question

business

answer

individuals/organizations who try to earn a profit by providing products that satisfy people's needs

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product

answer

a good or service with tangible and intangible characteristics that provide satisfaction and benefits; outcome of a business' efforts

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profit

answer

difference between what it costs to make and sell a product and what a customer pays for it; goal of all businesses

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non-profit organization

answer

organization that may provide goods/services but do not have fundamental purpose of earning profits

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economics

answer

study of how resources are distributed for the production of goods and services within a social system

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natural resources

answer

land, forests, minerals, water, things not made by people

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human resources

answer

physical and mental abilities that people use to produce goods/services; aka "labor"

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financial resources

answer

funds used to acquire the natural and human resources needed to provide products; aka "capital"

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intangible resources

answer

ex: good reputation

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economic system

answer

description of how a particular society distributes its resources to produce goods/services

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communism

answer

society in which people, regardless of class, own all the national resources

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socialism

answer

government owns and operates basic industries but individuals own most businesses

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capitalism

answer

individuals own and operate the majority if businesses that provide goods and services

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free-enterprise

answer

opportunity of business to succeed or fail based on market demand. Need four rights to ensure that businesses are motivated to succeed

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competition

answer

rivalry among businesses for consumers' money

question

pure competition

answer

exists when there are many small businesses selling one product

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monopolistic competition

answer

exists when there are fewer businesses than in a pure competition environment and differences among goods are small

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oligopoly

answer

exists when there are very few businesses selling a product/ business controls price of product

question

monopoly

answer

exists when there is only one business providing a product in a given market

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demand

answer

number of goods and services consumers are willing to buy at different prices at a specific time

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supply

answer

number of goods and services businesses are willing to sell at different prices at a specific time

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gross domestic product (GDP)

answer

sum of all goods produced in a country during a year

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budget deficit

answer

condition in which a nation spends more than it takes in from taxes

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entrepreneur

answer

individual who risks their wealth, time, and effort to develop for profit an innovative product/way of doing something

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stakeholders

answer

groups that have a stake in the success and outcome of a business

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business ethics

answer

principles and standards that determine acceptable conduct in business

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social responsibility

answer

business' obligation to maximize its positive impact and minimize its negative impact on society

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Sarbanes-Oxley Act

answer

criminalized securities fraud and stiffened penalties for corporate fraud; arose because of Enron's collapse

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Dodd-Frank Act

answer

protection against complex/deceptive financial products; enacted after 2008 recession

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ethical issue

answer

identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right/wrong, ethical/unethical

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bribes

answer

payments, gifts, or special favors intended to influence the outcome of a decision

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Three factors that influence business ethics

answer

1) Individual Standards and Values 2) Managers' and Coworkers' Influence 3) Opportunity Codes and Compliance Requirements

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code of ethics

answer

formalized rules and standards that describe what a company expects of its employees

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whistleblowing

answer

act of an employee exposing and employer's wrongdoing to outsiders (media, government)

question

Four dimensions of social responsibility

answer

1) Economic Responsibilities: being profitable 2) Legal Responsibilities: obeying laws, playing by the rules 3) Ethical Responsibilities: doing what is right, just fair; avoiding harm 4) Voluntary Responsibilities: being a "good corporate citizen"; contributing to the community and quality of life

question

corporate citizenship

answer

extent to which businesses meet the legal. ethical, economic, and voluntary responsibilities placed on them by their stakeholders

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international business

answer

buying, selling and trading of goods and services across national boundaries

question

absolute advantage

answer

monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item

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comparative advantage

answer

basis of most international trade; when a country specializes in products that it can supply more efficiently/ at a lower cost than it can produce other items

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outsourcing

answer

transferring of manufacturing or other tasks to countries where labor and supplies are less expensive

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exporting

answer

sale of goods and services to foreign markets

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importing

answer

purchase of goods and services from foreign sources

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balance of trade

answer

difference in value between a nation's exports and imports

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balance of payments

answer

difference between the flow of money into and out of a country

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trade deficit

answer

a nation's negative balance of trade, which exists when that country imports more than it exports (USA)

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infrastructure

answer

physical facilities that support a country's economic activities (highways, railroads, hospitals, etc.)

