Principles of Business, Marketing, and Finance – Chapter 7

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goal
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something to be achieved in a specific period of time; in business, may relate to finances, sales, production, staffing, service, etc.
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policy
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outlines how company decisions are made; may include hiring practices, schedule of management meetings, and employee code of conduct
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procedure
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describes how tasks should be completed; ex. operation guides for equipment, workflow charts, employee training manuals
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chain of command
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the authority structure in a company from the highest to the lowest levels; helps define decision-making responsibilities for team members
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organization chart
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a diagram that shows the structure of an organization; identifies departments, shows how business operations tasks are divided, and indicates levels of authority
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organizational chart
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a diagram showing how each employee position within a company interacts with others in the chain of command; identifies who answers to whom
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management
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the process of controlling and making decisions about a business
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top management
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consists of a company’s board of directors, president, and other high ranking managers
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middle management
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consists of a company’s division managers and department heads
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first-line management
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coordinates and supervises the activities and duties of employees; this level includes supervisors, foreman, and shift managers
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plan
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an outline of actions needed to accomplish a goal
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strategic plans
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created for the long-term goals of an organization; involve the major goals of a business
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tactical plans
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developed for the short-term goals of the company
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operational plans
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designed to reach the day-to-day goals of a business; give precise details on how to accomplish specific goals
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contingency plans
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back-up plans; outline alternative actions that can be taken if the organization’s other plans are unsuccessful
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organizing
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the coordination of activities and resources needed to reach company goals; ex. making schedules, assigning tasks, coordinating department efforts
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staffing
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the process of recruiting, hiring, training, evaluating, and compensating employees
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leading
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the process of influencing others to work toward common goals
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controlling
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a continuous process of evaluating the progress in reaching goals and making corrections to plans when necessary
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SMART goals
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are Specific, Measurable, Attainable, Realistic, and Timely
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time management
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the practice of organizing time and work tasks to increase personal efficiency
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personal information management (PIM)
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a system used to acquire, organize, maintain, retrieve, and use information; ex. Microsoft Outlook
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interpersonal skills
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help people communicate and work well with each other
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critical-thinking skills
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the ability to analyze a situation, interpret information, and make reasonable decisions
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verbal skills
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the ability to communicate effectively using spoken or written words
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nonverbal skills
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the ability to communicate effectively using body language, eye contact, personal space, behavior, and attitude
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listening skills
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the ability to hear what a person says and understand what is being said
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collaboration skills
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enable individuals to work with others to achieve a common goal
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compromise
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to give up an individual idea, or part of an idea, so that the group can come to a solution
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team
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a group of two or more people working together to achieve a common goal
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teamwork
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the cooperative efforts by individual team members to achieve a goal
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conflict management
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the process of recognizing and resolving team disputes in a balanced and effective way
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conflict-resolution skills
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skills required to resolve a situation that could lead to hostile behavior, such as shouting or fighting;
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negotiation
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when individuals involved in a conflict come together to discuss a compromise; both parties enter the process willing to give up something to solve the conflict
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mediation
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a process in which a neutral person (a mediator) meets with each side of a negotiation in an attempt to find a solution that both sides will accept
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short-term goal
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to be accomplished in a short period of time; generally less than one year
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long-term goal
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to be accomplished in a longer period of time; generally more than one year
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policies and procedures
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help create consistency in business operations; can be adjusted over time to take advantage of experience, changing market, society, etc.
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centralized organization
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all the authority within a business rests with top management
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decentralized organization
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authority within a business is given to various managers that run their own departments
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departmentalization
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responsibilities and authority are divided among certain areas or departments within the business
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5 functions of management
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planning, organizing, staffing, leading, controlling
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human resource department (HR)
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hires employees and handles compensation, benefits, code of conduct, following employee regulations

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