SEVI Exam 2

Six sigma

A discipled approach that relies on statistical data and improved methods to eliminate defects for a firms products and services.

Employee ownership

A situation in which employees own the company they work for by virtue of being stockholders

STRATEGIC PLAN Tactical plan

A smaller scale plan developed to implement a strategy

Continuous Improvement (Kaizen)

Business philosophy that focuses on gradually improving productivity and making a work environment more efficient

Site selection

In determining where to locate facilities, management must consider a number of variables, including the following: - Locations of customers and suppliers - Quality of life for employees and management in the proposed location - The cost of land and building costs - Local and state taxes, environmental regulations, and zoning laws; - The amount of financial support and subsidies if any, offered by local and state govs, and - Special requirements, such as great amounts of energy or water used in the production process.

Employee ownership Stock Options

An option is simply the right to buy shares of the firm within a prescribed time at a set price.

decentralized organization

An organization in which management consciously attempts to spread authority widely across various organization levels

Centralized organization

An organization that systematically works to concentrate authority at the upper levels of the organization.

matrix structure

An organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization on a functionally departmentalized organization.

stratgey

An outline of actions by which an organization intends to accomplish its goals and objectives.

Compensation decisions wage survey

A collection of data on prevailing wage rates within an industry or geography

Task force

A committee established to investigate a major problem or pending decision. EX: A task force for assessing the pros and cons of a merger with another company

Lean manufacturing

A concept built on the idea of eliminating waste from all of the activities required to produce a product or service.

Organization chart

A diagram that represents the positions and relationship within an organization.

Replacement chart

A list of personnel and their possible replacements (successors) within a firm

Job description

A list of the elements that make up a particular job (duty, working conditions, responsibilities)

job specificaton

A list of the qualifications required to perform a particular job (knowledge, skills, and experiences)

First line manager

A manager who coordinates and supervises the activities of operating employees. Works with and motivates employees, answers questions, and solves day to day problems. office manager, supervisor, foreman

Expectancy theory

A model of motivation based on the assumption that motivation depends on how likely we thin we are to get reward and on how much we can get - people are motivated to wrk when they believe they can get what they want from their job.

MBO (management by objectives)

A motivation technique in which managers and employees collaborate in setting goals.

Job enrichment

A motivation technique that provides employees with more variety and responsibility in their jobs

SHRM (Strategic Human Resource Management

A process of managing human resources that links the workforce with the core strategies, objectives, and goals of an organization

Standing committee

A relatively permanent committee charged with performing some recurring task. EX: A budget review committee for reviewing departmental budget requests on an ongoing basis

Flextime

A schedule that allows workers to choose work hours that fit their particular needs.

Maslow's hierarchy of needs

A sequence of human needs in the order of their importance. -THINK TRIANGLE - people have a sequence of motivation -must satisfy lower level needs before higher levels become important - basic needs, then psychological needs, then self fulfillment

Which of the following statements is true? A) the way employees are managed has less impact on an organization than marketing, financial decisions, production, or technology. B) Management is the process of coordinating resources to achieve the goals of an organization. C) External environmental conditions - the economy, consumer markets, technology, politics, and cultural forces change slowly. D) The four types of resources managers coordinate are very specific categories. E) Highlighting human resources and trying to ensure that employees are happy has little impact on productivity.

B

Hawthorne Studies

A series of studies during the 1920s and 1930s that provided new insights into individual and group behavior. - RESEARCH CONCLUDED HUMAN FACTORS ARE IMPORTANT. - sense of involvement : workers for the first time felt as though they were an important part of the organization. - Elton Mayo studied the effects of the lighting levels on employee productivity - Productivity increase regardless of lighting levels (even the level of moonlight )

Performance appraisal Evaluation

Common evaluation techniques -objective methods(use some measurable quantity) -judgemental methods(the supervisor judge) -Avoiding Appraisal errors (supervisors should avoid overemphasizing or underemphasizing issues)

Operational planning

Deciding how much products or services each facility will produce during a specific time period.

