Cb

Front 1

Four types of organizations

Back 1

Flat
Fluid
Intergrated
Global

Front 2

Four types of organizations

Back 2

Flat

Fluid

Intergrated

Global

Front 3

Delayering

Back 3

Flattening organizational hierarchies so that they have a wider span of control; the elimination of hierachical nlayers, often involving downsizing

Front 4

Benefits of flat organizations

Back 4

-increased speed of decision making

- employees are more involved in the decision making process

-react faster to environmental changes.

- allow more responsibility to employees.

Front 5

Structure of Traditional Bureaucracy

Back 5

Tall/hierarchical

Rigid, rule-oriented

Buffered from the environment

Narrow market

Front 6

Fluid Organizations

Back 6

-adaptable to change.

- suitable in dynamic environments.

-a trait of organic structures.

Front 7

Integrated Organization

Back 7

- Cross-functional teams

-Self-managing teams

-Information sharing

Alliances outside the organization

Front 8

Leadership:

Back 8

How people are managed within an organization.

Front 9

Strategy:

Back 9

The decisions made by business managers about how the company will address political, economic, global, societal, competitive and technological forces.

Front 10

Change:

Back 10

A shift in how an organization operates.

Front 11

Labour:

Back 11

One of the five factors of production. Includes all workers in an organization who contribute their talents and strengths to create goods and services.

Front 12

Structure:

Back 12

A deliberately planned network or pattern of relationships that exists among individuals within an organization. It determines such things as division of labour, span of control, level of formalization and how centralized decision making is.

Front 13

Specific or task environment:

Back 13

The environment within which a particular organization operates, which is ultimately shaped by the general environment and includes stakeholders, customers, competitors, suppliers and so on.

Front 14

General environment:

Back 14

The environment shared by all organizations in a society, such as the economic and political environments, and technological, societal, competitive and global forces.

Front 15

External stakeholders:

Back 15

Individuals or groups who bear some kind of risk, whether financial, physical or other as a result of corporations action. They include such parties as suppliers, the government and society in general. There are ethical as well as practical reasons to attend all of their interests, even when they conflict.

Front 16

Attribute:

Back 16

A business advantage of some kind, which might include having a highly skilled staff, a patented technology, a unique marketing strategy, a well-known brand or something else that makes the company a leader in its field.

Front 17

Big Six:

Back 17

Canada's six largest banks including CIBC, Scotiabank, TD Canada trust, BMO, RBC, and National bank.

Front 18

Branch plant:

Back 18

Subsidiaries (of companies in another country) that do not perform the complete range of functions necessary to offer a product in the marketplace.

Front 19

Change:

Back 19

A shift in how an organization operates.

Front 20

Competitive advantage:

Back 20

Achieved when an organization excels in one or more attributes that allow it to outperform its competitors.

Front 21

Competitive forces:

Back 21

The domestic and foreign competitor influences on organizational decisions. Competitors are organizations operating in the same industry and selling similar products and services however, competitors may compete in different ways.

Front 22

Economic forces:

Back 22

The economic influences on organization such as the state of economy, unemployment, inflation, interest rates and gross domestic product.

Front 23

Global forces:

Back 23

The global influences on organizations that could be considered as a part of the general, political, technological or societal forces but are international in nature.

Front 24

Globalization:

Back 24

Process involving the integration of national economies and the worldwide convergence of consumer preferences; the process of generating a single world economic system.

Front 25

Gross Domestic Product (GDP):

Back 25

The total value of a country's output of goods and services in a given year.

Front 26

Knowledge workers:

Back 26

People employed in knowledge -intensive industries where specialized knowledge is required.

Front 27

Mixed system:

Back 27

An economic system that involves a capitalist economy with an important government role.

Front 28

Organizational learning:

Back 28

The detection and correction of error, or the collective experience of individuals within the organization that results in changes in organizational procedure such as adapting to the environment, learning from employees and contributing to the learning of the wider community.

Front 29

Political forces:

Back 29

Governmental influences on an organization's decisions through laws, taxes, trade relationships and other related political factors.

Front 30

Societal forces:

Back 30

How employees are treated that affect all organizations and to which business must respond.

Front 31

Technological forces:

Back 31

Playing a central role in how an organization functions, obtain resources and competes.

Front 32

Sustainability:

Back 32

The relationship between the three P's People, profits and planet.

Front 33

Triple bottom line:

Back 33

An accounting framework that can be voluntarily used by organization to report performance on social, economic and environmental results for a project or reporting period.

Front 34

Activist government:

Back 34

A government that intervenes in the employment of relationship by passing laws that restrict freedom of contract, such as employment standards, human rights, health and safety, and employment equity laws.

Front 35

At will employment:

Back 35

A concept used in US labour law that allows employers to terminate employees without any notice for any reason. At-will employment does not exist in Canada.

Front 36

Bargaining power:

Back 36

The amount of power workers have to determine their conditions of employment with their employer such as wages, hours, training, vacation time, health and safety measure and other factors.

Front 37

Bounded rationality:

Back 37

The idea that humans often do not make decisions that would maximize their personal utility because they either lack the necessary information to assess the carious options or lack the capacity to assess the information they have.

Front 38

Charter of Rights and Freedom:

Back 38

A part of the Canadian Constitution that governs the relationship between governments and citizens by protecting fundamental rights and freedoms of Canadians against state interference.

Front 39

Collective bargaining:

Back 39

A process of negotiation measure between a group of employees and an employer leading to collective agreement that applies to the entire group of employees.

Front 40

Common law of the employment contract:

Back 40

All the rules of interpretation of employment contracts applied by judges over the years, as recorded in legal decisions.

Front 41

Competitive markets:

Back 41

Markets in which there are sufficient number of participants competing for the same goods, service, and customers.

Front 42

Critical perspective:

Back 42

A perspective that believes the interests of workers and the owners and managers of economic organizations are irreconcilably in conflict.

Front 43

Designated groups:

Back 43

Four designated groups under Canadian employment equity act; Women, aboriginal people, people with disability, and member of visible minorities.

Front 44

Duty to accommodate:

Back 44

A legal obligation required by human rights statutes requiring employers to accommodate employees who otherwise would not be able to perform the requirements of a job because of a reason related to a prohibited ground such as religion or disability.

Front 45

Employee:

Back 45

A person hired by an employer to perform work according to the terms of an employment contract.

Front 46

Employment:

Back 46

A relationship between an employer and an employee involving and exchange of labour power for something of value such as wages or benefits.

Front 47

Employment contract:

Back 47

A contract that defines terms and conditions between employer and an employee.

Front 48

Income inequality:

Back 48

The unequal distribution of wealth to individuals or households in an economy.

Front 49

Independent contractors:

Back 49

Independent contractors or the self employed provide labour force in exchange for compensation they run their own business rather than serving as an employee for another organization or person.

Front 50

Industrial pluralist perspective:

Back 50

A perspective that emphasizes the imbalance of power between workers and employers and the value to society and economies of striking a reasonable balance between the efficiency concerns of employers and the equity concerns of workers.

Front 51

Intern:

Back 51

A worker who receives on the job training at a workplace can be paid or unpaid.

Front 52

Invisible hand of the market:

Back 52

Adam Smith used the "invisible hand" metaphor in his book The Wealth of Nations, published in 1776. Smith argued that, by pursuing their own self interest, individuals " are led by the invisible hand" to promote the greater public interest, even if that is not their intention.

Front 53

Labour relations statutes:

Back 53

laws that govern labor issues in a particular province. In Canada, each province has the power to enact its own labor laws.

Front 54

Managerial perspective:

Back 54

a perspective associated with the human resource management school. Managerialists believe that employees and employers share a common goal of maximizing productivity and profits, so there need not be conflict between them. As long as employers treat employees will work hard in the employer's interests

Front 55

Mandatory minimum statutory notice:

Back 55

the minimum job termination notice employers must give their employees. It is found in employment standards statutes and varies province to province

Front 56

Minimum wage:

Back 56

an employment standards law that mandates the minimum hourly wage that must be paid to an employee. Each province sets its own minimum wage

Front 57

Neoclassical perspective:

Back 57

one view of how the economy should function. It contends that competitive markets are the best means of organizing complex economies and societies. the forces of supply and demand, if left to operate freely with limited government interference, will ensure optimal assignment of skills and expertise through the economy as well as the fairest distribution of wealth

Front 58

Nonstandard employment (NSE):

Back 58

a less stale form of employment than the SER that is characterized by part time, temporary or variable working hours; lower pay fewer employer provided benefits; shorter job tenure; and is usually non-unionized

Front 59

Partners:

Back 59

individuals who share part ownership in a business. There can be two or more partners in a partnership

Front 60

Prohibited grounds:

Back 60

those grounds listed in human rights statutes. Discrimination is prohibited in employment on the prohibited ground only. prohibited grounds vary from province to province, but all include common grounds such as race, colour, ethnicity, religion, age, disability, sex, and sexual orientation

Front 61

Reasonable notice:

Back 61

the amount of time in advance that employers must inform employees that their services are no longer necessary and their employment contract is ending. How much notice is "reasonable" is decided by judges and depends on a number of factors, including the length of the employee's service, the employee's age, and the type of work the employee performed

Front 62

Standard employment relationship:

Back 62

a form of employment relationship characterized by regular. full time hours at a single employer, often spanning an entire working career. Employees working under an SER usually receive periodic raises, and their employers usually provide health benefits and pension plans

Front 63

Systemic discrimination:

Back 63

internal policies, practices, pattern or biases that tend to disadvantage some groups that favor others. It might not be deliberate, but it has the effect of excluding certain classes of people

Front 64

Temporary placement organizations:

Back 64

A business that helps match workers looking for jobs with businesses that require temporary help. Also called an employment agency.

