Mgmt 1 Midterm study guide

trade surplus

(favorable balance of trade): value of country's exports exceeds its imports

hygiene factors

(maintenance factors): job environment and could cause disatisfaction if missing but would not necessarily motivate employees if increased

trade deficit

(unfavorable balance of trade): when the value of a country's exports is less than its imports

leaders must

- Communicate a vision and rally others around that vision - Establish corp values - Promote corp ethics - Embrace change - Stress accountability and responsibility - Transparency:=

departmentalization disadvantages

- Departments may not communicate well. For example, production may be so isolated from marketing that it does not get needed feedback from customers. - Employees may identify with their department's goals rather than the organization's. The purchasing department may find a good value somewhere and buy a huge volume of goods. That makes purchasing look good, but the high cost of storing the goods hurts overall profitability. - The company's response to external changes may be slow. - People may not be trained to take different managerial responsibilities; rather, they tend to become narrow specialists. - Department members may engage in groupthink (they think alike) and may need input from outside to become more creative.

Nadler and Lawler modified his theory and suggested to improve employee performance need to

- Determine what rewards employees value. - Determine each employee's desired performance standard. - Ensure that performance standards are attainable. - Guarantee rewards tied to performance. - Be certain that employees consider the rewards adequate.

sole proprietorships advantages

- Ease of starting and ending the business - Ability to be your own boss - Pride of ownership - Leaving a legacy - Retention of co profits: owners keep profits and benefit when business grows - No special taxes: have to pay for social security and Medicare

Theory Y Assumptions

- Employees like to work - Employees are creative, and seek responsibility - Employees can exercise self-direction and self-control

matrix organization advantages

- It gives managers flexibility in assigning people to projects. - It encourages interorganizational cooperation and teamwork. - It can produce creative solutions to product development problems. - It makes efficient use of organizational resources.

matrix organization disadvantages

- It's costly and complex. - It can confuse employees about where their loyalty belongs—with the project manager or with their functional unit. - It requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems. - It may be only a temporary solution to a long-term problem.

Small business advantages over larger businesses in international trade

- Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies. - Small companies can usually begin shipping much faster. - Small companies can provide a wide variety of suppliers. - Small companies can give customers personal service and undivided attention because each overseas account is a major source of business to them.

Home based businesses has increased because

- Technology - Corp downsizing, outsourcing to smaller co - Social attitudes have changed - New tax laws loosen restrictions for home office

assumptions of theory x mgmt

- The average person dislikes work and will avoid it if possible. - Because of this dislike, workers must be forced, controlled, directed, or threatened with punishment to make them put forth the effort to achieve the organization's goals. - The average worker prefers to be directed, wishes to avoid responsibility, has relatively little ambition, and wants security. - Primary motivators are fear and punishment.

mission statement should address

- The organization's self-concept. - Its philosophy. - Its long-term survival needs. - Its customer needs. - Its social responsibility. - The nature of its product(s) or service(s).

potential external opportunities

- ability to serve additional customer groups - expand product lines - ability to transfer skills/technology to new products - falling trade barriers in attractive foreign markets - complacency among rival firms - ability to grow due to increases in market demand

organizing

- allocating resources, assigning taks and establishing procedures for accomplish goals - prep a structure (org chart) showing lines of authority and responsibility - recruiting, selecting, training, and developing employees - placing employees where they'll be most effective

each general partnership should have

- common ownership - shared profits and losses - right to participate in managing the operations of the business

cons of free trade

- domestic workers (particularly in manufacturing-based jobs) can lose their jobs due to increased imports or production shifts to low-wage global markets - workers may be forced to accept pay cuts from employers, who can threaten to move their jobs to lower-cost global markets - moving operations overseas because of intense competitive pressure often means the loss of service jobs and growing numbers of white-collar jobs - domestic companies can lose their comparative advantage when competitors build advanced production operations in low-wage countries

pros of free trade

- over 7.7 billion potential customers - productivity grows when countries produce goods they have a comparitive advantage - global comp and less costly imports keep price down so inflation does not demolish econ growth - free trade inspires innovation - uniterrupted flow of capital gives countries access to foreign investments which helps keep interest rates low

departmentalization advantages

- saves cost and improve efficiency - Employees can develop skills in depth and progress within a department as they master more skills. - The company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area. - Employees can coordinate work within the function, and top management can easily direct and control various departments' activities.

planning

- setting org goals - developing strategies to reach those goals - determining resources needed - setting precise standards

Henri Fayoi mgmt principles

- unity of command - hierarchy of authority - division of labor - subordination of indiv interests to the general intest - authority - degree of centralization - clear communication - order - equity - espirit de corps

