

preferential treatment

employment preference given to a member of a protected group

odd-even pricing

ending the price with certain numbers to influence buyers' perceptions of the price or product

uniformed services employment and reemployment rights act of 1994

ensures that members of the uniformed services are entitled to return to their civilian employment after their service. to protect the civilian employment of non-full-time military personnel in the United States called to active duty.

accessory equipment

equipment that does not become part of the final physical product but is used in production or office activities

Executive Order 11246

established requirements for non-discriminatory practices in hiring and employment on the part of U.S. government contractors. It "prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin."

fair labor standards act of 1938

establishes both a national minimum wage and overtime rules

negotiated pricing

establishing a final price through bargaining between seller and customer

product-line pricing

establishing and adjusting prices of multiple products within a product line

relationship marketing

establishing long-term, mutually satisfying buyer-seller relationships

evaluative assessment methods

evaluate job candidates to identify whom to hire. ie psychomotor tests, cognitive ability test, non-cog ability test, personality assessment, integrity tests, job knowledge test, structured interview, unstructured interview, work samples, simulations, assessment center

work samples

evaluate the performance of actual or simulated work tasks

person needs analysis

evaluates how individual employees are doing in the training area and determines who needs what type of training

business analysis

evaluating the potential impact of a product idea on the firm's sales, costs, and profits

paired comparison method

every employee in a work group is compared to the other group members

inclusion

everyone feels respected and listened to, and everyone contributes to his or her fullest potential

burnout

exhaustion of physical or emotional strength or motivation usually as a result of prolonged stress or frustration

installations

facilities and nonportable major equipment

mobility barriers

factors that make it harder to leave an organization

government markets

federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies

normative commitment

feeling obliged to stay with an organization for moral or ethical reasons

professional pricing

fees set by people with great skill or experience in a particular field

Explicit collusion

firms directly negotiate output and pricing and divide markets.

innovators

first adopters of new products

person-organization fit

fit between an individual's values, attitudes, and personality and the organization's values, norms and culture.

utilitarian, rights, fairness, common good, virtue

five types of ethical standards

average fixed cost

fixed cost divided by the quantity of output

emotion-focused coping strategies

focus on the emotions brought on by the stressor

development

focuses on developing competencies that an employee or workgroup is expected to need in the future

performance culture

focuses on hiring, retaining, developing, motivating and making work assignments based on performance data and results

task needs analysis

focuses on identifying which jobs, competencies, abilities, behaviors, etc. the training effort should focus on

forced-choice rating method

forces the assessor to choose the statement that best fits the target employee from a provided set of statements that are scored and weighted in advance

training

formal and informal activities to improve competencies relevant to an employee's or workgroup's current job

marketing mix

four marketing activities - product, pricing, distribution and promotion - that a firm can control to meet the needs of customers within its target market

entrepreneurial (creative), bureaucratic (formal), consensual (loyalty), competitive (advantage)

four types of organizational culture

megacarriers

freight transportation firms that provide several modes of shipment

scanlon plans

gainsharing programs based on implementing employee suggestions for lowering the cost per unit produced

base-point pricing

geographic pricing that combines factory price and freight charges from the base point nearest the buyer

flexible benefits plans

give employees a set amount of credits or dollars to allocate among different benefits options provided by the employer

severance pay

give to employees upon termination of their employment

similar-to-me effect

giving high ratings to someone because she or he is perceived as being similar to the rater

pricing objectives

goals that describe what a firm wants to achieve though pricing

surface bargaining

going through the motions of negotiations with no intent of reaching an agreement

exchange controls

government restrictions on the amount of a particular currency that can be bought or sold

replacement charts

graphically shows current jobholders, possible successors and each successor's readiness to assume the job

Operating Income

gross profit minus all other expenses except for interest and taxes; measures the performance of the fundamental business operations conducted by a company

protected classes

groups underrepresented in employment

National Labor Relations Act of 1935 (Wagner Act)

guarantees the right of nonmanagerial employees of firms engaged in interstate commerce to join unions and bargain collectively

policy

guide decision making

health insurance

health care coverage for employees and their dependents

high performance work systems (HPWS)

high involvement or high commitment organizations

compensatory approach

high scores on some assessments can compensate for low scores on other assessments

outsourcing

hiring an external vendor to do work rathe than doing it internally

business strategy

how an organization will compete in a particular market

learning style

how people differ in how we process information when problem solving or learning

workflow

how work is organized to meet the organization's goals

labor relations strategic plan

identifies the labor relations goals desired individually or jointly by labor and management, determines the best strategy to reach those goals, and develops and executes the actions needed to implement that strategy

Competency Modeling

identifies the worker competencies characteristic to high performance

Organizational needs analysis

identifies where in the organization development or improvement opportunities exist

task statements

identify in specific behavioral terms the regular duties and responsibilities of a position

replacement planning

identifying specific back-up candidates for specific senior management positions

succession planning

identifying, developing and tracking employees to enable them to eventually assume higher level positions

defined contribution retirement plans

ie 401(k), 403(b) profit sharing, emp stock ownership

comparable worth

if two jobs have equal difficulty requirements, the pay should be the same, regardless of who fills them

opportunity bias

ignoring factors beyond the employee's control that influence his/her performance

supply management

in its broadest form refers to the processes that enable the progress of value from raw material to final customer and back to redesign and final disposition

long-term incentives

incentives that motivate behaviors and performance that support company value and long-term organizational health. ie stock options

Net Income

income from continuing operations plus or minus the results of discontinued operations and extraordinary items, net of their respective income tax effects

hardship premiums

increased salary for living in an area with a lower quality of life, less safety, etc.

