Business Management and Administration Performance Indicatiors

Question 1

Utilize project management software (SP)

Answer 1

Project management software is used for project planning, scheduling, budgeting, and documentation. Project management software is also used for collaboration and communication between project participants.

Question 2

Describe the concept of insurance (CS)

Answer 2

Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment (premium). This protects the financial standing of an individual or company in the case of unexpected loss. A policy holder can be responsible for paying part of a loss (a deductible) and the insurer pays the rest.

Question 3

Write analytical reports (SP)

Answer 3

An analytical report is a detailed report that requires a person to do thorough research on the subject of the report and to clearly interpret the report.

Question 4

Discuss legal considerations in operations (SP)

Answer 4

Legal actions that can take place as a result of operations include lawsuits from employees are hurt on the job, lawsuits from consumers if products are found harmful, and engagements with labor unions.

Question 5

Close project (SP)

Answer 5

When each task identified in the work breakdown structure (WBS) has been completed, the project is finished. At this time the project will be evaluated to determine efficiency and performance.

Question 6

Explain the nature of project management (SP)

Answer 6

Project management is using knowledge, skills and techniques to execute a temporary group activity designed to develop a product, service or outcome both effectively and efficiently. There are five processes needed in project management: initiating, planning, executing, monitoring and controlling and closing.

Question 7

Explain the nature of effective communications (CS)

Answer 7

Written communication is the most common form of business communication and therefore requires employees to write frequently and rapidly. “The words we write are very real representations of our companies and ourselves.” Janis Fisher Chan. Written communications allow an employee to receive instructions or information upon which to base decision or take a specific action. Effective communication should answer questions, be relevant, focus on the end user, be specific, include examples, be tactful and accurate.

Question 8

Utilize project management software (SP)

Answer 8

Project management software is used for project planning, scheduling, budgeting, and documentation. Project management software is also used for collaboration and communication between project participants.

Question 9

Describe the nature of budgets (SP)

Answer 9

A budget is an itemized forecast of an individual or company’s income and expenses for a designated period of time. This allows the entity to evaluate how to use funds in fixed and discretionary categories as well as provides focus to achieve financial goals and avoid debt.

Question 10

Explain the types of economic systems (CS)

Answer 10

There are four types of economic systems commonly studied. A traditional economy relies on custom and ritual to make its choices. A market economy relies on the consumption choice of consumers. A command economy relies on the government making all choices for consumers. A mixed economy relies on limited government involvement in a market based economy.

Question 11

Explain the nature of operations (CS)

Answer 11

Operations include the activities involved in the daily functions of the business to generate revenue.

Question 12

Explain marketing and its importance in a global economy (CS)

Answer 12

As the global economy has expanded, brands must use technology and communication to establish themselves in a variety of markets. Marketing is a tool that is used to persuade customers and must be employed in order for businesses to sell their products.

Question 13

Identify sources that provide relevant, valid written material (PQ)

Answer 13

When evaluating material, determine if content is fact, opinion or marketing information. Other factors can include validity of research, relevance, timeliness, authority of the author and evidence offered to support a claim. If you are validating written material, ensure that you have cross-checked information that is provided by the source.

Question 14

Describe the nature of budgets (SP)

Answer 14

A budget is an itemized forecast of an individual or company’s income and expenses for a designated period of time. This allows the entity to evaluate how to use funds in fixed and discretionary categories as well as provides focus to achieve financial goals and avoid debt.

Question 15

Describe the use of technology in risk management (SP)

Answer 15

Risk management, as a business operation unit, began with protecting against natural risk through insurance. Today risk management includes protection against technology-driven risks such as Cybercrime which includes malware which can risk loss not only to the company’s infrastructure but to its customers as well. “Hacking” is also a technology related risk that has had many recent victims, when computer systems are used to gain confidential information for criminal purposes.

Question 16

Identify desirable personality traits important to business (PQ)

Answer 16

Your personality is a set of characteristics that relate to a person’s emotions, motivations, interpersonal interactions and attitudes. Highly desired personality traits most often include professionalism, being “high-energy”, confidence, the ability to work independently and intellectual curiousity.

Question 17

Write research reports (SP)

Answer 17

A research report is a document prepared by an analyst or strategist. Research reports generally have “actionable” recommendations.

Question 18

Identify techniques that can be used to capture and transfer knowledge in an organization (SP)

Answer 18

Knowledge is gathered through intranets, extranets, groupware, web conferencing and document management systems. Once gathered, knowledge is then stored in data warehouses. This information can then be shared through education, training programs, lessons learned databases, automated knowledge systems, expert networks and communities of practice (CoP).