Key Economic Indicators

-Gross Domestic Product -Unemployment Rate -Price Indexes

narrow span of control disadvantages

-Less empowerment -Higher costs -Delayed decision making -Less responsiveness to customers

narrow span of control advantages

-More control by top management -More chances for advancement -Greater specialization -Closer supervision

broad span of control advantages

-Reduced costs -More responsiveness to customers -Faster decision making -More empowerment

Potential Internal Strengths

-core competencies in key areas -an acknowledged market leader -well-conceived functional area strategies -proven management -cost advantages -better advertising campaigns

Effects of legislation

-employers must know the law and act accordingly -legislation affects all areas of HRM -court cases highlight that sometimes it's proper to go beyond providing equal rights -changes in law and legislation occur regularly

Advantages of Centralization

-greater top management control -more efficiency -simpler distribution system -stronger brand/corporate image

leading

-guiding and motivating employees to work effectively to accomplish organizational goals and objectives -giving assignments -explaining routines -clarifying policies -providing feedback on performance

controlling

-measuring results against corporate objectives -monitoring performance relative to standards -rewarding outstanding performance -taking corrective action when necessary

Ways to departmentalize

By product By function By customer group By geographic location By process

Both Train and develop include three steps

1. Assign org needs and employee skills to determine training needs 2. Designing training act to meet identified needs 3. Evaluating the trainings effectiveness

Victor's Vroom expectancy theory

1. Can I accomplish the task? 2. If I do accomplish the task what is my reward? 3. Is the reward worth the effort?

outline of business plan

1. Cover letter 2. Exec summary 3. Co background 4. Mgmt team 5. Financial plan 6. Capital required 7. Marketing plan 8. Location analysis 9. Manu plan 10. Appendix

How to motivate through open communication

1. Create org culture that rewards listening 2. Train supervisors and managers to listen 3. Use effective questioning techniques 4. Remove barriers to open communication 5. Avoid vague and ambiguous communication 6. Make it easy to communicate 7. Ask employees what is important to them

6 steps of decision making

1. Define the situation. 2. Describe and collect needed information. 3. Develop alternatives. 4. Decide which alternative is best. 5. Do what is indicated (begin implementation). 6. Determine whether the decision was a good one, and follow up.

decision making

Choosing among two or more alternatives.

examples of hygiene factors

Company policy and administration, supervision, working conditions, interpersonal relations, salary, status, and job security.

Country specific culture and legal standards affect HR functions including

Compensation Health and pension standards Paid time off Taxation Communication Regulatory requirements

competitive environment

Customer service, stakeholder recog, employee service Concerns for the environment

the control process

1. Establish clear standards 2. Monitor and record performance 3. Compare results against standards 4. Communicate results 5. If needed, take corrective action

six steps of performance appraisal

1. Establishing performance standards 2. Communicating these standards 3. Eval performance 4. Discuss results with employees 5. Taking corrective action 6. Using result to make decisions

business idea is good if

1. Fills customers needs 2. Have skills and resources for it 3. Sell the product or service at a price customers are willing to pay and can still make a profit 4. Get product or service to customers before window of opp closes 5. Can keep it going

Initiatives to develop female and minority managers understand

1. Grooming women and minorities for mgmt is about legality or morality but about bringing talent in the door 2. Best women and minorities become harder to attract and retain so companies that commit to development early have an edge 3. Having more women and minorities at all levels lets businesses serve their increasing female and minority customers better

disadvantages of corporations

1. Initial cost 2. Extensive paperwork 3. Double taxation 4. Two tax returns 5. Size 6. Difficulty of termination 7. Possible conflict with stockholders and board of directors

Weber's principles of organization

1. Job descriptions 2. Written rules, decision guidelines and detailed records 3. Consistent procedures, regulations and policies 4. Staffing and promotion based on qualifications

disadvantages of franchises

1. Large start-up costs 2. Shared profit 3. Management regulation 4. Coattail effects 5. Restrictions on selling 6. Fraudulent franchisors

advantages of corporations

1. Limited liability 2. Ability to raise more money for investment 3. Size 4. Perpetual life 5. Ease of ownership change 6. Ease of attracting talented employees 7. Separation of ownership from management

advantages of LLC

1. Limited liability 2. Choice of taxation 3. Flexible ownership rules 4. Flexible distribution of profits and losses 5. Operating flexibility

Companies successful in adapting to change have common traits

1. Listen to customers 2. Inspirational managers who drive new ideas throughout the organizations 3. Often have had a close call with going out of business

Type Z (Modified American )

