Module 1: Business Management And Strategy

Front 1

Divestiture

Back 1

Sale by a company of an asset that is not performing well, that is not core to the company's business, or that is worth more as a separate entity.

Front 2

Human resource information system (HRIS)

Back 2

Systematic tool for gathering, storing, maintaining, retrieving, and revising HR data.

Front 3

Incremental budgeting

Back 3

Form of budgeting in which the prior budget is the basis for allocation of funds.

Front 4

Promotion

Back 4

Techniques for communicating information about products to consumers.

Front 5

Primary research

Back 5

Involves data that is gathered firsthand for a specific evaluation.

Front 6

Standard deviation

Back 6

Measure that indicates how much scores in a set of data are spread out around a mean or average.

Front 7

Scientific method

Back 7

Research method in which certain factors (variables) are manipulated and the results are examined.

Front 8

Qualitative analysis

Back 8

Based on research that uses open-ended interviewing to explore and understand attitudes, opinions, feelings, and behavior.

Front 9

Due diligence

Back 9

Process of conducting an intensive investigation of a corporation as one of the first steps in a pending merger or acquisition.

Front 10

Human capital

Back 10

Combined knowledge, skills, and experience of a company's employees.

Front 11

Functional structure

Back 11

Organizational structure that defines departments by what services they contribute to the organization's overall mission.
organization is usually more centralized, and its departments are specialized

Front 12

Secondary research

Back 12

Uses data already gathered by others and reported in various sources.

Front 13

Ethics

Back 13

System of moral principles and values that establish appropriate conduct.

Front 14

Marketing

Back 14

Long term process of planning, pricing, promoting, and distributing goods and services to satisfy organizational objectives.

Front 15

Span of control

Back 15

Refers to the number of individuals who report to a supervisor.

Front 16

Median

Back 16

Point below which 50% of scores in a set of data lie.

Front 17

Environmental scanning

Back 17

Process that surveys and interprets relevant data to identify external opportunities and threats.

Its the frame work for collecting information to create a successful plan for future growth

Front 18

Product

Back 18

What an organization sells to make a profit.

Front 19

Line units

Back 19

Work groups that conduct the major business of an organization.

Front 20

Matrix structure

Back 20

Organizational structure that combines departmentalization by division and function to gain the benefits of both.

Front 21

Bill

Back 21

Proposal presented to a legislative body for possible enactment as a law.

Front 22

Resolution

Back 22

Legislative measure limited in effect to either the Congress or one of its chambers.

Front 23

Public comment period

Back 23

Time allowed for the public to express its views and concerns regarding an action of a regulatory agency.

Front 24

Quantitative analysis

Back 24

Seeks to obtain easily quantifiable data on a limited number of measurement points.

Front 25

Code of ethics

Back 25

Principles of conduct within an organization that guide decision making and behavior.

Front 26

Break-even analysis

Back 26

Analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the program.

Front 27

Decentralization

Back 27

Degree to which decision-making authority is given to lower levels in an organization's hierarchy.

Front 28

Balanced scorecard

Back 28

Measurement approach that provides an overall picture of an organization's performance as measured against goals in finance, customers, internal business processes, and learning and growth.

Front 29

Operations/Production

Back 29

the terms production and operations are, in some cases, used interchangeably. When used separately:

Production: refers to the process by which the business creates the product

Operations: the function that encompasses all the activities necessary to produce the goods and services.

Front 30

Scheduling

Back 30

To an operations department, the act of detailed planning; based upon incoming orders, order history, and forecasts of future demand.

Front 31

Sample

Back 31

Portion of a population used to draw conclusions regarding an entire population.

Front 32

Population

Back 32

Group of persons or objects or a complete set of observations or measurements about which one wishes to draw conclusions.

Front 33

Foreign Corrupt Practices Act (FCPA)

Back 33

Prohibits American companies from making corrupt payments to foreign officials for the purpose of obtaining or keeping business.

Front 34

Research in which the researcher controls and manipulates elements of the research environment to measure the impact of each variable.

