Set One Flashcards
Accounts payable
money an organization owes its vendors and suppliers
Accounts receivable
money an organization’s customers owe the organization
Action plans
detailed steps a unit, department, or team will take in order to achieve short term objectives
Amendment
modification of the constitution or law; modification may be either formal (written) or informal (unwritten)
Assets
Financial, physical, and sometimes intangible properties an organization owns
Balance sheet
statement of a firm’s financial position at a particular time
Balance scorecard
measurement approach that provides and overall picture of an organizations performance as measured against goals in finance, customers, internal business processes, and learning and growth
Bill
proposal presented to a legislative body for possible enactment as a law
Break-even analysis
analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the program
Business case
description of an organizational challenge and possible alternative solutions, arguing for a specific solution
Capacity
to an operations department, the ability to yield output
Cash flow statement
record of how much cash is flowing into and out of an organization, including its sources or destination
Code of ethics
principles of conduct within an organization that guide decision making and behavior
Consumer price index (CPI)
measure of the average change over time in the prices paid by consumers for goods and services
Control
to an operations department, an after the fact evaluation of a company’s ability to meet its own specifications and its customers needs
Consumer price index
measure of the the average change over time in the prices paid by consumer for goods and services
Correlation
measure that indicates the relationship between two variables
Cost-benefit analysis
ration of value created to cost of creating that value; allows management to determine the financial impact particular activities and programs have on an organization profitability.
Decentralization
degree to which decision making authority is given to lower levels in an organizations hiearchy
Return on investment (ROI)
Ratio of incremental value (value received minus cost to create value) of an investment to its cost multiplied by 100%; measures the economic return on a project or investment.
Project
Series of tasks and activities that has a stated goal and objectives, a schedule with defined start and end dates, and a budget that sets limits on the use of monetary and human resources.
Validity
Ability of an instrument to measure what it is intended to measure.
Research and development (R&D)
That part of an organization charged with designing and developing products, processes, and services to meet market needs
Median
Middle point above and below which 50% of scores in a set of data lie
Resolution
Legislative measure limited in effect to either the Congress or one of its chambers.
Human resource information system (HRIS)
Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data
Population
Group of persons or objects or a complete set of observations or measurements about which one wishes to draw conclusions
Marketing
Process of planning, pricing, promoting, and distributing goods and services to satisfy organizational objectives
Human capital
Combined knowledge, skills, and experience of a company’s employees
Decentralization
Degree to which decision-making authority is given to lower levels in an organization’s hierarchy.
For more information, refer to Module .
Divisional structure
Organizational structure in which segments are separated by product, customer or market, or region.
Enterprise management
Integrated processes and tools to allow information sharing and process management across functions, sometimes even with external partners, such as suppliers
SWOT analysis
Process for evaluating an organization’s current strengths, weaknesses, opportunities, and threats
Sample
Portion of a population used to draw conclusions regarding an entire population.
For more information, refer to Module .
Mergers and acquisitions (M&A)
Combination of two separate firms either by their joining together as relative equals (merger) or by one acquiring the other (acquisition).
Gross domestic product (GDP)
Estimate of the total value of goods and services produced in a country in a given year
Foreign Corrupt Practices Act (FCPA)
Prohibits American companies from making corrupt payments to foreign officials for the purpose of obtaining or keeping business
HR audit
Process to measure the effectiveness and efficiency of HR programs and positions
Functional structure
Organizational structure that defines departments by what services they contribute to the organization’s overall mission.
For more information, refer to Module .
Human resource management (HRM)
Design of formal systems in an organization that ensure the effective and efficient use of human capital to accomplish organizational goals
Balanced scorecard
Measurement approach that provides an overall picture of an organization’s performance as measured against goals in finance, customers, internal business processes, and learning and growth
Vision statement
Vivid, guiding image of an organization’s desired future.
For more information, refer to Module .
Centralization
Degree to which decision-making authority is restricted to higher levels of management in an organization
Zero-based budgeting
Form of budgeting that requires that expenditures be justified for each new period
Mission statement
Specifies what the organization does, who its customers are, and the priorities it has set in pursuing its work.
Veto
Action of canceling or postponing a decision or bill
Extended organization
Alliance between organizations to create processes and information channels that allow communication and collaboration
Primary research
Involves data that is gathered firsthand for a specific evaluation.
Incremental budgeting
Form of budgeting in which the prior budget is the basis for allocation of funds.
Mean
Average score or value in a set of data.
