BUSMAN 3/4 Flashcards
1
Q
Unlimited liability
A
Business owners are fully responsible by law (if the business fails) to the extern of their personal assets
2
Q
Limited liability
A
Business owners are only personally responsible by law to the level of their original investments in the business.
3
Q
Sole trader
A
A business owner by one person who is entitled to keep all profits but liable for all losses
4
Q
Partnership
A
A business owner by 2-20 people
5
Q
Company
A
A business that has gone through the process of incorporation; this means the owners (shareholders) of a company purchase shares which gives them an ownership portion
6
Q
Private company
A
An incorporated business with 2-50 shareholders.
7
Q
Public company
A
An incorporated business that is owned by shareholders and has no upper limit to the number of shareholders. Shares are traded freely on the Australian Stock Exchange (ASX)
8
Q
Social enterprise
A
Business that distributes surplus funds to benefit the community, rather than individual shareholders
9
Q
Government business enterprise (GBEs)
A
a business that is government owned. GBEs seek to run profitably by controlling costs and selling goods and services at a price to cover costs.
10
Q
Objectives
A
A goal a business wants to achieve is a set time period
11
Q
Profit
A
Revenue minus expenses
12
Q
Effectiveness
A
The degree to which a business achieves its stated objectives
13
Q
Efficiency
A
How well a business has used its resources to achieve its stated objectives
14
Q
Owner
A
Has invested money into the business and owns a portion of the business
15
Q
Managers
A
A person responsible for controlling and motivating a group of people
16
Q
Customers
A
Those who purchase goods and services from a business
17
Q
Supplier
A
Businesses that provide resources to another business
18
Q
General community
A
Group of people that live in the same area as the business
19
Q
Manager
A
A professional who takes a leadership role in an organisation and manages a team of employees
20
Q
Management style
A
The manner and approach of providing direction, implementing plans and motivating people
21
Q
Centralised decision making
A
Management makes decisions and pass on directions to those below them in the hierachy
22
Q
Decentralised decisions making
A
Where employees are given responsibility for decision making in their own areas
23
Q
Autocratic management style
A
A management style where all decision making is centralised, there is little delegated authority and communication is one way downwards
24
Q
Persuasive management style
A
A management style where the manager makes a decision and convinces workers of the benefit of those decisions. Decision-making is centralised and communication is one way downwards.
25
Consultative management style
A management style with centralised decision making and two-way communication. The manager asks employees their opinions when discussion and issues arise, however management still makes the final decision.
26
Participative management style
A management style with two way communication and decentralised decision-making management and staff work together as a team to make decisions.
27
Laissex Faire management style
A management style with decentralized decision-making and two way communication
28
Communication
The process of creating and exchanging information between people who produce the required response
29
Delegation
Passing of authority down the hierarchy to perform tasks or make decisions.
30
Planning
The process of determining objectives and decision strategies in order to achieve them
31
Leading
The skill of a manager to influence and motivate employees towards the achievement of business objectives
32
Decision making
A multi-step approach whereby a selection is made between a range of different alternatives
33
Interpersonal
Skills used everyday to understand and interact with other people, both individually and in groups
34
Corporate culture
The shared values and beliefs of people within a business
35
Official corporate culture
The set of shared vales and beliefs the business wants its people to display
36
Real corporate culture
The actual shared values and beliefs that are displayed by the people in a business
37
Human resource management
The area of a business that is responsible for managing the relationship between employees and the business in order to achieve objectives
38
Maslow's hierarchy of needs
Suggests that employees has five levels of needs, and that lower levels of needs must be satisfied in order to be able to satisfy higher level needs; Physiological, Safety, Social, Self-Esteem, Self-actualization
39
Locke and Latham's goal setting
A theory of motivation that focuses on the process of setting and attaining goals.
Clarity, challenge, commitment, feedback, task complexity
40
Lawrence & Nohria's four drive
Theory has identified four basic motivational drives
Drive to acquire
Drive to Bond
Drive to learn
Drive to defend
41
Performance related pay (PFP)
A financial reward for employees who has met or exceeded set standards
42
Career advancement
Promotions to positions with more pay or responsibility
43
Investment in training
The process of enhancing employee's knowledge and skills to help them perform their job better.
44
Support
Designed to show care, acknowledgement and encouragement of employees work
45
Sanction
Penalties for poor performance or disobeying a policy.
46
Training
The process of improving an employee's skills and knowledge so that they can perform their job more efficiently and more effectively.
47
On the job training
Occurs at the workplace and often involves completing a task
48
Off the job training
Training that occurs away from the workplace in a more formal environment.