1. Long term employment 2. Collective decision making 3. Individual responsibility 4. Slow evaluation and promotion 5. Implicit, informal control with explicit, formalized control 6. Moderately specialized career paths 7. Holistic concern for employees (including family)

6 Steps to improve business ethics

1. MGMT must unconditionally support ethics code 2. Employees understand that expectations for ethic behavior begin at the top of mgmt 3. Managers and other must be ethically trained 4. Ethics office should have place to report unethical behavior anonymously 5. Outsiders (suppliers, customers, etc.) must be told about the ethics program 6. Ethics code must be enforced if broken

advantages of frachises

1. Mgmt and marketing assistance 2. Personal ownership 3. Nationally recog name 4. Financial advice and assistance 5. Lower failure rate

partnership advantages

1. More financial resources 2. Shared management and pooled/complementary skills and knowledge 3. Longer survival 4. No special taxes

disadvantages of LLC

1. No stock 2. Limited life span 3. Fewer incentives 4. Taxes 5. Paperwork

selection process 6 steps

1. Obtaining complete application forms 2. Conducting initial and follow up interviews 3. Giving employments tests 4. Conducting background investigations 5. Obtaining results from phys exams 6. Establishing trial (probationary) periods

free market capitalism four basic rights

1. Right to own private property 2. Right to own a business and keep all bus profits 3. Right to freedom of competition 4. Right to freedom of choice

4 basic rights of consumers

1. Right to safety 2. Right to be informed 3. Right to choose 4. Right to be heard

what creates enthusiasm for workers and makes them work to full potential? asked by Herzberg

1. Sense of achievement. 2. Earned recognition. 3. Interest in the work itself. 4. Opportunity for growth. 5. Possibility for advancement. 6. Importance of responsibility. 7. Peer and group relationships. 8. Pay. 9. Supervisor's fairness. 10. Company policies and rules. 11. Status. 12. Job security. 13. Supervisor's friendliness. 14. Working conditions.

Type A (American)

1. Short-term employment 2. Individual decision making 3. Individual responsibility 4. Rapid evaluation and promotion 5. Explicit, formalized control 6. Specialized career paths 7. Segmented concern for employees

Three major forms of business ownership

1. Sole proprietorships 2. Partnerships 3. Corporations

Five elements in the business environment

1. The economic and legal environment 2. The technological environment 3. The competitive environment 4. The social environment 5. The global business environment

three questions to ask before forming a global franchise

1. Will intellectual property be protected? 2. Can you give proper support to global partners? 3. Are you able to adapt to franchise regulations in other countries?

work at home challenges

1. getting new customers 2. managing time 3. keeping work and family tasks separate 4. abiding by city ordinances 5. managing risks

five factors of production

1. land 2. labor 3. capital 4. entrepreneurship 5. knowledge

disadvantages of centralization

1. less responsive to customers 2. less empowerment 3, interorganizational conflict 4. low morale away from headquarter

strategies for reaching global markets from least amount of commitment to most amount of control

1. licensing 2. exporting 3. franchising 4. contract manufacturing 5. International joint ventures and strategic alliances 6. Foreign direct investment

willing to take risks because

1. opportunity 2. profit 3. Interdependence 4. challenge

five steps in human resources planning process

1. prepare hr inventory 2. prepare job analysis 3. assess future hr demand 4. assess future labor supply 5. establish a strategic plan

What does it take to be an entrepreneur?

1. self-directed 2. self-nurturing 3. action-oriented 4. highly energetic 5. tolerant of uncertainty

5 characteristics are important for motiv and performance

1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback

social audits are conducted by companies and...

1. socially conscious investors 2. socially conscious research organizations 3. environmentalists 4. Union officials 5. customers

partnership disadvantages

1. unlimited liability 2. division of profits 3. disagreements among partners 4. difficult to terminate

social environment

Diversity, demo changes, family changes

economies of scale

: co can reduce production costs by purchasing raw materials in bulk, ave cost of goods dec as production level rise

principle of motion economy

: every job can be broken into a series of elementary motions called a therblig, then they analyzed each motion to make it more efficient

invisible hand

: is used to describe the process that turns self-directed gain into social and economic benefits for all

deflation

: prices are declining

offboarding

: process surrounding employee exits

job enrichment

: strategy that motivates workers through the job itself Based on Herzbergs motivators responsibility, achievement, and recog

informal organization

: system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority separate from the formal org

Mentoring programs provide these benefits

Improved recruiting and retention More engaged employees Cost savings Inc skills and better attitudes

technological environment

Info tech, databases, bar codes, internet

knowledge

Information technology has revolutionized business, making it possible to quickly determine wants and needs and to respond with desired goods and services.

