Management Flashcards
management
the process of working with people and resources to accomplish organizational goals
planning
the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue.
organization
the management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals
leading
the management function that involves the managers efforts to stimulate high performance by employees
controlling
the management function of monitoring performance and making needed changes
Managers
attain goals in an efficient and effective manner through planning, organizing, leading and controlling
organizing activities
attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success.
accountability
being responsible for your own actions
Sole Proprietorship
One person running the business, full personal liability
Partnership
Two or more people running the business, liability split between the owners
C-Corporations (Conventional)
Legal entity that acts and has liability, seperate from its owners
<p>S-Corporations
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<p>Looks like a "C-corporation" taxed like a Partnership (personal income of owners)
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Limited Liability Corporation (LLC)
Looks like a C-corporation and taxed as a personal income (Personal asset cannot be taken if bankrupt)
product
anything offered to the target market to satisfy their needs.
place
the locations where products are sold and the way they are made available to consumers. also is where conssumers can obtain the product or service
price
what customers pay and the method of payment. also can support an image of quality, service, or value in addition to spelling out cost.
promotion
the methods used to communicate information to consumers. also helps to attract new consumers by informing and persuading them.
target market
a clearly identified group of consumers with very similar needs to whom a company can sell its products.
marketing mix
a combination of marketing elements designed to meet the needs of the target market.
marketing
increased our standards of living by understanding our needs and wants and providing us with more choices and better products.
<p>distribution channel
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<p>the path a product travels from product to consumer.
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Basic Accounting Equation
Assets equals Liabilities plus Owner’s Equity (A=L+OE)
Assets
Resources owned by the company and used for some business purpose
Current Assets
Those assets that typically will be consumed within a year
Long term assets
Those assets that will not be consumed within a year
Liabilities
The claims that creditors have against the company
Current Liabilities
Those liabilities which will be paid within a year
Long term liabilities
Those liabilities that will not be paid off within a year
Owner’s Equity
The claim that owners (common stockholders, general partners or sole proprietors) have against the company
<p>Income Statement
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<p>Identifies revenues and expenses relating to a company's business activity over a period of time, e.g., January 1, 2008 through December 31, 2008.
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Nepotism
favoritism shown to relatives or close friends by those in power (as by giving them jobs)
middle management
This level of management includes department heads and district sales managers.
decision-making role
By making changes in policies or resolving conflicts in the workplace, a manager is working within his or her ____.
A Theory Y manager is most likely to ____.
assume that all workers are content with their work
Theory Z
Management theory incorporating Japanese emphasis on collective decision making and concern for employees with American emphasis on individual responsibility is ____.
Wheeler-Lea Act of 1938
This law guards against false advertising.
contract
A ____ is an agreement between two parties to carry out a transaction, such as the sale of goods from a seller to buyer.
Under the Americans with Disabilities Act, companies ____.
cannot fire or refuse to hire people because of certain disabilities and illnesses
Profit
The difference between what a business earns (revenue) and what it spends (costs) is known as ____.
China
The largest exporter in the world is ____.
Retrenchment
____ strategy is a plan to reverse negative trends in a company, such as the losses in sales.
Procedure
A detailed series of related steps or tasks written to implement a policy is called a ____.
corporate strategies
Strategies that deal with the most important aspects of the company’s operations and provide overall direction for the company are known as ____.
a continuous-flow operating system
Because production occurs continuously throughout the year, the 3-M company can best be described as using ____.
unity of command
Confusion results if a person reports to two people at once, according to ____.
delegate the task
When a task is too time consuming for a manager to handle alone, he or she may ____.
inside board members
Senior company managers who serve on the company’s board of directors are known as ____.
line organization
In a ____ authority originates at the top and moves downward in a line.
growth through direction state
The company founder is no longer solely responsible for all decision making during the ____.
chief executive officer
The person who sets the company’s objectives is the ____.
Informal work groups can affect ____.
productivity, the success of the managers, and the morale of the other employees
Ethics
Principles of right conduct and moral values
Integrity
Moral or ethical strength; the quality of being honest
Respect
The instant willingness to show consideration or appreciation
Self-Esteem
A sense of one’s own dignity or worth
Teamwork
Cooperative effort by the members of a group or team to achieve a common goal
acquisition
occurs when one business buys all or part of another business
benchmarking
the process of comparing an organization’s products or services and processes with those of another companies
contingency plans
alternative plans to be implemented if uncontrollable event occur
functional strategies
strategies developed and implemented by managers in marketing, operations, human resources, finance, and other departments
grand strategies
an overall corporate strategy for growth, stability, or turnaround and retrenchment, or for some combination of these
growth strategies
strategies a company can adopt in order to grow: concentration, backward and forward integration, and related and unrelated diversification
management by objectives (MBO)
the process in which managers and their employees jointly set objectives for the employees, periodically evaluate performance, and reward according to the results
merger
occurs when two companies form one corporation
objectives
a statement of what is to be accomplished that is expressed in singular, specific, and measurable terms with a target date
THE IMPORTANCE OF ETHICAL LEADERSHIP
Management’s behavior sets the ethical tone of the firm; attitude of mgmt affects attitude of employees.