tax equalization payments

increased salary to make up for higher taxes that reduce take-home pay and decrease employee's purchasing power

staffing ratios

indexing headcount with a business metric. ie manager to emp, rev to emp, cust to emp, store size to emp

producer markets

individuals and business organizations that purchase products to make profits by using them to produce other products or using them in operations

early majority

individuals who adopt a new product just prior to the average person

3 types of unions

industrial, trade, and employee associations

first impression bias

initial judgements influence later assessments

implicit costs

input costs that do not require an outlay of money by the firm

implicit costs

input costs that do not require an outlay of money by the firm (ignored by accountants)

explicit costs

input costs that require an outlay of money by the firm

business services

intangible products that many organizations use in their operations

motivation to transfer

intention and willingness to transfer any knowledge acquired in a training or development activity back to the work context

disparate treatment

intentional discrimination based on a person's protected characteristic

reseller markets

intermediaries that buy finished goods and resell them for a profit

workflow analysis

investigates how work moves through an organization to identify changes to increase efficiency and better meet customers' needs

Transaction Analysis

is the process of determining how an economic event impacts financial statements

shopping products

items for which buyers are willing to expend considerable effort in planning and making purchases

component parts

items that become part of the physical product and are either finished items ready for assembly or items that need little processing before assembly

specialty products

items with unique characteristics that buyers are willing to expend considerable effort to obtain

job rewards analysis

job analysis technique that identifies the intrinsic and extrinsic rewards of a job

essential criteria

job holder characteristics that are vital to job performance

desirable criteria

job holder characteristics that may enhance job success but are not essential to adequate job performance

task needs

job or competency analysis/observation/performance appraisals/quality control analysis: sources for collecting _________ analysis information

benchmark jobs

jobs that tend to exist across departments and across diverse organizations allowing them to be used as a basis for compensation comparisons

5 of 7 reasons emp leave org

lack of career dev poor work climate lack of challenging work direction of org lack of recognition

distribution centers

large, centralized warehouses that focus on moving rather than storing goods

inflation adjustments

larger and/or more frequent raises to maintain employee's purchasing power in the face of inflation

Psychomotor

learning objectives that build a physical skill

Affective Learning Objectives

learning objectives that change an attitude, relationship or appreciation

horns effect

letting one negative factor influence assessments of other areas of behavior or performance

halo effect

letting one positive factor influence assessments of other areas of behavior or performance

human resource strategy

links the entire human resource function with the firm's business strategy

internal recruiting source

locates talent currently working for the company that would be a good fit with another position

vision

long-term goals regarding what the organization wants to become and accomplish, describing its image of an ideal future

golden parachute

lucrative benefits given to executives in the event the company is taken over

MRO supplies

maintenance, repair, and operating items that facilitate production and operations bud do not become part of the finished product

functional stress

manageable levels of stress that generate positive emotions including satisfaction, excitement and enjoyment

lockout

management keeps employees away from the workplace and uses management staff or replacements to run the business

talent inventory

manual or computerized records of employee's relevant characteristics, experiences and competencies

Adjust price levels so the firm can maintain or increase sales relative to competitors' sales

market share

person-group fit

match between an individual and his or her workgroup and supervisor

process materials

materials that are used directly in the production of other products but are not readily identifiable

behavioral observation scales

measure the frequency of desired behaviors

job knowledge tests

measure the knowledge (often tehnical) required by a job

marketing intermediaries

middlemen that link producers to other intermediaries or ultimate consumers through contractual arrangements or through the purchase and resale of products

fraudulent recruitment

misrepresenting the job or organization to a recruit

commodity money

money that takes the form of a commodity with intrinsic value

fiat money

money without intrinsic value that is used as money because of government decree

forecast external job market

monitor own experience bureau of labor stats

extrinsic motivation

motivation that comes from outside the individual, including performance bonuses

accommodating

neglecting one's own concerns to satisfy the concerns of the other person

Comprehensive Income

net income plus or minus adjustments for changes in company wealth stemming from changes in certain exchange rates, interest rates, or financial instruments' values

fixed socialization

new hires are informed in advance when their probationary status will end

disjunctive socialization

newcomers are left alone to develop their own interpretations of the organization and situations they observe

individual socialization

newcomers are socialized individually as in an apprenticeship

collective socialization

newcomers go through a common set of experiences as a group

intrinsic reward

non-monetary reward derived from the work itself

employee benefits

nonwage compensation or rewards given to employees (indirect compensation)

avoiding

not immediately pursuing one's own concerns or those of the other person and not addressing the conflict

span of control

number of people who report directly to him or her.

Job characteristics model

objective job characteristics including skill variety, task identity, task significance, autonomy and task feedback, lead to job satisfaction from people with a high growth need strength.

Kaplan & Norton balanced scorecard

objectives measures targets initiatives

distributive negotiation

occurs under zero-sum conditions, where any gain to one party is offset by an equivalent loss to the other party

noncumulative discounts

one-time price reductions based on the number of units purchased, the dollar value of the order or the product mix purchased

short-term incentives

one-time variable rewards used to motivate short-term employee behavior and performance (typically one year or less). ie bonus or profit sharing. to motivate attendance, cust serv, safety, production quality and quantity

offshoring

opening a location in another country or outsourcing work to an existing company abroad

Income from Continuing Operations

operating income minus interest expense, minus income tax expense, and plus or minus other miscellaneous revenue and expense items, and gains and losses from peripheral transactions and events

pay leader

organization with a compensation policy of giving employees greater rewards than competitors

freight forwarders

organizations that consolidate shipments from several firms into efficient lot sizes

institutional markets

organizations with charitable, educational, community, or other non business goals