Front 65

Undue hardship:

Back 65

the meaning of undue hardship can vary across provinces, but it generally considered to occur when the accommodation necessary to ensure a worker to perform a job requirement is too onerous for an employer to implement. It is a very high standard for employers to meet

Front 66

Unemployment insurance programs:

Back 66

A federal government program that requires employers and employees to make contributions into an unemployment insurance fund. To access benefits, unemployed individuals must satisfy a series of conditions, including having paid into the fund for a specified period of time and actively searching for employment.

The amount of benefits payable are based on a percentage of the employee's prior earnings up to a maximum amount, and benefits last for only a fixed period of time (usually several weeks) and vary according to the level of unemployment in the region where the workers live.

Front 67

Unemployment rate:

Back 67

the percentage of adults in the labour market without employment who are actively seeking employments

Front 68

Union density:

Back 68

a measure of the percentage of employees who are members of a union out of the total employees in the labour market

Front 69

Union wage premium:

Back 69

the additional amount of wages paid to unionized over non-unionized workers

Front 70

Administrative management:

Back 70

Henri Fayol's philosophy of management, one of the three major classical approaches ( the others being scientific and bureaucratic management. ) it focuses on the principles of division of work, unity of command, subordination of employees' individual interests to the common good and esprit de corps

Front 71

Behavioural approaches to management:

Back 71

managerial perspectives that consider the social or human side of organizations and address the challenges of managing people. Assume that achieving maximum productivity requires understanding that human factor of organizations and creating an environment that permits employees to fulfill social, not only economic, needs

Front 72

Bureaucratic management:

Back 72

one of the classical approaches to management ( the others being scientific and administrative management ) that focuses more broadly on the organization as a whole and incorporates the ideas of rules and procedures, hierarchy of authority, division of labor, impersonal, and selection and promotion. Associated with Max Weber

Front 73

Chester Barnard:

Back 73

An organizational practitioner who served as presidents of the New Jersey Bell Telephone company; he was interested in organizational structure, but he considered organizations to be social systems. He focused on communication and authority in management practices

Front 74

Centralization:

Back 74

The degree to which decision making authority in an organization is concentrated at the top level.

Front 75

Cloning forces:

Back 75

Pressure on organization to imitate the behaviour of industry leaders, jumping on a bandwagon.

Front 76

Closed systems:

Back 76

fully self sufficient and this requiring no interaction with the environment.

Front 77

Constraining forces:

Back 77

Practices that come to define what are perceived as legitimate management structures and activities and that consequently place pressure on organizations to confirm to these institutional roles.

Front 78

Contingency theory:

Back 78

A theory which recognizes that all organizations are open systems that can only survive through successful interaction with their environment.

Front 79

Corporate memory:

Back 79

The knowledge of individuals who are a central part of an organizations knowledge base.

Front 80

Cross-functional teams:

Back 80

Work groups that bring together members from various parts of the organization.

Front 81

Decentralization:

Back 81

The degree to which decision making authority in an organization is spread to the lower levels.

Front 82

Delayering:

Back 82

Flattening organizational hierarchies so that they have a wider span of control.

Front 83

Downsizing:

Back 83

The planned reduction of an organizations operations.

Front 84

Dynamic environment:

Back 84

Uncertainty and change.

Front 85

Environmental uncertainty:

Back 85

The rate at which market conditions and production technologies change, producing dynamic or static environment.

Front 86

Formalization:

Back 86

The degree to which rules, regulation, procedures and so on govern how work is programmed, the degree of the standardization of jobs in an organization.

Front 87

Functional specialization:

Back 87

The dividing up of jobs into their smallest components so that workers perform simple specific and repetitive tasks.

Front 88

Horizontal differentiation:

Back 88

Differentiation between units of the organization based on things such as the nature of their jobs and their education or training.

Front 89

Information sharing:

Back 89

Workers sharing their knowledge with other members of an organization to help better the organizations goals and needs.

Front 90

Institutionalization theory:

Back 90

The theory that organizations are driven to incorporate practices and procedure defined by current concepts of work and those accepted by society.

Front 91

Keiretsu:

Back 91

The Japanese term for networking of major enterprises.

Front 92

Machine metaphor:

Back 92

A metaphor used to describe organizations that function like a machine that is in an orderly manner devised to perform work that led toward specific goals structure and technology.

Front 93

Mechanistic organizations:

Back 93

Decision making is centralized at the top of the organizational hierarchy within highly formalized rules and procedures.

Front 94

Networking:

Back 94

Engaging in relationship with suppliers distributors and competitors with the aim of improving efficiency.

Front 95

Nonroutine technology:

Back 95

Nonstandardized technology

Front 96

Organic organizations:

Back 96

Tends to have jobs with more task responsibilities with wide span of control and workers are restricted with fewer rules and regulations.

Front 97

Organism metaphor:

Back 97

A metaphor used to describe organization as system of mutually connected and dependent parts that share a common life.

Front 98

Organizational structure:

Back 98

A deliberately planned network that exists among individuals in various roles or positions.

Front 99

Outsourcing:

Back 99

Hiring external organizations to conduct work in certain functions of the company.

Front 100

Reengineering:

Back 100

Rethinking of business process to achieve improvements in the measures of performance.

Front 101

Routine technology:

Back 101

Automated and standardized technology and operations typical of mass production operations.

Front 102

Self-managing work teams:

Back 102

Teams that are given the power to manage themselves and make decisions without the approval of formal management.

Front 103

Social specialization:

Back 103

The specialization of individuals rather than jobs, which is accomplished through employment of professionals whose skills cannot be easily routinized.

Front 104

Span of control:

Back 104

The number of employees reporting to a supervisor.

Front 105

Specialization:

Back 105

Division of labour, refers to degree to which organizational tasks are subdivided into separate jobs.

Front 106

2 different kinds of specialization:

Back 106

Functional and social specialization.

Front 107

Static environment:

Back 107

One of the two broad classifications of environments of organizations (the other being dynamic) exhibits little if any change.

Front 108

Systems theory:

Back 108

A theory that recognizes that all organizations are open systems that can only survive through continuous and successful interactions with their environment.

Front 109

Vertical differentiation:

Back 109

The number of managers and levels in the organizational hierarchy.

Front 110

Virtual organization:

Back 110

An organization that attempts to maximize its fluidity, flatness, and integratedness with the environment. Outsourcing, networking, and shedding noncore functions are three ways organizations can become more virtual.

Front 111

Worker empowerment:

Back 111

A move toward shifting greater levels of responsibility back to employees is that in a sense they are at least partly their own bosses.

Front 112

Workforce reduction:

Back 112

A short term strategy that is aimed at reducing the number of employees through attrition, early retirement, layoffs or terminations.

Front 113

Acquisition:

Back 113

A way to achieve diversification when a firm acquires the majority of shares in another firm.

Front 114

Backward integration:

Back 114

A type of diversifications that refers to an extension or expansion of firm value chain activities by integration productive processes toward source of raw materials.

Front 115

Bargaining power of suppliers:

Back 115

The power held by firms organizations and individuals that provide raw materials technologies or skills in an industry. Suppliers can exert power by demanding better prices or threatening to reduce the quality of purchase goods or services.

Front 116

Bargaining power of buyers:

Back 116

The power held by individuals or organizations that purchase incumbents products of service. Buyers can exert power by demanding better prices better goods and services or playing incumbents against one another.

Front 117

Business-level strategy:

Back 117

A strategy a firm uses to compete in a given market. Three business levels are cost leadership, product differentiation and focus.

Front 118

Corporate-level strategy:

Back 118

A strategy a firm uses to determine what businesses or markets it should compete in and how these businesses can be managed to create synergy.

Front 119

Cost leadership strategy:

Back 119

A business level strategy that aims to reduce economic costs below that of all competitors to gain a competitive advantage.

Front 120

Diversification:

Back 120

A corporate level strategy where a firm operates in more than one market simultaneously.

Front 121

Economies of scope:

Back 121

The situation where the total costs for serving two markets or producing products for two markets are less than the costs for serving them or producing them alone.

Front 122

Equity alliance:

Back 122

A form of strategic alliance that involves an arrangement between two or more firms where one firm has partial ownership in the other firm and the other firm and the two firms work together to pursue common goals.

Front 123

Exit barriers:

Back 123

The economic strategic and emotional factors that keep firms competing even though they may be earning low or negative returns on their investments.

Front 124

Financial resources:

Back 124

Resources used by a firm that include debt equity retained earnings and so on.

Front 125

Five- forces model:

Back 125

Michael Porter ( Threats to new entrants, The bargaining power of suppliers, The bargaining power of the buyers, The threats of substitutes, and rivalry amongst existing firms.

Front 126

Focus strategy:

Back 126

A business level strategy that targets a particular buyer group or geographic market.

Front 127

Forward integration:

Back 127

A type of diversification that refers to an extension or expansion of firm value chain activities by integrating processes.

Front 128

Human resources:

Back 128

The experience, knowledge, judgement, risk taking propensity, and wisdom of the individuals associated with a firm.