Back 34

Experiment

Front 35

Ability of an instrument to measure what it is intended to measure.

Back 35

Validity

Front 36

Vehicle for collecting information on an organization's current strengths, weaknesses, opportunities, and threats.

Back 36

SWOT analysis

Front 37

Equity

Back 37

Amount of owners' or shareholders' portion of a business.

Front 38

Percentile

Back 38

Specific point in a distribution of data that has a given percentage of cases below it.

Front 39

Accounts payable .

Back 39

Money an organization owes its vendors and suppliers

Front 40

Mid-term objectives

Back 40

Serve a purpose similar to short-term objectives but are completed in one to three years.

Front 41

Calculation that measures the economic return on a project or investment.

Back 41

Return on investment (ROI)

Front 42

Liabilities

Back 42

Organization's debts and other financial obligations.

Front 43

Capacity

Back 43

To an operations department, the ability to yield output.

Front 44

Series of tasks and activities that has a stated goal and objectives, a schedule with defined start and end dates, and a budget that sets limits on the use of monetary and human resources.

Back 44

Project

Front 45

Generation Y

Back 45

Group of people born after 1980.

Front 46

Strategies

Back 46

Provide the direction that enables an organization to achieve its long-term objectives.

Front 47

Human resource management (HRM)

Back 47

Design of formal systems in an organization that ensure the effective and efficient use of human talent to accomplish organizational goals

Front 48

Strategic Management

Back 48

Processes and activities used to formulate HR objectives, practices, and policies.

This is ongoing process of innovation, advantage, value creation and reassessment.

Front 49

Work groups that assist line units by performing specialized services, such as HR.

Back 49

Staff units

Front 50

Accounts receivable

Back 50

Money an organization's customers owe the organization.

Front 51

Correlation

Back 51

Measure that indicates the relationship between two variables.

Front 52

Ability of an instrument to measure consistently.

Back 52

Reliability

Front 53

Value that occurs most frequently in a set of data.

Back 53

Mode

Front 54

Mission statement

Back 54

Specifies what the company does, who its customers are, and the priorities it has set in pursuing its work.

How the org will accomplish its vision. in the mid to long term rage.

Front 55

Long-term objectives

Back 55

Specific results, accomplished in three to five years, that an organization seeks to achieve in pursuing its mission.

Front 56

Action of canceling or postponing a decision or bill.

Back 56

Veto

Front 57

Gross domestic product (GDP)

Back 57

Estimate of the total value of goods and services produced in a country in a given year.

Front 58

Normal distribution

Back 58

Expected distribution given a random sampling of people across a large population.

Front 59

Generation X

Back 59

Group of people born roughly between the years of 1965 and 1980

Front 60

Formula budgeting

Back 60

Form of budgeting in which an average cost is applied to comparable expenses and general funding is changed by a specific amount.

Front 61

Number of members of an organization that have to be present before official business may be conducted.

Back 61

Quorum

Front 62

Measure that refers to the causal effect of one variable upon another.

Back 62

Regression

Front 63

Specific, testable prediction that is derived from a theory and describes a relationship between two variables.

Back 63

Hypothesis

Front 64

Control

Back 64

To an operations department, an after-the-fact evaluation of a company's ability to meet its own specifications and its customers' needs.

three steps are observe, compare, and decide.

Front 65

Corporate Values Statement

Back 65

A way for executives to communicate their standard for how the organization will conduct business.

Value: Describe what is important to an organization, dictate employee behavior, and create the organization's culture.

Front 66

Involves looking at a set of observations and designing a rule that characterizes or explains a pattern underlying the observations.

Back 66

Inductive reasoning

Front 67

Income statement

Back 67

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

Front 68

Short-term alliance between independent organizations in a potentially long-term relationship to design, produce, and distribute a product.

Back 68

Virtual organization

Front 69

Sales

Back 69

Business function responsible for selling an organization's product to the marketplace.

Transfer of business service/product to the client.

Front 70

Measure that indicates the relationship between data items using x and y axes.

Back 70

Scatter diagram

Front 71

Distance between highest and lowest scores in a set of data.