Control
To an operations department, an after-the-fact evaluation of a company’s ability to meet its own specifications and its customers’ needs.
For more information, refer to Module .
Divestiture
Sale by a company of an asset that is not performing well, that is not core to the company’s business, or that is worth more as a separate entity
Range
Distance between highest and lowest scores in a set of data
Qualitative analysis
Based on research that supplies non-numeric data, for example, through the use of interviews, open-ended survey questions, and other methods that gather attitudes, opinions, and feelings.
Net profit margin
Ratio of net income (gross sales minus expenses and taxes) to net sales
Cost-benefit analysis
Ratio of value created to cost of creating that value; allows management to determine the financial impact particular activities and programs have on an organization’s profitability
Liabilities
Organization’s debts and other financial obligations.
Values
Describe what is important to an organization, dictate employee behavior, and create the organization’s culture
Key performance indicators (KPIs)
Quantifiable measures of performance used to gauge progress toward strategic objectives or agreed standards of performance
Electronic Communications Privacy Act (ECPA)
Act that makes it unlawful to intercept messages in transmission, access stored information on electronic communication services, or disclose this information
Percentile
Specific point in a distribution of data that has a given percentage of cases below it.
For more information, refer to Module .
Scheduling
To an operations department, the act of detailed planning; based upon incoming orders, order history, and forecasts of future demand
Public comment period
Time allowed for the public to express its views and concerns regarding an action of a regulatory agency.
Request for proposal (RFP)
Written request asking vendors to propose solutions and prices that fit a customer’s requirements
Sales
Business function responsible for selling an organization’s product to the marketplace.
Staff units
Work groups that assist line units by providing specialized services, such as HR.
Due diligence
Process of conducting an intensive investigation of an organization as one of the first steps in a pending merger or acquisition
Gantt chart
Project planning tool that graphically displays activities of a project in sequential order and plots them against time
Standard deviation
Measure that indicates how much scores in a set of data are spread out around a mean or average
Financial ratios
Calculations designed to describe an organization’s financial health and performance from various perspectives
Reliability
Ability of an instrument to measure consistently
Sarbanes-Oxley Act (SOX)
Act that changed corporate governance and reporting standards and underscored board of director’s responsibility to help ensure financial accountability, accuracy, and compliance.
Quantitative analysis
Seeks to obtain easily quantifiable data on a limited number of measurement points.
Mode
Value that occurs most frequently in a set of data
Promotion
Techniques for communicating information about products to consumers.
For more information, refer to Module .
Normal distribution
Expected distribution given a random sampling across a large population
Equity
Amount of owners’ or shareholders’ portion of a business.
For more information, refer to Module .
Quorum
Number of members of an organization that have to be present before official business may be conducted
Strategies
Provide the direction that enables an organization to achieve its long-term objectives
Regulation
Rule or order issued by a government agency; often has the force of law.
Environmental scanning
Process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats
Generation Y
Group of people born after 1980
Secondary research
Uses data already gathered by others and reported in various sources
Line units
Work groups that conduct the major business of an organization.
For more information, refer to Module .
Standards
For an operations department, provide the yardstick by which the amount and quality of output are measured
Program evaluation and review technique (PERT) chart
Project management tool used to schedule, organize, and coordinate tasks within a project
Supply chain
Network that delivers products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash
Formula budgeting
Form of budgeting in which an average cost is applied to comparable expenses and general funding is changed by a specific amount
Matrix structure
Organizational structure that combines departmentalization by division and function to gain the benefits of both
Income statement
Statement comparing revenues, expenses, and profits over a specified period of time, usually a year or a quarter.
Offshoring
Relocation of processes or functions from a “home” country to another country
Strategic planning
Process that helps an organization focus on how to succeed in the future by evaluating the organization’s current status, where it would like to be, and how to get there
Strategic business management
Processes and activities used to formulate HR objectives, practices, and policies.
For more information, refer to Module .
Ethics
System of moral principles and values that establish appropriate conduct
Long-term objectives
Specific results, to be accomplished in three to five years, that an organization seeks to achieve in pursuing its mission
Inventory
To an operations department, an organization’s major asset after physical buildings and equipment.
Product
What an organization sells to make a profit.
Span of control
Refers to the number of individuals who report to a supervisor.
For more information, refer to Module .
Gross profit margin
Ratio of gross profit to gross sales.
Generation X
Group of people born roughly between the years of 1965 and 1980.
Mid-term objectives
Serve a purpose similar to short-term objectives but are completed in one to three years.
For more information, refer to Module .
