Business 101 Test 2
4 ps of what marketing teams do:
( 1.) procude. (2.) Price.( 3.) place (4.) Promotion
(including over two-thirds of mothers with children under age 6) are in the workforce. Such statistics concern employers for two reasons:
(1) absences related to child care cost U.S. businesses billions of dollars annually, and (2) the issue of who should pay for employee child care raises a question that often divides employees.
The steps used in PERT:
(1) analyzing and sequencing tasks that need to be done, (2) estimating the time needed to complete each task, (3) drawing a PERT network illustrating the information from steps 1 and 2, and (4) identifying the critical path.
Several major developments have made U.S. companies more competitive:
(1) computer-aided design and manufacturing, (2) flexible manufacturing, (3) lean manufacturing, (4) mass customization, (5) robotics, and (6) 3D printing.
Companies have found that mentoring programs provide a number of benefits:
(1) improved recruiting and retention, (2) more engaged employees, (3) cost savings, and (4) increased skills and better attitudes.
The roles and responsibilities of HRM have evolved primarily because of two key factors:
(1) organizations' recognition of employees as their ultimate resource and (2) changes in the law that rewrote many traditional practices
three basic requirements of production:
(1) to build and deliver products in response to the demands of the customer at a scheduled delivery time, (2) to provide an acceptable quality level, and (3) to provide everything at the lowest possible cost.
Strikebreakers
(called scabs by unions) are workers hired to do the jobs of striking employees until the labor dispute is resolved.
the four eras of U.S. marketing
(production, selling, marketing concept, and customer relationship)
shop stewards
(union officials who work permanently in an organization and represent employee interests on a daily basis) and supervisory-level managers.
Telecommuting
, working from home via computer, is a major trend in business. Companies that no longer need to locate near sources of labor will be able to move to areas where land is less expensive and the quality of life may be higher
In the past, firms often conducted quality control at the end of the production line. Products were completed first and then tested for quality. This resulted in several problems:
1. The need to inspect work required extra people and resources. 2. If an error was found, someone had to correct the mistake or scrap the product. This, of course, was costly. 3. If the customer found the mistake, he or she might be dissatisfied and might even buy from another firm thereafter.
How does a company become more lean?
A company becomes lean by continuously increasing its capacity to produce high-quality goods while decreasing its need for resources.
job rotation
A job enrichment strategy that involves moving employees from one job to another. high-context culture, workers build personal relationships and develop group trust before focusing on tasks.
program evaluation and review technique (PERT):
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project.
arbitration
A more extreme option used to resolve conflicts. an agreement to bring in an impartial third party—a single arbitrator or arbitration panel—to render a binding decision in a labor dispute. The arbitrator(s) must be acceptable to both labor and management.
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.
Intermittent process:
A production process in which the production run is short and the machines are changed frequently to make different products. Today many manufacturers use intermittent processes. Computers, robots, and flexible manufacturing processes allow firms to turn out custom-made goods almost as fast as mass-produced goods were once produced.
marketing concept
A three-part business philosophy: (1) a customer orientation, (2) a service orientation, and (3) a profit orientation.
The Marketing Concept Era
After World War II ended in 1945, returning soldiers beginning new careers and starting families sparked a tremendous demand for goods and services. The postwar years launched the sudden increase in the birthrate that we call the baby boom, and also a boom in consumer spending. Competition for the consumer's dollar was fierce. Businesses recognized that they needed to be responsive to consumers if they wanted to get their business, and a philosophy emerged in the 1950s called the marketing concept.
training and development
All attempts to improve productivity by increasing an employee's ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities. Both include three steps: (1) assessing organizational needs and employee skills to determine training needs; (2) designing training activities to meet identified needs; and (3) evaluating the training's effectiveness.
job sharing
An arrangement whereby two part-time employees share one full-time job.
American Federation of Labor (AFL)
An organization of craft unions that championed fundamental labor issues; founded in 1886.
craft union
An organization of skilled specialists in a particular craft or trade.
Gantt chart:
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time.
The Selling Era
By the 1920s, businesses had developed mass-production techniques (such as automobile assembly lines), and production capacity often exceeded the immediate market demand. Therefore, the business philosophy turned from producing to selling.
Benefits of CAD
CAD can greatly improve productivity for businesses.
Six sigma quality
Companies have turned to the use of modern quality-control standards such as Six Sigma. Six Sigma quality, which sets a benchmark of just 3.4 defects per million opportunities, detects potential problems to prevent their occurrence. That's important to a company that makes 4 million transactions a day, like some banks.