The Principle of Rights
Duty-based ethical standards imply that human beings have basic rights.
OUTCOME-BASED ETHICS
Utilitarianism: outcome oriented, focuses on the consequences of an action, not on the nature of the action itself or on any set of preestablished moral values or religious beliefs.
CORPORATE SOCIAL RESPONSIBILITY
the idea that those who run corporations can and should act ethically and be accountable to society for their actions.
CREATING ETHICAL CODES OF CONDUCT
- Providing ethics training to employees, policies and importance of ethical conduct must be clearly communicated to the employees at the hire stage; some companies hold periodic ethics seminars during which employees can openly discuss any ethical problems they face.
Making Ethical Business Decisions: 6 factors:
The law = is the action legal? If dont know find out the legality.
Rules and procedures. = Do only what is consistent with your company’s procedures and policies.
3. Values. = laws and internal company policies reinforce society’s values.
4. Conscience. = let your conscience be your guide.
5. Promises = live up to the commitments you have made to others, both inside and outside of the business.
6. Heroes = how would your hero act?
Prime Rate
Non-fluctuating rate that banks use to offer short-term loans of high dollar amounts made up of several interest rates
Extension
An extra amount of time granted to a party to make a payment
Business Budget
A tool designed to help managers and owners monitor the profitability of their actions
Loan
A purchase made with the use of borrowed money requiring a promise to pay it back on an agreed upon schedule.
Maturity
The length of a loan or the date on which a financial obligation must be repaid
Interest
This is the charge made by a lending institution which it uses to cover the administrative and operating costs and profit for the institution
Collateral
Any asset pledged towards the loan balance in case payment cannot be made
Banking
Any process of transacting business with a financial institution; depositing or withdrawing funds or requesting a loan, etc.
Line of credit
A limited amount of credit they have authorized you to borrow against with your promise to pay back in the future
Budgeting
A plan to control income and the advance any type of expenditures
Investing
commit (money or capital) in order to gain a financial return
Risk
The variability of returns from an investment
Net Income
The excess of revenues minus all liabilities in a given time period.
Balance Sheet
A document which shows the company assets, liabilities and owners’ investment as of a specified date
Depreciation
An allowance made for a loss in value of property over a period of time.
Philosophy
Statement of beliefs and values that direct behavior, clear concise manner and included in staff handbooks and annual reports.
Policy
A governing plan for accomplishing goals and objectives. Explain how goals will be achieved. Define the general course and scope of activities. Serve as basis for future decisions, actions and help coordinate plans. Control performance, increase consistency of action. Implied or Expressed.
Goals
____ help focus attention on what is important and are broader statements than objectives. More quantitative the ____, the more likely its achievement is to receive attention and less likely it is to be distorted. The end or outcome to be accomplished. State actions for achieving the mission and philosophy. Central to whole management process.
Long-range or strategic planning
Extends 3 to 5 years into the future. Begins with in-depth analysis of internal environment’s strengths and weaknesses. Reviews external opportunities and threats so realistic goals can be set
Short-range or operational planning
Done in conjunction with budgeting. Develops departmental maintenance and improvement goals for the coming year.
Purpose of Strategic Planning
Leaders need vision that is realistic and feasible. The strategic vision should be clear, cohesive, consistent and flexible. Includes analysis of the agency’s internal and external environments (strengths, weaknesses, opportunities, and threats, or SWOT), capabilities, and resources
Organizational Structure
Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.
Organizational Chart
Is a drawing that represents every job in the organization and the formal reporting relationships between those jobs.
Work Specialization
Is the way in which tasks in an organization are divided into separate jobs.
Chain of Command
within an organization essentially answers the question “Who reports to whom?”
Span of Control
Represents how many employees the manager is responsible for in the organization.
Matrix Structures
Are a more complex form of organizational design that tries to take advantage of two types of structures at the same time.
Restructuring
The process of changing an organization’s structure.
- Has a small negative effect on task performance.
- Has a more significant negative effect on organizational commitment.