Back 71

Range

Front 72

Rule or order issued by a government agency; often has the force of law.

Back 72

Regulation

Front 73

Cost-benefit analysis

Back 73

Ratio that allows management to determine the financial impact particular activities and programs will have on a company's profitability.

Front 74

Portion of silent and baby boom generations that is simultaneously caring for their own children and one or more elderly family members.

Back 74

Sandwich generation

Front 75

Form of budgeting that requires that expenditures be justified for each new period and in which budgets start at zero.

Back 75

Zero-based budgeting

Front 76

Project management tool used to schedule, organize, and coordinate tasks within a project.

Back 76

Program evaluation review technique (PERT) chart

Front 77

For an operations department, provide the yardstick by which the amount and quality of output are measured.

Back 77

Standards

Front 78

Vision statement

Back 78

Vivid, guiding image of an organization's desired future.

Statement should inspire org.

Front 79

Offshoring

Back 79

Relocation of processes or functions from a "home" country to another country.

Front 80

Amendment

Back 80

Modification of the Constitution or a law; may be either formal (written) or informal (unwritten).

Front 81

4 phases of a strategic plan

Back 81

1) formulation
2) development
3) implementation
4) evaluation

Front 82

Environmental scanning

Back 82

Systematic process of gathering and analyzing all relevant data about external opportunities.

Front 83

3 commonly used budgeting methods

Back 83

1) incremental
2) formula
3) Zero based

Front 84

Balance sheet

Back 84

Statement of a firm's financial position at a particular time.

Front 85

Centralization

Back 85

Degree to which decision-making authority is restricted to higher levels of management in an organization.

Top Heavy

Front 86

Global network that delivers products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

Back 86

Supply chain

Front 87

Inventory

Back 87

To an operations department, an organization's major asset after physical buildings and equipment.

Front 88

Evolution of a company. 4 phases.

Back 88

1) introduction
2) Growth
3) maturity
4) decline

Front 89

Low cost producer with low cost advantage. Find & exploit all sources of cost advantage. Depend on volume to provide profit.

Back 89

low-producer (strategy)

Front 90

Set products and services apart for competitors. Consumers will pay a premium price for product.

Back 90

Differentiation Strategy

Front 91

Focus on particular buyer group, or geographical market. built around serving a particular target well. Small segment, more effective.

Back 91

Focus Strategy

Front 92

Key concepts in research & analysis of performance audits. (5)

Back 92

1) inductive & deductive reasoning
2) Primary & secondary research
3) experimental research
4) quantitative & qualitative analysis
5) Reliability & valitdity

Front 93

5 steps in the scientific method

Back 93

1) Problem analysis
2) Hypothesis formulation
3) Experimental design
4) Data collection
5) Data analysis

Front 94

External Business Environment

Back 94

Organizational changes that occur because of forces outside of the org control.

Examples:
*Technological Development: Has held to both growth and decline of organizations.

*Industry Change: technology developments usually leads to industry change.

*Economic Environment: Impacts all organizations, When the economy is growing there is more demand for business goods.
*Labour Pool
*Legal ad Regulatory Activity

Front 95

All Business in the USA is organized in 4 basic structures. What are they?

Back 95

*Sole Proprietorship
* Partnership
*Corporation
* Limited Liability Company

Front 96

Sole Proprietorship

Back 96

Basic and Easy.
Unlimited personal liability for all business decisions.
final authority

Front 97

Partnership

Back 97

Owned by 2 or more people who share final authority for all business decisions and are jointly liable.

Share liability for all partners.

*General Partnership:
*Limited Partnership/ Limited Liability Partnership:
*Joint Venture:

Front 98

General Partnership

Back 98

Share responsibility for managing based on the agreement

Front 99

Limited Partnership/ Limited Liability Partnership:

Back 99

partners as investors and not involved in the day to day (firms, medical, accounting)

Front 100

Joint Venture

Back 100

like GP but formed to manage a project.

