BA 101 Exam 2
Max Weber's Principles of Organization
-Job Descriptions -Written rules/Guidelines and records -Consistent procedures, regulations, and policies -Staffing and promotion based on qualification
Secured Bond
A bond that was issued with some sort of collateral
Secured Loan
A loan that is backed up by collateral
Unsecured Loan
A loan that is not backed up by collateral
Affirmative Action
A policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities
Just-In-Time (JIT) Inventory Control
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line.
Administered Distribution System
A system where producers manage all marketing functions at a retail level
Virtual Corporation
A temporary network, made of replaceable firms that join and leave as they please
Channel of Distribution
A whole set of marketing intermediaries -Agents, brokers, wholesalers, retailers
Job Specification
A written summary of the minimum qualifications a worker needs for a job
Production Management
Activities that helped firms create goods
Staff Personnel
Advise and assist line personnel in meeting their goals
Hierarchy of Authority (Fayol Principle)
All workers should know who they report to
Degree of Centralization (Fayol Principle)
Amount of decision-making power for top managements varies by situation
Financial Planning
Analyzing short and long term money flows to and from the firm
Direct Marketing
Any acting that directly links manufacturers with consumers
Fringe Benefits
Benefits such as sick-leave pay, vacation pay, health plans
Unsecured Bond/Debenture Bond
Bond that is backed only be the reputation of the issuer
Gain-sharing systems
Bonuses are based on improvements over previous performance
Agents and Brokers
Bring buyers and sellers together and assist in negotiation
Computer-Aided Manufacturing (CAM)
Bringing computers directly into production process, guide or control the manufacturing process
Reverse Logistics
Brings goods back to the manufacturer because of defects or recycling materials
Inbound Logisitcs
Brings raw materials, packing, other goods and services, and information from suppliers to producers
Capital Budget
Budget for large purchases such as buildings or land
Form Utility
Changing raw materials into useful products -Baristas make coffee from coffee supplies
ISO 901
Common name given to quality management and assurance standards
Economies of Scale
Companies can reduce production cost by purchasing more raw materials in bulk
Material Requirement Planning (MRP)
Computer-based operations management systems that use sales forecast to make sure needed parts and materials are available at the right time and place
Exit Interview
Confidential meeting that explains why a valued employee chose to leave
Supply Chain
Consists of all linked activities performed to get raw materials to ultimate consumers
Warehouse Club
Costco
Production
Creation of finished goods and services using factors of production
Span of Control
Describes optimal number of employees a manager should supervise -Trend today is to reduce middle managers, and hire talented lower level employees
Flexible Manufacturing
Designing machines to do multiple tasks so they can produce a variety of products
Formal Organization
Details lines of responsibility, authority, and position.
Line Organization
Direct two-way lines of responsibility, authority, and communication running from top to bottom
Departmentalization
Divides organizations into separate units. Groups workers according to their skills, expertise, or resource use
Division of Labor
Dividing work up amongst workers
Job Specialization
Diving tasks into smaller jobs
Possession Utility
Doing whatever's necessary to transfer ownership from one party to another
Unity of Command (Fayol)
Each worker only reports to one boss
Golen Handshakes
Early retirement benefits to entice older employees into retirement in the event downsizing is needed
Hay Method
Edward Hay method for pay structure, considers knowledge, problem solving, and accountability
Cash Budget
Estimation of cash inflows through periods of months and quarters
Operating (Mater) Budget
Estimation of the costs and expenses needed to run the business
Performance Appraisal
Evaluation that measures employee performance
Financial Managers
Examine financial data and recommend strategies for improving financial performance
Service Utility
Fast, friendly service during and after the sale
Balance Sheet
Financial condition on a specific date
Finance
Function in a business that acquires funds for the firm and manages those firms
Purchasing
Function that searches for high-quality material resources, finds best suppliers, and negotiates the best price
Division of Labor (Fayol prinicple)
Functions must be divided into areas of specialization, such as production, marketing, and finance
Debt Financing
Funds raised through various forms of borrowing that must be repaid
Line of Credit
Given amount of unsecured funds that a bank will loan out
Job Rotation
Given assignments in a variety of departments. Gives broad picture of organization to be successful
Flextime Plan
Gives employees some freedom to choose which hours they work so long as they meet required hours and get tasks done
360-Degree Review
Gives managers opinions from people at different levels, to get a more accurate idea of a worker's abilities
Output
Goods, services and ideas from the factors of production
Cross-Functional Self-Managed Teams
Groups of employees from different departments who work together on a long-term basis
Merchant Wholesalers
Independently owned firms that take title to the goods they handle
Productive Corporate Culture
Key to a productive culture is mutual trust
Job Sharing
Lets two or more part-time employees do the work of a full time employee
Chain of Command
Line of authority that moves from the top to bottom
Line-and-Staff
Line personnel: Responsible for directly achieving organizational goals
Capital Expenditure
Major investments in long term assets or intangible assets
Time Utility
Making products available when consumers need them -24/7 place provides
Place Utility
Making products where people want them -Convenient store placement provides
Budget
Management expectations and allocates resource usage throughout
Equity (Fayol Principle)
Manager should treat peers and employees with respect
Authority (Fayol Priniciple)
Managers have the right to give orders and enforce obedience
Outbound Logistics
Manages the flow of finished products and information to business buyers and ultimately to consumers
Wholesalers
Market intermediary that sells to other organizations such as retailers
Real Time
Means the present moment or actual time in which an event takes place
Venture Capital
Money invested in new or emerging companies that investors believe will have great profit potential
Materials Handling