Front 129

Industry:

Back 129

A group of organizations that share similar resource, requirements, including raw materials, labour, technology and customers.

Front 130

Interfirm dynamics:

Back 130

A motive for diversification that includes market power enhancement, a response to competition and imitation.

Front 131

Intrafirm dynamics:

Back 131

A motive for diversification that can include growth and managerial self-interests.

Front 132

Joint venture:

Back 132

A form of strategic alliance that involves arrangement between two or more companies joining to produce a product or service together.

Front 133

Merger:

Back 133

A way to achieve diversification when two firms come together to create a new firm with a new identity.

Front 134

Nonequity alliance:

Back 134

A form of strategic alliance that involves an arrangement between two or more companies that work together based on contractual agreements.

Front 135

Organizational resources:

Back 135

The history, relationships trust and organizational culture that permeates a firm along with firms formal reporting structure, management control systems and compensation policies.

Front 136

Physical resources:

Back 136

The machines, production, facilities and buildings that firms used in their operations.

Front 137

Product differentiation strategy:

Back 137

A business level strategy whereby a firm attempts to gain a competitive advantage by increasing the perceived value of its products or services relative to that of other firms products or services.

Front 138

Related diversification:

Back 138

A type of diversification that refers to situations where a firm expands its core business or markets into related businesses or markets. It enables a firm to benefit from economies of scope and enjoy greater revenues if the businesses attain higher levels of sales growth combined either firm could attain independently.

Front 139

Resources and capabilities:

Back 139

All of the financial, physical, human, and organizational assets used by the firm to develop, manufacture and deliver products or services to its customers.

Front 140

Strategic alliance:

Back 140

A way to achieve diversification by two or more organizations working together to achieve certain common goals.

Front 141

Strategic management:

Back 141

An ongoing process that requires managers of a firm to constantly analyze their external and internal environments make decisions about what kinds of strategies they should pursue and evaluate the outcomes to make any changes in order to create and sustain its competitive advantages.

Front 142

Switching costs:

Back 142

The costs, both monetary and psychological associated with changing from one supplier to another from a buyers perspective.

Front 143

SWOT analysis:

Back 143

An analysis of the strength, weakness, opportunities or threats an organization is exposed to.

Front 144

Unrelated diversification:

Back 144

A type of diversification where a firm diversifies into a new market that is not similar to its current market.

Front 145

Vertical integration:

Back 145

A type of diversification that refers to an extension or expansion of firm value chain activities by integrating preceding or successive productive process.

Front 146

VIRO model:

Back 146

A model that examines an individual's firms value rareness imitability and organization to determine its relative strengths in comparison to its competitors in the industry.

Front 147

Balance of trade:

Back 147

The value of all goods and services a country exports minus the value of goods and services it imports.

Front 148

Bank of Canada:

Back 148

Canada's central bank which is a Crown corporation of the federal government, it regulates the banking and financial industry to ensure low inflation, high employment levels, and positive long term economic growth for Canada.

Front 149

Bank rate:

Back 149

The rate at which Bank of Canada loans money to financial institutions.

Front 150

Barriers to entry:

Back 150

Obstacles that might prevent another company from entering a given market could include, high level capital cost, government regulation and high switching costs.

Front 151

Budget deficit:

Back 151

The negative difference between incoming tax revenues and outgoing government expenditures like a bank overdraft, a deficit means the cash outflows are greater than the cash inflows in a given period.

Front 152

Business cycle:

Back 152

The rise and fall of economic activity over time. There are 5 stages ( Expansionary, Peak, Contraction, Trough , Recovery).

Front 153

Capital:

Back 153

One of the five factors of production includes, buildings, machines, tools, and other physical components used in producing goods and services.

Front 154

Communism:

Back 154

An economic system where the government owns or controls essentially all of a country's economic resources.

Front 155

Competition:

Back 155

When two or more sellers offer the same or similar products or services to consumers.

Front 156

Consumer price index (CPI):

Back 156

A price index that means measures commodities commonly purchased by households such as food, clothing, transportation, education, shelter and recreation.

Front 157

Contraction phase:

Back 157

A phase in the business life cycle that is characterized by declining economic activity and falling profits.

Front 158

Cost-push inflation:

Back 158

A type of inflation that occurs when increases in production costs for businesses push if final price that consumers have to pay.

Front 159

Currency risk:

Back 159

The potential risk of financial loss due to transactions in multiple currencies.

Front 160

Cyclical unemployment:

Back 160

Unemployment caused by changes in the business cycle or pace of the economy, when the economy slows down cyclical unemployment is high.

Front 161

Deflation:

Back 161

When the price level of goods is falling.

Front 162

Demand-pull inflation:

Back 162

A type of inflation that occurs when the demand for goods and services exceed the supply which tends to pull prices up.

Front 163

Depression:

Back 163

A phased in business cycle that is characterized by longer economic periods of declining economic activity, high unemployment, and high levels of personal and commercial bankruptcies.

Front 164

Economic environment:

Back 164

The economic conditions in which organization operates, key groups that make up an economic environment are individuals, businesses and the government.

Front 165

Economic stability:

Back 165

An economic state that occurs when the amount of money available and the goods and services produced grow at approximately the same rate.

Front 166

Types of economic systems:

Back 166

Market, communism, socialism, and mixed system.

Front 167

Entrepreneurs:

Back 167

Owners, decision makers and risk takers of the businesses.

Front 168

Exchange rate:

Back 168

The value of a foreign currency compared to home currency.

Front 169

Expansionary phase:

Back 169

A phase in the business life cycle where economic activity is rising.

Front 170

Five factors of production:

Back 170

Natural resources, labour, capital, knowledge and entrepreneurs.

Front 171

Fixed rate:

Back 171

A permanent interest that cannot be changed for the term of a loan.

Front 172

Frictional unemployment:

Back 172

Unemployment that is caused by normal labour market turnover not a downturn in the economy.

Front 173

Full employment:

Back 173

A situation that occurs when only frictional unemployment exists.

Front 174

G7:

Back 174

A group of seven developed nations with large economies includes France, Germany, United States, United Kingdom, Italy, Japan and Canada.

Front 175

GDP per capita:

Back 175

The gross domestic product per person in a country calculated by dividing the total GDP by the total population of a country.

Front 176

Gross Domestic product (GDP):

Back 176

The total value of a country's output of goods and services in a given year.

Front 177

Gross national product (GNP):

Back 177

The value of all final goods and services produced by a national economy inside and outside of the country's borders.

Front 178

Inflation:

Back 178

The rise in the price level of goods and services.

Front 179

Input:

Back 179

Something a company contributes to creating its products or services such as materials, labour, or overhead.

Front 180

Interest rate:

Back 180

A fee charged usually a percentage by a lender to a borrower for the use of funds.

Front 181

Knowledge- based economies:

Back 181

Economies that involve the production, distribution, and consumption of knowledge and information.

Front 182

Labour:

Back 182

Workers in an organization who contributes their talents and strengths to create goods and services.

Front 183

Limited monopoly:

Back 183

A type of monopoly that occurs when a company has a paten that protects its product or idea for a limited time period.

Front 184

Macroeconomics:

Back 184

The study of larger economic issues involving the economic issues involving the economy as a whole example include unemployment, consumption, inflation, gross domestic product and price levels.

Front 185

Microeconomics:

Back 185

The study of smaller components of the economy such as individuals and businesses.

Front 186

Market economy:

Back 186

A free market system in which businesses compete with others in a marketplace where supply and demand determine which goods and services will be produced and consumed.

Front 187

Mixed economy:

Back 187

An economic system where the government (public) and businesses (private) influence the economy.

Front 188

Monopolistic competition:

Back 188

A form of competition where a larger number of small and large firms have a similar product or service that is perceived as slightly different from the others due to branding, style or design and advertising

Front 189

Monopoly:

Back 189

A form of competition that occurs when only one company produces a particular product or service in a given market and as a result there are no competitors.

Front 190

National debt:

Back 190

Debt that is accumulated by the by the federal government it can impact businesses because it has an effect on the entire country's economy.

Front 191

Natural monopoly:

Back 191

A type of monopoly that occurs when economic and technical conditions only allow for one efficient producer.

Front 192

Natural rate of unemployment:

Back 192

The total amount of frictional and structural unemployment combined.

Front 193

Natural resource:

Back 193

Raw materials that are found below or above the ground such as soil rocks minerals vegetables and so on.

Front 194

Nominal GDP:

Back 194

Gross domestic product that is not adjusted for inflation and is measured in current dollars.

Front 195

Oligopoly:

Back 195

A form of competition when only a few large produces sell a certain product or service in a given market.

Front 196

Opportunity cost:

Back 196

The cost of the best forgone alternative.

Front 197

Output:

Back 197

A finished unit of product or service ready to be sold.

Front 198

Patent:

Back 198

A form of intellectual property rights whereby a country grants exclusive rights to an inventor to protect his or her product or idea for a limited period of time.

Front 199

Peak:

Back 199

The point in business cycle where it has reached its highest point.

Front 200

Perfect competition:

Back 200

A form of competition where many small medium firms produce the same product or service and no single seller has the power to influence the price of that product or service.

Front 201

Price index:

Back 201

A measure of the average change in a group of prices over time.

Front 202

Price level:

Back 202

The average level of prices.

Front 203

Producer price index:

Back 203

A price index that measures the prices of inputs to producers and wholesalers including finished products for resale.