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exchange rate

answer

ratio at which one nation's currency can be exchanged for another's; affects costs of imports/exports

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import tariff

answer

tax levied by a nation on goods imported into the country

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exchange controls

answer

regulations that restrict the amount of currency that can be bought/sold

question

quota

answer

restriction on the number of units of a particular product that can be imported into a country

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embargo

answer

prohibition on trade for a particular product

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dumping

answer

act of a country/business selling products at less than what it costs to product them; reason for quotas/embargos

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cartel

answer

group of firms/nations that agree to act as a monopoly and not compete with each other, to generate a competitive advantage in world markets (Ex: OPEC)

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General Agreement on Tariffs and Trade (GATT)

answer

originally signed by 23 nations in 1947; provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved

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World Trade Organization (WTO)

answer

international organization dealing with the rules of trade between nations

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North American Free Trade Agreement (NAFTA)

answer

agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, USA, and Mexico

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European Union (EU)

answer

Union of European nations established in 1958 to promote trade among its members; one of the largest markets today

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Asia-Pacific Economic Cooperation (APEC)

answer

an international trade alliance that promotes open trade and economic and technical cooperation among member nations; 21 member nations; commitment to facilitating business

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Association of Southeast Asian Nations (ASEAN)

answer

trade alliance that promotes trade and economic integration among member nations in Southeast Asia; 9 member nations

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World Bank

answer

organization established by the industrialized nations in 1946 to loan money to underdeveloped/developing countries; formally known as the International Bank for Reconstruction and Development

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International Monetary Fund (IMF)

answer

organization established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation; short-term loans, closest thing to international central bank

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countertrade agreement

answer

foreign trade agreements that involve bartering products for other products instead of for currency

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trading company

answer

firm that buys goods in one country and sells them to buyers in another country; handles all activities in moving products from one country to another

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licensing

answer

trade agreement in which one company (licensor) allows another (licensee) to use its company name/product/patents/brands/trademarks/raw materials/production processes in exchange for fee or royalty

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franchising

answer

form of licensing in which a company (franchiser) agrees to provide a franchisee a name/logo/method of operation/advertising/products/etc. in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations

question

contract manufacturing

answer

the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carries the domestic firm's name

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offshoring

answer

relocation of business processes by a company/ subsidiary to another country. Different than outsourcing because the company retains control of the offshored processes

question

joint venture

answer

sharing of the costs/operations of a business between a foreign company and a local partner

question

strategic alliance

answer

partnership formed to create competitive advantages on a worldwide basis; used when competition is too fierce and costs are high

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direct investment

answer

ownership of overseas facilities

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multinational corporation

answer

corporation that operates on a worldwide scale, without significant ties to any nations/region (IBM, Exxon Mobil)

question

multinational strategy

answer

a plan used by international companies that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences

question

global strategy

answer

involves standardizing products for the whole world, as if it were a single entity; aka globalization

question

sole proprietorship

answer

business owned and operated by one individual. It is the most common form of business organization in the USA

question

Advantages of Sole Proprietorship

answer

1) Ease and Cost of Formation. It is very easy and relatively cheap. 2) Secrecy. An SP does not have to make their financials public record. 3) Distribution and Use of Profits. All profits belong to the owner. 4) Flexibility/Control of Business. Respond quickly to competitive business conditions/ changes in the economy. 5) Government Regulation. Most freedom from govt regulation. 6) Taxation. profits are taxed at individual rates. 7) Closing the Business. Can be dissolved easily

question

Disadvantages of Sole Proprietorship

answer

1) Unlimited Liability. If business cannot pay creditors, owner may have to use personal, nonbusiness holdings (car/home) 2) Limited Source of Funds. Few sources of money (banks, friends, family, Small Business Administration, own funds) 3) Pay higher interest rate on loans- considered a high risk 4) Limited Skills. Hire own persons or contract out jobs? 5) Lack of Continuity. Life expectancy of SP is directly linked to owner(s) ability to work. 6) Lack of Qualified Employees. Difficult to match high wages; little room for advancement. 7) Taxation. SPs pay a higher marginal tax rate than small corporations.

question

partnership

answer

form of business organization defined by the Uniform Partnership Act as "an association of two or more persons who carry on as co-owners of a business for profit. It is the least-often used form of organization.

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General Partnership

answer

involves a complete sharing in both the management and liability of the business. Ex: lawyers, accountants, architects

question

Limited Partnership

answer

has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his/her own investment in the business.

question

Advantages to Partnership

answer

1) Ease of Organization. Only really requires Articles of Partnership. 2) Articles of Partnership: legal documents that set forth the basic agreement between partners. 3) Availability of Capital and Credit. large amount of pooled economic resources. 4) Combined Knowledge and Skills. partners specialize in particular area. 5) Decision Making. Like SP, able to react quickly. 6) Regulatory Controls. fewer regulations/controls than a corporation.

question

articles of partnership

answer

legal documents that set forth the basic agreement between partners.

question

Disadvantages to Partnership

answer

1) Unlimited Liability. just like SP partners should have comparable resources, or one will be taken advantage of more 2) Business Responsibility. All responsible for business actions of all partners. 3) Distribution of Profits. does distribution reflect the amount of work done by each partner? => tension 4) Limited Sources of Funds. no public value what is one partnership share worth?

question

corporation

answer

legal entity, created by the state, whose assets and liabilities are separate from its owners.

question

domestic corporation

answer

in same state it was chartered

question

foreign corporation

answer

operates in different state in which it was chartered

question

alien corporation

answer

operates in different country from which it was chartered

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private corporation

answer

corporation owned by just one or a few people who are closely involved in managing the business; no stock sold to public

question

initial public offering (IPO)

answer

selling a corporation's stock on public markets for the first time

question

public corporation

answer

corporation whose stock anyone may buy, sell, or trade

question

quasi-public corporation

answer

owned and operated by the federal, state, or local government; goal is to provide service rather than earn profit

question

nonprofit corporation

answer

focus on providing a service rather than earning a profit but are not owned by a government entity (RedCross, museums)

question

stock

answer

shares of a corporation that can be bought or sold

question

preferred stock

answer

owners have a claim to profits before other stockholders do

question

common stock

answer

owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends

question

dividends

answer

shares of a corporation that are distributed in the form of cash payments to the stockholders

question

board of directors

answer

elected by the stockholders to oversee the general operation of the corporation, who set the corporation's long-range objectives; legally liable

question

advantages of corporation

answer

1) Limited Liability. stockholders are not responsible for firm's debts if it fails. Liability is limited to initial investment. 2) Ease of Transfer of Ownership. generally no disruption to operations. 3) Perpetual Life. chartered to last forever, unless otherwise specified; survives until sold or liquified 4) External Sources of Funds. public corporation- easiest to find money (sell stocks/ issue bonds). 5) Expansion Potential. ease of entering market/contracts.

question

disadvantages of corporation

answer

1) Double Taxation. both profits (1) and dividends (2) are taxed. 2) Forming a Corporation. can be expensive and risky. 3) Disclosure of Information. annual report, inform shareholders/ stockholders. 4) Employee-Owner Separation. employees don't know owners- there is a disconnect.

question

joint venture

answer

partnership established for a specific project or for a limited time; popular in situations that call for large investments

question

S Corporation

answer

corporation taxed as though it were a partnership with restrictions on shareholders; retain limited liability; only 75 shareholders allowed

question

LLC

answer

form of ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members (lawyers, doctors)

question

Cooperative/Co-Op

answer

organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization

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merger

answer

combination of two companies to form a new company (usually corporations)

question

horizontal merger

answer

merging of firms that make and sell similar products to the same customer

question

vertical merger

answer

merging of companies operating at different but related levels of an industry (Burger King purchases potato farm)

question

conglomerate merger

answer

merging of two firms in unrelated industries (Kodak buys Sterling Drug)

question

acquisition

answer

purchase of one company by another, usually by buying its stock

question

poison pill

answer

firm allows stockholders to buy more shares of stock at price lower than current market value to head off hostile takeover

question

shark repellant

answer

management requires large majority of stockholders to approve the takeover

question

white knight

answer

more acceptable firm that is willing to acquire a threatened company

question

corporate raider

answer

company/individual who wants to acquire/take over another company and first offers to buy some or all of its stock at a premium in a tender offer

question

tender offer

answer

An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the market price.

question

leveraged buyout (LBO)

answer

purchase in which a group of investors borrows money from banks and other institutions to acquire a company (or a division of one), using the assets of the purchased company to guarantee repayment of the loan

question

entrepreneurship

answer

the process of creating and managing a business to achieve desired objectives.

question

small business

answer

any independently owned and operated business that is not dominant in its competitive area and employs less than 500 people.

question

Small Business Association (SBA)

answer

an independent agency of the federal government that offers managerial and financial assistance to small businesses.

question

Advantages to small business

answer

1) Independence. 2) Costs. Often require less money to start and maintain. 3) Flexibility. Adapt to changing market demands. 4) Focus. Focus efforts on precisely defined market niche. 5) Reputation. Develop enviable reputation for quality/service.