Knowledge

organized factual or procedural information that can be applied to perform a task

contrast effect

over-or under-rating someone base on a comparison with someone else

multiple-unit pricing

packaging together or more identical products and selling them at a single price

bundle pricing

packaging together two or more complementary products and selling them at a single price

variable pay plans

pay for performance plans that put a small amount of base pay at risk, in exchange for the opportunity to earn additional pay if performance meets or exceeds a standard

Cost-of-living adjustments

pay increases to account for a higher cost of living in one country versus another

cost-of-living adjustments

pay tied to inflation indicators rather than merit

Housing allowance

payments to subsidize or cover housing and related costs

Life Insurance

pays a beneficiary or beneficiaries a sum of money after the death of an insured individual

fixed pay

pays employees a set amount regardless of performance

workers' compensation insurance

pays for medical costs and sometimes time off if an employee suffers a job-related sickness or accident, and survivor benefits in the case of an employee's death in exchange for relinquishing the employee's right to sue the employer for negligence

early adopters

people who adopt new products early, choose new products carefully and are viewed as "the people to check with" by later adopters

Organizational image

people's general impression of an organization based on both feelings and facts

Equation for computing the income elasticity of demand

percentage change in quantity demanded divided by the percentage change in income

HRM areas

perf mgmt staffing health & safety training & development reward & benefits emp mgmt relations

multi-source assessments

performance feedback from the employee's supervisor as well as other sources who are familiar with an employee's job performance

self-management strategies

person's effort to control his or her motivation, emotions and decision making to enhance the application of learned capabilities to the job

materials handling

physical handling of tangible goods, supplies and resources

What emp should do

planning laws & regulations

logistics management

planning, implementing and controlling the efficient and effective flow and storage of products and information from the point of origin to consumption to meet customers' needs and wants

mobility policies

policies that specify the rules by which people move between jobs within an organization

fixed rewards

predetermined compensation (salary and benefits)

4 common biases

prejudice, stereotyping, perception of possibilities, ignorance

Realistic job previews

presenting both positive and potentially negative information about a job in an objective way. 3 funcs served: self selection, vaccination (coping mechanism), commitment to the choice

remission errors

pressure to make unethical choices

transfer pricing

prices charged in sales between an organization's units

reference pricing

pricing a product at a moderate level and displaying it next to a more expensive model or brand

bait pricing

pricing an item in a product line low with the intention of selling a higher priced item in the line

demand-based pricing

pricing based on the level of demand for the product

zone pricing

pricing based on transportation costs within major geographic zones

competition-based pricing

pricing influenced primarily by competitors' prices

customary pricing

pricing on the basis of tradition

everyday low prices

pricing products low on a consistent basis

psychological pricing

pricing that attempts to influence a customers a customer's perception of price to make a product's price more attractive

captive pricing

pricing the basic product in a product line low, while pricing related items higher

premium pricing

pricing the highest-quality or most versatile products higher that other models in the product line

Employee Handbooks

print of online materials that document the organization's HRM policies and procedures

affirmative action

proactive efforts to eliminate discrimination and its past effects

internet data mining

proactively search the internet to locate semi-passive and passive job seekers with the characteristics and qualifications needed fore a position

Assets

probable future economic benefits obtained or controlled by a company as a result of past transactions or events

Liabilities

probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services in the future as a result of past transactions or events

strategic planning

process for making decisions about an organization's long-term goals and how they are to be achieved

Self Regulation

processes enabling an individual to guide his/her goal-directed activities over time

set prices to recover research and development expenditures and establish a high-quality image

product quality

business products

products bought to use in a firm's operations, to resell, or to make other products

price leaders

products priced near or even below cost

consumer products

products purchased to satisfy personal and family needs

unsought products

products purchased to solve a sudden problem, products of which customers are unaware, and products that people do no necessarily think of buying

vietnam era veterans readjustment assistance act of 1974

prohibits discrimination against and requires affirmative action for disabled veterans

rehabilitation act of 1973

prohibits discrimination against qualified individuals with a disability. EEOC

pregnancy discrimination act of 1978

prohibits discrimination for all employment related purposes on the basis of pregnancy, childbirth, or related medical conditions

americans with disabilities act of 1990

prohibits discrimination of a qualified individual with or perceieved as having a disability. EEOC

genetic information nondiscrimination act of 2008

prohibits employers from discriminating against individuals based on the results of genetic testing when hiring, firing, job placement or promotion decisions

title VII of the Civil Rights Act of 1964

prohibits employment discrimination based on race, color, religion, sex, or national origin. EEOC

national labor relations act of 1935

prohibits retaliation against employees seeking to unionize

equal pay act of 1963

prohibits wage discrimination on the basis of sex. EEOC

defined benefit retirement plans

promise participants a monthly benefit at retirement

illegal

proposals to discriminate, union shop clauses in right to work states, closed shop clauses, handing goods produced by nonunion companies are ________ subjects.

resource dependence theory

proposition that organizational decisions are influenced by both internal and external agents who control critical resources

age discrimination in employment act of 1967

protects people age 40 and older. EEOC

Consolidated Omnibus Budget Reconciliation Act

provides a continuation of group health coverage for employees and qualified beneficiaries that might otherwise be terminated when an employee experiences a qualifying event

Social Security

provides retirement income to qualified workers and their spouses after working a certain number of hours

unemployment insurance

provides temporary income during periods of involuntary unemployment

competing

pursuing one's own concerns at the the other person's expense

assessment center

puts candidates through a variety of simulations and assessments to evaluate their potential fit with and ability to do the job. ie inbasket exercises, grp disc, simulations, dec-make probs, oral presentation, written comm