Golden handshakes:
Companies looking to downsize sometimes offer early retirement benefits to entice older (and more expensive) workers to retire.
quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer.
primary data
Data that you gather yourself (not from secondary sources such as books and magazines). Ex. Conduct a survey
reverse discrimination
Discrimination against whites or males in hiring or promoting.
demographic segmentation
Dividing the market by age, income, education level, religion, race, and occupation.
geographic segmentation
Dividing the market by cities, counties, states, or regions
benefit segmentation
Dividing the market by determining which benefits of the product to talk about.
volume (or usage) segmentation
Dividing the market by usage (volume of use).
psychographic segmentation
Dividing the market using the group's values, attitudes, and interests.
affirmative action
Employment activities designed to "right past wrongs" by increasing opportunities for minorities and women.
customer orientation
Find out what consumers want and provide it for them. (Note the emphasis on meeting consumer needs rather than on promotion or sales.)
For empowerment to be a real motivator, management should follow these three steps:
Find out what people think the problems in the organization are. Let them design the solutions. Get out of the way and let them put those solutions into action.
profit orientation.
Focus on those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs.
certification
Formal process whereby a union is recognized by the National Labor Relations Board (NLRB) as the bargaining agent for a group of employees.
The Production Era
From the time the first European settlers began their struggle to survive in America until the early 1900s, the general philosophy of business was "Produce as much as you can, because there is a limitless market for it."
hygiene factors
In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased.
motivators
In Herzberg's theory of motivating factors, job factors that cause employees to be productive and that give them satisfaction.
Benefits of CAM:
In food service, CAM supports on-site, small-scale, semiautomated, sensor-controlled baking in fresh-baked cookie shops to make consistent quality easy to achieve. Of course, 3D printers are among the latest CAM technology. A product is made layer by layer until it appears, almost by magic, as a finished good.
secondary data
Information that has already been compiled by others and published in journals and books or made available online.
industrial unions
Labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining.
right-to-work laws
Legislation that gives workers the right, under an open shop, to join or not join a union if it is present.
service orientation
Make sure everyone in the organization has the same objective: customer satisfaction. This should be a total and integrated organizational effort. That is, everyone from the president of the company to the delivery people should be customer-oriented. Does that seem to be the norm today?
McGregor's theories X (The average person dislikes work and will avoid it if possible) and Y (Most people like work; it is as natural as play or rest):
Management theorist Douglas McGregor observed that managers' attitudes generally fall into one of two entirely different sets of managerial assumptions, which he called Theory X and Theory Y.
target marketing
Marketing directed toward those groups (market segments) an organization decides it can serve profitably.
management by objectives (MBO)
Peter Drucker's system of goal-setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees.
Levels of Maslow's hierarchy of needs (from lowest to highest):
Physiological needs: Basic survival needs, such as the need for food, water, and shelter. Safety needs: The need to feel secure at work and at home. Social needs: The need to feel loved, accepted, and part of the group. Esteem needs: The need for recognition and acknowledgment from others, as well as self-respect and a sense of status or importance. Self-actualization needs: The need to develop to one's fullest potential.
Herzbergs motivating factors:
Sense of achievement. Earned recognition. Interest in the work itself. Opportunity for growth. Opportunity for advancement. Importance of responsibility. Peer and group relationships. Pay. Supervisor's fairness. Company policies and rules. Status. Job security. Supervisor's friendliness. Working conditions.
time-motion studies
Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task.
scientific management
Studying workers to find the most efficient ways of doing things and then teaching people those techniques.
Ouchi's theory Z:
The Japanese approach, which Ouchi called Type J, included lifetime employment, consensual decision making, collective responsibility for the outcomes of decisions, slow evaluation and promotion, implied control mechanisms, nonspecialized career paths, and holistic concern for employees.
orientation
The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm.
marketing
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
marketing research
The analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions.
Knights of Labor
The first national labor union; formed in 1869.
marketing mix
The ingredients that go into a marketing program: product, price, place, and promotion.
market segmentation
The process of dividing the total market into groups whose members have similar characteristics.
networking
The process of establishing and maintaining contacts with key managers in one's own organization and other organizations and using those contacts to weave strong relationships that serve as informal development systems.
selection
The process of gathering information and deciding who should be hired, under legal guidelines, for the best interests of the individual and the organization.
test marketing
The process of testing products among potential users.
management development
The process of training and educating employees to become good managers and then monitoring the progress of their managerial skills over time.
recruitment
The set of activities used to obtain a sufficient number of the right people at the right time.
Hawthorne effect
The tendency for people to behave differently when they know they are being studied.
Computer integrated manufacturing (CIM):
The uniting of computer-aided design (CAD) with computer-aided manufacturing (CAM).
Computer-aided design (CAD):
The use of computers in the design of products.
Computer-aided manufacturing (CAM):
The use of computers in the manufacturing of products.
job simulation
The use of equipment that duplicates job conditions and tasks so that trainees can learn skills before attempting them on the job. It differs from vestibule training in that it duplicates the exact combination of conditions that occur on the job.
principle of motion economy
Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions called "Therblig"
Maslow's hierarchy of needs
Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs.
on-the-job training
Training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them.