Profit sharing

Distribution of a percentage of an organization profit among its employees

ESOP (employee stock ownership plan)

Employee benefit plan that give workers shares of stocks of the company.

organization height flat organization

Few levels of management and wide span faster decision making, improved employee morale and engagement , lack of structure and organization, limited opportunities for career growth.

departmentalization by product

Grouping activities related to a particular product or service. Effective when products are so different. Baby feminine and family care, Beauty, Health care, Grooming Advantages : Easier decision making, integration of all activities associated with a product Disadvantages: some duplication of specialized activities between departments, emphasis on product over the organization as a whole

What was Fredricks Taylors reasoning in developing the piece rate system? A) he believed that human factors motivate employees B) He believed that employees have needs that need to be satisfied in a particular order. C) He believed that satisfaction and dissatisfaction are two distinct dimensions of motivation. D) He believed that people do not naturally dislike work E) He believed that most people work only to earn money

He believed that most people work only to earn money.

Staff managers

Managers who provide support, information and assistance to line managers

Middle manager

Middle Level a manager who implements the strategy and major policies developed by top management Develops tactical and operational plans and coordinates and supervises first line managers. division manager, plant manager, operations manager

General Electric has separate divisions for Aviation, Healthcare, Lighting, Power, and Transportation. This is an example of departmentalization by A) Function B) Location C) product D) model

Product

Penny works for General Dynamics, a defense contractor. She is assigned to a group of employees who work together to solve quality issues the company is facing. Penny participates in an A) employee group B) total quality management program C) inspection control group D) quality circle E) uality review committee

Quality circle

Incentive payment

Rewards for outstanding job performance. - like a bonus or gainsharing(which is for team members)

The head of the marketing department at Michael Scott Paper Company supervises twelve people in the department. This represents his/her A) chain of command B) degree of specialization C) level of authority D) Span of Control E) nature and degree of departmentalization

Span of control

Resource - based View (RBV)

Suggests that resources that are valuable, rare, inimitable, and non substitutable lead to long term success (source of competitive advantage)

TQM (Total Quality Management)

TQM aims to hold all parties involved in the production process accountable for the overall quality of the final product or service. (organization wide effort)

Top manager

The Very Top An upper level executive who guides and controls the overall fortunes of an organization. Generally responsible for developing the organizations mission and determining strategy. Common titles are president, vice president, chief executive officer (CEO).

Scientific management (Taylorism)

The application of scientific principles to analyze and synthesize workflows. - Frederick Taylor sought to maximize efficiencies - observed that workers "soldiered" or worked slowly because they feared that they would run out of work and lose their jobs. - DEVELOPED THE IDEA THAT MOST PEOPLE WORK TO EARN MONEY - the piece rate system - employees paid a certain amount for each unit of output they produce

HR Planning

The development of strategies to meet a firms future human resources needs

Performance appraisal

The evaluation of employees performance to allow managers to make objective human resources decisions. - used to let workers know how well they are doing and how they can improve. - selection training and development

Herzberg's Motivation-Hygiene Theory motivation factors hygiene factors

The idea that satisfaction and dissatisfaction are separate and distinct dimensions. - ALL ABOUT JOB SATISFACTION AND DISSATISFACTION - Motivation factors: job factors that increase motivation, although their absence does not necessarily result in dissatisfaction. - hygiene factors : job factors that reduce dissatisfaction when present to an acceptable degree but that do not necessarily result in high levels of motivation

Chain of command

The line of authority that extends from the highest to the lowest levels of an organization. can be short or long, depending on the organizations size.

Capacity

The number of products or services that an organization can produce in a given time.

Recruiting

The process of attracting qualified job applicants

Management

The process of coordinating resources to achieve the goals of an organization

Product design

The process of creating a set of specifications from which a product can be produced. (package, Ingredients)

compensation decisions job evaluation

The process of determining the relative worth (pay grade) of the various jobs within a firm

Scheduling

The process of ensuring that materials and other resources are used at the right place at the right time.