Front 204

Productivity:

Back 204

A measure of the level of output versus the level of input in an organization.

Front 205

Purchasing power of money:

Back 205

The value of what money can buy.

Front 206

Real GDP:

Back 206

Gross domestic product adjusted to reflect the effects of inflation.

Front 207

Recession:

Back 207

A phase in a business cycle where there are two or more consecutive quarter periods of negative economic activity.

Front 208

Recovery phase:

Back 208

The phase in a business cycle that occurs after a trough where economic activity slowly begins to rise again and demand for goods and services increases.

Front 209

Seasonal unemployment:

Back 209

Unemployment that is caused by the seasonal nature of the job.

Front 210

Socialism:

Back 210

An economic system where the government has large ownership or control over major industries essential to the country's economy.

Front 211

Structural unemployment:

Back 211

Unemployment that occurs either because the available jobs do not correspond to the skills of the labour force or unemployed individuals do not live in a region where jobs are available.

Front 212

Trade deficit:

Back 212

When a country's imports more than it exports to the degree that the value of its imports exceed the value of its exports.

Front 213

Trade surplus:

Back 213

When a country's exports exceed its imports so that more money enters the country than leaves it.

Front 214

Trough:

Back 214

The point in a business cycle when the economy has reached its lowest point thus marking the start of the recovery phase.

Front 215

Unemployment:

Back 215

A situation that occurs when qualified individuals who are actively looking for work are unable to secure employment.

Front 216

Unemployment rate:

Back 216

The percentage of people who are unemployed out of the total labour force and who are actively seeking work.

Front 217

Variable rate:

Back 217

An interest rate that fluctuates over the term of the loan,

Front 218

LEADERSHIP

Back 218

How people are managed within an organization

Front 219

strategy

Back 219

the decisions made by business managers about how the company will addess political, economic, global, societal, competitive, and technological forces

Front 220

change

Back 220

a shift in how an organization operates

Front 221

labour

Back 221

one of the five factors of production. Includes all workers in an organization who contributes their talents and strengths to create goods and services

Front 222

structure

Back 222

a deliberately planned network or pattern of relationships that exists among individuals within an organization. it determines such things as division of labour, span of control, level of formalization, and how centralized decision making is

Front 223

specific or task environment

Back 223

the environment within which a particular organizations operates, which is ultimately shaped,by the general environment and includes stakeholder , customers, competitors, suppliers and so on

Front 224

general environment

Back 224

the environment shared by all organization in a society, such as the economic and political environments, and technological, societal, competitive and global forces

Front 225

external stakeholders

Back 225

individuals or groups who bear some kind of risk, whether financial, physical, or other, as a result of a corporation's actions. They include such parties as suppliers, the government, and society in general. There are ethical as well as practical reasons to attend to all of their interests, even when they conflict.

Front 226

economic force

Back 226

the economic influences on organizations, such as the state of the economy, unemployment, inflation, interest rates, and gross domestic product. For example, high unemployment numbers may indicate lower overall consumer spending, and business sales could be negetively affected. If sales goes down significantly, businesses may need to reduce production, cut costs, or lay off workers.

Front 227

competitive forces

Back 227

the domestic and foreign competitior influence on organizational decisions. Competitors are organizations operating in the same industry and selling similar products and services. However, competitors may compete in a different way

Front 228

technological forces

Back 228

the technological environment that exerts influence across industies, playing a central role in how an organization functions, obtains resources and competes. Changes in technology both permits and demand organizational change

Front 229

global force

Back 229

the global influences on organization that could be considered as part of the general economic, political, technological, competitive, or societial forces, but are international in nature

Front 230

globalizations

Back 230

although there is no universally agreed-upon definition, it may be considered as a process involving the integration of national economies and the world wide convergence consumer preferences; the process of generating a single world economic system.

Front 231

sustainability

Back 231

in business, the relationship between the three Ps: people, profits and the planets

Front 232

triple bottom line

Back 232

an accounting framework that can be voluntarily used by organizations to report performance on social economic, and environmental results for a project or reporting period

Front 233

political forces

Back 233

govenmental influences on an organization's decisions through laws, taxes, trade relationships, and other related polical factors

Front 234

societal forces

Back 234

a wide range of influences in society in general, including, for example, changes in public opinion on ethical issues likes organizational justice ( how employees are treated), that affects all organizations and to which businesses must respond

Front 235

organizational learning

Back 235

the detection and correction of error, or the collective experience of individuals within the organization that results in changes in organization procedures. Three aspects of learning are adapting to the environment, learning from the employees, and contributing to the learning of the wider community or context. two types of learning are single-loop learning and double loop learning

Front 236

gross domestic product (GDP)

Back 236

the total value of a country's output of goods and services in a given year

Front 237

Big Six

Back 237

Canada's six largest BAnks, including CIBC, BMO, RBC, Scotiabank, TD Canada Trust, and National Bank

Front 238

Challenges Facing the Resource Sector

Back 238

-Depleting Resources-new technology and equipment-foreign competition-pressure from environmental groups

Front 239

competitive advantage

Back 239

achieved when or organization excels in one or more attributes that allow it out perform its competitors

Front 240

attributes

Back 240

a business advantage of some kind, which might include having a highly skilled staff, a patented technology, a unique marketing strategy, a well known brand, or something else that make the company a leader in its field

Front 241

knowledge workers

Back 241

people employed in knowledge-intensive industries, sush as the high-tech industries, where specializes and frequently changing knowledge is required. Knowledge work is thus harder to routinize than, for instance, service work.

Front 242

mixed system

Back 242

an economic system that involves a capitalist economy with an important govenment role. Most economies today are considered mixed systems

Front 243

branch plants

Back 243

subsidaries (of companies in another country) that do not perform the complete range of functions necessary to offer a product in the marketplace. Typically, subsidaries -defer responsiblity of higher level strategic functions to the parent company

Front 244

The internal challenges of business consist of all of the following except: A: labour

B:unions

C:leadership

D:structure

Back 244

B: unions

Front 245

An organizational structures involves:

A:a pattern of relationships between individuals in various roles or positions

B: a formal hierarchy of authority

C. rules and procedures

D:all of the above

Back 245

D: all of the above

Front 246

Ouside the organization, challenges that exist includes all of the following except:

A:political forces

B:strategic forces

C:competitce forces

D:societal forces

Back 246

B:strategic forces

Front 247

the general environment involves:

A:strategic forces

B:labour force

C:economic forces

D:structure forces

Back 247

C:economic forces

Front 248

An example of an external stakeholder is a(n)

A:creditor

B:employee union

C:customer

D:all of the above

Back 248

D:all of the above

Front 249

the availabilty of telework is primarily the result of

A: societal forces

B:political forces

C:competitive forces

D:technological forces

Back 249

D:technological forces

Front 250

All of the following belong to the specific environment except a

A:customer

B:city government

C:newly formed union

D:political force

Back 250

D:political force

Front 251

An example of a component of the general environment is the

A:political force

B:Economic Force

C:environmental force

D:both A and B

Back 251

D:both A and B

Front 252

Globalization can be defines as

A:the integration of world economies

B:the process of creating and negotiating trade agreements

C:the globalization of markets

D: both a and c

Back 252

D: both a and c

Front 253

Changing consumer tastes is an example of the

A:technological force

B:societal force

C:economic force

D:competitive force

Back 253

B:societal force

Front 254

The "invisible hand" to ensure the market works effectively is also known as

A:competition

B:economic force

C:Government policies and regulations

D:all of the above

Back 254

A:competition

Front 255

Organizational learning involves

A:adapting to the environment

B:learning from the organization's people

C:contributing to the learning of the wider community

D:all of the above

Back 255

D:all of the above

Front 256

A worker with specialized education, skills, and training is sometimes called a

A: high school graduate

B:knowledge worker

C:Professorial

D:both b and c

Back 256

B:knowledge worker

Front 257

Canada's exports to the United States make up approximately __ of its total exports

A:30%

B:50%

C:75%

D:10%

Back 257

C:75%

Front 258

Canada's economic system has been described as a

A:free market system

B:mixed system

C:socialist system

D:communist system

Back 258

B:mixed system

Front 259

employment

Back 259

a relationship between an employer and an employee involving an exchange of labour power (work) for something of value, such as wages or benefits.