Front 101

Corporation four characteristics

Back 101

* Liability is limited to assets owned by the corp
*The life of the corporation can be extended beyond the life of its original owner/founder
* there is a central management system
Ownership may be transferred freely by selling stocks.

Front 102

Limited Liability Company

Back 102

Cross between general liability and a corporation. Can only have 2 of the 4 characteristics of a corporation, or it would have to be a corp.

Front 103

Production Layout

Back 103

This is the way the in which goods or services will be produced.

Ex. the design of the assembly line.

Front 104

QA

Back 104

Quality Assurance: make sure that the product meeds acceptable standards

Front 105

Inventory Management

Back 105

Operations manager must balance two conflicting needs related to inventory. Keeping the cost of a large inventory low, but being able to fill the

Front 106

Just in Time

Back 106

JIT: inventory management system attempts to keep inventory on hand low but quickly filling customers orders by buying smaller amounts more frequently.

Front 107

Cost Controls

Back 107

meet quality standard set by the org at the lowest cost possible.

Front 108

Facility locations

Back 108

Evaluating the best place to locate production facilities involves many considerations:
cost of labor, distribution systems, gov't regulations

Front 109

4 P's of marketing

Back 109

* Product:
* Price
* Placement (distribution): where the customers will find the service/product
*Promotion

Front 110

R&D

Back 110

Research Development Makes sure the product works like designed. Also develops new items and redesigns old ones.

Front 111

Cost Accounting

Back 111

transaction related to the product sales and the cost related to creating the product are know as cost accounting

Front 112

3 Themes to build Employee Engagement

Back 112

*Leadership: The most important connection is the connection that an employee has with their manager/supervisor, which will impact their engagement.

*Professional Development: actively groom subordinates fir higher level responsibilities and improve/enlarge their capabilities in their current role.

*Employee Recognition: Monetary and non-monetary recognition for achievement . Must be genuine and gratefully expressed.

Front 113

Organization Life Cycle (4 stages)

Back 113

*Start Up
*Growth (danger zone. sometimes they dont have the infrastructure to support the growth and they collapse or acquired.
*Maturity
*Decline

Front 114

HR Role: Strategically

Back 114

contribute to the decisions that build on employees strengths to meet corporate goals. Establishing recruiting and retention plans. Develop performance management systems to motivate employees. Manage change and leading or participating in reengineering or restructuring programs.

Front 115

HR Role: Adminsirtaively

Back 115

manage compliance issues related to government regs, maintain employee and benefit records. confientiality

Front 116

HR Role: Operationally

Back 116

manage employee relations and recruiting functions that require daily attention to maintain a productive work environment

Front 117

Short-range plans

Back 117

will be achieved with 6-12 months

Front 118

Elements to Strategic Planning Process

Back 118

*Pre-Planning Stage: Decide on process, participants, time frame, planning tools.

*Environmental Scanning: SWOT, Porter 5, PEST

*Formulate Strategy: Develop vision, mission, corporate values and goals

*Implement Strategy: Develop tactical goals, budget, actions plans, execute plans.

* Evaluate Strategy and Make Adjustment

Front 119

Environmental Scans and corresponding activities are methods used to identify the following:

Back 119

*General Business Environment: who is hiring, what price point is selling, trends and culture

*Industry practices: changes in the industry and evaluating the competition

*Technical Advances: Streamlining practices and automation

*Economic Environment: Product positioning, economic indicators.

*Changes in the labour force population: unemployment rates

*Legal and Regulatory Environment: Compliance with new regulations triggered by employment numbers

Front 120

Core Competencies

Back 120

What they do best and what set them apart for the competition.

Front 121

SMART Model

Back 121

Once the mission and vision statements have been defined why the organization exist, corporate goals are needed to describe how the organization will get here in the mid to long tern. Effective Corporations follow the SMART model:

Specific
Measurable
Action Oriented
Realistic
Time-Based.

These are all added together form a business plan.

Front 122

Strategy Implementation

Back 122

Further defines corporate goals for implementation at the business and functional levels of the organization. its at this that most of the short range goals are developed.

