✔️ [Comp] Business Acumen Flashcards
founding document for an organization and an organizational-level equivalent of a business case. It establishes the organization’s purpose for existing—what it was created to do or achieve. The business plan includes details of the organization’s structure, its marketing plan, and financial projections.
Business Plan
This document outlines how an organization intends to fulfill its purpose. It includes details of the mission and vision; strategic objectives, goals, and initiatives; and relevant budgetary information. It is a more detailed version of a business plan, offering a greater level of detail and specifics. Strategic plans can also include details of key performance indicators (KPIs)
Strategic Plan
This is a diagram that illustrates the hierarchy within an organization. It includes information regarding reporting and other relationships between individuals, functions, and departments. These charts are useful to HR because they can be used to assess whether the organization has the right number of appropriately skilled employees in the correct roles. For dispersed organizations, the chart is an excellent tool for keeping track of where employees are located and how they fit into the structure and hierarchy.
Org Chart
These are formal guides, typically presented step by step, that outline how a work process or activity should be completed. SOPs are common for activities and processes that are repetitive or low in variance, and they can enhance efficiency. Many of HR’s functions might have SOPs: hiring, employee onboarding, training, exit interviews, annual reviews, and so on. Familiarity with other organizational SOPs can help HR professionals navigate interdepartmental activities more effectively.
SOP’s
A form of financial assistance provided by a government to help fund an idea or project that is understood to provide a public service or stimulate the economy. Examples of the intended outcome of grant-funded projects may include environmental or educational benefits, promotion of culture and the arts, job creation, or disaster recovery efforts
Grants
A X is a legally binding agreement between two or more parties, typically related to the exchange of goods, services, or cash. It defines and governs the rights and responsibilities of each participant.
Contracts
X is a document that outlines how an organization will maintain operations during an unplanned disruption. HR will have its own plans for disruptions (as part of risk management), but a business continuity plan takes into consideration every aspect of an organization that might be affected. These plans will contain information about supplies, equipment, employee disposition, data backups, and backup locations; they are sometimes presented as a simple checklist. HR can play a pivotal role in developing these plans, as well as during any crises, and leaders should ensure that they are familiar with these documents.
Business Continuity Plan
- Links short-term activities to long-term objectives
- can provide a concise impression of an organization’s overall performance. It can be used to focus the organization and its functions on key strategic activities, to craft responses to goals, and to create metrics to assess the effectiveness of these responses. Balanced scorecards help support a clear line of sight from strategic goals to strategic performance.
Balanced scorecard
X budgeting: all objectives and ops are given priority ranking
X based: interrelationships among the various activities required to create value in the org
^ allocates funding according to the strategic significance of the activities
X based: different units recieve necessary budgets
X or line-item budgeting, uses the previous year’s budget.
*** X budgeting recognizes the interrelationships among various activities required to create value in an organization. It is based on how much it costs to perform different enterprise activities. Funding may be allocated based on the strategic significance of the activities.
zero-based budgeting
Activity-based
formula based
incremental
Activity-based
Business management software, usually a suite of integrated applications, that a company can use to collect, store, manage, and interpret data from many business activities.
ERP - enterprise resource planning
Statement of an organization’s ability to meet its current and short-term obligations, showing incoming and outgoing cash and cash reserves in operations, investments, and financing.
Cash-flow statement
Statement that reports revenues, expenses, and profits for a specified period of time, for example, quarterly or annually.
Income statement
The process by which an organization creates the product or service it offers to the customer.
Value chain
Ratio of gross profit to net sales.
Gross profit margin
Ability to use information to gain a deeper understanding of an organization and make sound business decisions.
Business Intelligence