Three ?s to ask when facing an ethical dilemma

Is my proposed action legal? Is it Balanced (fair)? How does it make me feel about myself

disadvantage of job sharing

Need to train, hire, motivate, and supervise at least twice as many people Move over to a new job instead of up, allows to learn new skills in co with few adv opp

to qualify as an s corp a company must

No more than 100 shareholders (families count as 1) Have shareholders that are indiv or estates and who (as individuals) are citizens or permanent resident of the US Have only one class of stock Derive no more than 25% of income from passive sources (rents, royalties, interest)

Roles and responsibilities of HRM have evolved because of

Org recog of employees as ultimate resource Change in law that rewrote traditional practices

labor (workers)

People have always been an important resource in producing goods and services, but many people are now being replaced by technology.

Civil rights act of 1964

Prohibits discrimination on the basis of race, religion, creed, sex, or national origin, age In 2020, added sexual orientation and gender identity

small business

SBA defines it as an independently owned and operated, not dominant in field of operation and meets certain standards of size in terms of employees or annual receipts

benefits of joint venture

Shared tech and risk Shared marketing and mgmt experts Entry into markets where foreign co are not allowed unless goods are produced locally

tariffs

Taxes on imported goods

degree of centralization

The amount of decision-making power vested in top management should vary by circumstances.

national debt

The sum of government deficits over time.

capital

This includes machines, tools, buildings, or whatever else is used in the production of goods. It might not include money; money is used to buy factors of production but is not always considered a factor by itself.

USMCA (United States-Mexico-Canada Agreement)

This is a regional trade agreement between the United States, Canada, and Mexico that is designed to replace NAFTA. The agreement has been signed by the leaders of all three countries, but at the time of publication has not yet been ratified by the legislatures of those countries.

value of good is based on

What business owns What it earns What makes it unique

decentralized authority

When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters is.

national surplus

When government takes in more than it spends.

comparitive advantage theory

a country should sell to other countries those products it produces more effectively and efficiently and buy from other other countries those products it cannot produce as effectively or efficiently

business plan:

a detailed written statement that describes the nature of business, target market, adv business has over competition, resources and qualifications of the owner(s)

high value of a dollar

a dollar is trading for more foreign currency than previously

low value of a dollar

a dollar traded for less foreign currency

contract manufacturing

a foreign co produces private-label goods to which a domestic co attaches its own brand name or trademarks

General Agreement on Tariffs and Trade (GATT)

a global forum for reducing trade restrictions on goods, services, ideas, and cultural programs.

monopolistic competition

a large number of sellers produce very similar products that buyers perceive as different

job enlargement

a series of tasks into one challenging and interesting assign

gig

a single project or task for which a worker is hired, often through digital marketplace to work on demand

social auditing

a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs

virtual corporation

a temporary network made of replaceable firms that join and leave as needed

Entreupreneurship

accepted the risk of starting and running a business

coaching

acting as a resource, teaching, guiding and recommending, but not participating actively or doing the task

coattail effect

actions of other franchises have an impact on your future growth and profitability

orientation

activity that initiates new employees into the org

external sources

ads, online sites, referrals, online and walk in applications, etc.

staff personnel

advise and assist line personnel in meeting their goals by doing market research, legal advising, info tech, and HR

capitalism

all or most of the factors of production and distribution—such as land, factories, railroads, and stores—are owned by individuals.

general partnership

all owners share in operating the business and in assuming liability for the business's debts

stakeholders

all people who stand to lose or gain by policies or actions of a business

compassionate capitalism

all stakeholders from customers to environmentalists should get the benefits of capitalism

hierarchy of authority

all workers no who to report, managers should give orders that others follow

mixed economy

allocation or resources made by both market and gov

JOBS act 2012

allows business to use fundraising sites to solicit larger investments in exchange for ownership shares in the business (crowdinvesting or equity crowdfunding)

standard of living

amount of goods and services people can buy with money they have

franchise agreement

an arrangement whereby someone with good idea for business (the franchisor) sells the rights to use the business name and sell a product or service (the franchise) to others (the franchisees

leverage buyout (LBO)

an attempt by employees, mgmt, or a group of private investors to buy out the stockholders in a co, primarily by borrowing the necessary funds

communism

an econ and pol system where gov makes all econ decis and owns all major factors if production

socialism

an econ system based on the premise that basic businesses should be owned by the gov so that profits can be more evenly distributed to the people

gig economy

an economy made up of contingent workers

unity of command

an employee should report to no more than one manager

compressed workweek

an employee works the full # of hrs but in fewer than the standard number of days

