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Personal finance > Managing New Venture Growth Final > Flashcards

Managing New Venture Growth Final Flashcards

1
Q

Process that involves determining and communicating to employees how they are performing in their jobs and establishing a plan for improvement.

A

Performance Appraisal

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2
Q

To be effective, a performance appraisal must be…

A
  • Supported by documentation
  • Fair
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3
Q

Appraisal performance formula

A

Ability x Effort = Performance

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4
Q

An employees skill set

A

Ability

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5
Q

The amount of energy expended

A

Effort

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6
Q

The degree of accomplishment of the tasks that make up an employee’s job.

A

Performance

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7
Q

Average production or work

A

Tasks performed by all employees are approximately the same

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8
Q

When tasks performed by all employees are basically the same, it would be time consuming to use the group average

A

Performance of specially selected employees

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9
Q

Jobs that involve repetitive tasks (assembly line)

A

Time Study

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10
Q

Non-cyclical types of work in which many different tasks are performed and there is no set pattern or cycle

A

Work sampling

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11
Q

Used only when none of the direct methods apply

A

Expert Opinion

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12
Q

Requires a manager to describe an employee’s performance in written narrative form

A

Essay Appraisal

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13
Q

Requires the manager to keep a written record of incidents as they occur, involving both satisfactory and unsatisfactory performance

A

Critical Incident

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14
Q

Manager assesses an employee on factors such as quantity of work, dependability, job knowledge, attendance, accuracy of work, etc. These subjects are measured on a numerical range.

A

Graphic Rating Scale

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15
Q

Requires a manager to answer yes or no to a series of questions
concerning the employee’s behavior

A

Checklist

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16
Q

Requires a manager to rank a set of statements describing how an employee carries out the duties and responsibilities of the job.

A

Forced Choice Rating

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17
Q

Manager is given a list of several employees, then he selects the most valuable and the least valuable and continues this until all employees have been evaluated.

A

Alternation rating

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18
Q

A list of employees is written on the left side of a sheet of paper. The first employee is compared to all other employees on a given criterion with a check mark being given to the one considered the stronger performer. This is continued until all employees have been compared to all
other employees.

A

Paired Comparison

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19
Q

Assumes the performance levels of employees is a bell curve, forces a manager to place a certain percentage of employees into
performance levels

A

Forced Distribution

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20
Q

Potential Errors in performance appraisals

A
  • Leniency
  • Central Tendency
  • Recency
  • Halo Effect
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21
Q

Grouping all the ratings at the positive end of the scale

A

Leniency

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22
Q

Performance evaluations are based on work performed most recently, generally one or two months before the evaluation

A

Recency

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23
Q

Tendency of voters to rate most employees as doing average work.

A

Central Tendency

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24
Q

Manager allows a single prominent characteristic of an employee to influence performance appraisals

A

Halo Effect

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25
Q

Do’s of performance appraisals

A
  • Base on job performance only
  • Use only rating scales relevant to the job itself
  • Sincerely work at the appraisal interview process
  • Be problem solving oriented
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26
Q

It’s important to emphasize ________ instead of ____________

A

Work behavior instead of personal traits

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27
Q

Ensure that the employees are allowed to give___________ during the
appraisal

A

Feedback

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28
Q

Ensure that appraisals are ________, ___________, and ____________.

A

Written, documented, and retained

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29
Q

Rewards internal to the employee, normally derived from involvement in work activities

A

Intrinsic rewards

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30
Q

Tangible rewards, controlled and distributed by the organization

A

Extrinsic Rewards

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31
Q

Sense of achievement, informal recognition, status, job satisfaction, personal satisfaction

A

Intrinsic rewards

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32
Q

Formal recognition, fringe benefits, incentive payments, base
wages, promotion

A

Extrinsic Rewards

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33
Q

Rewards related to performance

A

Incentives

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34
Q

Rewards received bc of employment with organization

A

Benefits

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35
Q

Extrinsic rewards offered by the organization consisting of base wage or salary, any incentive or bonus, and any benefit employee receives in exchange for their work

A

Compensation

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36
Q

Two aspects of an operating system

A
  • Design
  • Control
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37
Q