question

disadvantages to small business

answer

1) High Stress Level. Profits provide living for owner, but not much else. Stresses of multitasking. 2) High Failure Rate. Half of all new employer firms fail within the first five years. a. undercapitalization b. managerial inexperience/incompetence c. inability to cope with growth

question

undercapitalization

answer

lack of funds to operate a business normally.

question

business plan

answer

precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals; explanation of the business, analysis of competition, estimates of income and expenses, establish strategy for acquiring sufficient funds to keep the business going

question

venture capitalists

answer

persons or organizations that agree to provide some funds for a new business in exchange for an ownership interest or stock.

question

collateral

answer

financial interest in the property or fixtures of the business

question

line of credit

answer

agreement by which a financial institution promises to lend a business a predetermined sum on demand.

question

trade credit

answer

suppliers allow the business to take possession of the needed goods and services and pay for them at a later date or in installments.

question

bartering

answer

trading products for the goods and services offered by other businesses.

question

franchise

answer

license to sell another's products or to use another's name in business, or both

question

franchiser

answer

company that sells a franchise

question

franchisee

answer

purchaser of a franchise

question

intrapreneurs

answer

individuals in large firms who take responsibility for the development of innovations within the organization.

question

management

answer

process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.

question

managers

answer

individuals in organizations who make decisions about the use of resources and who are concerned with planning, organizing, staffing, directing, and controlling the organization's activities to reach its objectives.

question

planning

answer

process of determining the organization's objectives and deciding how to accomplish them; the first function of management

question

mission

answer

the statement of an organization's fundamental purpose and basic philosophy.

question

strategic plans

answer

those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission. (1+ year)

question

tactical plans

answer

short-range plans designed to implement the activities and objectives specified in the strategic plan (1 year or less; short run)

question

operational plans

answer

very short-term plans that specify what actions individuals, workgroups, or departments need to accomplish in order to achieve the tactical plan and ultimately the strategic plan

question

crisis management plans

answer

an element in planning that deals with potential disasters such as product tampering, oil spills, fire, earthquake, computer virus, or airplane crash.

question

organizing

answer

the structuring of resources and activities to accomplish objectives in an efficient and effective manner.

question

staffing

answer

hiring of people to carry out the work of the organization.

question

downsizing

answer

elimination of a significant number of employees from an organization. (outsourcing)

question

directing

answer

motivating and leading employees to achieve organizational objectives.

question

controlling

answer

process of evaluating and correcting activities to keep the organization on course

question

top managers

answer

president and other top executives of a business, such as the CEO, CFO, and COO, who have overall responsibility for the organization.

question

middle managers

answer

those members of an organization responsible for the tactical planning that implements the general guidelines established by top managers.

question

first-line managers

answer

those who supervise both workers and the daily operations of an organization.

question

financial management

answer

those who focus on obtaining needed funds for the successful operation of an organization and using those funds to further organizational goals.

question

production and operations management

answer

those who develop and administer the activities involved in transforming resources into goods, services, and ideas ready for the marketplace.

question

human resources management

answer

those who handle the staffing function and deal with employees in a formalized manner.

question

marketing management

answer

those who are responsible for planning, pricing, and promoting products and making them available to customers.

question

information technology management

answer

those who are responsible for implementing, maintaining, and controlling technology applications in business, such as computer networks.

question

administrative management

answer

those who manage an entire business or a major segment of a business; they are not specialists but coordinate the activities of specialized managers.

question

leadership

answer

the ability to influence employees to work toward organizational goals.

question

autocratic leadership

answer

make all decisions, tell employees what to do

question

democratic leadership

answer

involve employees in decisions

question

free-reign leadership

answer

let employees work without much interference (Patagonia)

question

technical expertise

answer

specialized knowledge and training needed to perform jobs that are related to particular areas of management; needed most by first-line managers

question

conceptual skills

answer

ability to think in abstract terms and to see how parts fit together to form the whole. (ability to think creatively)

question

analytical skills

answer

ability to identify relevant issues, recognize their importance, understand the relationships between them, and perceive the underlying causes of a situation. (Important to success of top level managers)

question

human relations skills

answer

ability to deal with people, both inside and outside the organization.

question

organizational culture

answer

firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

question

organizational structure

answer

arrangement or relationship of positions within an organization

question

organizational chart

answer

visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.