Service Corps of Retired Executives (SCORE)

an info source for small businesses

unlimited liability

any debts or damages incurred by the business are your debts and you must pay them

real time

at the present moment or the actual time in which an even takes place

Ethnocentricity

attitude that your own culture is superior to other cultures

gain sharing system

base bonuses on improvements over prev performance Limit: may improve just enough to meet the target but not by much

self-nurturing

believing in yourself when no one else does

brain drain

best and brightest people leave because taxed too high

decentralized advantages

better adaptation to customer wants more empowerment of workers faster decision making higher morale

business cycle steps

boom, recession, depression, recovery

insourcing

bringing more job for a certain company

goals

broad-long term accomplishments an organization wishes to attain

Foreign Direct Investment (FDI)

buying of permanent property and businesses in foreign nations

importing

buying products from another country

absolute advantage

can produce a specific more efficiently than all other countries

conscious capitalism

capitalism to serve all stakeholders not just stockholders

structural unemployment

caused by the restructuring of firms or by a mismatch between the skills (or location) of job seekers and the requirements (or location) of avail jobs

risk

chance entrepreneur takes on losing time and money on a business that may not be profitable

corporate philanthropy

charitable donations to nonprofit groups of all kinds

foreign subsidiary

co owned in a foreign country by another company, the parent company

Self-employment Assistance (SEA) program

collect self employment payments instead of regular unemployment checks when building business

brainstorming

coming up with as many solutions as possible in a short period of time with no censoring of ideas

human relation skills

communicating and motivation

bureaucracy

company's reliance on rules

benchmarking

comparing an org practice, process, and products against the world's best

market based pay structure

compensate people relative to the market value of their job (most common)

embargo

complete ban on the import or export of a certain product

countertrading

complex form of bartering where several countries trade goods or services for other goods or services

Corporate Social Responsibility (CSR)

concern businesses have for the welfare of society, not just for the owners.

inverted organization

contact people (ex: nurses) at top and top mgmt at bottom

outsourcing

contracting with other companies to do some or all the functions of a firm like its a product or accounting tassels

mentor

cop manager who supervises, coaches, guides selected low level employees by introducing them to the right people and generally acting as their org sponsor

corporations

create a business that is separate and distinct from owners

intrapreneurs

creative people who work as entrepreneurs within corporations - Launch new products and generate new profits

external customers

dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use

seasonal unemployment

demand for labor varies over the year

revenue tariffs

designed to raise money for the gov

formal organization

details lines of responsibility, authority, and position Too bureaucratic and slow

Balance of payments:

difference between money coming into a country (exports) and money leaving the country (imports)

line organization

direct two ways lines of responsibility authority and comm running from top to bottom of org with everyone reporting to one supervisor

division of labor

divided into areas of specialization such as production, marketing, and finance

departmentalization (CH. 8)

dividing organization into separate units

job specialization

dividing tasks into smaller jobs

strategic planning

done by top mgmt and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them

Vestibule training (near the job training):

done in classroom with equip similar to that used on the job

mgmt by objectives

druckers system of goal setting and implementation includes a cycle of discussion, review, and evaluation of objectives among top and middle level managers, supervisors, and employees

stagflation

econ is slowing but prices are going up anyway

mass production

efficiently producing large quantities of goods, processes and bus org became co complex

flextime plan

employee have some freedom to choose which hours they work as long as they work the required number of hours or complete their assigned tasks

cafeteria style fringe benefits

employees can choose the benefits they want up to a certain dollar amount

equity theory

employees perceptions of fairness affect their willingness to perform Perceived inequity may lead to lower productivity, reduced quality, increased absenteeism and voluntary resignation

on-call scheduling

employers call in or cancel workers on little notice

knowledge mgmt

empowering employees by giving them knowledge

corporate social initiatives

enhanced forms of corporate philanthropy directly related to the company's competencies

Office of federal contract compliance Programs (OFCCP)

ensures employers comply with nondiscrimination and affirmative action laws and regulations

corporate responsibility

essential everything has to do with acting responsible within society

networking chapter 11

establishing and maintaining contacts with key managers in your own and other orgs

performance appraisal

eval that measures employee performance against established standards in order to make decis about promotions, compensation, training, or termination

bartering

exchange of merch for merch or service for service

perfect competition

exists when there are many sellers in a market and none is large enough to dictate the price of a product, no true examples of this exist

motivators

factors that make employees more productive and satisfied (job content)

fiscal policy

federal government effort to keep econ stable by inc or dec taxes or gov spending

oligopoly

few sellers dominate a market

flat org structures

fewer layers of mgmt and broad span of control (many people report to each managers)