Selection

The process of gathering information about applicants for a position and then using that information to choose the most appropriate applicant. - The idea is to hire the applicant who is the most capable for the job at hand - and also who fits into its overall company and job

Human relations

The study of people and groups and what motivates them to achieve organizational goals

job rotation

The systematic shifting of employees from one job to another. workers are less likely to become bored and dissatisfied

Which of the following is a disadvantage of departmentalization by function ?

This method tends to emphasize the department rather than the organization as a whole.

Which of the following statements best explains the essence of the resource based view (RBI) ?

Unique resources that are valuable, rare, inimitable, and nonsubstituable are the source of competitive advantage.

Goal

What an organization hopes to achieve in the medium to long term future. Reflect how the mission will be operationalized.

Turnover (voluntary)

When employees leave their jobs. - a small % of turnover is healthy

Ad hoc committee

a committee created for a specific short-term purpose EX: a committee for reviewing the employee benefits plan

Laissez-faire leadership

a hands-off leadership style that provides direction, tools, and resources to employees while delegating responsibility and decision-making authority to them

Capital intensive technology

a process in which machines and equipment do most of the work

Labor intensive technology

a process in which people must do most of the work. They need to hire a lot of employees.

research and development (R&D)

a set of activities intended to identify new ideas that have the potential to result in new goods and services

Mission

a statement of the basic purpose that makes an organization different from others. Usually specifies the customer served, the needs satisfied, or the values received by the customer.

JIT (just in time inventory system)

a system designed to ensure that materials or supplies arrive at a facility just when they are needed so that storage and holding costs are minimized

Quality circle

a team of employees who meet on company time to solve problems of product quality

Purchasing

all the activities involved in obtaining required materials, supplies, components, and parts from other firms

Operations management

all the activities required to produce goods and services

Strategic Plan

an organization's broadest plan, developed as a guide for major policy setting and decision making

Line structure

an organizational structure in which the chain of command goes directly from person to person throughout the organization

line-and-staff structure

an organizational structure that utilizes the chain of command from a line structure in combination with the assistance of staff managers

compensation decisions merit increase (pay)

annual base pay increase are linked to performance appraisal ratings

SWOT analysis core competencies

capabilities that serve as a source of competitive advantage

Taco bell prides itself on its efficiency and value in delivering a product in a very short time. These characteristics can be defined as tacos bells A) objectives B) Mission C) resources) D) opportunities E) core competencies

core competencies

because JC Penny operates in a complex and dynamic environment, its store managers are given significant freedom to run their stores. This indicates that JCPenny A) centralize decision making B) deemphasize lower level management training C) control their managers tightly D) deemphasize lower level management accountability E) decentralize authority

decentralize authority

Lams has a new product idea to create dog food that will give dogs more energy and help them to live longer. Management appoints a team to convert this idea into an actual dog food product. This process is called..... A) Process engineering B) operational planning C) design planning D) product marketing E) Product refining

design planning

Remote work

doing work via virtual devices from any remote location

departmentalization by location

grouping activities according to the defined geographic area in which they are performed. U.S region, European Region, Asian Region, Africa Regions Advantages: allows a ready response to unique demands or requirements of a location. Disadvantages: requires a large administrative staff and elaborate control system for coordination across many locations

departmentalization by customer

grouping activities according to the needs of various customer populations EX: bank corporate banking, retail banking, private banking Advantages: allows the firm to deal efficiently with unique customer or customer groups Disadvantages: requires a larger than usual administrative staff

departmentalization by function

grouping jobs that relate to the same organizational activity (function). Advantage: high degree of work specialization, help organizations compete on cost Disadvantage: emphasis on department over the organization as a whole (= organizational silo)

Scientific Management

identify the "one best way" to structure work that maximizes efficiency. Focuses on designing jobs around the concepts of task specialization, skill simplification, and repetition. proposed by Fredrick Taylor.

Participative leadership

leadership style in which all members of a team are involved in identifying essential goals and developing strategies to reach those goals. Leader consult workers before making decisions and make final decisions based on their support. Workers opinions are needed and wanted.