question

specialization

answer

division of labor into small, specific tasks and the assignment of employees to do a single task. Efficiency

question

departmentalization

answer

grouping of jobs into working units usually called departments, units, groups, or divisions

question

functional departmentalization

answer

grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.

question

product departmentalization

answer

organization of jobs in relation to the products of the firm

question

geographic departmentalization

answer

grouping of jobs according to geographic location, such as state, region, country, or continent

question

customer departmentalization

answer

arrangement of jobs around the needs of various types of customers

question

delegation of authority

answer

giving employees not only tasks, but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks. Allows managers to focus on larger issues

question

responsibility

answer

obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work

question

accountability

answer

principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome

question

centralized organization

answer

structure in which authority is centralized at the top, and very little decision-making authority is delegated to lower levels

question

decentralized organization

answer

an organization in which decision-making authority is delegated as far down the chain of command as possible; may increase productivity

question

span of management

answer

number of subordinates who report to a particular manager

question

wide span of management

answer

when a manager directly supervises a large number of people; "flat organization"

question

narrow span of management

answer

manager directly supervises only a few subordinates; "tall organization"

question

organizational layers

answer

levels of management in an organization (tall vs. flat)

question

line structure

answer

simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization.

question

line-and-staff structure

answer

structure having a traditional line relationship between superiors and subordinates and also specialized managers- called staff managers- who are available to assist line managers.

question

multidivisional structure

answer

structure that organizes departments into larger groups called divisions; divisions formed based on departments

question

matrix structure

answer

structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project-management structure

question

group

answer

two or more individuals who communicate with one another, share a common identity, and have a common goal

question

committee

answer

permanent, formal group that performs a specific task

question

task force

answer

temporary group of employees responsible for bringing about a particular change

question

team

answer

small group whose members have complementary skills; have a common purpose, goals, and approach; and hold themselves mutually accountable

question

project teams

answer

groups similar to task forces that normally run their operation and have total control of a specific work project

question

quality assurance teams

answer

small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems

question

product-development teams

answer

specific type of project team formed to devise, design, and implement a new product

question

quality-assurance teams

answer

small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems

question

upward communication

answer

flows from lower to higher levels of the organization; includes information such as: progress reports, suggestions for improvement, inquiries, and grievances

question

downward communication

answer

traditional flow of information from upper organizational levels to lower levels; includes directions, assignments, performance feedback, details, etc.

question

horizontal communication

answer

exchange of information among colleagues and peers on the same organizational level; across or within departments

question

diagonal communication

answer

communication between individuals from different units and organizational levels

question

grapevine

answer

informal channel of communication, separate from management's formal, official communication channels

question

operations management

answer

development and administration of the activities involved in transforming resources into goods and services.

question

manufacturing/production

answer

activities and processes used in making tangible products; these terms are used interchangeably

question

operations

answer

activities and processes used in making both tangible and intangible products

question

inputs

answer

(resources- labor, money, materials, energy) are converted into outputs (goods, services, and ideas that result from the conversion of outputs).

question

standardization

answer

making of identical interchangeable components or products

question

modular design

answer

the creation of an item in self-contained units, or modules, that can be combined or interchanged to create different products; configurations

question

customization

answer

making products to meet a particular customer's needs or wants

question

capacity

answer

maximum load that an organizational unit can carry or operate

question

fixed-position layout

answer

layout that brings all resources required to create the product to a central location; product does not move

question

project organization

answer

company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration

question

process layout

answer

layout that organizes the transformation process into departments that group related processes

question

intermittent organization

answer

organizations that deal with products of a lesser magnitude than do project organizations; their products are not necessarily unique but possess a significant number of differences

question

product layout

answer

layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line

question

continuous manufacturing organizations

answer

companies that use continuously running assembly lines, creating products with many similar characteristics

question

computer-assisted design (CAD)

answer

the design of components, products, and processes on computers instead of on paper

question

computer-assisted manufacturing (CAM)

answer

manufacturing that employs specialized computer systems to actually guide and control the transformation processes

question

flexible manufacturing

answer

direction of machinery by computers to adapt to different versions of similar operations

question

computer-integrated manufacturing (CIM)

answer

complete system that designs products, manages machines and materials, and controls the operations function

question

supply chain management

answer

connecting and integrating all parties or members of the distribution system in order to satisfy customers. AKA logistics

