mgt exam 2 review

hero

a person whose accomplishments embody the values of the organization

PDCA cycle

a plan-do-check-act cycle using observed data for continuous improvement of operations

Six Sigma

a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes

Statistical Process Control

a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability

organizational chart

a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication

incremental budgeting

allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed

fixed budget

allocates resources on the basis of a single estimate of costs

variable budget

allows the allocation of resources to vary in proportion with various levels of activity

resistance to change

an emotional/behavioral response to real or imagined threats to an established work routine

matrix structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal

centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

virtual structure

an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections

intervention

attempt to correct a problem

readiness for change

beliefs, attitudes, and intentions regarding the extent to which changes are needed and the capacity available to successfully implement those changes

hierachy of authority

chain of command; a control mechanism for making sure the right people do the right things at the right time

concurrent control

entails collecting performance information in real time

espoused values

explicitly stated values and norms preferred by an organization

boundaryless organization

fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers, and customers

feedforward control

focuses on preventing future problems

Balanced Scorecard

gives top managers a fast but comprehensive view of the organization via four indicators: (1) customer satisfaction, (2) internal processes, (3) innovation and improvement activities, and (4) financial measures

innovation strategy

growing market share or profits by innovating improvements in products or services

market culture

has a strong external focus and values stability and control

adhocracy culture

has an external focus and values flexibility

clan culture

has an internal focus and values flexibility rather than stability and control

hierachy culture

has an internal focus and values stability and control over flexibility

decentralized authority

important decisions are made by middle-level and supervisory-level managers

radically innovative change

involves introducing a practice that is new to the industry

reactive change

making changes in response to problems or opportunities as they arise

Accountability

managers must report and justify work results to the managers above them

Controlling

monitoring performance, comparing it with goals, and taking corrective action as needed

story

narrative based on true events, which is repeated - and sometimes embellished upon - to emphasize a particular value

flat organization

one with an organizational structure with few or no levels of middle management between top managers and those reporting to them

continuous improvement

ongoing small, incremental improvements in all parts of an organization

proactive change

planned change, involves making carefully thought-out changes in anticipation of possible or expected problems or opportunities

reduced cycle time

reduction in steps in a work process

adaptive change

reintroduction of a familiar practice

organizational development

set of techniques for implementing planned change to make people and organizations more effective

organizational culture

sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members

horizontal structure

team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries

innovative change

the introduction of a practice that is new to the organization

span of control

the number of subordinates who report directly to a manager

customer retention

the practice of keeping customers by building long-term relationships

organizational socialization

the process by which a person learns the values, norms, and required behaviors which permit him to participate as a member of the organization

delegation

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

authority

the rights inherent in a managerial position to make decisions, give orders, and utilize resources

supply chain

the sequence of suppliers that contribute to creating and delivering a product, from raw materials to production to final buyers

common purpose

unifies employees or members and gives everyone an understanding of the organization's reason for being

outsourcing

using suppliers outside the company to provide goods and services

enacted values

values and norms actually exhibited in the organization

Control Chart

visual statistical tool used for quality control purposes

simple structure

whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization

division of labor

whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions

coordinated effort

working together for a common purpose

two core principles of TQM

1) People orientation—everyone involved with the organization should focus on delivering value to customers—and (2) improvement orientation—everyone should work on continuously improving the work processes

control process steps

1. establish standards 2. measure performance 3. compare performance to standards 4. take corrective action, if necessary

Total Quality Management (TQM)

A comprehensive approach—led by top management and supported throughout the organization—dedicated to continuous quality improvement, training, and customer satisfaction

Balance Sheet

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

organization

A group of people who work together to achieve some specific purpose. A system of consciously coordinated activities of two or more people

Quality Assurance

A means of ensuring quality that focuses on the performance of workers, urging employees to strive for "zero defects,"

quality control

A means of ensuring quality whereby errors are minimized by managing each stage of production

customer satisfaction

A measure of how much products meet customers' expectations.

change agent

A person inside or outside the organization who can be a catalyst in helping deal with old problems in new ways

budget

A plan for making and spending money

Best Pratices

A set of guidelines, ethics or ideas that have been shown to produce optimal results

innovation system

A set of mutually reinforcing structures, processes, and practices that drive an organization's choices around innovation and its ability to innovate successfully

Force Field Analysis

A technique for determining which forces drive a proposed change and which forces restrain it.

Stategy Map

A visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization

B Corporation

Also know as a benefit corporation, in which the company is legally required to adhere to socially beneficial practices, such as helping consumers, employees, or the environment

symbol

An object, act, quality, or event that conveys meaning to others

functional structure

An organizational structure composed of all the departments that an organization requires to produce its goods or services.

feedback control

Collecting performance information after a task or project is done

human resource practices

Consist of all of the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation

Managment by exception

Control principle that states that managers should be informed of a situation only if data show a significant deviation from standards

organizational design

Creating the optimal structures of accountability and responsibility that an organization uses to execute its strategies

customer divisions

Divisional structures in which activities are grouped around common customers or clients

geographic divisions

Divisional structures in which activities are grouped around defined regional locations

product divisions

Divisional structures in which activities are grouped around similar products or services

Financial Statements

Financial reports that summarize the financial condition and operations of a business

Deming management

Ideas proposed by W. Edwards Deming for making organizations more responsive, more democratic, and less wasteful

Financial Ratios

Indicators determined from a company's financial information and used for comparison purposes

hollow structure

Often called network structure, structure in which the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

unity of command

Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands

Lean Six Sigma

Quality-control approach that focuses on problem solving and performance improvement—speed with excellence—of a well-defined project

ISO 9000 series

Quality-control procedures companies must install—from purchasing to manufacturing to inventory to shipping—that can be audited by independent quality-control experts, or "registrars,"

Statement of Cash Flows

Reports the cash generated and used over a specific period of time

ISO 14000 series

Set of quality-control procedure that extends the concept of the ISO 9000 series, identifying standards for environmental performance

Income Statement

Summary of an organization's financial results—revenues and expenses—over a specified period of time

rites and rituals

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in an organization's life

person-organization fit

The degree to which a person's values, personality, goals, and other characteristics match those of the organization.

control standard

The first step in the control process; the performance standard (or just standard) is the desired performance level for a given goal

Crowdsourcing

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people and especially from the online community, such as Facebook and Twitter users

product innovation

a change in the appearance or the performance of a product or a service or the creation of a new one

process innovation

a change in the way a product or service is conceived, manufactured, or disseminated

modular structure

a firm assembles product chunks, or modules, provided by outside contractors

organizational structure

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals