Term Definition
Vision an encompassing explanation of why the organization exists and where it's trying to head
Mission Statement an outline of the fundamental purpose of an organization
Goals the broad, long term accomplishments an organization wishes to attain
Objectives specific, short term statements detailing how to achieve the organizations goals
SWOT Analysis SWOT = Strengths, Weaknesses, Opportunities and Threats; a planning tool used to analyze an organizations strengths, weakness, opportunities and threats
Strategic Planning the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
Tactical Planning the process of developing detailed, short term statements about what is to be done, who is to do it, and how it is to be done
Operational Planning the process of setting work standards and schedules necessary to implement the company's tactical objectives
Contingency Planning the process of preparing alternative courses of action that may be used if the primary plans don't achieve the organizations objectives
Decision Making choosing among two or more alternatives
Problem Solving the process of solving the everyday problems that occur. problem solving is less formal than decision making and usually calls for quicker action
Brainstorming coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
PMI PMI = Pluses, Minuses, Implications; listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column
Organization Chart a visual device that shows relationships among people and divides the organization’s work; it shows who is accountable for the completion of specific work and who reports to whom
Top Management highest level of management, consisting of the president and other key company executives who develop strategic plans
Middle Management the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
Supervisory Management managers who are directly responsible for supervising workers and evaluating their daily performance
Technical Skills skills that involve the ability to perform tasks in a specific discipline or department
Human Relations Skills skills that involve communication and motivation; they enable managers to work through and with people
Conceptual Skills skills that involve the ability to picture the organization as a whole and the relationship among its various parts
Staffing a management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
Autocratic Leadership leadership style that involves making managerial decisions without consulting others
Participative (Democratic) Leadership leadership style that consists of managers and employees working together to make decisions
Free-Rein Leadership leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
Knowledge Management finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
External Customers dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
Internal Customers individuals and units within the firm that receive services from other individuals or units
Funds amounts of money
Profit the difference between revenue and expenses
Ledgers books in which financial records are written
Trial Balance a summary of all the financial data in the account ledgers that ensures the figures are correct and balanced
Annual Report a yearly statement of the financial condition, progress, and expectations of an organization.
Profit And Loss Account a financial statement showing revenue, expenditure and profit during a given period
The P&L Account Begins With… total sales (=revenue) generated during a month, quarter or year
The P&L Account Ends With… earnings (= profit / the bottom line)
Cost Of Goods Sold (COGS) manufacturing costs, wages of blue-collar workers, transport costs etc.
Operating Expenses salaries of sales and office staff, marketing costs, rent etc.= overheads

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