Develop tactical goals: what will be accomplished to achieve the strategy

Develop Action Plans: the action plan breaks down the tactical goal info steps by an individual, a team or an group to accomplish the tactical goal.

Front 123

Tactical Golas

Back 123

Describes what will be accomplished

Front 124

Action Plans

Back 124

Break down the tactical goals into steps to be taken by individual, teams etc....

Front 125

Human Capital Management Plan (HCMP)

Back 125

AKA as Strategic HR Plan Answer 4 questions:
Where are we now?
Where do we want to be?
How will we get there?
How will we know when we arrived?

Front 126

Some Componets of HCMP

Back 126

Human Capital Management Plan (HCMP)
*HR statement of Strategic Direction
*desired results or goals
*Objectives
*Action Plans
*Communication Plan
*Measurement
Other area: liability insurance, software, computer, training developing

Front 127

HR Function Budget

Back 127

Information developed during the Human Capital Management Plan (HCMP) is necessary for creating the HR function budget. Some standard expenses are:
Salaries
Payroll Taxes
Benefits
Equipment and supplies
Repairs and maintenance
Training and development
Travel
Professional services
Outsources services (HRIS, payroll and so on)

Front 128

Human Capital Projecting

Back 128

Is a budgetary activity in which HR attempts to measure the value of the human resource.

Projections include:
*The necessary skills set of the workforce to achieve both short-term and long term objectives as communicated through the strategic plan

* current skills of the work force
8 creation of plans to address deficiencies
*the decision to build or buy/develop the talent in house or hire
*ROI on human resources

Front 129

Strategic Management: 4 Basic management functions to meet changing customer needs

Back 129

planning, organizing, directing and controlling (implementing)

Front 130

line function

Back 130

makes decisions about operations (like operations and sales.)

Front 131

staff functions

Back 131

functions related to the human resources

Front 132

Strategic Relationship

Back 132

Those that are advanced the contribution of the HR function towards achieving organizational goal.

Front 133

Corporate responsibility

Back 133

a business behavior that is focused on building external strategic relationship.

Front 134

Change Management

Back 134

2 processes: structural change and individual behavior

Front 135

Structural Change: 4 that affect work forces today

Back 135

*Reengineering
*Corporate restructuring
*Workforce Expansion
*Workforce reduction

Front 136

Business Case

Back 136

Description of an organizational challenge and possible alternative solution arguing for specific solution.

Front 137

Cash Flow

Back 137

Record of how much cash is flowing into and out of an organization, including its sources or destination.

Front 138

Consumer Price Index CPI

Back 138

Measure of the average change over time in the price paid by customers for goods and services

Front 139

Departmentalizeation

Back 139

Way an organization groups jobs to coordinate work

Front 140

Divisional Structure

Back 140

Organizational structure in which divisions are separated by product, customer or market, or region.

Front 141

ECPA

Back 141

Electronic Communications Privacy Act

At that makes it unlawful to intercept messages in transmission, access stored information on electronic communications service or disclose this information

Front 142

Environmental Scanning

Back 142

Process that involves a systematic survey ad interpretations of relevant data to identify external opportunities and threats

Front 143

Enterprise management

Back 143

Integral process and tools to allow information sharing ad process management across functions, sometimes even with external partners such as suppliers.

Front 144

Extended Organization

Back 144

Alliance between organizations to create process and information channels that allow communication and collaboration

Front 145

Financial rations

Back 145

Calculations designed to describe an organizations financial health and performance from various perspectives

Front 146

HR Audit

Back 146

Process to measure the effectiveness and efficiently of HR programs and positions

Front 147

Gross Profit Margin

Back 147

Ratio of gross profits to net sales

Front 148

Gantt Chart

Back 148

project planning tool that graphically displays activities of a project in sequential order and plots them against time

Front 149

Key Performance indicators

Back 149

KPI: Quantifiable measure of performance used to gauge progress towards strategies objectives or agreed standard of performance

Front 150

Net Profit Margin

Back 150

Ratio of net income (gross sales minus expenses and taxes) to net sales,