Online training
Training programs in which employees complete classes via the Internet. demonstrates how technology is improving the efficiency of many off-the-job training programs.
off-the-job training
Training that occurs away from the workplace and consists of internal or external programs to develop any of a variety of skills or to foster personal development.
Congress of Industrial Organizations (CIO)
Union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955.
expectancy theory
Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome. asks: (1) Can I accomplish the task? (2) If I do accomplish it, what's my reward? (3) Is the reward worth the effort?
cooling-off period
When workers in a critical industry return to their jobs while the union and management continue negotiations.
Facility location for manufacturers
Why would companies spend millions of dollars to move their facilities from one location to another? They consider labor costs; availability of resources, including labor; access to transportation that can reduce time to market; proximity to suppliers; proximity to customers; crime rates; quality of life for employees; cost of living; and the need to train or retrain the local workforce. Inexpensive resources are another major reason for moving production facilities. Companies usually need water, electricity, wood, coal, and other basic resources. By moving to areas where these items are inexpensive and plentiful, firms can significantly lower not only the cost of buying such resources but also the cost of shipping finished products.
compressed workweek
Work schedule that allows an employee to work a full number of hours per week but in fewer days.
mentor
a corporate manager who supervises, coaches, and guides selected lower-level employees by introducing them to the right people and generally acting as their organizational sponsor.
Enterprise resource planning (ERP)
a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, human resources, and order fulfillment—into a single integrated software program that uses a single database.
job enrichment
a strategy that motivates workers through the job itself.
unwelcome
a term for behavior that would offend a reasonable person.
fixed-position layout
allows workers to congregate around the product to be completed.
product
any physical good, service, or idea that satisfies a want or need, plus anything that would enhance the product in the eyes of consumers, such as the brand name.
Job specifications
are a written summary of the minimal education and skills a person needs to do a particular job.
Production processes
are either continuous or intermittent
gain-sharing systems
base bonuses on improvements over previous performance.
business-to-business (B2B) market
consists of all the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.
consumer market
consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them.
Promotion
consists of all the techniques sellers use to inform people about and motivate them to buy their products or services. Promotion includes advertising; personal selling; public relations; publicity; word of mouth (viral marketing); and various sales promotion efforts, such as coupons, rebates, samples, and cents-off deals.
How has fringe benefits changed in the amount it costs organizations in the last 80+ years:
cost has accelerated
agency shop agreement,
employers may hire workers who are not required to join the union but must pay a special union fee or regular union dues.
flextime plan
gives employees some freedom to choose which hours to work, as long as they work the required number of hours or complete their assigned tasks.
open shop agreement
gives workers the option to join or not join a union if one exists. A worker who does not join cannot be forced to pay a fee or union dues
empowerment
giving employees authority to make decisions and tools to implement the decisions they make.
Production management
has described the activities that helped firms create goods. (As we discussed in the previous section, though, in recent decades the U.S. economy has been largely driven by services rather than manufacturing.)
cafeteria-style fringe benefits
in which employees can choose the benefits they want up to a certain dollar amount. Such plans let human resource managers equitably and cost-effectively meet employees' individual needs by allowing them choice.
modular layout
in which teams of workers combine to produce more complex units of the final product.
Contingent workers
include part-time workers (anyone who works less than 34 hours per week), temporary workers (workers paid by temporary employment agencies), seasonal workers, independent contractors, interns, co-op students, and freelancers. Workers who do not have the expectation of regular, full-time employment.
Fringe benefits
include sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees beyond base wages.
negotiated labor-management agreement
informally referred to as the labor contract, sets the tone and clarifies the terms and conditions under which management and the union will function over a specific period.
grievance
is a charge by employees that management is not abiding by or fulfilling the terms of the negotiated labor-management agreement as they perceive it.
ISO 14001
is a collection of the best practices for managing an organization's impact on the environment.
Materials requirement planning (MRP)
is a computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place.
injunction
is a court order directing someone to do something or to refrain from doing something.
focus group
is a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.
Operations management
is a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.
job analysis
is a study of what employees do who hold various job titles.
brand name
is a word, letter, or group of words or letters that differentiates one seller's goods and services from those of competitors.
secondary boycott
is an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott.
lockout
is an attempt by management to put pressure on union workers by temporarily closing the business.
union
is an employee organization whose main goal is representing its members in employee-management negotiations over job-related issues.
Vestibule training (or near-the-job training)
is done in classrooms with equipment similar to that used on the job so that employees learn proper methods and safety procedures before assuming a specific job assignment.
extrinsic reward
is given to you by someone else as recognition for good work. Pay raises, praise, and promotions are extrinsic rewards.
