Strategic Alignment and Assessment of Resources

Question 1

The previous year’s budget is a starting point for the next year’s budget, and program and function leaders are told that they may increase or decrease it by a certain percentage. This is less time-consuming, but it does not recognize changes in business circumstances or practices that should affect spending.

Answer 1

Incremental budgeting

Question 2

The previous year’s budget is “zeroed out” and no funding commitments for the coming year are assumed. The budget for every item must be proposed anew. This process can be time-intensive at first but becomes more efficient with experience. Its benefit is that it tends to reduce wasteful spending practices that can go unchallenged in traditional budgets.

Answer 2

Zero-based budgeting

Question 3

The cost factors for specific activities are identified and used to estimate funding requirements. Once the function has accumulated historical information about cost factors, estimates can be more precise. This gives leaders more control over spending decisions.

Answer 3

Activity-based budgeting

Question 4

The total amount of a function’s budget is apportioned to departments or activities according to defined percentages.

Answer 4

Formula-based budgeting

Question 5

Presentation to management that establishes that a specific problem exists and argues that the proposed solution is the best way to solve the problem in terms of time, cost efficiency, and probability of success.

Answer 5

Business case

Question 6

The condition or change impelling the function’s acton.

Answer 6

Statement of need

Question 7

The objectives for an ideal solution are defined (the desirable outcomes of such an initiative), and the proposed action is described in sufficient detail to show how it meets these objectives.

Answer 7

Recommended solution

Question 8

Risks should include outcomes that could decrease the project’s chance for success, outcomes that could present new opportunities that would require action, and the risks of doing nothing at all.

Answer 8

Risks and opportunities

Question 9

The project budget should include all foreseeable elements (labor, equipment, fees, travel, etc.) plus a reserve for the unforeseeable based on the project’s risk.

Answer 9

Estimated costs and time frame

Question 10

1. Commit long-term
2. Measure consistently
3. Connect engagement to business results
4. Seek employee input
5. Gain leadership support

Answer 10

Engagement Efforts to Take

Question 11

Broader concept than employee satisfaction, commitment, and morale.

Answer 11

Employee Engagement

Question 12

Employees show high levels of energy and invest effort into their work.

Answer 12

Vigor

Question 13

Employees are involved in their work and have a sense of pride and enthusiasm about it.

Answer 13

Dedication

Question 14

Employees are fully concentrated on and completely engrossed in their work.

Answer 14

Absorption

Question 15

Describes the inherent personality-based elements that make an individual predisposed to being engaged - a natural curiosity, a desire to be involved, an interest in problem solving. These traits may figure into recruiting and hiring efforts.

Answer 15

Trait engagement

Question 16

Influenced by workplace conditions or practices (e.g., task variety, opportunities to participate in work decisions) that can be improved through organizational interventions directly under management’s control.

Answer 16

State engagement

Question 17

Evident in the effort employees put into their jobs, which leads to greater value, creating higher performance than from their less-engaged counterparts. It can occur when both trait and state engagement are present.

Answer 17

Behavioral engagement

Question 18

Encompassing three different aspects of employee health:

• Physical
• Psychological
• Social

Answer 18

Well-being

Question 19

• Power resides with top-level management.

- Employees have no involvement in the decision-making or goal-setting processes.

Answer 19

Authoritarian

Question 20

• Tasks and responsibilities are defined clearly to the employees and shaped by formal rules and standard operating procedures.
• Communication processes follow the direction given by the organization.
• Accountability is a key factor.

Answer 20

Mechanistic

Question 21

• Collaborative decision making and group problem solving are embraced.
• Employees actively participate in the decision-making or goal-setting processes.

Answer 21

Participative

Question 22

Organizational conventions, values, practices, and processes encourage individuals - and the organization as a whole - to increase knowledge, competence, and performance.
- Shared and continuous learning are embraced.

Answer 22

Learning

Question 23

• Talent is championed.
• Innovation, elevated performance, customer-centric strategies, relationships, communication, and other characteristics are driven from the bottom up.

Answer 23

High-performance

Question 24

One indicator of the organization’s financial health. It is a statement of the organization’s financial position - its assets, liabilities, and equity - at a particular time.

Answer 24

Balance sheet

Question 25

What an organization owns. They can be tangible or intangible.

Answer 25

Assets

Question 26

The money an organization’s customers owe the organization.

Answer 26

accounts receivable

Question 27

What an organization owes. Can include items such as rent, loans or notes, wages and benefits that have been earned but not paid, reserves set aside to cover potential liabilities, unpaid fines or legal judgments, tax debts, and accounts payable.

Answer 27

liabilities

Question 28

The money an organization owes its vendors and suppliers.

Answer 28

accounts payable

Question 29

Combined with liabilities in the balance sheet because it represents what a company owes to either its owner(s) or its stakeholders. It is what is left of a company’s assets after liabilities have been discharged.

Answer 29

Equity

Question 30

Compares revenues, expenses, and profits over a specified period of time - usually a year or a quarter.

Answer 30

income statement

Question 31

Referred to as the “bottom line” and provides key information about the organization’s performance. = Revenues - Expenses

Answer 31

Net income

Question 32

Compares gross profit with sales.

Gross profit / net sales

Answer 32

Gross profit margin

Question 33

Net income / net sales

Answer 33

net profit margin

Question 34

Illustrates the effect of all organizational activities - activities that both consume value (e.g., production, administration) and produce value (e.g., sales, investments) - on how much cash or cash equivalents the organization has on hand.

Answer 34

cash flow statement