Inelastic demand

quantity demanded responds only slightly to changes in price

Elastic demand

quantity demanded responds substantially to changes in price

cumulative discounts

quantity discounts aggregated over a stated time period

central tendency

rating all employees in the middle of the scale regardless of performance

strategic recruiting metrics

recruiting metrics that track recruiting processes and outcomes that influence the organization's performance, competitive advantage or strategic execution

screening assessment methods

reduce the pool of job applicants to a group of job candidates. ie resumes, job applications, phone screens.

geographic pricing

reductions for transportation and other costs related to the physical distance between buyer and seller

commercialization

refining and finalizing plans and budgets for full-scale manufacturing and marketing of a product

base pay

reflects the size and scope of an employee's responsibilities

reserve requirements

regulations on the minimum amount of reserves that banks must hold against deposits

punishment

reinforcer: creating negative outcomes to decrease the likelihood of a behavior

extinction

reinforcer: removal of any positive or negative reinforcement following the occurrence of the behavior to be extinguished decreases the likelihood of that behavior

negative reinforcement

reinforcer: removing current or future unpleasant consequences to increase the likelihood that someone will repeat a behavior.

positive reinforcement

reinforcer: using rewards to increase the likelihood that a behavior will be repeated

financial ratios

relationships between two financial statement numbers and are often used in analyzing and describing a company's performance

convenience products

relatively inexpensive, frequently purchased items for which buyers exert minimal purchasing effort

judgmental forecasting

relies on managers' expertise to predict a firm's future employment needs

top-down judgmental forecasting

relies on the organization's leaders and experience and knowledge of their industry and company to make predictions about the firm's future talent needs.

Balance Sheet

reports a company's financial position at a specified point in time and lists the company's resources (assets), obligations (liabilities), and net ownership interest (owners' equity).

statement of cash flows

reports the amount of cash collected and paid out by a company in the following three types of activities: operating, investing, and financing

Income Statement

reports the amount of net income earned by a company during a period

Formal rules

requirements that treat domestic and foreign firms as equals enhance the potential odds for foreign firms' success or those that discriminate against foreign firms, would undermine the chances for foreign entrants

family and medical leave act of 1993

requires leave and job return for personal or family medical reasons and for the care of newborn or newly adopted children

Family and Medical Leave Act of 1993

requires most employers to provide employees up to 12 weeks of unpaid leave to care for family members

interest arbitration

resolves disputes over the terms of a collective bargaining agreement currently being negotiated

extrinsic reward

reward with monetary value

nonfinancial compensation

rewards and incentives given to employees that are not financial in nature including intrinsic rewards received from the job itself or from the work environment

nonfinancial compensation

rewards and incentives given to employees that aren't financial in nature

pay for performance programs

rewards employees based on some specific measure of their performance

skill-based pay

rewards for employees based on the range and depth of their knowledge and skills. effort and coop w/supervisor limited ability, partial proficiency, full competence

wellness incentives

rewards for engaging in healthy behavior or participating in wellness programs

recognition awards

rewards for specific achievements like tenure with the organization, helping a coworker or attendence

Weingarten rights

rights that guarantee employees the right to union representation during investigatory interviews by the employer

OSHA standards

rules describing the methods employers must legally follow to protect their workers from hazards

job offer elements

salary, sign-on bonus, relocation exp, benefits, job specific elements

flextime

scheduling option that lets employees decide when to work within parameters

resume databases

searchable database of prescreened resumes

concept testing

seeking a sample of potential buyers' responses to a product idea

idea generation

seeking product ideas to achieve organizational objectives

organizational design

selecting and managing aspects of organizational structure to facilitate organizational goal accomplishment

screening

selecting the ideas with the greatest potential for further review

dumping

selling products at unfairly low prices

Kinesthetic:

sensory modality: learning by doing

Auditory

sensory modality: learning by hearing

Visual

sensory modality: learning by seeing

Tactile

sensory modality: learning by touching

open skills

sets of principles that can be applied in many different ways

price lining

setting a limited numbers of prices for selected groups or lines of merchandise

comparison discounting

setting a price at a specific level and comparing it with a higher price.

secondary-market pricing

setting one price for the primary target market and a different price for another market

prestige pricing

setting prices at an artificially high level to convey prestige or a quality image

penetration pricing

setting prices below those of competing brands to penetrate a market and gain a significant market share quickly

open shop

shop that does not discriminate based on union membership in employing or keeping workers.

closed shop

shop that exclusively employs people who are already union members. Taft-Hartley Act made this illegal.

agency shop

shop that requires nonunion workers to pay a fee to the union for its services in negotiating their contracts

written standards of ethical conduct, ethics training, providing a way for seeking ethics related advice or info, providing a way to report misconduct anonymously, disciplining employees, evaluating ethical behavior

six elements of a complete ethics program

cumulative trauma disorders

skeletal and muscle injuries that occu when the same muscles are used to preform tasks repetitively

late majority

skeptics who adopt new products when they feel it is necessary

hackman & oldman 5 chars on which jobs differ

skill variety task identity task significance autonomy task feedback

competency-based pay

skill-based pay for professional jobs

closed skills

skills performed similarly or exactly like they are taught in training

applicant tracking system

software that helps manage the recruiting process

active job seeker

someone actively looking for information about job opportunities

semi-passive job seeker

someone at least somewhat interested in finding a new job but inconsistently looks for one

passive job seeker

someone not actively looking for a new job but who could be tempted by the right opportunity

codes of conduct

specifies expected and prohibited actions in the workplace and gives examples of appropriate behavior

aggregate demand

specifies the amounts of goods and services that will be purchased at all possible price levels.