Front 260

employment contract

Back 260

a contract that defines the terms and conditions of a contractual relationship between an employer and employee. The contract may include references to services to be performed, working hours, compensations, and other work related obligations of the employer and the employee

Front 261

employee

Back 261

a person hired by an employer to perform work according to the terms of an employment contract

Front 262

independent contracters

Back 262

Independents contractors or the self employed provide labour services in exchange for compensation. They run their own businesses rather than serving as an employee for another organization or person

Front 263

partners

Back 263

individuals who share part ownership in a business. There can be two or more partners in a partnership

Front 264

temporary placement organization

Back 264

a business that helps match workers looking for jobs with business that require temporary help. Also called an employment agency

Front 265

volunteer

Back 265

an unpaid individual who performs services for an organization voluntarily. A volunteer is not an employee under the law

Front 266

Intern

Back 266

a worker who receives on the job training at a workplace. the internship may or may not be a formal requirement of an educational program and can be paid or unpaid. Whether an intern is considered an "employee" and is therefore entitled to legal entitlements available to employees in Canada, such as a minimum wage, depends on how a province's employment standards laws define an employee. some unpaid internships are unlawful, while others are not

Front 267

standard employment relationship (SER)

Back 267

a form of employment relationship characterized by regular. full time hours at a single employer, often spanning an entire working career. Employees working under an SER usually receive periodic raises, and their employers usually provide health benefits and pension plans

Front 268

nonstandard employment (NSE)

Back 268

a less stale form of employment than the SER that is characterized by part time, temporary or variable working hours; lower pay fewer employer provided benefits; shorter job tenure; and is usually non-unionized

Front 269

income inequality

Back 269

the unequal distribution of wealth to individuals or household in an economy

Front 270

vulnerable or precarious workers

Back 270

individuals who perform work in a nonstandard employment relationship. they are always at risk of unemployment since their jobs are insecure, and because their pay is low they live on the cusp of poverty

Front 271

neoclassical perspective

Back 271

one view of how the economy should function. It contends that competitive markets are the best means of organizing complex economies and societies. the forces of supply and demand, if left to operate freely with limited government interference, will ensure optimal assignment of skills and expertise through the economy as well as the fairest distribution of wealth

Front 272

competitive markets

Back 272

markets in which there are a sufficient number of participants competing for the same goods, services, and customers. Market forces tend to fix prices at a point where the supply of a good or service equals the demand for that good or service

Front 273

invisible hand of the market

Back 273

Adam Smith used the "invisible hand" metaphor in his book The Wealth of Nations, published in 1776. Smith argued that, by pursuing their own self interest, individuals " are led by the invisible hand" to promote the greater public interest, even if that is not their intention.

Front 274

minimum wage

Back 274

an employment standards law that mandates the minimum hourly wage that must be paid to an employee. Each province sets its own minimum wage

Front 275

managerial perspective

Back 275

a perspective associated with the human resource management school. Managerialists believe that employees and employers share a common goal of maximizing productivity and profits, so there need not be conflict between them. As long as employers treat employees will work hard in the employer's interests

Front 276

industrial pluralist perspective

Back 276

A perspective that emphasizes the imbalance of power between workers and employers and the value to society and economies of striking a reasonable balance between the efficiency concerns of employers and the equity concerns of workers. pluralist believe that unions and collective bargaining are beneficial to society and the economy because they give workers "voice" and ensure a fairer distribution of wealth throughout society than a system in which workers bargain employment contracts with employers on their own

Front 277

bargaining power

Back 277

the amount of power workers have to determine their conditions of employment with their employer, such as wages, hours, training, vacation time, health and safety measures, and other factors.

Front 278

activist government

Back 278

a government that intervenes in the employment relationship by passing laws that restrict freedom of contract, such as employment standards, human rights,, health and safety, and employment equity laws

Front 279

collective bargaining

Back 279

a process of negotiation measures between a group of employees ( through a union) and an employer (or group of employers) leading to a collective agreement that applies to the entire group of employees

Front 280

bounded rationality

Back 280

The idea that humans often do not make decisions that would maximize their personal utility because they either lack the necessary information to assess the various options or lack the capacity to assess the information they have

Front 281

critical perspective

Back 281

A perspective that believes the interests of labor (workers) and capital (the owners and managers or economic organizations) are irreconcilably in conflict. The objective of capital is to extract from labor maximum effort and control at minimum costs. Since workers depend on capital for their basic needs in a capitalist system, and there are almost always more workers than jobs, labor is inherently disadvantaged and subject to exploitation at the hands of the more powerful capitalists

Front 282

labour relations statutes

Back 282

laws that govern labor issues in a particular province. In Canada, each province has the power to enact its own labor laws.

Front 283

family income

Back 283

a historical term used to describe the amount of money working men were able to bring home to support their spouses and children. Today, household income is used to describe the total amount of income brought in by all members of a household or place of residence

Front 284

union density

Back 284

a measure of the percentage of employees who are members of a union out of the total employees in the labour market

Front 285

union wage premium

Back 285

the additional amount of wages paid to unionized over non-unionized workers

Front 286

unemployment rate

Back 286

the percentage of adults in the labour market without employment who are actively seeking employments

Front 287

common law of the employment contract

Back 287

all of the rules of interpretation of the rules of interpretation of employment contracts applied by judges over the years, as recorded in legal decisions

Front 288

reasonable notice

Back 288

the amount of time in advance that employers must inform employees that their services are no longer necessary and their employment contract is ending. How much notice is "reasonable" is decided by judges and depends on a number of factors, including the length of the employee's service, the employee's age, and the type of work the employee performed

Front 289

mandatory minimum statutory notice

Back 289

the minimum job termination notice employers must give their employees. It is found in employment standards statutes and varies province to province

Front 290

"at will" employment

Back 290

a concept used in US labor law that allows employers to terminate employees without any notice for any reason. At - will employment does not exist in Canada

Front 291

Unemployment insurance plan

Back 291

a federal government program that requires employers and employees to make contributions into an unemployment insurance fund. To access benefits, unemployed individuals must satisfy a series of conditions, including having paid into the fund for a specific period of time and actively searching for employment. The amount of benefits payable are based on a percentage of the employee's prior earnings up to a maximum amount, and benefits last for only a fixed period of time ( usually several weeks) and vary according to the level of unemployment in the region where the worker lives

Front 292

Charter of Rights and Freedoms

Back 292

A part of the Canadian constitution that governs the relationship between government and citizens by protecting fundamental rights and freedoms of canadians against state interference

Front 293

prohibited grounds

Back 293

those grounds listed in human rights statutes. Discrimination is prohibited in employment on the prohibited ground only. prohibited grounds vary from province to province, but all include common grounds such as race, colour, ethnicity, religion, age, disability, sex, and sexual orientation

Front 294

duty to accommodate

Back 294

a legal obligation required by human rights statutes requiring employees who otherwise would not be able to perform the requirements of a job because of a reason related to a prohibited ground, such as religion or disability

Front 295

undue hardship

Back 295

the meaning of undue hardship can vary across provinces, but it generally considered to occur when the accommodation necessary to ensure a worker to perform a job requirement is too onerous for an employer to implement. It is a very high standard for employers to meet

Front 296

designed groups

Back 296

the four designated groups under Canada's Employment Equilty Act: women, disabilities, and members of visible minorites

Front 297

employment equity

Back 297

a term that was developed by Justine Roslie Abella, commissioner of the to royal commission on equality in employment ( 1984), to describe a model designed to remove systemic barriers that have historically led to under representation in Canada's labor market of people from the four designated groups.

Front 298

system discrimination

Back 298

internal policies, practices, pattern or biases that tend to disadvantage some groups that favor others. It might not be deliberate, but it has the effect of excluding certain classes of people

Front 299

Which is the following factors are important considerations in deciding whether a worker is an employee or an independent worker?A:who controls the manner in which work is performedB:who owns the tools used in performing the work C: who assumes the economic risksD: all of the above

Back 299

D: all of the above

Front 300

"A legal minimum wage harms businesses and workers alike." This statement is most consistent with which perspective? A:managerial B:neoclassicalC:industrial pluralistD:critical

Back 300

B:neoclassical

Front 301

the belief that employers, through enlightened managerial practices, will protect the interests of workers is most consistent with which perspective? A:managerialB:industrial pluralistC:neoclassicalD:critcal

Back 301

A:managerial

Front 302

"collective bargaining through unions is the best way to address income inequality." This statement is most consistent with which perspective? A:ManagerialB:industrial pluralistC:neoclassicalD:critcal

Back 302

B:industrial pluralist

Front 303

the canadian charter of rights and freedoms governsA:the behaviour of workersB:the behaviour of private corporationsC:the behaviour of governmentsD: both B and C

Back 303

C:the behaviour of governments

Front 304

the canada human rights act prohibits employers from discriminating against employees on the basis of A:physical opinion B:weightC:physical appearanceD:none of the above

Back 304

D:none of the above

Front 305

an employer in canada is prohibited from firing an employee because A:of the employee's religionB:the employee is a union supporterC:the employee participated in a legal stateD:all the above

Back 305

D:all the above

Front 306

a union certificationA: gives a union the legal right to represent employeesB:requires a union to demonstrate that a majority of employees support the unionC:requires the employer's approvalD:all of the above

Back 306

D:all of the above

Front 307

an example of a common law rule applicable to employment contracts isA:the requirement for employers to comply with the employment standard actB:the requirement for employers to provide employees with a reasonable notice of termination C:the requirement for employers to collectively bargain in good faith with unions D:The requirements for employers to make contributions to the unemployment insurance fund

Back 307

B:the requirement for employers to provide employees with a reasonable notice of termination

Front 308

human rights statues in canadaA:prohibit all forms of discriminationB:prohibit some forms of discriminationC:impose a duty on employers to accommodate employee disabilities D: B and C only

Back 308

D: B and C only

Front 309

An "unpaid intern" under canadian law is considered to be A:employeeB:a volunteerC:a student D:it depends one unique circumstances of the situations and the provincial law where the intern works

Back 309

D:it depends one unique circumstances of the situations and the provincial law where the intern works

Front 310

the managerial perspective is closely related to the A:human resource management perspectiveB:neoclassical perspectiveC:industrial plurist perspectiveD:both A and B

Back 310

C:industrial plurist perspective

Front 311

Industrial pluralist acknowledge thatA:an imbalance of power exists between employers and workersB:strikes are not an effective way for workers to bargainC:the market will correct labour issuesD:none of the above

Back 311

A:an imbalance of power exists between employers and workers

Front 312

non-union employees in Canada can have a/an __with their employerA: written employment contractB:oral employment contractC:either A or B D: none of the above

Back 312

C:either A or B

Front 313

the canadian charter of rights and freedoms is A:part of canada's constitution B:a legal document that protects mobility rightsC:a trade documentD: Both A and B

Back 313

D: Both A and B

Front 314

management

Back 314

the process of administering and coordinating resources effectively and efficiently in an effort to achieve the organization's goals

Front 315

efficiency

Back 315

using the fewest inputs to produce a given level of outputs

Front 316

effectiveness

Back 316

the pursuit and achievement of goals that are appropriate for an organization

Front 317

interpersonal roles

Back 317

one of Mintzberg's three broad categories of roles that managers play. Those tasks that arise from the manager's formal authority base and involve relationships with either other organizational members or external parties. Include figurehead, leader, and liaison roles.

Front 318

figure head

Back 318

one of the interpersonal roles that managers play (the others being leader and liaison). Typically ceremonial or symbolic in nature, such as handing out "employee of the month" awards

Front 319

Leader

Back 319

one of the three interpersonal roles that managers play (the other being figurehead and liaison), where in the manage may serves as a motivator, communicator and coordinator of subordinates' activities, such as by conducting performance appraisals.

Front 320

Liaison

Back 320

One of the three interpersonal roles of the managers play (the others being figurehead and leader), including developing relationships with members of the organizations outside the manager's area of authority, such as with other departments

Front 321

informational roles

Back 321

one of MINTZBERG'S three broad categories of roles that managers play, where managers are communication sources for the organization, whether between parties in the organization or to parties outside of it. Includes monitor, disseminator, and spokesperson roles.

Front 322

monitor

Back 322

one of the three informational roles that managers play ( the others being disseminator and spokesperson), where the interal and external environments of the organization are constantly monitored for information useful in decision making

Front 323

disseminator

Back 323

one of the three informational roles that managers play ( the others bring monitor and spokesperson) , where the information obtained through monitoring is shared and distributed

Front 324

spokesperson

Back 324

One of the three informational roles that managers play (the others being monitor and disseminator), where information is transmitted to individuals outside the manager's area of authority

Front 325

decisional roles

Back 325

one of MINTZBERG's three broad categories of roles that managers play, where information is processed and decisions made. Includes entrepreneur, disturbance handler, resource allocator and negotiator.

Front 326

entrepreneur

Back 326

one of the four decisional roles that managers play ( the others being disturbance handles, resource allocator and negotiator), where the managers develop and initiates new projects

Front 327

disturbance handler

Back 327

one of the four decisional roles that managers play ( the others being entrepreneur, resource allocator negotiator), where the manager deals with and attempts to resolve conflicts, such as dealing with a difficult or unco-operative suppliers

Front 328

resource allocator

Back 328

one of the four decisional roles that manages play ( the others being entrepreneur, disturbance handler and negotiator) where it is decided how resources such as money, equipment, personnel and time will be allocated.

Front 329

negotiator

Back 329

one of the four decisions roles that managers play( the others being entrepreneur, disturbance handler and resource allocator) involving negotiation in all its form, whether with customers, employees or other departments.

Front 330

classical approaches to management

Back 330

the oldest of formalized perspectives of management, which arose in the late 19th and early 20th centuries during a period of rapid industrialization in the US and European business sectors. Including scientific, administrative and bureaucratic managment

Front 331

industrial revolution

Back 331

a period of time when manufacturing practices developed, between 1760 to 1840, changing the nature of work from manual hand production methods to machine use and mass production

Front 332

laissez faire

Back 332

a term meaning that businesses or manufacturers should be free to make and sell what they please and consequently , reflects the notion that government should not interfere with the economic affairs of business

Front 333

scientific management

Back 333

Frederick Taylor's philosophy that the fundamental objective of management is "securing the maximum prosperity for the employer coupled with the maximum prosperity for each employee" by standardizing and compartmentalizing work practices. This is one of the three central classical approaches to management, the others being the administrative and bureaucratic

Front 334

time and motion studies

Back 334

in scientific management, the scientific analysis of work, often using a movie camera and a a stopwatch to closely scrutinize the elements of performing a task

Front 335

compartmentalizing

Back 335

in scientific management, the result of Frederick Taylor's pursuit of the one best method of performing a job, which involves breaking the job down into its most fundamental steps or components. Also called specializing.

Front 336

standardizing

Back 336

in scientific management, the establishment of clear rules regarding how to perform a job, leaving little or no room for individual discretion, thus assuring consistent performance

Front 337

piece rate system

Back 337

in scientific management, motivating workers by typing compensation to performance according to output, so that a standard level of output produces a standard level of pay, and above - average output produces above average pay

Front 338

administrative management

Back 338

Henri Fayol's philosophy of management, one of the three major classical approaches ( the others being scientific and bureaucratic management. ) it focuses on the principles of division of work, unity of command, subordination of employees' individual interests to the common good and esprit de corps

Front 339

unity of command

Back 339

in administrative management, avoiding confusion and conflicting instructions by having each employee report to only one boss, preferably in the upper levels of the organization

Front 340

esprit de corps

Back 340

in administrative management, generating organizational cohesiveness and unity by encouraging team spirits and harmony among workers

Front 341

bureaucratic management

Back 341

one of the classical approaches to management ( the others being scientific and administrative management ) that focuses more broadly on the organization as a whole and incorporates the ideas of rules and procedures, hierarchy of authority, division of labor, impersonal, and selection and promotion. Associated with Max Weber

Front 342

behavioural approaches to management

Back 342

managerial perspectives that consider the social or human side of organizations and address the challenges of managing people. Assume that achieving maximum productivity requires understanding that human factor of organizations and creating an environment that permits employees to fulfill social, not only economic, needs

Front 343

Mary Parker Follett

Back 343

A social philosopher who made a number of significant contributions to the field of management in the first decades of the 20th century. She focused on the coordination, self management, and collaboration.

Front 344

Chester Barnard

Back 344

An organizational practitioner who served as presidents of the New Jersey Bell Telephone company; he was interested in organizational structure, but he considered organizations to be social systems. He focused on communication and authority in management practices.

Front 345

Hawthrone efffect

Back 345

The discovery that productivity can be enhanced by giving employees speical attention rather than by simply imrpvoing their physical working conditions

Front 346

human relations movement

Back 346

one of the schools of behaviorists management developed by Elton Mayo, who emphasized that social factors had a greater impact on productivity than actual working conditions. Focuses on organizations as social systems

Front 347

Coordination

Back 347

in behavioral approaches to management, the harmonizing of workers and activities to maximum productivity. Mary Parker Follett argued that management needed to be closely involved with subordinates in the daily conduct of their work, rather than simply being people who made and enforced rules

Front 348

Self- management

Back 348

in behavioural approaches to management, the action of workers, who perform the work, managing themselves by making decisions regarding how the work is done, rather than by managers who may not be as familiar with the task

Front 349

Collabation

Back 349

inbehvioural approaches to management, the consequence of managers and workers viewing themselves as collaborators or partners

Front 350

Modern behaviorual science

Back 350

the school of thought that consists of sociological, psychological and anthropological perspectives based on the premise that motivating workers is preferable to controlling them. It has produced an enormous number of theories, including need base and cognitive based theories of motivation

Front 351

Contingency approach to management

Back 351

the acknowledgement that there is no one best way to manage and that different conditons and situations require the application of different approaches or techniques. Includes consideration of organizational size , envirnomental uncertainty, routineness of task technology and individual diferences

Front 352

Trust

Back 352

one's prespective of the integrity and openness of others, one's comfort with the expected actions of others, one's faith in how others will react, and one's willingness to become vulerable to the actions of others

Front 353

What category of management is a department or division head?A:Top management B:Middle Management C:Supervisor or lower- level management D:Executive management

Back 353

B:Middle Management

Front 354

Efficiency often refers to

A:delegtaing task to reduce time

B:Using the fewest inputs to produce an output C:organizaing resources effectively

D:planning and controling resources effectively

Back 354

D:planning and controling resources effectively

Front 355

All of the following are central functions of management except

A:changing

B:planning

C:organizing

D:leading

Back 355

A:changing

Front 356

A leader role can be categorized as A:informational role

B:a decisional role

C:an interpersonal role

D:a delegrating role

Back 356

C:an interpersonal role

Front 357

A resource allocator is considered to be

A:an informational role

B:an interpersonal role

C:a delegating role

D:a decisonal role

Back 357

D: a decisonal role

Front 358

An informational role can include all the following roles exceptA:liaison

B:monitor

C:disseminator

D:spokesperson

Back 358

A : liaison

Front 359

In Taylor's perspective on standardizing work, a job should be

A:broken down into simple parts

B:easy and inexpensive to train workersC:designed with room for individual discreationD:both A and B

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D:both A and B

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Taylor believed workers were best motivated byA:social interaction

B:piece rate system

C:managers and workers collaborating as partners

D:fair employment practices

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B: piece rate system

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The classical school of management is sometimes refered to as an appraoch that

A:is machine like

B:promotes a clear role for managers

C:has a clear hierarchy of authority to ensure accountabilty

D:all of the above

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D: all of the above

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Esprit de corps is often referred to as

A:military model of management

B:team spirit and harmony

C:both a and B

D:none of the above

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B :team spirit and harmony

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The hawthrone effect involves all the following excepty