Question 19

Describe the concept of insurance (CS)

Answer 19

Insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment (premium). This protects the financial standing of an individual or company in the case of unexpected loss. A policy holder can be responsible for paying part of a loss (a deductible) and the insurer pays the rest.

Question 20

Explain the role of finance in business (CS)

Answer 20

The role of finance in business is to help capital move from investors to businesses. Businesses need finance to assist with operations. This is possible through financial markets and various investment vehicles including loans, and short and long term financing. Finance can also include roles in business development and corporate governance.

Question 21

Discuss the nature of law and sources of law in the united states (SP)

Answer 21

Law is created at the local (city, town, county), state and federal level by the legislative branch. Elected representatives write and approve legislation and government agencies execute laws by writing regulations.

Question 22

Execute and control projects (SP)

Answer 22

Using a prepared work breakdown structure (WBS), an employee will use data to monitor the progress of a project. Performance will be evaluated against the information provided in the WBS to determine if sufficient progress if being made or if correct action needs to be taken.

Question 23

Handle difficult customers (CS)

Answer 23

There are a variety of difficult customers including those who are angry, impatient, demanding and indecisive. To handle these, first maintain control over your personal emotions and behavior by staying calm and listening closely to the customer. Acknowledge their concerns, maintain eye contact and demonstrate compassion for the situation. Try to solve the problem or identify someone who can act on the customer’s behalf. Whenever possible, offer choices.

Question 24

Describe health and safety regulations in business (PQ)

Answer 24

In 1970, the Occupational Safety and Health Act was passed that created the Occupational Safety and Health Administration (OSHA). A business is responsible for protecting the safety, health and welfare of all employees. Therefore, a business must create procedures to manage risks that could cause injury and/or damage to employees, property and the environment.

Question 25

Discuss actions employees can take to achieve the company’s desired results (SP)

Answer 25

One of the most important tasks an employees has is to work towards a company’s goals in order to create a profit.

Question 26

Discuss the role of ethics in knowledge management (SP)

Answer 26

Ethics is inherently important in knowledge management because the business is asking an employee to trust what is being shared. If a researcher or colleague approaches these actions with unethical behavior, the business can lose and/or distort important data relevant to enhancing productivity of the organization.

Question 27

Handle telephone calls in a businesslike manner (CS)

Answer 27

A businesslike manner on the telephone includes a formal greeting including “Good Morning/Afternoon”, name of business and name of department or person answering the call. Calls should be answered promptly, take messages as needed and use the hold button if needed.

Question 28

Discuss types of inventory (CS)

Answer 28

Just-in-time (JIT) inventory coordinates materials so that they arrive just before they are needed for production. Quick Response Delivery (QSD) is the same type of inventory as JIT but is applied in the retail setting. A perpetual inventory system constantly checks what it in is stock. Any type of transaction is tracked in this system so that reordering is done in time to avoid lost revenue.

Question 29

Explain the role of business in society (CS)

Answer 29

The role of business in society is “to innovate and deliver products and services, to use resources efficiently so that the value is created and to conduct operations so that they are performed profitability and accepted by society.” In summary, “the role of business in society is a coherent way of thinking about a company’s impact and interaction with society.” Niall Fitzgerald KBE and Mandy Cormack, The Role of Business in Society: An Agenda for Action; Harvard John F. Kennedy School of Government

Question 30

Describe the nature of managerial planning (SP)

Answer 30

Managerial planning is the process used to determine the vision of a business and then translating that into organizational goals and an operational plan for achieving those goals. When conducting these activities, management is challenged to determine what must be done at each step to move forward. This process also encourages flexibility when needed to respond to needs in the market.

Question 31

Prepare work breakdown structure (WBS)(SP)

Answer 31

An employee will determine each task of the project, provide information about who will perform each task, what resources will be allocated to each task and provide a timeline for the tasks in order to complete the project.

Question 32

Discuss the nature of information management (CS)

Answer 32

Information management is the process of collecting and analyzing data that can be used in the strategic decision making process for a business. This can support a variety of business functions including developing customer databases, managing electronic purchasing decisions and monitoring competitor information.

Question 33

Explain the nature of positive customer relations (CS)

Answer 33

Customers are the life of any business; any interaction should be positive, courteous, and respectful. Positive customer relations can include showing appreciation, delivering timely service, training employees effectively to interact with clients, and appeasing any concerns brought forward.