Standards

specifies the level of results considered acceptable

consumption

spending by households on goods and services, with the exception of purchases of new housing

investment

spending on capital equipment, inventories, and structures, including household purchases of new housing

net exports

spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports)

government purchases

spending on goods and services by local, state, and federal governments

what emp can do

staffing training

wage rate compression

starting salaries for new hires exceed the salaries paid to experienced employees

bottom-up judgmental forecasting

starts with lower-level managers' estimates of the firm's future talent needs.

right to work laws

state laws that prohibit union shops in which all workers in a unionized workplace must join the union and pay dues

continuance commitment

staying with an organization because of perceived high economic and/or social costs involved with leaving

public warehouses

storage space and related physical distribution facilities that can be leased by companies

avoidance strategy

strategy in which management engages in lawful or unlawful efforts to prevent a union from forming or seeks the decertification of an existing union

collaboration strategy

strategy that relies heavily on labor relations to pursue an interest-based approach to problem solving

compliance strategy

strategy that relies heavily on the application of labor law to enforce the rights and obligations created by statute and by contract

economic strikes

strike over disputes regarding wages or benefits

unfair labor practice strikes

strike protesting illegal employer activities

jurisdictional strikes

strikes affirming members' right to certain job assignments and protest the work assignments to another union or to unorganized employees

recognition strikes

strikes intended to force employers to recognize unions

price conscious

striving to pay low prices

formal socialization

structured socialization using specifically designed activities and materials awayfrom the work setting

job classification method

subjectively classifies jobs into an exiting hierarchy of grades and categories

ranking methos

subjectively compares jobs to each other based on their overall worth to the organization

person specification

summarizes the characteristics of someone able to perform the job

employer brands

summary of what an employer offers to employees

Disability insurance

supplements workers' compensation insurance to provide continued income in the event of an employee becoming disabled

Compensation surveys

surveys of other organizations conducted to learn what they are paying for specific jobs or job classes

brand

symbolic picture of all the information connected to a company or a product including its image

training evaluation

systematically collecting the information necessary to make effective decisions about adopting, improving, valuing, and continuing an instructional activity or set of activities

hard bargaining

taking a strong position on an issue

external recruiting source

targets people outside the organization

employee stock ownership plans

tax-exempt, employer-established employee trusts that hold company stock for employees

periodic discounting

temporary reduction of prices on a patterned or systematic basis

random discounting

temporary reduction of prices on an unsystematic basis

Emerging economies

term that has gradually replaced the term "developing countries" since the 1990s.

channel power

the ability of one channel member to influence another member's goal achievement

learning agility

the ability to learn from experiences and to apply that knowledge to new and different situations

Skill

the ability to use some sort of knowledge in performing a physical task; often refers to psychomotor activities

multiplier effect

the additional shifts in aggregate demand that result when expansionary fiscal policy increases income and thereby increases consumer spending

consumer surplus

the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it

total revenue

the amount a firm receives for the sale of its output

producer surplus

the amount a seller is paid for a good minus the seller's cost of providing it

task aquaintance

the amount and type of work contact an evaluator has with the person being assessed

quantity demanded

the amount of a good that buyers are willing and able to purchase

quantity supplied

the amount of a good that sellers are wiling and able to sell

money multiplier

the amount of money the banking system generates with each dollar of reserves

Earnings per Share (EPS)

the amount of net income associated with each share of stock

total revenue

the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold

treasury stock

the amount the corporation has spent to buy back its own shares from stockholders

careers site

the area of an organization's website devoted to jobs and careers with the company

pay structure

the array of pay rates for different work or skills within a single organization

checklist method

the assessor uses a checklist of pre-scaled descriptions of behavior to evaluate the employee

essay appraisal method

the assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the target employee

depth of product mix

the average number of different products offered in each product line

common law

the body of case by case court decisions that determine what is legal and what remedies are appropriate

price discrimination

the business practice of selling the same good at different prices to different customers

case interview

the candidate is given a business situation, challenge or problem and asked to present a well thought out solution

Federal Reserve (Fed)

the central bank of the United States

substitution effect

the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution

income effect

the change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

marginal revenue

the change in total revenue from an additional unit sold

marginal revenue

the change in total revenue resulting from the sale of an additional unit of a product

law of supply and demand

the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balance

law of demand

the claim that, other things being equal, the quantity demanded of a good falls when the price of the good rises

law of supply

the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises

total rewards

the combined intrinsic and extrinsic rewards of a job

marketing environment

the competitive, economic, political, legal and regulatory, technological and sociocultural forces that surround the customer and affect the marketing mix

product mix

the composite, or total, group of products that an organization makes available to customers

cultural relativism

the concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures

aptitude-treatment interactino

the concept that some training strategies are more of less effective depending on a learner's particular abilities, personality traits and other characteristics

matching

the concept that states that an expense should be recognized in the same period in which the revenue it was used to generate is recognized

Materiality

the concept that weighs whether a certain dollar amount is large enough to make a difference to anyone

Retained Earnings

the cumulative amount of corporate profits that have been retained within the business rather than being paid out to stockholders as dividends

distribution

the decisions and activities that make products available to customers when and where they want to purchase them

brand recognition

the degree of brand loyalty in which a customer is aware that a brand exists and views the brand as an alternative purchase if their preferred brand is unavailable

brand preference

the degree of brand loyalty in which a customer prefers one brand over competitive offerings

interactional fairness

the degree of respect and the quality of the interpersonal treatment received during the decision-making process

task feedback

the degree to which carrying out the job's required activities results in the individual's obtaining direct and clear information about the effectiveness for his or her performance

division of labor

the degree to which employees specialize

task significance

the degree to which job performance is important and affect the lives and work of others

formalization

the degree to which organizational rules, procedures and communications are documented

sequential socialization

the degree to which socialization follows a specific sequence of steps

hierarchy

the degree to which some employees have formal authority over others

autonomy

the degree to which the job gives the worker freedom, discretion and independence is scheduling the work and determining how to do the work

Skill variety

the degree to which the job requires a variety of activities enabling the worker to use different skills and talents

task identity

the degree to which the job requires the worker to complete a whole and identifiable piece of work

dysfunctional turnover

the departure of effective performers the company would have like to retain

functional turnover

the departure of poor performers

warehousing

the design and operation of facilities for storing and moving goods

globalization

the development of marketing strategies that treat the entire world (or its major regions) as a single entity

Gross Profit

the difference between the selling price of a product and the cost of the product

balance of trade

the difference in value between a nation's exports and its imports

profit sharing

the distribution of organizational profits to all employees

channel captain

the dominant leader of a marketing channel or a supply channel

liquidity

the ease with which an asset can be converted into the economy's medium of exchange

core values

the enduring beliefs and principles that guide an organization's decisions and goals

utilitarian standard

the ethical action best balances good over harm

virtue standard

the ethical action is consistent with certain ideal virtues including civility, compassion, benevolence, etc.

common good standard

the ethical action shows respect and compassion for all others, especially the most vulnerable

fairness standard

the ethical action treats all people equally, or at least fairly, based on some defensible standard

Net income

the excess of a company's revenues over its expenses

organizational commitment

the extent to which an employee identifies with the organization and its goals and wants to stay with the organization affective, normative, continuance

marginal cost

the extra cost incurred by producing one more unit of a product

person-job fit

the fit between a person's abilities and the job's demands and the fit between a person's desires and motivations and the job's attributes and rewards

product adoption process

the five-stage process of buyer acceptance of a product: awareness, interest, evaluation, trial and adoption

average fixed cost

the fixed cost per unit produced

reserve ratio

the fraction of deposits that banks hold as reserves

trade name

the full legal name of an organization

job pricing

the generation of salary structures and pay levels for each job based on the job evaluation data

Articulation

the idea that the three primary financial statements are interrelated

marginal product

the increase in output that arises from an additional unit of input

marginal cost

the increase in total cost that arises from an extra unit of production

introduction stage

the initial stage of a product's life cycle; its first appearance in the marketplace when sales start at zero and profits are negative

federal funds rate

the interest rate at which banks make overnight loans to one another

discount rate

the interest rate on the loans that the Fed makes to banks

laggards

the last adopters who distrust new products

budget constraint

the limit on the consumption bundles that a consumer can afford

gross domestic product

the market value of a nation's total output of goods and services for a given period; an overall measure of economic standing

gross domestic product (GDP)

the market value of all final goods and services produced within a country in a given period of time

total cost

the market value of the inputs a firm uses in production

willingness to pay

the maximum amount that a buyer will pay for a good

workforce redeployment

the movement of employees to other parts of the company or to other jobs the company needs filled to match its workforce with its talent needs

transportation

the movement of products from where they are made to intermediaries and end users

Managerial Accounting

the name given to accounting systems designed for internal users

organizational culture

the norms, values, and assumptions of organizational members that guide members' attitudes and behaviors

width of product mix

the number of product lines a ompany offers

crowding-out effect

the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending

succession management

the ongoing process of preparing employees to assume other positions in the organization

Public Company Accounting Oversight Board (PCAOB)

the organization that inspects the audit practices of registered audit firms and has statutory authority to investigate questionable audit practices and to impose sanctions such as barring an audit firm from auditing SEC-registered companies

The Securities and Exchange Commission (SEC)

the organization that regulates U.S. stock exchanges and seeks to create a fair information environment in which investors can buy and sell stocks without fear that companies are hiding or manipulating financial data

mission

the organization's basic purpose and the scope of its operations

organizational structure

the organization's formal system of task, power and reporting relationships. chars of: formalization, centralization, division of labor, span of control, hierarchy

human resource management

the organizational function responsible for attracting, hiring, developing, rewarding and retaining talent

currency

the paper bills and coins in the hands of the public

brand name

the part of a brand that can be spoken, including letters, words and numbers

brand mark

the part of a brand that is not mad up of words, such as a symbol or design

buying center

the people within an organization who make business purchase decisions

distributive fairness

the perceived fairness of the outcomes received

procedural fairness

the perceived fairness of the policies and procedures used to determine the outcome

employee equity

the perceived fairness of the relative pay between employees performing similar jobs for the same organization

market share

the percentage of a market that actually buys a specific product from a particular company

vesting

the point at which employees can sell or transfer the stock option

break-even point

the point at which the costs of producing a product equal the revenue made from selling the product

recruitment spillover effects

the positive or negative unintended consequences of recruiting activities

outsourcing

the practice of contracting noncore operations with an organization that specializes in that operation

contract manufacturing

the practice of hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification; the final product carries the domestic firm's name

Conservatism

the practice of recognizing all losses but not recognizing gains until they are certain

Bookkeeping

the preservation of a systematic, quantitative record of an activity

F.O.B. factory

the price of merchandise at the factory before shipment

equilibrium price

the price that balances quantity supplied and quantity demanded

Recognition (In terms of accounting)

the process of condensing all estimates and judgments into one number and reporting that one number in the formal financial statements

marketing

the process of creating, distributing, promoting and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers to develop and maintain favorable relationships with stakeholders in a dynamic environment

strategic planning

the process of establishing an organizational mission and formulating goals, corporate strategy, marketing objectives, and marketing strategy

selection

the process of gathering and evaluating the information used for deciding which applicants will be hired