Design

A

Physical layout of the operation

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38
Q

The monitoring of the system on an ongoing basis, this is to ensure quality and manage inventory

A

Control

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39
Q

Direct costs of a product

A

Labor and materials

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40
Q

Direct costs are always ________

A

Variable costs

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41
Q

As the number of products produced increases, the __________ increases

A

The direct costs increase

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42
Q

Expenses that change in proportion to the level of production or service (training of new employees, travel)

A

Overhead Expenses (Variable)

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43
Q

Expenses that do not change with the level of production (management of salaries, marketing expense, R&D expense, rent)

A

Overhead Expenses (fixed)

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44
Q

The degree of excellence specified in the design stage

A

Quality

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45
Q

4 Ways quality is important

A

1) Loss of business
2) Liability
3) Costs
4) Productivity

46
Q

Poor quality can expose a company to _________

A

High liability costs

47
Q

Poor quality can cost a company what?

A
  • Money in warranty
  • Repair
  • Waste
  • Replacement costs
48
Q

Quality allows for ____________

A

Continuous improvement

49
Q

Quality at the source

A

Each employee is not responsible for their own work

50
Q

Based on a precise set of statistical tools, answers the question what does the customer want in terms of quality then translates the answer into statistical terms.

A

Six Sigma

51
Q

Eliminating waste and non value added activities

A

Lean manufacturing

51
Q

Relates to the inputs or outputs of the system, used when quality is evaluated w/ respect to a batch of existing products or services.

A

Product quality control

51
Q

Searching for and implementing radical changes in business processes to achieve breakthroughs in speed, cost,

A

Reengineering

51
Q

Relates to the equipment and processes used during the production process, used to monitor quality while the product is being produced

A

Process Control

52
Q

Method of predicting the quality of a batch or large group of products from an inspection of a sample or group of samples from a batch

A

Acceptance sampling

52
Q

Why is acceptance sampling used

A
  • Potential for losses or cost of passing defective items are not great relative to the cost of inspection (checking balloons for defects)
  • Inspection of some items requires destruction of the product being tested (matches)
53
Q

Acceptance sampling leaves two possibilities. What are they?

A

1) Producer Risk
2) Consumer Risk

54
Q

Risk producer takes in possibly rejecting a good batch

A

Producer risk

55
Q

Risk of consumer accepting a bad product

A

Consumer risk

56
Q

Types of Inventory

A
  • Raw material
  • In process
  • Finished goods
57
Q

Buffer between production and purchasing, material waiting to be used to make the product

A

Raw material

58
Q

Buffer between rate of flow between production processes (keeps your labor force working)

A

In process inventory

59
Q

Buffer between final stage of of production and shipping (allows ppl to buy the products they need when they need them)

A

Finished goods

60
Q

Why keep inventory?

A

Allows the company to:
- Purchase, produce, and ship in economic lot sizes rather than in small jobs (economies of scale)

  • Produce on a smooth continuous basis even if demand for finished good fluctuates
  • Prevents major problems when forecasts of demand are in error or when unforeseen slowdowns or stoppages in supply of production occur
61
Q

Philosophy for production to ensure the correct items arrive at the correct time.

A

Just in Time Inventory

62
Q

What are methods used to track inventory

A
  • Bar code technology
  • Physical inventory
63
Q

When items are scanned at point of sale, they are then subtracted from inventory

A

Bar code technology

64
Q

Physically counting all of the inventory, this ensures effectiveness of our inventory control system

A

Physical Inventory

65
Q

Finished goods are ready to be shipped out or sold, generally a finished product

A

Independent demand

66
Q

Subassembly or component parts used to make a finished product, there demand is based on the number of finished products being produced

A

Dependent demand

67
Q

The number of tires needed for new cars being manufactured depends upon the number of cars being made

A

Dependent demand

68
Q

Method of managing inventories based on the total value of their uses per unit. This method segregates high dollar items, which tend to be monitored more than low dollar items.

A

ABC Classification system

69
Q

The amount of inventory maintained to accommodate unexpected changes in demand and supply and allow for variations in delivery time.