Niche marketing
is identifying small but profitable market segments and designing or finding products for them
continuous process
is one in which long production runs turn out finished goods over time. As a chef, you could have a conveyor belt that continuously lowers eggs into boiling water for three minutes and then lifts them out. A three-minute egg would be available whenever you wanted one. A chemical plant, for example, is run on a continuous process.
process layout
is one in which similar equipment and functions are grouped together
ISO 9001
is the common name given to quality management and assurance standards.
Purchasing
is the function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.
Core time
is the period when all employees are expected to be at their job stations.
intrinsic reward
is the personal satisfaction you feel when you perform well and complete goals. The belief that your work makes a significant contribution to the organization or to society is a form of intrinsic reward.
Facility layout
is the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers.
Decertification
is the process by which workers can take away a union's right to represent them. After an election, both the union and company have five days to contest the results with the NLRB.
Human resource management (HRM)
is the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
Environmental scanning
is the process of identifying factors that can affect marketing success.
Customer relationship management (CRM)
is the process of learning as much as possible about present customers and doing everything you can over time to satisfy them—or even to exceed their expectations—with goods and services.
Facility location
is the process of selecting a geographic location for a company's operations.
Statistical process control (SPC)
is the process of testing statistical samples of product components at each stage of production and plotting the test results on a graph.
Statistical quality control (SQC
is the process some managers use to continually monitor all phases of the production process and ensure quality is being built into the product from the beginning
collective bargaining
is the process whereby union and management representatives negotiate a contract for workers.
Lean manufacturing
is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.
critical path
is the sequence of tasks that takes the longest time to complete. We use the word critical because a delay anywhere along this path will cause the project or production run to be late.
Mediation
is the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the matter.
Form utility
is the value producers add to materials in the creation of finished goods and services, such as by transforming silicon into computer chips or putting services together to create a vacation package. Form utility can exist at the retail level as well. For example, a butcher can produce a specific cut of beef from a whole cow, or a baker can make a specific type of cake from basic ingredients.
Equity Theory
looks at how employees' perceptions of fairness affect their willingness to perform.
Common facility locations:
many producers moved their plants to Malaysia, China, India, Mexico, and other countries
Flexible manufacturing
means designing machines to do multiple tasks so they can produce a variety of products.
One-to-one marketing
means developing a unique mix of goods and services for each individual customer.
Mass marketing
means developing products and promotions to please large groups of people.
customize
means to make a unique product or provide a specific service to specific individuals.
primary boycott
occurs when labor encourages both its members and the general public not to buy the products or services of a firm engaged in a labor dispute
strike
occurs when workers collectively refuse to go to work.
Process manufacturing
physically or chemically changes materials
interfirm
process in which companies work closely together to design, produce, and ship products to customers.
assembly process
puts together components (eggs, toast, and coffee) to make a product (breakfast). Cars are made through an assembly process that puts together the frame, engine, and other parts.
Sexual harassment
refers to unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that creates a hostile work environment.
yellow-dog contract
required employees to agree, as a condition of employment, not to join a union.
Goal-setting theory
says setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback, and if conditions in the organization pave the way for achievement.
job description
specifies the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions.
union security clause
stipulating that employees who reap union benefits either officially join or at least pay dues to the union.
Relationship marketing
tends to lead away from mass production and toward custom-made goods and services. The goal is to keep individual customers over time by offering them new products that exactly meet their requirements.
Production
the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
Fredrick Taylor
the father of scientific management
Offboarding
the process surrounding employee exits. Whether employees are fired, resigning or retiring, there are things that need to be done before they leave. This includes managing payments, insurance, and benefits; conducting exit interviews; collecting work and documents; and returning anything owned by the company.
Skill-based pay rewards the growth of both the individual and the team. Base pay is raised when team members learn and apply new skills. he drawbacks of skill-based pay are twofold:
the system is complex, and it is difficult to relate the acquisition of skills directly to profit gains. The advantages of skill-based pay include improved employee skills and job satisfaction.
apprentice programs
training programs involving a period during which a learner works alongside an experienced employee to master the skills and procedures of a craft. orkers who successfully complete an apprenticeship earn the classification journeyman.
job enlargement,
type of job enrichment. which combines a series of tasks into one challenging and interesting assignment.
union shop agreement
under which workers do not have to be members of a union to be hired but must agree to join within a prescribed period (usually 30, 60, or 90 days)
bargaining zone
which is the range of options between the initial and final offers that each party will consider before negotiations dissolve or reach an impasse.
mass customization
which means tailoring products to meet the needs of a large number of individual customers, is now practiced widely. (robotics and 3D printing)
closed shop agreement
which specified that workers had to be members of a union before being hired for a job.
high-context culture,
workers build personal relationships and develop group trust before focusing on tasks.
low-context culture,
workers often view relationship building as a waste of time that diverts attention from the task.