Question 34

Maintain appropriate personal appearance (PQ)

Answer 34

Maintaining your personal appearance is necessary as employees represent the business in which he/she is employed. Personal appearance includes facial expressions, body language, as well as clothes and grooming.

Question 35

Describe the nature of managerial control (control process, type of control, what is controlled)(SP)

Answer 35

Managerial control is the process of achieving defined goals within an established timetable. Management control is understood to have three components: setting standards, measuring actual performance and taking corrective action. There are two types of control: process and organizational. Process control includes activities involved in ensuring a process is predictable, stable, and consistently operating at the target level of performance with only normal variation. Organizational Control is the process of establishing and maintaining authority over and throughout a business.

Question 36

Identify sources that provide relevant, valid written material (PQ)

Answer 36

When evaluating material, determine if content is fact, opinion or marketing information. Other factors can include validity of research, relevance, timeliness, authority of the author and evidence offered to support a claim. If you are validating written material, ensure that you have cross-checked information that is provided by the source.

Question 37

Explain managerial considerations in organizing (SP)

Answer 37

Management’s responsibility to the organization is to provide a detailed plan to express what needs to be accomplished, who will do these tasks, what the chain of command is for the organization and therefore how decisions will be made. Management will be successful if they use the resources available in the best way possible in order to achieve organizational goals

Question 38

Describe the nature of legally binding contracts (SP)

Answer 38

A contract that is legally binding is considered valid and enforceable in a court of law. A contract is a clear outline of an agreement between at least two parties. Usually contracts define each party involved and any terms used within the agreement, the duration and/or timelines of the contract, payment terms and provisions that protect each party. Legally binding contracts are required to have “consideration” which means both parties are willingly entering into the agreement and are not being coerced.

Question 39

Exhibit cultural sensitivity (CS)

Answer 39

A cultural sensitive employee will value diversity, be willing to adapt communication and behavior to be compatible with another’s cultural norms and be willing to learn traditions and characteristics of other cultures.

Question 40

Explain legal considerations for knowledge management (SP)

Answer 40

Securing information is the broad issue in legal issues facing knowledge management. As companies gather sensitive information about consumers and/or clients, they also face the legal responsibility to secure that data. As information is shared within an organization, legal issues that can be face include conflicts of interest, insider trading, and plagiarism.

Question 41

Explain the need for innovation skills (CS)

Answer 41

Innovation is necessary for an organization to continue to move forward in the marketplace and meet customer needs. Innovation includes the ability to think critically, be creative, an ability to solve problems, manage risk, conduct research, coordinate project management, use information technology as well as the basic tasks of reading, writing and mathematics.

Question 42

Explain the concept of management (CS)

Answer 42

Management is the coordination of activities a business uses to achieve results. According to management expert Peter Drucker, this includes both marketing and innovations.

Question 43

Explain the types of economic systems (CS)

Answer 43

There are four types of economic systems commonly studied. A traditional economy relies on custom and ritual to make its choices. A market economy relies on the consumption choice of consumers. A command economy relies on the government making all choices for consumers. A mixed economy relies on limited government involvement in a market based economy.

Question 44

Describe the nature of quality management frameworks (E.G. Six sigma, ITIL, SMMI)(SP)

Answer 44

these models is the Six Sigma strategy. This strategy involves creating groups of people within the business or organization who have expert status in various methods, and then each project is carried out according to a set of steps in an effort to reach specific financial milestones. A six sigma process is defined as one in which 99.99966% of products created are expected to be statistically free from defects. The Information Technology Infrastructure Library (ITIL) is a comprehensive set of documents, which defines best practices and accepted techniques in the Information Technology community. Lastly, the Capability Maturity Model Integration (CMMI) is a process improvement technique for evaluating how efficiently a company is able to deliver technology products to its customers.

Question 45

Initiate project (SP)

Answer 45

An employee will begin projects as determined by management.

Question 46

Discuss the nature of customer relationship management (SP)

Answer 46

The goal of customer relationship management (CRM) is to maximize the value and effectiveness of all opportunities that businesses have to connect with customers; provide outstanding service to customers; maximize customer satisfaction; attract and retain loyal customers; cultivate and maintain positive, profitable relationships with customers and develop individualized relationships with customers.

Question 47

Discuss managerial considerations in directing (SP)

Answer 47

Management’s responsibility is to create a work environment that reflects the mission of the organization. This will include providing effective motivation for employees, supervising operations, and evaluating performance in a respectful and efficient manner so that goals can be achieved.