49
Performance management
The process used to evaluate and improve individual and business performance
50
Management by objectives (MBO)
A performance management strategy where managers and employees establish measures and monitor goals together for a specific period
51
Performance appraisals
Measure how well an employee has performed their job, provides feedback to employees and establishes plans to improve performance
52
Self evaluation
An employee self-asses both their performance related to criteria and their contribution to the team
53
Employee observation
Feedback is received from a variety of sources that witness the employee during their daily work. One form is 360 degree feedback, where feedback is collected from a variety of people the employee deals with.
54
Termination
Results of decisions made either by management or the employee to end the employment contract and relationship
55
Entitlements
Benefits the business must legally provide an employee upon termination
56
Transition
Benefits which are not legally enforceable but may (and arguably should) be provided to employees upon termination as a for of CSR
57
Resignation
Voluntary termination that occurs when an employee leaves the workplace, usually to go to another job
58
Retirement
Voluntary termination where an employee decides to leave the paid workforce
59
Redundancy
Voluntary or involuntary termination of employment by an employer because it no longer needs a particular job to be done by anyone or needs fewer people to do a particular job
60
Dismissal
Involuntary termination of an employment contract due to unacceptable behaviour in the workplace.
61
Workplace relations
The relationship between employees and employers in determination wages and conditions, as well as methods of resolving disputes should they arrive.
62
Employee
A person working for a business for wages or salary
63
Union
An organisation that represents and protects the rights of employees in a particular industry
64
Employers association
A organisation that provides a range of information to businesses and represents their interests in workplace relations
65
Human resource manager
The manager of the overall relationship the business has between employees and the business to increase both efficiency and effectiveness
66
Fair work commission (FWC)
Is Australia's national workplace relation tribunal, its role to is assist employees and employers to maintain fair and productive workplace
67
Awards
Sets out the minimum pay rates and conditions in an industry
68
Enterprise agreement
Results from the negotiations between an employer and union and is ratified by the FWC, setting out the terms and conditions of employment within a workplace
69
Individual contract
Sets out wages and conditions agreed between a single employee and a business
70
Dispute
A workplace disagreement between employees or between employees and employers
71
Dispute resolution process
A formal systematic procedure that permits employees to complain about all manners that affect them at work
72
Mediation
An independent third party facilitates discussion between two parties to assist them to come to their own agreement
73
Arbitration
Where both parties put their case to an independent third party who then makes the final decision, which is legally binding
74
Operations management
The management of resources to achieve efficient outputs of goods and services
75
Input
Resources that will be converted into outputs
76
Process
The activities that help transform inputs into outputs
77
Output
Final goods or services that is produced
78
Manufacturing business
Produces a tangible, physical good, either as a finished product of a component part, used as an input in another manufacturing system
79
Service
Produces an intangible product. Services are performed rather than produced and usually involve provision of labour or expertise in return for payment
80
Technology
The practical application of science to achieve commercial and industrial objectives
81
Automated production Lines
Equipment and machinery are arranged in sequence and controlled by computer systems to perform tasks automatically
82
Robotics
Integrates computer science and engineering in the design construction and use of machines to perform manual tasks.
83
Computer aided design (CAD)
Software that creates product possibilities from a series of parameters
84
Computer aided manufacture (CAM)
Software used to allow the production process to be directed and controlled by computers
85
Artificial intelligence (AI)
Deals with the development of computer programs that imitates human intellect
86
Online services
Providing information or services over the internet
87
Materials management
Involves planning and coordination of all inputs required for an operations system
88
Forecasting
Is a planning strategy where past data and trends are used to predict future demand so informed decisions can be made around materials
89
Master production schedule (MPS)
Outlines what is going to be produced what quantities and when it is going to be produced
90
Materials requirement planning
Is an itemized list of materials that are required to meet specific orders
91
Just in time (JIT)
Is a strategy that ensures the right amount of materials arrive just as they are needed for production
92
Quality management
The management of the production process that ensures the outputs produced are consistently reliable and durable
93
Quality control
A procedure that aims to ensure that a good or service adheres to a set of quality criteria by performing checks at regular intervals
94
Quality assurance
A system where the business meets a set of predetermine quality standards often set by an independent body
95
Total quality management (TQM)
A holistic approach to quality management where all members of an organisation focus of continuous process improvement, defect prevention and universal responsibility.
96
Waste
Includes any action in the production process that does not add value for customers
97
Waste minimization
The process of reducing the amount of discarded resources created by the business operations system.
98
Reduce
Decrease use of resources, activities, labour and time to decrease production wastage
99
Reuse
If waste is produced, make an effort to repurpose instead of discarding
100
Recycle
Convert waste materials into useable products
101
Lean management
Aims to deliver customer value by systematically reducing waste and focusing on continuous improvement
102
Pull
Production of goods and services is only started when the customer places their order, thus pulling the production system with their demand
103
One piece flow
An uninterrupted flow of process from beginning to until the end of the production process
104
Takt
The operations process seeks to create a rhythm whereby all steps in the production of goods and services are synchronized to create a continuous flow
105
Zero defects
Focuses on quality identifying potential defects as soon as possible to ensure that any issues are solved quickly and efficiently, resulting in high quality .