Needs assessment

the process of identifying any gaps between what exists and what is needed in the future in terms of employee performance, competencies and behaviors. org, task, person analysis

staffing

the process of planning, acquiring, deploying and retaining employees that enables an organization to meet its talent needs and to execute its business strategy

strategic marketing management

the process of planning, implementing, and evaluating the performance of marketing activities and strategies, both effectively and efficiently

growth stage

the product life cycle stage when sales rise rapidly, profits reach a peak, and they start to decline

real GDP

the production of goods and services valued at constant prices

nominal GDP

the production of goods and services valued at current prices

American Institute of Certified Public Accountants (AICPA)

the professional organization of certified public accountants (CPAs) in the United States

product life cycle

the progression of a product through four stages: introduction, growth, maturity, and decline

efficiency

the property of a resource allocation of maximizing the total surplus received by all members of society

equality

the property of distributing economic prosperity uniformly among the members of society

economies of scale

the property whereby long-run average total cost falls as the quantity of output increases

diseconomies of scale

the property whereby long-run average total cost rises as the quantity of output increases

constant returns to scale

the property whereby long-run average total cost stays the same as the quantity of output charges

diminishing marginal product

the property whereby the marginal product of an input declines as the quantity of the input increases

Asset Mix

the proportion of total assets in each asset category that is largely determined by the industry in which the company operates

exchange

the provision or transfer of goods, services or ideas in return for something of value

open-market operations

the purchase and sale of US government bonds by the Fed

business (organizational) buying behavior

the purchase behavior of producers, government units, institutions and resellers

importing

the purchase of products from a foreign source

customers

the purchasers of organizatons' products, the focal point of all marketing activities

money supply

the quantity of money available in the economy

efficient scale

the quantity of output that minimizes average total cost

equilibrium quantity

the quantity supplied and the quantity demanded at the equilibrium price

pay grade (pay scale)

the range of possible pay for a group of jobs

marginal rate of substitution

the rate at which a consumer is willing to trade one good for another

forced distribution method

the rater distributes performance ratings into a pre-specified performance distribution

management by objectives

the rater evaluates the target employee against mutually set goals

leverage ratio

the ratio of assets to bank capital

order processing

the receipt and transmission of sales order information

Accounting

the recording of the day-to-day financial activities of a company and the organization of that information into summary reports used to evaluate the company's financial status

production function

the relationship between quantity of inputs used to make a good and the quantity of output of that good

pay mix

the relative emphasis give to different compensation components

Owners' equity

the residual interest in the assets of a company that remains after deducting its liabilities

bank capital

the resources a bank's owners have put into the institution

stock options

the right of an employee to buy shares of the company's stock at a certain price (the exercise price) during some future period of time

exporting

the sale of products to foreign markets

voluntary turnover

the separation is due to the employee's choice

involuntary turnover

the separation is due to the organization asking the employee to leave

money

the set of assets in an economy that people regularly use to buy goods and services from other people

recruiting

the set of practices and decisions that affect either the number or types of individuals willing to apply for and accept job offers

fiscal policy

the setting of the level of government spending and taxation by government policymakers

monetary policy

the setting of the money supply by policymakers in the central bank

safety culture

the shared safety attitudes, beliefs and practices that shape employees' safety behavior

maturity stage

the stage of a product's life cycle when a sales curve peaks and starts to decline, and profits continue to fall

decline stage

the stage of a product's life cycle when sales fall rapidly

ethics

the standards of moral behavior that define socially accepted behaviors that right as opposed to wrong

macroeconomics

the study of economy-wide phenomena, including inflation, unemployment, and economic growth

microeconomics

the study of how households and firms make decisions and how they interact in markets

game theory

the study of how people behave in strategic situations

Welfare economics

the study of how the allocation of resources affects economic well-being

total rewards

the sum of all of the rewards employees receive in exchange for their time, efforts and performance

total cost

the sum of average fixed and average variable costs times the quantity produced

average total cost

the sum of the average fixed cost and the average variable cost

Upward reviews

the target employee is reviewed by one or more subordinates

cycle time

the time needed to complete a process

aggregate demand

the total demand for final goods and services in the economy at a given time and price level.

operations management

the total set of managerial activities used by an organization to transform resource inputs into products, services or both

barter

the trading of products

optimal turnover

the turnover level producing the highest long-term levels of productivity and business improvement

leverage

the use of borrowed money to supplement existing funds for purposes of investment

dual distribution

the use of two or more marketing channels to distribute the same products to the same target market

cost

the value of everything a seller must give up to produce a good

price

the value paid for a product in a marketing exchange

average variable cost

the variable cost per unit produced

unit of account

the yardstick people use to post prices and record debts

rights standard

this ethical action is the one that best respects and protects the moral rights of everyone affected by the action

Operating activities

those activities that comprise the day-to-day operations of a business.

Financing activities

those activities through which cash is obtained from, or repaid to, creditors and investors

current liability

those obligations that are expected to be paid or otherwise satisfied within one year

omission, remission, commission

three types of systematic errors that orgs make that undermine ethics efforts

average total cost

total cost divided by the quantity of output

average revenue

total revenue divided by the quantity sold

profit

total revenue minus total cost

economic profit

total revenue minus total cost including opportunity costs and explicit costs

economic profit

total revenue minus total cost, including both explicit and implicit costs

accounting profit

total revenue minus total explicit cost

efficiency oriented recruiting metrics

track how efficiently a firm is hiring

skill inventories

tracks employees' competencies and work experiences in a searchable database

Orientation

training activities to help new hires fit in as organizational members

cross-training

training employees in more than one job or in multiple skills to enable them to do different jobs

divestiture socialization

tries to deny and strip away certain personal characteristics

compromising

trying to find some expedient, mutually acceptable middle ground solution which partially satisfies both parties