A:employees receiving speical attentionB:human side of motivating workers

C:how to decrease productivity

D:Productivity factors on working conditions

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C:how to decrease productivity

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Mary Parker Follett argues that all of the following were critcail to a manager's function except

A:collaboration

B:Coordination

C:Collective negotiation

D:harmonizing group effects

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C:Collective negotiation

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The contingency appreach can involve factors likeA:organziational size

B:environmental uncertainty

C:individual difference

D:all of the above

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D: all of the above

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Charles Barnard believed the most critical functions of managers involvedA:communication

B:authority

C:cooporation

D:all of the above

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D: all of the above

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The behavioural school of management promotes

A:a piece rate system

B:standardization of job task

C:human and social factors to managing peopleD:a hierarchical structure for management

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C:human and social factors to managing people

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delayoring

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flattening organizations hierachies so that they have a wider span of control; the elimination of hiearchical layers; often involving downsizing

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cross- funcational teams

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work groups that bring together members from various parts of the organization

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self managing work teams

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teams that are given the power to manage themselves and make decisions without the approval of formal management

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information sharing

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workers sharing knowledge with other workers in the organization to help better meet the organziation's goals and needs. Information sharing is an important component of the team based approach

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machine metaphor (of an organization)

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a metapor used to describe organzition that functions like a machine -- that is, in an orderly, prescibed, rational, and controlled manner. The classical school of management viewed organizations as entitles devised to perform work that led toward specific goals, structure and technology

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organism metaphor (of an organization)

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a metaphor used to describe organizations as systems of mutually connected and dependents parts that share a common life. This metaphor suggests that we can conceive of organizations as living organisms that contain a combination of elements that are differentiated yet integrated, attempting to survive within the context of a wider environment

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open system

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closed system

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organizational structure

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horizontal differentiation

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Global Organization

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-Greater competition.

-Better access to new markets.

- Increased networking opportunities.

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Span of control

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Taller: Narrower span of control

Flatter: Wider Span of control

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Virtual Organizations

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-Outsourcing

-Networking

-Shedding Noncore Functions

Outsourcing (or contracting out)involves hiring external organizations to conduct work in certain functions ofthe company. For example, payroll, accounting, and legal work can be assignedto outsourced staff. The organization typically will retain its core functionsor competencies—that is, those areas that it is in business to conduct. Inother words, it sticks to what it does best and outsources functions that itdoesn’t wish to focus on. Outsourcing can also be useful for small businessesor startups that do not havetime to devote to administrative tasks but rather need to focus on their coreactivities and to grow their business.

Through networking, organizations canengage in cooperative relationships with suppliers, distributors, orcompetitors. The aim is to improve their efficiency and flexibility in meetingnew consumer needs. For example, a close relationship with a distributor mightoffer the supplier company more information about the changing needs ofcustomers. The Japanese version of networked organizations called keiretsu could, in fact,really be considered the first form of the virtual organization.

The outsourcing aspect, again, is a central feature of the virtual organization. Clearly, organizations can become more “virtual” by shedding some of their noncore functions and outsourcing these to affiliated organizations.Companies that use information technology (IT) need to become as flexible as the virtual organizations, given the rapidly changing face of technology and its applications. For organizations whose core competency is not IT or all its elements, there is much to be gained from partnering with other organizations in the virtual sense. A growing number of IT departments are considering outsourcing models to address all or part of their needs.

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Benefits of virtual organization

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1) Cost Savings are significant

2)Great Alternative for entrepreneurs

3)Fast Way to Develop and market new products

4) Fast and flexible

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Powerpoint slide Chapter 4

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Risks of Virtual Organization

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1) Losing Control

2) Lack of employee loyalty

3) Potential sacrifice of competitive learning opportunities

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1) Management has been defined in all of the following ways except:
a. The art of getting things done through people.
b. Managers give direction to their organizations, provide leadership and decide how to use organizational resources.
c. Using employees to achieve one’s personal objectives.
d. The process of planning, organization, leading and controlling organizational resources in the effort to achieve organizational goals.

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c. Using employees to achieve one’spersonal objectives.

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2) The term efficiency refers to using:
a. the fewest inputs to produce a given level of output.
b. The lowest level of output for the given level of input.
c. The highest level of input for a given level of output
d. The minimal effort required to produce the lowest level of output

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a. the fewest inputs to produce a givenlevel of output.

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3) The term effectiveness refers to:
a. The pursuit of the maximum output for the minimal level of input
b. The pursuit and achievement of goals that are appropriate for the organization.
c. The pursuit and achievement of maximum profit for the organization
d. The pursuit of all organizational goals.

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b. The pursuit and achievement of goalsthat are appropriate for the organization.

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4) The most commonly considered four central functions of management are:
a. effectiveness, efficiency, profit maximization, leading
b. planning, leading, observing, rewarding
c. planning, organizing, leading, and controlling.
d. leading, managing, organizing, controlling

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c. planning, organizing, leading, and controlling.

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5) Henry Mintzberg, a management scholar, conducted an in-depth study of managers in the 1960s. Mintzberg offered a classification of the various roles that managers play as follows:
a. Leadership roles, management roles, planning roles
b. interpersonal roles, informational roles and decisional roles.
c. Interpersonal roles, leadership roles, decisional roles
d. Interpersonal roles, informational roles, follower roles

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b. interpersonal roles, informationalroles and decisional roles.

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6) Interpersonal roles that are typically ceremonial or symbolic in nature are referred to as:
a. Liaison roles
b. Leader role
c. Figurehead roles
d. Representative roles

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c. Figurehead roles

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7) A sales manager who develops a working relationship with the production department is fulfilling the role of :
a. Liaison
b. Figurehead
c. Leader
d. Motivator

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a. Liaison

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8) Informational roles include all of the roles of:
a. Monitor, performer, coordinator
b. Liaison, Leader, disseminator
c. Monitor, Motivator, spokesperson
d. Monitor, motivator, spokesperson

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b. Liaison, Leader, disseminator

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9) A marketing manager who is responsible for assessing consumer demand for a newly proposed product is fulfilling the role of:
a. Leader
b. Communicator
c. Monitor
d. Disseminator

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c. Monitor

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10) A manager who provides information to employees regarding performance expectations is fulfilling the role of:
a. Disseminator
b. Spokesperson
c. Liaison
d. Leader

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a. Disseminator

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11) If there is any consistent pattern in the sweeping changes to corporate architecture, it has been the delayering of organizational hierarchies.
a. True
b. False

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a. True

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12) Reengineering is essentially the same notion as downsizing.
a. True
b. False

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b. False

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13) The open-systems approach to understanding organizations is based on the metaphor of the organization as a living organism.
a. True
b. False

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a. True

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14) Frederick Taylor’s philosophy of scientific management advocated a high degree of job specialization
a. True
b. False

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a. True

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15) Social specialization refers to the division of jobs into simple, repetitive tasks.
a. True
b. False

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b. False

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16) A narrow span of control tends to reflect a tall organization, while a wide span of control tends to reflect a flat organization.
a. True
b. False

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a. True

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17) Routine technologies are better suited to innovative, organic structures that do not allow formality and rules to govern activity.
a. True
b. False

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b. False

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18) Organizations can become more “virtual” by shedding some of their noncore functions and outsourcing these to affiliated organizations
a. True
b. False

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a. True

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19) There is research evidence indicating that organizations that engaged in an employee downsizing (that is, terminated at least 5% of the workforce combined with little change in plant and equipment costs) did not outperform other organizations in their industry
a. True
b. False

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a. True

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20) Learning forces are pressure for organizations to imitate the behaviours of industry leaders.
a. True
b. False

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b. False

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Chapter 5 homework questions

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Study the homework questions

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Chapter 1& 2 homework questions

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Study the homework questions

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Threats of new entrants

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New entrants can take two basicforms: new startups and diversificationof existing firms in other industries. Regardless, the entrants bring newcapacities, desire to gain market share, and substantial resources andcapabilities. Prices can be bid down or incumbents’ costs inflated as a result,reducing profitability. As such, the new entrants may impose significantthreats to incumbents. Thus, incumbents need to consider how to create entrybarriers to deter potential new entrants. There are five major sources of entrybarriers from the potential new entrants’ point of view.

Economies of Scale refer to spreadingthe costs of production over the number of units produced. The cost of aproduct per unit declines as the number of units per period increases. Globalcompanies, for example, that sell their goods in various countries oftenachieve economies of scale because of the high volume of products they produce.

Capital requirements typically refer tothe amount of investment or money that is required to enter an industry.Clearly, if you wanted to manufacture cars or planes, you would need millionsif not billions of dollars to buy raw materials, build assembly lines, and soon. Thus, the threat of new entrants is reduced as the level of requiredcapital increases.

Switching costs refer to the costs(monetary or psychological) associated with changing from one supplier toanother from the buyer’s perspective. When the switching costs are minimal,customers can easily switch buying products from one firm to another. Thiscreates an opportunity for potential new entrants because they can easilyacquire customers from incumbents. Thus, the threat of new entrants increases(or the barrier to new entrants decreases) as the switching costs decrease.

Accessibility to distribution channels can be an entrybarrier for potential new entrants. In the situation where incumbents controlmost of the distribution channels, potential entrants would find it difficultto distribute their products or services, which in turn defers new entry.Accordingly, the threat of new entrants decreases (or the barrier to newentrants increases) as accessibility to distribution channels decreases.