Movement of goods from a warehouse to factor floor, to various workstations
Information Utility
Opening 2-way flows of information between marketing participants
Flat Organizational Structure
Organizational structure with fewer layers of management and a broad span of control
Marking Intermediaries/Middlemen
Organizations that help move goods and services from producers to businesses, and businesses to consumers
Order (Fayol Principle)
People/materials placed in the proper location
Limited-Function Wholesalers
Perform select functions, like cash-and-carry
Facility Layout
Physical arrangement of resources, including people, to most efficiently produce goods
Process Manufacturing
Physically or chemically changing materials
Trade Credit
Practice of buying goods or services and paying for them later
Short-Term Forecast
Predicts revenue, costs, and expenses for a year or less
Long-Term Forecast
Predicts revenue, costs, and expenses for a year or more
Networking
Process of establishing and maintaining contacts with key managers in your own and other organizations, using it to weave strong business relationships
Selection
Process of gathering information about job applicants and deciding who's best fit
Factoring
Process of selling accounts receivable for cash
Management Development
Process of training and educating employees to become good managers
Lean Manufacturing
Production of goods using less of everything than in mass production
Intermittent Process
Production runs short, and producer adjusts machines frequently to make different products
Retained Earnings
Profits the company keeps and then reinvests
Term-Loan Agreement
Promissory note that requires borrower to repay loan with interest in specified monthly or annual installments
Intensive Distribution
Puts products into as many retail outlets as possible, mainly convenience
Assembly Process
Putting together components to make a product
Six Sigma Quality
Quality measure that allows only 3.4 defects per million opportunities
Leverage
Raising funds through borrowing to increase the firm's rate of return
Direct Selling
Reaches consumers in their homes or workplaces
Restructuring
Redesigning an organization so it can more effectively and efficiently serve customers
Skill-Based Pay
Rewards growth of both individual and team
Retail Sale
Sale of goods and services to consumers for their personal use
Telemarketing
Sale of goods/services over the phone
Wholesale Sale
Sale of goods/services to a business for use in business, or resale usually to retailers/manufacturers and hospitals
Understudy Positions
Selected employees work as assistants to higher-level managers and participate in some manager duties
Online/Electronic Retailing
Selling goods and services to consumers online
Discount Stores
Sells many different products at prices generally lower than department stores
Supermarket
Sells mostly food with some stuff like detergent
Recruitment
Set of activities used to obtain a sufficient number of qualified employees
Departmentalization
Setting up individual departments to do specialized tasks
Commercial Paper
Short-term financing available to large corporations that need funds for a few months
Matrix Organization
Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line-and-staff
Operations Management
Specialized area in management that converts resources into goods and services
Espirit de corps (Fayol Principle)
Spirit of pride and loyalty created amongst people in the firm
Income Statement
Summarization of revenue/cost of goods sold over a period of time
Statement of Cash Flows
Summary of money coming in and out of the firm
Hierarchy
System in which one person is at the top of the organization, and there's order from top down on the managers
Radio Frequency Identification (RFID)
Tags merchandise so that it can be tracked from it's arrival to retailers from suppliers
Input
The factors of production
Initial Public Offering (IPO)
The first time a company offers to sell it's stock to the general public
Financial Management
The job of managing a firm's resources so it can meet it's goals and objectives
Offboarding
The process employees go through when they leave their job
Human Resource Management (HRM)
The process of determining human resource needs and then getting employees to achieve the organizational goals
Facility Location
The process of selecting a geographic location for a company's operation
Core Competencies
The things the organization doesn't outsource because they're good at it
Computer-Aided Design (CAD)
Use of computers to design products
Exclusive Distribution
Use of only one retail outlet in a given area
3rd Party Logisitcs
Use of outside firms to help move goods from here to there
Social Commerce
Use of social media to help assist social interaction of buying and selling
Selective Distribution
Uses only a preferred group of available retailers in an area
Multilevel Marketing
Uses salespeople who work as independent contractors
Organization Chart
Visual device that shows worker relations and divides work
Utility
Want-satisfying ability, or value, that an organization adds to goods or services
On-the-job Coaching
When a senior manager assists a lower-level manager by teaching skills and giving advice
Employment at will
When companies have the freedom to fire workers whenever they felt like it
Centralized Authority
When decision making is concentrated at the top level of management
Decentralized Authority
When decision making is delegated to lower level managers and employees more familiar with local conditions
Continuous Process
When production runs turn out finished goods over time
Full-Service Wholesalers
Wholesalers perform all distribution functions, provide sales force, maintain inventory
Department Store
Wide variety of goods, in separate departments
Clear Communication Channels (Fayol Principle)
Workers should be able to reach other's in organization quickly and easily
Subordination of Individual Interest to the General Interest (Fayol Principle)
Workers think of themselves as a team, and the goal of the team is more important than the goal of the individual
Promissory Note
Written agreement to pay supplier amount of money by a certain time
Financial Control
a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget
Financial Statement
a summary of all the financial transactions that have occurred over a particular period
Tall Organization Structure
an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Factors of production
land, labor, capital, entrepreneurship, knowledge
Equity Financing
money raised from within the firm, from operations or through the sale of ownership in the firm (stock or venture capital)
Risk/Return Trade-Off
the greater the risk a lender takes in making a loan, the higher the rate of interest
Critical Path
the sequence of activities that determine the earliest date by which the project can be completed