venture capitalists

finance project for a price

middle mgmt

general mangers, division managers, and branch and plant managers who are responsible for tactical planning and controlling

inflation

general rise in price of goods and services over time

quality of life

general well being of society

continuous performance reviews

give cont feedback via mobile apps to help employees meet their goals

extrinsic rewards

given to you by someone else as recognition for goodwork

empowerment (new)

giving employees the authority to make a decision without consulting the manager and the responsibility to respond quickly to customer requests

directing

giving explicit instructions, telling them what to do to meet goals and objectives of the organization

enabling

giving workers the educations and tools they need to make decisions

Command econ (socialism and communism):

gov decides what goods and services are produced, who gets them, and how econ grows

entrepreneurial team

group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, market a new product

cross-functional self-managed teams

groups of employees from different departments who work together on a long-term basis

general partner

has unlimited liability and is active in managing the firm

top mgmt

highest level, the president and CEO, Chief operating officer (COO), chief financial officer (CFO), and chief information officer (CIO) or in some companies chief knowledge officer (CKO).

"Fair-Disclosure Rule" (Regulation FD)

if co tells anyone, they have to tell everyone at the same time

internal sources

include current employees who can be transferred or promoted or recommended others to hire

Training and developing:

includes all attempts to improve productivity by inc an employees ability to perform

fringe benefits

includes sick pay leave, vacation pay, pension plan, and health plans

internal customers

individuals and units within the firm that receive services from other individuals or units

whistleblowers

insiders who report illegal/unethical behavior

Affirmative action:

intended to right past wrongs by increasing opportunities for minorities and women

Global Business Environment

international forces that affect a business and includes international trade agreements, international economic conditions, and political unrest

Executive Summary

is five mins to convince the reader not to throw the business plan away

core time

is period when all employees are expected to be at their job stations

economics

is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals

horizontal merger

joins two firms in the same industry and allows them to diversify or expand their products example: Soda and water

vertical mergers

joins two firms operating in different stages of related businesses example: Soda and artificial sweetener

three key factors of hay method

knowledge, problem solving, and accountability

legality

laws we have written to protect ourselves from fraud, theft, and violence

exit interview

learn why employees by having an expert conduct this

decentralized disadvantages

less efficiency, complex distribution system, less top-management control, weakened corporate image

problem solving

less formal than decision making and usually calls for quicker action to resolve everyday issues

conceptual skills

let the manager picture the organization as a whole and see the relationships among its various parts

On-the-job training

lets the employee learn by doing or watching others

job sharing

lets two or more part-time employees share one full time job

Type J (Japanese) management

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

limited liability

limited partners liability for the debt of the business is limited to the amount they put into the company

limited liability partnership

limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision.

import quota

limits the number of products in certain categories a nation can import

chain of authority

line of authority that moves from the top of hierarchy to lowest level

PMI

list all pluses of solution in one column and all minuses in another, implications in a this, plus>minus

development

long-term abilities

strategic alliance

long-term partnership between 2 or more co established to help each co build competitive market advantages

master limited partnership

looks and acts like a corp but is taxed like a partnership and avoids corp income tax

Microeconomics

looks at the behavior of people and organizations in markets for particular products or services.

s corporation

looks like a corporation but is taxed like sole proprietorships and partnerships

devaluation

lowers the value of a nation's currency relative to others

autocratic leadership

making managerial decisions without consulting others

participative (democratic) leadership

managers and employees work together to make decisions

line-and-staff organization

managers have direct control over the units and employees they supervise but have access to staff specialists for assistance

authority

managers have right to give orders and power to enforce obedience

free-rein leadership

managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives

accommodation

means treating people according to their specific needs

World Trade Organization (WTO)

mediate trade disputes among nations

360 degree review

mgmt gather opinion from all around employee from under, above, and same level

monetary policy

mgmt of money supply and interest rates by the federal reserve bank

Consumer Price Index (CPI)

monthly stats that measure the pace of inflation or deflation

favorable balance of payment

more money flowing in than out

unfavorable balance of payment

more money flowing out than in

vision

more than a goal, broad explanation of why organization exists and where it is trying to go

free trade

movement of goods and services among nations without political or economic barriers

mercantilism

nations sell more goods than what is bought from them

empowerment

need to train more people to respond quickly to customer requests, must make decisions essential to producing high quality goods and services

Potential Internal Weaknesses

no clear strategic direction, obsolete facilities, subpar profitability, lack of managerial depth and talent, weak market image, too narrow a product line

off-the-job training

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

cyclical unemployment

occurs because of a recession or a similar downturn in the business cycle (most serious)

centralized authority

occurs when decision making is concentrated at the top level of management

incubators

offer new businesses in critical early development low cost offices with basic accounting, legal, and secretarial help