106
Corporate social responsibility (CSR)
The commitment by businesses to go above and beyond legal obligations to ensure they are acting in an ethical manner in relation to social, economic and environmental considerations
107
Supply chain
Refers to the flow of suppliers from the supplier through the operations system and to the end customer
108
Supply chain management
Involves meeting customer demand for goods and services while making the most efficient use of the production process and the distributio
109
Global sourcing of inputs
Where a business uses suppliers of inputs from overseas countries.
110
Overseas manufacture
When the production of a good occurs in an overseas. This may be done by the business or outsourced.
111
Global outsourcing
Where a business hands over part of its operations to an overseas business
112
Business change
Where a business adopts a new idea or behaviour
113
Proactive change
When a business anticipates a change in the business environment and takes action in advance to take advantage
114
Reactive change
A change that is unplanned and occurs after the business has been affected by the pressures of its environment, such as poor KPI data or a new competitor in the market
115
Key Performance Indicator (KPI)
Are measures or sets of data that allows a business to determine whether its meeting its business objectives
116
Percentage of market share
A business's share of the total sales in an industry for a particular good or service, expressed as a percentage
117
Number of sales
The total quantity of goods or services purchased by customers
118
Net profit figures
The amount remaining after all operation expenses and tax has been deducted from the business' total revenue
119
Level of wastage
The amount of resources and finish production that are either underutilised or discarded during the production process
120
Rate of productivity growth
The amount of outputs produced compared to the amount of inputs used and the rate at which it increases overtime
121
Level of staff turnover
The number of employees that leave the business during a set period and need to be replaced
122
Rate of staff absenteeism
A percentage indicating the number of workdays lost due to unscheduled staff absences from work when expected to be there
123
Number of workplace accidents
The amount of incidents in the working environment that have negatively impacted the health and safety of employees
124
Number of customer complaints
The amount of customers that are dissatisfied with the business and/or it's products and have notified the business of their dissatisfaction
125
Number of website hits
The number of people and potential customers that have sent a request to a company's web server.
126
Force field analysis
Looks at factors that are either driving movement towards a change or goal (driving force) or blocking movement towards a goal or change (restraining forces)
127
How to answer force field questions :(
1. Weighting
- define target of change
- Identify the driving and restraining force.
2. Ranking
- Assign forces with numerical scores and rank them based on strengths.
- Analyse which driving forces can be strengthened and which restraining forces can be weakened
3. Implementing a response
- Implementing strategies to promote driving forces and eliminate restraining forces.
4. Evaluating a response
- Monitor the situation to ensure that the strategies are successful and any additional changes that may be needed.
128
Driving forces
Factors that are pushing in a particular direction and supporting the goal or proposed changes
129
Driving forces:
1. Managers
2. Employees
3. Competitors
4. Legislation
5. Pursuit of profit
6. Reduction of costs
7. Globalization
8. Technology
9. Innovation
10. Societal attitudes
11. Owners
130
Restraining forces
Factors that are pushing against the driving force to resist the change eg. employees, time, financial considerations
131
Restraining forces:
1. Managers
2. Employees
3. Legislation
4. Time
5. Organisational inertia
6. Financial considerations
132
Lower cost (cost leadership) Strategy
A strategy that allows a business to achieve a competitive edge by reducing production or delivery expenses
133
Differentiation
A method used to develop the uniqueness of the product or service in some way that is valued by customers
134
Learning organisation
A business that is flexible, adaptive and productive. It aims to have a culture where people work together at their best and continually learn to work together at their best
135
Systems thinking
The ability to see the bigger picture rather than things in isolation
136
Personal mastery
Where individuals within the business undertake continual learning to work together at their best
137
Mental modes
Are deeply entrenched assumptions, generalisations and images of how people see the world
138
Building a shared vision
Creating a shared picture of the future that all people in a business believe in
139
Team learning
The process of aligning and developing the capacities of a team to create the result its members truly desire.
140
Low risk strategies
Participative approach to the implementation of change, use of communication, empowerment, work groups and support for all those impacted upon.
141
Communication
The process of creating and exchanging information between people who produce the required response
142
Empowerment
Giving employees permission to make limited decisions without having to consult superiors
143
Support
Designed to show care, encouragement and acknowledgement for employee's work
144
Incentives
Inducement offers as a way to gain support for the change
145
High risk strategies
An autocratic approach to implementing change, involving the use of force, threats and manipulation of a situation
146
Manipulation
This is where the business may provide selective information and not disclose the full impact of a particular change.
147
Threats
Forcing employees to embrace the change or receive retribution