question

purchasing

answer

buying of all the materials needed by the organization; aka procurement

question

inventory

answer

all raw materials, components, completed or partially completed products and pieces of equipment a firm uses (3 types)

question

finished-goods inventory:

answer

products that are ready for sale

question

work-in process inventory:

answer

products that are partly completed or are in some stage of the transformation process

question

raw materials inventory:

answer

all materials that have been purchased to be used as inputs for making other products

question

inventory control

answer

process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it

question

economic order quantity (EOQ) model

answer

model that identifies the optimum number of items in order to minimize the costs of managing (ordering, storing, and using) them

question

just-in-time (JIT) inventory management

answer

technique using smaller quantities of materials that arrive "just in time" for use in the transformation process and therefore require less storage space and other inventory management expense

question

material-requirements planning (MRP)

answer

planning system that schedules the precise quantity of materials needed to make the product

question

routing

answer

sequence of operations through which the product must pass

question

scheduling

answer

assignment of required tasks to departments or even specific machines, workers, or teams

question

PERT chart

answer

identifies all the major activities or events required to complete a project, arranges them in a sequence or path, determines the critical path, and estimates the time required for each event

question

quality control

answer

processes an organization uses to maintain its established quality standards

question

total quality management (TQM)

answer

philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality

question

ISO 9000

answer

a series of quality assurance standards designed by the International Organization for Standardization (ISO) to ensure consistent product quality under many conditions; designation, difficult to obtain

question

ISO 14000

answer

comprehensive set of environmental standards that encourages companies to conduct business in a cleaner, safer, and less wasteful way. ISO 14000 provides a uniform set of standards globally

question

human relations

answer

study of the behavior of individuals and groups in organizational settings

question

motivation

answer

inner drive that directs a person's behavior toward goals

question

need

answer

difference between desired and actual state

question

morale

answer

employee's attitude toward their job, employer, and colleagues

question

extrinsic reward

answer

benefits and/or recognition received from someone else

question

intrinsic reward

answer

personal satisfaction and enjoyment felt after attaining a goal

question

classical theory of motivation

answer

theory suggesting that money is the sole motivator for workers (Taylor and Gilbreth)

question

piece-rate system

answer

employees are paid certain amount for each unit they produce

question

Maslow's Hierarchy of Needs

answer

theory that arranges the five basic needs of people (physiological, security, social, esteem, and self-actualization) into the order in which people strive to satisfy them

question

physiological needs

answer

the most basic human needs to be satisfied- water, food, shelter, and clothing

question

security needs

answer

need to protect oneself from physical and economic harm

question

social needs

answer

need for love, companionship, and friendship- desire for acceptance by others

question

esteem needs

answer

need for respect- both self-respect and respect from others

question

self-actualization needs

answer

need to be the best one can be; maximizing your potential

question

hygiene factors

answer

aspects of Herzberg's theory of motivation that focus on the work setting and not the content of the work; these aspects include adequate wages, comfortable and safe working conditions, fair company policies, and job security

question

motivational factors

answer

aspects of Herzberg's theory of motivation that focus on the content of the work itself; these aspects include achievement, recognition, involvement, responsibility, and advancement

question

Theory X

answer

McGregor's traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs (HATE)

question

Theory Y

answer

McGregor's humanistic view of management whereby it is assumed that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs (LIKE)

question

Theory Z

answer

management philosophy that stresses employee participation in all aspects of company decision making (INVOLVE); not a McGregor Theory, adapted from Japan

question

Equity Theory

answer

assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange (WIIFM, what's in it for me?)

question

Expectancy Theory

answer

assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it (calculating the odds of achieving)

question

behavior modification

answer

changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself; reward vs. punishment

question

job rotation

answer

movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization

question

job enlargement

answer

addition of more tasks to a job instead of treating each task as separate; has been more successful than job rotation in increasing job satisfaction

question

job enrichment

answer

incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job

question

flextime

answer

program that allows employees to choose their starting and ending times, provided that they are at work during a specified core period

question

compressed workweek

answer

four-day (or shorter) period during which an employee works 40 hours

question

job sharing

answer

performance of one full-time job by two people on part-time hours

question

Five ways manufacturing and service providers differ

answer

1) Nature and Consumption of Output 2) Uniformity of Inputs 3) Uniformity of Outputs 4) Labor Required 5) Measurement of Productivity

question

working groups

answer

Entities that have individual accountability, run efficient meetings, and create individual work products

Business Chapters 1-9 – Flashcards

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