And Cost Disadvantages Independent ofScale include governmentalpolicies, legal protection (patents and trademarks), and proprietary products.These advantages create barriers for potential new entrants, which defer theirentries.

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Threats of Suppliers

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Supplierscan exert bargaining power over companies by demanding better prices orthreatening to reduce the quality of purchased goods or services. Therefore,the power suppliers hold directly impacts industryprofitabilityas well as the company’s performance.Thereare two major factors contributing to suppliers’ power in relation to companiesin an industry. The first one is how critical the resources are to theincumbents that the supplier holds. Quite often, when the raw materialssuppliers provide are critical to incumbents in an industry, the suppliers arein a good position to demand better prices. The second factor is the number ofsuppliers available relative to the number of incumbents in an industry.Specifically,when the number of suppliers relative to the number of companies is low, theincumbents compete against each other for the relatively small number ofsuppliers.

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Threats of Buyers

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The buyer (or the customer) certainly cannot be ignored.Depending upon the industry, the customer can have enormous power.Is the power of buyers high or low?Let’s consider the following variables:Switching costs - When buyers caneasily switch from one seller to another, the buyer has considerable power.Clearly, if you want to buy milk or bread, there are lots of places to buythese items: grocery stores, pharmacies that carry food, departments stores(such as Walmart and Target),convenience stores and so on. On the other hand, if you have a cell phonecontract that has locked you in for two years, it may not be so easy for you toswitch. While there are a few cell phone service providers, you may face ahefty cancellation penalty if you cancel your plan before your contract is up.This is a switching cost. Undifferentiated products – The more similarthe product is, the more power the customer will have. In a grocery store, a macintosh apple is a macintosh apple, no matterwhich grocery store you buy it. When products are undifferentiated, customershave greater bargaining power in terms of price, quality or service. Andtherefore, customers have more power.Importance of the product – Clearly, customerspreferences are not all uniform. So, how important is the product to thecustomer? The answer is: it depends. What is important to one customer, may bedifferent from another customer. Coffee is a good example. Some customersprefer any type of coffee, so cheaper is often better. Others may be moreselective and prefer paying a higher price for a high quality coffee andservice. Certainly, in some instances, the customer may have verylittle power. One example would be if the customer needed heart medication oranother type of drug that is essential for his or her health and survival.The number of companies relative to thenumber of buyers –Certainly, if there is a monopoly and only one seller of a good or serviceexists, the customer will have little power, since there are no other viablealternatives. The customer may also have reduced power when oligopolies exist.Indeed, customers have little bargaining power when they need to fill up theircars with gas. Prices are usually identical between sellers, as only a fewlarge gas companies exist.

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Threats of Substitutes

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Isthe power of substitutes high or low?Whatis a substitute?Typically,a substitute is any product that can act as a substitute for another product.

Some are some examples of substitutes?Typically, a substitute is any product that can act as asubstitute for another product.Coffee is part of the larger ‘beverage’ industry, so anyother beverage can act as a substitute of coffee.Television is part of the larger ‘entertainment’industry, so another type of entertainment can also act as a substitute for t.v.And cell phones, are part of the larger ‘communications’industry, so other methods of communicating can act as a viable substitute forcell phones.While substitutes may not be ideal, customers may beable to turn to substitutes if prices of a certain good becomes too high, orone product or service is not easily available.

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Rivalry among existing firms

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-Lack of differentiation

-Number of Competitors

-High Exit barriers

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VRIO Model

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-Value

-Rareness

-Imitability

-Organization

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SWOT analysis

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Internal

-Strength

-Weakness

External

-Opportunities

-Threats

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Different levels of strategies

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Business-level strategy is the strategy a firm uses to compete in a givenmarket. As such, which market a firm intends to operate in is a given. Corporate-levelstrategy is about how a firmallocates its resources in different markets to create synergy to achieve itsorganizational goals.

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Cost Leadership

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-Economies of scale

-Learning curve economies

-Access to low cost factors of production

Costleadership is simply when a firm keep’s its costs low, so it can keep itsprices low. Two good examples are Walmart and Dollarama.Thepurpose of a cost leadership strategy is to gain competitive advantages by reducing economiccosts below that of all competitors. It often requires aggressive constructionof efficient-scale facilities, vigorous pursuit of cost reductions fromexperience, tight cost and overhead control, avoidance of marginal customeraccounts, and cost minimization in areas like R&D, service, sales,marketing and advertizing, general administration, and so on.Thereare three sources of cost leadership: (1) economies of scale, where firms canincrease their production volume to reduce marginal costs; (2) learning curveeconomies, where firms can reduce marginal costs by experience, such aslearning by doing and decreasing defects of products or services; and (3)access to low-cost factors of productions, such as raw materials, labour,location, and so on.}

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Product differentiation

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A productdifferentiation strategy isabout a firm’s attempt to gain competitive advantages by increasing theperceived value of its products or services relative to that of other firms’products or services.Theother firms can be either competitors in the same industry or firms from otherindustries. For example, Starbucks provides high-quality specialty coffees aswell as high-quality store design to differentiateitselffrom Tim Hortons and Country Style. As such, Starbucks is able to chargehigh-price premiums to customers given the value created.Firmscan create value for their products or services to differentiate themselvesfrom other firms in many ways, including product features, links betweenfunctions, location, product mix, links with other firms, and service.=.j:_r

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Focus strategy

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Whilecost leadership and product differentiation are oriented to broad markets, a focusstrategy targets a particularbuyer group, a segment of the product line, or a geographic market.Specifically, the focus strategy rests on the premise that a firm is able tocompete efficiently or effectively by targeting a particular narrow market.While targeting aparticular market, a firm can also employ a cost leadership or differentiationstrategy here as well.?xT |p

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Corporate level strategy

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Incontrast to the business-level strategy that describes how to compete in agiven market, corporate-level strategy addresses two related challenges: (1) what businesses ormarkets a firm should compete in; and (2) how these businesses or markets canbe managed to create synergy. In other words, the issues managers deal withconcern determining which markets their firms should diversify into in anattempt to create maximum synergies that will allow them to achieve highperformance.

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Types of diversification

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- Related

-Unrelated

-Vertical

Related diversification refers to situations where a firm expands its corebusinesses or markets into related businesses or markets. By diversifying intorelated markets, a firm can create synergies throughsharingactivities (for example, production facilities, distribution channels, salesrepresentatives) and leverage its resources and capabilities. Relateddiversification also potentially gives a firm greater market power to competeagainst its competitors and greater bargaining power over its suppliers andcustomers.

Thesecond type of diversification is unrelated diversification, where a firmdiversifies into a new market that is not similar to its current market(s).This kind of diversification tends to provide little synergies for a firm,given that there are few opportunities for sharing activities or leveragingresources and capabilities. Why do firms pursue unrelated diversification?Firms pursuing this strategy tend to havethesynergies created (or believe that the synergies will be created) throughcorporate office’s management skills. Loblaw is one example. Recently, theCanadian grocery chain diversified into the mobile phone business to penetratea new market unrelated to its food business.

Thefinal type of diversification is vertical integration . Verticalintegration refers to an extension or expansion of firm value chain activitiesby integrating preceding or successive productive processes. That is, the firmincorporates more processes toward the source of raw materials ( backwardintegration )or toward the ultimate customers (forward integration ). chchars(j:Y%w

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Means to diversify

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-Internal development

-mergers or acquisitions

-strategic alliances

1)Nonequity alliances 2)Equity alliances

3) Joint ventures

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Economic environment

Back 419

Individuals

Business

Front 420

Fivefactors of production

Back 420

-Natural resources: land -Labour: workers

- Capital: buildings, machinery, tools, and equipment

-Knowledge: worker w/ special education, skills, and experience

-Entrepreneurs: individuals who set up businesses

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Government

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o Createslaws

o Promotestax creditso Ensuresqualified labours

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Types of economicssystems

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Market economy Communism

Socialism

Mixed economy

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Typesof competition

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- Perfect: same product or service, and no seller has the power to influence the price (eg. Corn)

-Monopolistic: large dirms have a similar product or service (eg. Canadian Tire)

-Oligopoly: a few competitors dominate an industry (eg. Air Canada)

- Monopoly: one company, no competition (eg. SiriusXM)

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Goals of Canada's economic system

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-Economic growth

-Economic Stability

-Employment

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Measuring Economic Growth

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-Gross domesticproduct (GDP)

-Gross nationalproduct (GNP)

-Real GDP

-Nominal GDP

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Balance of Trade

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Trade Surplus

Trade deficit

Thebalance of trade is the value of all the goods and services a countryexports minus the value of all the goods and services a country imports.

A tradesurplus occurswhen a country exports more goods than it imports. This indicates a positivebalance of trade and encourages economic growth.

Similarly, a tradedeficit existswhen a country imports more goods than it exports. A trade deficit isproblematic because it results in a negative balance of trade, which means moremoney is leaving the country than is entering the country.",&j:W

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Economic Stability

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-Inflation

-Deflation

-Interest Rates

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Types of unemployment

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- Frictional unemployment: caused by normal labour market turnover

-Cyclical unemployment: caused by changes in the business cycle.

- Structural unemployment: available jobs don’t correspond to the skills of the labour force or unemployed individuals don’t live in a region where jobs are available.

- Seasonal unemployment: caused by the seasonal nature of the job