avoidable turnover

turnover that the employer could have prevented

unavoidable turnover

turnover that the employer could not have prevented

complements

two goods for which an increase in the price of one leads to a decrease in the demand for the other

substitutes

two goods for which an increase in the price of one leads to an increase in the demand for the other

perfect complements

two goods with right-angle indifference curves

perfect substitutes

two goods with the straight-line indifference curves

job sharing

two or more people split a single job

intermodal transportation

two or more transportation modes used in combination

domestic partners

two people who are not married, but are in a same-sex or opposite-sex arrangement similar to marriage

types of strikes

unfair labor practices economic recognition jurisdictional

UGESP

uniform guidelines on emp selection. selecting procs advises employee in legal compliance

boycott

union members refuse to use or buy the firm's products to exert economic pressure on management

strikes

union members refuse to work, halting production or services

Employee associations

union of professional employees

Industrial Unions

unions composed primarily of semi-skilled employees in manufacturing industries

Trade Unions

unions composed primarily of skilled employees in a single trade

informal socialization

unstructured, on-the-job socialization done by coworkers

hostile environment harassment

unwanted verbal or physical conduct of a sexual nature creates a hostile, intimidating or otherwise offensive working environment

quid pro quo harassment

unwanted verbal or physical conduct of a sexual nature mad as a term or condition of employment or as a basis for employment and/or advancement decisions

sexual harassment

unwelcome sexual advances, requests for favors and other verbal or physical conduct of a sexual nature

Behaviorally anchored rating scales

use a set of behavioral statements relating to qualities important for performance

ratio analysis

use past relationships to forecast how many emp needed for diff levels of bus activity

accounting system

used by a business to handle routine bookkeeping tasks and to structure the information so it can be used to evaluate the performance and financial status of the business

point factor method

uses a set of compensable factors to determine a job's value. skill, resp, effort, working cond.

structured interview

uses consistent, job-related questions with predetermined scoring keys. behavioral or situational.

market pricing

uses external sources of information about how others are compensating a certain position to assign value to a company's similar job

behavioral interview

uses information about what the applicant has done in the past to predict future behavior

graphic rating scale

uses ratings of unsatisfactory, average, above average and outstanding to evaluation either work quality or personal traits

mediation

using a neutral third party to attempt to resolve the dispute through facilitation

exclusive distribution

using a single outlet in a fairly large geographic area to distribute a product

intensive distribution

using all available outlets to distribute a product

progressive discipline

using increasingly severe measures when an employee fails to correct a deficiency after being given a reasonable opportunity to do so verbal, written, suspension w/o pay, discharge

customer relationship management

using information about customers to create marketing strategies that develop and sustain desirable customer relationships

selective distribution

using only some available outlets in an area to distribute a product

trend analysis

using past employment patterns to predict a firm's future labor needs

family packaging

using similar packaging for all of a firm's products or packaging that has one common design element

broadbanding

using very wide pay grades to increase pay flexibility

average variable cost

variable cost divided by the quantity of output

Unstructured interviews

varying questions are asked across interviews and there are usually no standards for evaluating answers

unlawful employment practices

violations of federal, state or local employment laws

mandatory

wages, overtime, seniority, grievance procedures, safety and work practices, procedures for layoff, recall, discharge and discipline are _________ subjects.

observation

watching people working in similar jobs for other companies to evaluate their ptoential fit with your organization

HRM influences performance thru

what emp should do what emp can do what emp will do

secondary boycott

when a union encourages third parties such as customers and suppliers to stop doing business with a company. Taft-Hartley Act makes these illegal.

external equity

when an organization's employees believe that their pay is fair when compared to what other employers pay their employees who perform similar jobs

employee engagement

when employees are committed to, involved with, enthusiastic and passionate about their work

internal equity

when employees perceive their pay to be fair relative to the pay of other jobs in the organization

unfair discrimination

when employment decisions and actions are not job related, objective or merit-based

fair discrimination

when only objective, merit based and job related characteristics are used to determine employment related decisions

collective bargaining

when the employer and union negotiate in good faith on wages, benefits, work hours and other employment terms and conditions

optional benefits

work life balance, domestic partner benefits

codetermination

worker representation on the company's board of directors

job rotation

workers are moved through a variety of jobs to increase their interest and motivation

job description

written descriptions of the duties and responsibilities of the job itself

job applications

written information about skills and education, job experiences and other job relevant information. screening method.

succession management plans

written policies that guide the succession management process

variable rewards (incentives)

"at risk" rewards which are linked to factors determined as valuable, including performance, skills, competence and contribution

International business (IB)

(1) A business (or firm) that engages in international (cross-border) economic activities and/or (2) the action of doing business abroad.

Four principles of Scientific Management - Taylor

- Use methods based on scientifcally studying the tasks using time an motion studies. - Select, train and develop each worker rather than leaving them to passively train themselves - Provide detailed instructions and supervision to workers to ensure that they are following the developed methods. - Divide work equally between workers and managers.

influence tactics

1. legitmating 2. personal appeals 3. assertiveness 4. ingratiation 5. inspirational appeals 6. rational persuasion 7. upward appeals 8. coalition 9. exchange

5 components to drug free workplace

1. written policy 2. supervisor training 3. employee education 4. EAP 5. drug testing

Trend analysis, ratio analysis, judgmental forecasting

3 Techniques used to forecast labor demand

compressed workweek

40 hour work week in less than five days

Social Security, Unemployment Insurance, Workers' Compensation, Family Medical Leave Act, COBRA

5 Mandatory Benefits

Leading Economic Index, Consumer Confidence Index, Exchange Rate Trends, Interest Rate Forecasts, Additional sources such as GPD and business inventories

5 sources for evaluating general economic trends to forecast labor demand:


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