Mgmt training programs include

on the job coaching Understudy positions: Job rotation Off-the-job courses and training

acquisition

one company's purchase of the property and obligations of another company

limited partnership

one or more general partners and one or more limited partners

monopoly

one seller controls the total supply of a product or service

multinational corporation

one that manufactures and markets products in many different countries and has multinational stock ownership and mgmt

golden handshake

one time cash payments (bene for retiring employees)

Macroeconomics

operation of a nation's economy as a whole (the whole United States)

integrity based ethics code

organizations guiding values create an environment that supports ethically sound behavior and stress shared accountability

tall organizational structures

orgs get bigger, have to add more layers of mgmt

time-motion studies

output over time

cooperative (Co-op)

owned and controlled by the people who use it

limited partner

owner who invests money in business but does not have mgmt responsibility or liability for losses beyond his or her investment

contigent workers

part time workers (less than 35hrs/week), temp workers, seasonal workers, independent contractors, interns, and co-op students

joint venture

partnership with two or more companies to undertake a major project

Hawthorne effect

people's tendency to behave differently when they know they are being studies

business cycle

periodic rise and fall in economy over time

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

hay method

plan based on job grades, each has a strict pay range

corporate policy

position a firm takes on social and political issues

transparency

present all co facts and figures in a way that is clear to all stakeholders

compliance based ethic codes

preventing unlawful behavior by inc control and and penalizing wrongdoers

hyperinflation

price of goods and services rise by 50% a month

labor intensive

primary cost of operations is the cost of labor Example: service orgs likes hospitals, hotels, airlines

Angel Investors

priv indiv who invest their own money in potentially new co before they go public

small business investment company program

private investment companies licensed by SBA to lend money to small businesses

HRM

process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

tactical planning

process of developing detailed short term statements about what is to be done, who is to do it and how

selection

process of gathering info and deciding who should be hired, under legal guidelines to serve the best interest of the indiv and the org

contingency planning

process of preparing alt course of action the firm can use if its primary plans don't work out

operational planning

process of setting work standards and schedules necessary to implement the company's tactical objectives

mgmt development

process of training, educating employees to be good managers and then monitoring the progress of their managerial skills over time

management

process used to accomplish organization goals thru planning, organizing, leading and controlling people and other organizational resources

job simplification

produces task efficiency by breaking a job into simple steps and assigning people to each

Ban-the-box rule

prohibits asking questions about convictions on job apps and initial interviews

Age discrimination in employment act of 1967

protects indiv aged 40 or older from discrimination in hiring, firing, promotion, layoff, compensation, benefits, job assignment and training

frictional unemployment

quit because they didn't like the job, boss, working conditions, haven't found a new job, have not had a job before, took significant time away from job

protective tariffs

raise retail price on imported products so that domestic goods are competitively priced

crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

staffing

recruiting, hiring, motivating, and retaining the best people available to accomplish the company's objectives

restructuring

redesigning an org so it can more effectively and efficiently serve it customers

common market

regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members (Euro union)

Americans with Disabilities Act of 1990:

requires employers to give applicants with phys or mental disabilities the same consideration for employment as people without disabilities

line personnel

responsible for directly achieving org goals and include product workers distribution people and marketing personal

Merger

result of two firms joining to form one company

skill based pay

rewards growth of both individual and team Improves employee skill develop and job satisfaction

scientific management

sci study the most efficient ways to do things, determine the single best way to perform each task and then teach others those methods Requires time, method, rules of work

dumping

selling products in a foreign country at lower prices than those charged in the producing company

exporting

selling products to another country

recruitment

set of act for obtaining the number of qualified people at the right time

Goal Setting Theory

setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback

departmentalization

setting up indiv dept to do specialized tasks

training

short-term skills

organizational chart

shows relationship among people, who is accountable for completion of specific work and who reports to whom

ethics

society's accepted standards of moral behavior

Community development financial institutions (CDFIs)

source of funding for businesses in lower income communities

Matrix organization

specialists from diff parts of org work together temporarily on specific projects

enterprise zones (empowerment zones or enterprise communities):

specific geographic areas which gov attract private business investment by offering lower taxes and other gov support.

objectives

specific, short-term statements detailing how to achieve the organizations goals

Conventional (C) Corporation

state chartered legal entity with authority to act and have liability separate from its owners- stockholders