Question 48

Orient new employees (CS)

Answer 48

Providing an orientation is a process that allows an organization to integrate a new employee and enable him/her to contribute to the team quickly. At this time, an employee will learn about personnel policies, company safety programs, and details about his/her position. Possible actions can include providing a mentor, providing work samples, and providing a Frequently Asked Questions document.

Question 49

Explain the role of ethics in human resource management (SP)

Answer 49

Ethics are standards set by organization that help ensure that people are treated fairly and honestly. In human resources management this includes making decisions that promote workplace cohesion, establishing standards and procedures that assures in all situations that individuals are treated equally. Ethics policies in the area of human resources can include discrimination, sexual harassment and treatment of employees. Ethical breaches in this area can damage a company’s reputation, reduce employee loyalty and create litigation.

Question 50

Describe managerial considerations in staffing (SP)

Answer 50

Management’s responsibility is to consider the strengths and weaknesses of his/her employees. Employees should be placed in a position to make both the employee and organization successful. In doing so, an employee will be given responsibilities that will make him/her productive to contribute to the goals set by management.

Question 51

Discuss legal considerations affecting risk management (SP)

Answer 51

Legal issues that should be considered as a part of risk management include understanding regulations that govern that industry. If a business is not in compliance it runs the risk of a lawsuit, including product recalls Understanding the nature of human risk is important from a legal perspective, as embezzlement, fraud and theft can also affect a business’ operations

Question 52

Explain the nature of quality management (SP)

Answer 52

Quality management is an overall approach to long-term success that views continuous improvement, in all aspects of an organization, as a process and not as a short-term goal. Quality management aims to transform an organization through changes in the attitudes, practices, structures, and systems.

Question 53

Distinguish between economic goods and services (CS)

Answer 53

A good is something that you can use or consume. You buy a good with the idea that you will use it, either just once or over and over again. A service is something that someone does for you, like give you a haircut or fix you dinner. Another way to identify the difference is that a good is tangible and a service is intangible.

Question 54

Discuss the need for continuous improvement of the quality process (SP)

Answer 54

Continuous improvement provides an opportunity for a business to consistently assess its performance and understand how it can adapt operational practices to increase profitability and productivity.

Question 55

Explain the nature of effective written communications (CS)

Answer 55

Written communication is the most common form of business communication and therefore requires employees to write frequently and rapidly. “The words we write are very real representations of our companies and ourselves.” Janis Fisher Chan. Written communications allow an employee to receive instructions or information upon which to base decision or take a specific action. Effective communication should answer questions, be relevant, focus on the end user, be specific, include examples, be tactful and accurate.

Question 56

Maintain vendor/supplier relationships (SP)

Answer 56

To maintain an effective relationship with a supplier, a buyer will have records about previous interactions including information about delivery and customer service. A supplier should be engaged in continuous improvement to keep standards high for their customer.

Question 57

Evaluate quality and source of information (CS)

Answer 57

Information is widely accessible in today’s market so evaluation tools can be used to determine validity. A reader should determine who the intended audience is, if the data provided is fact or opinion and if a credible author is attached to the information. Further, factual documents should be supported with evidence including primary and secondary information. Quality information should be timely.

Question 58

Write research reports (SP)

Answer 58

A research report is a document prepared by an analyst or strategist. Research reports generally have “actionable” recommendations.

Question 59

Explain the use of technology in knowledge management (SP)

Answer 59

Technology has allowed e-learning to develop that can be an effective tool within a business. Additionally, knowledge management is gathered using new technologies like intranets and extranets or web conferencing so that it can be stored in data warehouses. All of this would not be possible without advances we continue to see in technology.

Question 60

Discuss the nature of law and sources of law in the united states (SP)

Answer 60

Law is created at the local (city, town, county), state and federal level by the legislative branch. Elected representatives write and approve legislation and government agencies execute laws by writing regulations.

Question 61

Explain types of business ownership (CS)

Answer 61

There are three types of business ownership: sole proprietorship, partnership and corporation. A sole proprietor owns and operates a business by oneself. A partnership is owned and operated by two or more people and is jointly responsible for the businesses outcomes. A corporation is operated by several people and owned by stockholders.

Question 62

Explain the nature of knowledge management (SP)

Answer 62

Knowledge management is the strategy designed to identify, document and share an organization’s intellectual assets to benefit performance.