A

Safety Stock

70
Q

What are ordering costs made up of?

A

Order time, shipping costs, and set up costs

(usually insignificant costs)

71
Q

What is actually costs to hold inventory

A

Carrying costs

72
Q

What do carrying costs consist of?

A
  • Insurance
  • Storage costs
  • Opportunity cost of money
  • Pilferage (stealing)
  • Obsolescence (becoming outdated)
73
Q

Process of ensuring that organizational activities are going
according to plan, accomplished by comparing actual performance to
predetermined standards or objectives, then taking action to correct for any deviation

A

Control

74
Q

Control is used to:

A
  • Prevent crisis
  • Standardize outputs
  • Appraise employee performance
  • Update plans
  • Protect organizations assets
75
Q

Two concerns of control

A

1) Stability
2) Objective realization

76
Q

Managers must ensure the organizations is operating within established boundaries of constraint, which are determined by policies, budgets, ethics, laws, etc

A

Ensuring stability

77
Q

Requires constant monitoring to ensure that progress is being made toward established objectives

A

Objective realization

78
Q

Three requirement for control

A

1) Setting standards
2) Monitoring Performance
3) Correcting for deviations

79
Q

Standard is the value used as a point of reference for comparing other values (output per hour, inventory level, etc)

A

Setting Standards

80
Q

Gather data and detect problems

A

Monitoring performance

81
Q

Taking corrective action to ensure standards are being met.

A

Correcting for deviations

82
Q

Repetitive acts requiring very little thought, generally normal in the course of business

A

Foolproof

83
Q

Requiring very little human interaction (thermostat regulating a
building’s temperature)

A

Automatic

84
Q

Requires human response, physically checking records

A

Operator

85
Q

Layer that controls the person or person implementing controls. (Boss checking production records for the previous day)

A

Supervisory

86
Q

Ultimate feedback loop, manager pulls together all information provided by all other controls

A

Informational controls

87
Q

Types of control

A

1) Behavioral or personal
2) Output or impersonal
3) Control tolerance

88
Q

Based on direct personal surveillance, the front line supervisor watching their employee

A

Behavioral/personal

89
Q

Based on the measurements of output, tracking sales performance or production

A

Output/impersonal

90
Q

Variation from the standard that is acceptable for the manager (perfect is not a reasonable standard)

A

Control tolerance

91
Q

3 Factors to consider w/ control

A

1) Economic considerations
2) Behavioral considerations
3) Flexibility and Innovation

92
Q

Employees do not like working in an
environment where they feel like every move is being monitor

A

Behavioral considerations

93
Q

Controls cost money

A

Economic considerations

94
Q

3 types of control

A

1) Preliminary (steering) control
2) Concurrent (screening) control
3) Post action control

95
Q

Goal is to prevent a problem from happening. (purchase order)

A

Preliminary (steering) control

96
Q

Focuses on the process as it is occurring, the goal is to detect a
problem as it is happening (monitoring the drive thru operation at a fast food restaurant or monitoring a phone call

A

Concurrent (screening) control

97
Q

Checking after an event to keep a small issue from getting out of hand.
(review or the profit and loss statement each mont

A

Post Action control

98
Q

It will never solve a problem
It is the most widely used control

A

Post Action control

99
Q

Statement of expected results or requirements expressed in
financial terms

A

Budget

100
Q

Designed to stop basing the current years budget on the previous years budget. Every activity is analyzed based on the need for the current year.

A

Zero Based budgeting

101
Q

Information from income statements, balance sheets,
etc. used for analysis purposes

A

Financial controls

102
Q

Examples of direct observation

A
  • Managers daily tour of facility
  • Company president’s annual visit
  • Methods study by an engineer
103
Q

Presents only the facts (balance sheet or income statement)

A

Informational reports

104
Q

Interprets the facts (outside audit)

A

Analytical report

105
Q

Audit conducted by company personnel on a facility

A

Internal audit

106
Q

Audit performed by an outside accounting firm, used to verify internal numbers

A

External audit

107
Q

Who are required to have an external audit?

A

Publicly traded companies

Personal finance (3 decks)

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