SWOT analysis

strengths, weaknesses, opportunities, threats

organizing (Chapter 8)

structuring determining what work needs to be done and then dividing up tasks (division of labor)

resource development

study of how to increase resources

online training

tech is improving the efficiency of many off training program

technical skills

the ability to perform tasks in a specific discipline or department

producer price index

the change in prices at a whole sale level, tracks price changes in all industries in the goods producing sectors of the US econ

Free market econ (capitalism):

the market determines which goods and services are produced, who gets them, and how econ grows

job description

the objectives of the job, the type of work, the responsibilities and duties, working conditions, and the job's relationship to other functions

span of control

the optimal number of subordinates a manager supervises or should supervise

unemployment rate

the percentage of civilians who are at least 16 yrs old who are unemployed and tried to find a job in the last four weeks

intrinsic reward

the personal satisfaction you feel when you perform well and complete goals

Keynesian economic theory

theory that gov policy of inc spending and cutting taxes could stimulate the econ in a recession

Sole Proprietorship

A business owned by one person

Limited Liability Company (LLC)

A company similar to an S corporation but without the special eligibility requirements.

hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Equal Employment Opportunity Act (1972)

Added to civil rights act Issued guidelines for acceptable employer conduct, mandated specific recrodkeeping practices, regulatory force in admin of HRM

entrepreneurship

All the resources in the world have little value unless entrepreneurs are willing to take the risk of starting businesses to use those resources.

NAFTA (North American Free Trade Agreement)

Allows open trade between the US, Mexico, and Canada.

A carefully managed and competitive compensation and benefit program can accomplish several objectives:

Attracting the kinds of people the organization needs, and in sufficient numbers. Providing employees with the incentive to work efficiently and productively. Keeping valued employees from going to competitors or starting competing firms. Maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce. Providing employees with some sense of financial security through fringe benefits such as health insurance and retirement benefits.

supervisory mgmt

those directly responsible for supervising workers and eval their daily performance

gross output

total sales volume at all stages of production

balance of trade

total value of a nations exports compared to its imports measured over a particular period

apprentice programs

trainee works alongside an experience employee to master the skills and procedures of a craft

partnerships

two or more people legally agree to become co-owners of a business

conglomerate

unites firms in completely unrelated industries in order to diversify business operations and investments example: Soda and snack food company

Disadvantages of Sole Proprietorship

unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited life span

networking

use comm tech and other means to link org and allow them to work together

job simulation

use of equipment that duplicated job conditions and tasks so trainees can learn skills before attempting on job

trade protectionism

use of gov regulation to limit the import of goods and services

land (or natural resources)

used to make homes, cars, and other products.

Human Resources Information System (HRIS)

uses mult tools and processes to manage an org employees and databases

insider trading

using private co info to further insiders or families fortunes

exchange rate

value of one nation's currency relative to the currencies of other countries

Micropreneurs

want balanced lifestyle while doing this type of work

shadowing

watching experienced people perform

know market

what do consumers want and need and do they have the resources and willingness to pay for theses items

licensing

when a firm gives the right to manufacture its product or use trademark to a foreign company for a fee (royalty)

core competencies

when firm completes outsourcing process, remaining functions are core competencies

disinflation

when price inc are slowing (inflation rate is declining)

expropriated

when relationship with host country falter, so it is taken over by the foreign gov

examples of motivators

work itself, achievement, recognition, responsibility, growth and advancement

job rotation

work more interesting and motiv employees from one job to another

high-context culture

workers build personal relationships and develop group trust before focusing on tasks

low context culture

workers often view relationships building as a waste of time that diverts attention from the task

subordination of individual interest to the general interest

workers think of themselves as a coordinated team

helping

working with employee and doing part of work if necessary

job specifications

written summary of the minimal educ and skills needed for a particular job

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you finished this quizlet

digital natives

young people today who grew up with internet and cell phones, high tech devices is second nature to them

broad span of control disadvantages

Fewer chances for advancement, overworked managers, loss of control, less management expertise

econ and legal department

Freedom of ownership, contract laws, elimination of corruption, tradable currency, minimum taxes and regulation

adam smith view on economics

Freedom to private ownership is key People work for their own self interest, but this results in goods, services, and jobs provided to others

exporting (strategies for global markets)

EACs provide hands-on exporting assistance and trade-finance support for small and medium businesses that wish to directly export goods and services

Benefits of job sharing

Employment opportunities for those who cannot or prefer not to work full-time. An enthusiastic and productive workforce. Reduced absenteeism and tardiness. Ability to schedule part-time workers into peak demand periods. Retention of experienced employees who might otherwise have retired.

potential external threats

Entry of lower-cost foreign competitors, rising sales of substitute products, slower market growth, costly regulatory requirements, vulnerability to recession and business cycles, changing buyer needs and tastes