Chapter 4 - Business Management Flashcards
Outlines what the organization wants to be in the future. Created by the board of directors, the senior executives, or a combination of the two
Vision
describes what will be achieved by organizational success
Mission
tasks are divided into separate duties, grouping people and jobs together. The purpose is so that work can be coordinated. It can be functional in nature, divisional, or matrix
Departmental
an employee typically reports to one manager in an up-down format, with a clear line of decisions and authority
Chain of Command
refers to the number of individuals who report to a single supervisor
Span of Control
tasks are divided into specific jobs and workers are considered skilled labor
Work Specialization
pulls decision-making authority to a central level of management, such as a headquarters
Centralized
pushing the authority level and decisions out to units, such as regional divisions
Decentralized
six types of organizational structures?
Departmental
Chain of command
Span of control
Work specialization
Centralized or decentralized
Matrix
phases in the organizational life cycle?
startup
growth
maturity
decline
rebirth or death
the organization establishes its market share and niche loyal customer base. bureaucracy is a challenge
maturity
leadership is a challenge
startup
delegation is a challenge
growth
resistance and complacency is a challenge. becoming inefficient and top-heavy with bureaucracy
decline
innovation and challenge management. phase is characterized by a need for reinvigoration in order to survive, which means a retooling of the business with new vision, focus, and strategies
rebirth
forecasting, setting goals and objects, determining actions and courses of direction
planning
the process of creating order out of chaos. It involves collecting process steps and information about the desired goal and then structuring the methods to achieve the goal
organizing
getting people to willingly do what is wanted or needed
directing
monitoring activity to ensure that everything is carried out according to a plan
controlling
prohibits American companies from making bribery payments to foreign officials for the purpose of obtaining or keeping business
Foreign Corrupt Practices Act of 1997
requires employers to maintain employment records for hours worked, race and sex identification, and work permits for minors
Fair Labor Standards Act (FLSA)
requires employers to validate all employment screening processes, including written tests and interviews
Civil Rights Act of 1964
requires employers to confirm that men and women are being paid the same if they are doing the same work under the same or similar conditions
Equal Pay Act
requires employers to provide job accommodations when requested and when it would not impose an undue hardship on the employer.
Americans with Disabilities Act
requires employers to monitor work locations to assure they are safe, correcting any safety problems before an injury can happen
Occupational Safety and Health Act (OSHA)
requires each new employee to complete Form I-9 proving they have the right to work in this country and that they are who they say they are
Immigration Reform and Control Act of 1986
define the moral principles and values that establish an organization’s expectations of conduct from its leadership and employees
corporate ethics
Production process, quality assurance process
manufacturing
Billing process, expense reimbursement process
finance
Application process, drug testing process
employment
Audit trail process, security of accounts process
banking
Employee data tracking process, policy development process
HR
Form I-9 audit process, IRS reporting process
compliance
risk analysis, identification of safety threats, workplace violence prevention programs, injury and illness prevention programs (IIPPs), and domestic violence issues
safety and security
Lewin concluded that there are three stages of change management that are good for use with deep dives into organizational changes
Unfreeze the organization
Change the organization
Refreeze the organization
McKinsey 7-S Model
Strategy
Structure
Systems
Shared
Style
Staff
Skills
Kotter’s Theory
Create a sense of urgency
Build a guiding coalition
Form a strategic vision
Enlist a volunteer army
Remove barriers and reduce friction
Generate short-term wins
Sustain acceleration
Make the changes institutional
McKinsey 7-S Model
strategy
structure
systems
shared values
style
staff
skills
addresses issues related to employees, customers, clients, the public, and vendors/suppliers. the process of managing liabilities related to these populations in ways that will protect the employer organization and not be so heavy handed that the organization can’t function well in performing its mission
risk management
The process of protecting an organization from financial harm by identifying, analyzing, financing, and controlling risk is a shared responsibility among several areas in an organization
Hazard (Risk) Identification and Communication
Eliminate the risk at any cost.
risk avoidance
Reduce the number of occasions that loss occurs
loss control
requires that a reserve fund be established to pay for any loss since the employer is self-insured under this model.
risk retention
Insuring against a particular loss will move the liability from the employer to an insurance carrier.
risk transfer
determining how much of a product or service is able to be produced with the available materials, labor, and equipment (known as inputs) as well as what changes in inputs are required by fluctuating customer demands.
capacity
the way in which the goods or service will be produced: for example, the design of an assembly line or, in the case of a service, the process to be used in providing it, such as a model plan or protocol for a financial audit.
production layout
make sure the products or services are available at times of peak customer demand.
scheduling
ensures that the product or service meets acceptable standards
Quality Management, or quality assurance (QA)
the balancing of two conflicting needs related to inventory: the cost of maintaining a large inventory and the need to satisfy customers by filling orders promptly.
inventory management
Increasing the use of technology can improve product quality and the amounts that are produced.
technology
Evaluating the best places to locate production facilities involves many considerations: the cost of labor, distribution systems, and government regulations, to name a few
facility location
As with all business functions, operations must provide products or services that meet the quality standards set by the organization at the lowest possible cost.
cost control
encompasses all the activities necessary to produce the goods or services of the business
operations
