Chpt 7

Question 1

Productivity

Answer 1

is when you are performing a function that adds value to the company.

Question 2

strategy

Answer 2

outlines major goals and objectives that serve as its road map for success.

Question 3

strategic plan

Answer 3

is a formal document that identifies how the company will secure, organize, utilize, and monitor its resources.

Question 4

directional statements.

Answer 4

ogether, the company’s mission, vision, and values statements constitute the organization’s directional statements. Directional statements create the foundation for why the company exists and how it will operate.

Question 5

mission statement

Answer 5

A company’s mission statement is its statement of purpose. It identifies why each employee comes to work.

Question 6

vision statement

Answer 6

it determines where it wants to be in the future. This is called a vision statement. A company’s vision statement is its viable view of the future.

Question 7

Values statement

Answer 7

defines what is important to and what the priorities are for the company.

Question 8

a goal

Answer 8

is a target

Question 9

An objective

Answer 9

identifies specific activities that support a goal. Objectives are sometimes referred to as short-term goals.

Question 10

organizational structure.

Answer 10

The way a company is organized is called its

Question 11

organizational chart

Answer 11

he graphic visual display of this structure is called the company organizational chart. This chart not only identifies key functions within the company, but also shows the formal lines of authority for employees.

Question 12

chain of command

Answer 12

These formal lines of authority are also referred to as the chain of command. The chain of command identifies who reports to whom within the company.

Question 13

president or chief executive officer (CEO).

Answer 13

The president or CEO implements company strategy and reports to the company board of directors.

Question 14

Board of directors

Answer 14

board of directors. This group of individuals is responsible for developing the company’s overall strategy and major policies. The company’s board of directors is elected by shareholders or investors. Smaller companies may not have such a formal structure and/or

Question 15

Sr. Mgrs or Dir

Answer 15

Senior managers or executives typically have the title of vice president or chief executive. These individuals work with the president in identifying and implementing strategic issues, which deal directly with the creation and implementation of the company strategy. Strategic issues typically range from three to five years, but could be longer.

Question 16

Middle managers

Answer 16

typically have the title of director or manager. These individuals work on tactical issues, which identify how to link the strategy into the reality of day-to-day operations. The time line for tactical issues is typically one to three years.

Question 17

Operations managers

Answer 17

, typically called supervisors and assistant managers, work on operational issues, which are issues that occur on a daily basis and are no longer than one year. As you begin to develop your career, you may have the opportunity to

Question 18

Supervisors

Answer 18

are first-line managers. Although supervisors primarily concern themselves with operational issues, successful employees and supervisors understand the bigger picture of the company’s overall tactics and strategy.

Question 19

divisions

Answer 19

As displayed in a typical organizational chart, companies are usually arranged by major functions. These major functions are frequently referred to as divisions

Question 20

departments.

Answer 20

Within these divisions are departments. The departments are subdivisions responsible for carrying out specific tasks of their division.

Question 21

finance and accounting

Answer 21

The area is responsible for the securing, distribution, and growth of the company’s financial assets. Any invoices, incoming cash, or checks must be recorded through the accounting department. The accounting department will work with the human resource area on payroll issues regarding your paycheck.

Question 22

A capital budget

Answer 22

is used for long-term investments, including land and large pieces of equipment.

Question 23

operational budget

Answer 23

An operational budget is used for short-term items including payroll and the day-to-day costs associated with running a business. Because the primary purpose of every company is to make a profit, you as an employee are accountable for how you utilize the company’s financial resources.

Question 24

human resource

Answer 24

The area is responsible for recruiting, hiring, training, evaluating, compensating, promoting, and terminating employees.

Question 25

operations

Answer 25

The function deals with the production and distribution of the company’s product. It is the core of the business.

Question 26

information systems (IS)

Answer 26

The area deals with the electronic management of information within the organization.

Question 27

Marketing

Answer 27

is responsible for creating, pricing, selling, distributing, and promoting the company’s product.

Question 28

legal counsel

Answer 28

The company’s handles all legal matters relating to the business.

Question 29

Product

Answer 29

All companies offer or sell a product. A product is what is produced by a company. Products come in the form of goods and services.

Question 30

good

Answer 30

A is a tangible item, something that you can physically see or touch. Appliances, toys, or equipment are examples of tangible products.

Question 31

service

Answer 31

A is an intangible product.

Question 32

Quality

Answer 32

is a predetermined standard that defines how a product is to be provided.

Question 33

value,

Answer 33

Customers are loyal to a company and its products when they receive value, which means customers believe they received a good deal for the price they paid. Providing a quality product at a reasonable price (value) requires an ongoing company-wide effort

Question 34

Creativity

Answer 34

is coming up with a new and unique item, service, or system.

Question 35

Innovation

Answer 35

is the process of turning a creative idea into reality. Continually identify new uses and applications for items and/or situations and then act on those new ideas.

Question 36

Customer service

Answer 36

is the treatment an employee provides the customer.

Question 37

Internal customers

Answer 37

are employees within a company.

Question 38

External customers

Answer 38

are individuals outside of the company.