Line managers

managers who make decisions and gives orders to subordinates to achieve the organizations goals.

Charismatic Leadership

personality dependent leadership style. Due to their own innate charm and personality, leaders influence, inspire, and motivate employees to perform. Tend to be idealistic and forward thinking

Southwest airlines announced that it would distribute $667 million of its income to its employees - an amount that worked out to about six extra weeks of pay for every employee. Southwest payments to its employees represent A) commissions B) Lump sum salary increases C) gainsharing D) profit sharing E) merit pay

profit sharing

Establishing an organizations major goals and objectives and allocating resources to achieve them best defines A) managing B) control process C) strategic planning D) directing E) leading

strategic planning

Job Design

structuring the tasks and activities required to accomplish a firm's objectives into specific jobs so as to foster productivity and employee satisfaction

Autocratic leadership

task-oriented leadership style in which workers are told what to do and how to accomplish it without having a say in the decision-making process. Leaders make most decisions. Similar as micromanagement.

Plant layout

the arrangement of machinery, equipment, and personnel within a production facility

Design planning

the development of a plan for converting an idea into an actual product or service

Strategic Planning Process

the establishment of an organization's major goals and objectives and the allocation of resources to achieve them

SWOT analysis

the identification and evaluation of a firm's strengths, weaknesses, opportunities, and threats.

span of control

the number of subordinates who report directly to a manager

Human resources

the people who work within an organization, are one of the most important and valuable resources for a business

Compensation system

the policies and strategies that determine employee compensation- determine the employees pay

Quality control

the process of ensuring that goods and services are produced in accordance with design specifications

Onboarding

the process of integrating new employees into an organization. - A process that can take up to weeks or months and involves welcoming the new employee and helping them build relationships

Inventory control

the process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs

Job Specialization

the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people

Product layout

used when all products undergo the same operations in the same sequence ( sometimes referred to as an assembly line)

flexible scheduling

A system in which employees set their own work hours within employer determined limits

Job analysis

A systematic procedure for studying jobs to determine their various elements and requirements.

cross functional team

A team of individuals with varying specialties, expertise, and skills who are brought together to achieve a common task.

Reinforcement theory

A theory of motivation based on the premise that people will repeat behavior that is rewarded and will cease behavior that is punished.

Goal Setting Theory

A theory of motivation suggesting that individuals who set specific, difficult goals performed better than those set general, easy goals

Equity theory

A theory of motivation that focuses on an individuals feelings of how fairly s/he is treated in comparison with others. - outputs and indputs

STRATEGIC PLAN Operational plan

A type of plan designed to implement tactical plans

HRM (Human Resource Management)

All the activities involved in acquiring, maintaining, and developing an organizations human resources.

A performance appraisal serves all of the following purposes except A) letting workers know how well they are doing B) Allowing employees to see where they rank against all the other employees in the company. C) providing an effective basis for distributing rewards D) Letting workers know how well they can do better in the future. E) helping the organization monitor its employees selection, training and development activities.

Allowing employees to see where they rank against all the other employees in the company.

Compressed workweek

Allows employees to work a 40 hour week in four days instead of five. Four Day workweek

Delegation

Assigning part of a managers work and power to other workers.

Theory Y

Assumes that employees are self motivated and enjoy the challenge of work. - Consistent with the human relations movement (Hawthorne study)

Theory X

Assumes that people dislike work and will function only in a highly controlled work environment. - consistent with Taylors scientific management

Transformational leadership

Leadership style that focuses on transforming organizations and industries by challenging the status quo with new ideas.

Transactional leadership

Leadership style that use rewards and punishments to motivate subordinates. Leaders tend to focus on the chain of command, productivity, and efficiency. carrot and stick.

intrinsic motivation

Motivated to perform for its own sake.

extrinsic motivation

Motivated to perform to earn a reward or avoid punishment

organization height tall organization

Multiple levels of management and a narrow span. Slower decision making. Clear structure and organization.