Three reasons nations trade
obtain goods they cannot produce, reflect comparative advantage, and create jobs
Exchange Rate
The price of your nation’s currency is in terms of another nation’s currency
Out-sourcing
transferring work to another country
World Health Organization (WHO)
Purpose is to direct and coordinate international health work and their goal is to bring the highest level of health to people across the globe
Supply
How much of the product there is
Demand
how much the costumers want the product
Producer
Maker of the item/supply
Market
The Combination of suppliers and Demande for a product
Competition
Two companies that are selling similar products
franchise
a written contract granting permission to operate a business to sell products and services in a set way
mission statement
a short, specific written statement of the reason a business exists and what it wants to achieve.
goal
a precise statement of results the business expects to achieve.
Pure Competition
independent and well informed buyers and sellers of the exact same product (farmers markets)
Imperfect Competition
market structure that does not meet all conditions of perfect competition, three catagories: monopolistic, oligopoly & monopoly
Monopolistic Competition
a type of imperfect competition such that competing producers sell products that are differentiated from one another as good but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
Oligopoly
very few large firms dominate the market such as coke, pepsi, GM, McDonalds
Collusion
formal agreement to set prices. Sometimes illegal, but is typically secretive
Price Fixing
a form of collusion, agree to charge the same prices, usually higher than the price set by competition
Monopoly
one seller of a product - denies people competition and is against the law (They can typically raise prices)
Patent
exclusive right to manufacture, sell or use a new invention, prevents someone from stealing and profiting from your invention
Copyright
protects art and literary work, give authors exclusive right to publish, sell and reproduce their work
Sherman Antitrust Act
protected trade and commerce against unlawful restraint or monopolies (1890)
Clayton Antitrust Act
more specific than the Sherman Antitrust Act, gave the government more power against monopolies
Federal Trade Commission
helped enforce the Clayton Act, gave the government the power to issue cease and desist orders to stop unfair business practices (1914)
Robinson-Patman Act
strengthened the Clayton Act and dealt with price discrimination
labor
the workforce of a business
capital
artificial resource made by labor
opportunity cost
the benefit lost from the next best alternative; what you have to give up, to get what you want or need the most
methods of finance for an expanding business
private funds, partners/shareholders, bank loans, asset leasing and hire purchase, venture capital/business angels, merger capital, retained profits
SWOT analysis
S- strengths W- weaknesses O- opportunities T- threats strengths and weaknesses are internal factors of the company; opportunities and threats are external factors towards the company
downsizing
creating a flatter organization structure normally cutting out middle management
responsibility
being accountable or being able to justify an action
authority
the ability to carry out a task
job rotation
changing jobs or tasks from time to time
quality control circles
small groups in the same work area that have scheduled meetings about problems and how to fix them
empowerment
delegating more power to employees
forecasting
using relative information to predict how many jobs will be needed
Maslow’s hierarchy of needs
can’t have higher level, or class without the lower level; physiological needs, safety needs, feeling of love and belonging, esteem needs, self-actualization
theory x
people are lazy
theory y
people are internally motivated
Herzberg’s two-factor theory
motivator and hygiene factors need to be met to prevent dissatisfaction
organization behavior modification
positive reinforcement, negative reinforcement, punishment
positive reinforcement
rewarded for good performance; something the employee likes is praised
negative reinforcement
something that the employee dislikes is taken away
fringe benefit
payments other than wages or salaries, other benefits
Autocratic Leadership style
Making decisions without consulting anyone
Democratic Leadership Style
Managers and workers cooperating as a team
laissez-faire Leadership style
Lots of leeway to workers to meet goals
OSHA
a government agency in the Department of Labor to maintain a safe and healthy work environment
Affirmative Action
refers to policies that take factors including “race, color, religion, gender, sexual orientation or national origin” into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination.
Fair Labor Standards Act (FLSA)
The most sweeping federal law that restricts the employment and abuse of child workers. Child labor provisions are designed to protect the educational opportunities of youth and prohibit their employment in jobs that are detrimental to their health and safety.
Variance
2 definitions:
1. Permission granted by a zoning authority to a property owner to allow for a specified violation of the zoning requirements.
Variances are generally granted when compliance is impossible without rendering the property virtually unusable.
2. difference of revenues, costs, and profit from the planned amounts.
One of the most important phases of responsibility accounting is establishing standards in costs, revenues, and profit and establishing performance by comparing actual amounts with the standard amounts. The differences (variances) are calculated for each responsibility center, analyzed, and unfavorable variances are investigated for possible remedial action.
