Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/68

Click to flip

68 Cards in this Set

  • Front
  • Back
What are the basic functions of HRM?
Acquiring, Maintaining, and Developing the HRM Organization
What are the 5 factors of Aqcuisition? (HRM)
Human resources planning
Determining the firm’s human resource. Job analysis
Determining the exact nature of the positions to be filled. Recruiting
Attracting people to apply for positions in the firm. Selection
Choosing and hiring the most qualified applicants. Orientation
Acquainting new employees with the firm
What are the 5 factors of Maintaining? (HRM): Development also added
Maintaining
Employee relations
Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment
Compensation
Rewarding employee effort through monetary payments
Benefits
Providing rewards to ensure employee well-being
Development
Training and development
Teaching employees new skills, new jobs, and more effective ways of doing their present jobs
Performance appraisal
Assessing employees’ current and potential
How is HRM needed to deal with Cultural Diversity in it's organization?
Maintaining
Employee relations
Increasing employee job satisfaction through satisfaction surveys, communication programs, exit interviews, and fair treatment
Compensation
Rewarding employee effort through monetary payments
Benefits
Providing rewards to ensure employee well-being
Development
Training and development
Teaching employees new skills, new jobs, and more effective ways of doing their present jobs
Performance appraisal
Assessing employees’ current and potential
What are the key factors in Job Analysis? (HRM)
A systematic procedure for studying jobs to determine their various elements and requirements
Job description
A list of the elements that make up a particular job
Duties to be performed, working conditions, the jobholder’s responsibilities, the tools and equipment used on the job
Job specification
A list of the qualifications required to perform a particular job
Skills, abilities, education, and experience
Used for recruiting, selecting, evaluation, and compensation decisions
What are major factors for external Recruiting? (HRM)
The process of attracting qualified job applicants
Goal is to attract the “right” number of applicants
External recruiting
Sources
Websites, newspaper ads, employment agencies, college campuses, union hiring halls, employee referrals, open houses, job fairs, walk-in applicants
Advantages
Fresh perspectives and varied backgrounds of new hires
Attracting applicants with the required skills and knowledge
Disadvantages
Expense
May cause resentment among exis
What are the major factors for Internal Recruiting? (HRM)
Promotion or transfer
Job posting may be required by policy or union contract
Advantages
Provides motivation for current employees
Helps retain quality personnel
Disadvantages
Cost of filling the newly vacant position
Cost of training another employee
What is selection and how is it useful? (HRM)
The process of gathering information about applicants and then using that information to choose the most appropriate applicant
Employment applications
Provide useful factual information about the applicant
Information gathered is used for
Identifying applicants worthy of further consideration
Familiarizing interviewers with applicant backgrounds
Often include résumés
What is orientation relating to HRM?
The process of acquainting new employees with an organization
Topics
Range from location of company cafeteria to career paths within the firm
May be brief and informal or long and formal
What are the 6 types of compensation? (HRM)
Hourly wage
The amount of money paid for each hour of work
Salary Profit sharing
The distribution of a percentage of the firm’s profit
The amount of money paid for an employee’s work during a set calendar period, regardless of the number of hours worked
Commissions
Payments based on a percentage of sales revenue
Incentive payment
A payment in addition to wages, salary, or commissions such as gainsharing for exceeding goals or quotas
Lump-sum salary increases
An entire pay raise taken all at one time in one lump sum
What are the two types of Employee Benefits? (HRM)
Rewards in addition to regular compensation that are provided indirectly to the employee
Type of benefits
Pay for time not worked
Vacation time, holidays, and sick leave
Insurance packages
Health, life, and dental coverage
Pension and Retirement programs
Costs may be shared or fully paid by the employer
Required by law
Workers’ compensation, unemployment insurance, and Social Security
Flexible benefits plan
An employee receives a predetermined amount of benefit dollars to spend on a package of benefits he or she has selected to meet individual needs
Performance Appraisal: what are the two types of evaluation techniques?
Objective methods
Their basis is a measurable quantity (e.g., units of output, sales volume, number of defective products).
Judgmental methods
Managerial estimates of employee performance levels
Ranking
Ordering employees from best to worst
Difficult to use because there is no absolute standard and differences in performance of ranked employees is not apparent
Rating
Using a predetermined scale (standard) to evaluate each employee’s performance
What are the common evaluation techniques? (HRM)
Avoiding appraisal errors
Use the entire evaluation instrument; avoid focusing on one portion
Do not let an employee’s poor performance in one area influence the evaluation of other areas of performance
Evaluate the entire performance period and not the most recent behaviors of the employee
Guard against any form of personal bias or discrimination in the evaluation
Performance Feedback? (HRM)
Performance appraisal information should be provided to employees
Most often through a performance feedback interview
Tell and sell: Superior tells the employee how well or poorly the employee is performing and attempts to persuade the employee to accept the evaluation
Tell and listen: Supervisor tells the employee about his or her performance and then gives the employee a chance to respond
Problem-solving approach: Employee evaluates own performance and sets own goals; supervisor offers comments and goals are mutually established
Mixed interview
360-degree evaluation: Employee is provided feedback from evaluations by his superiors, peers, and subordinates
What is the National Labor Relations Act and Labor-Management Relations Act (1935)? (HRM)
Establishes a collective-bargaining process in labor-management relations as well as the National Labor Relations Board (NLRB)
What Is Motivation? (Chapter 10)
The individual internal process that energizes, directs, and sustains behavior; the personal “force” that causes us to behave in a particular way
What is Theory X? (Chapter 10)
Theory X
Generally consistent with Taylor’s scientific management
Employees dislike work and will function only in a controlled work environment
What is Theory Y? (Chapter 10)
Theory Y
Generally consistent with the human relations movement
Employees accept responsibility and work toward organizational goals if they will also achieve personal rewards
What is the Equity theory? (Chapter 10)
People are motivated to obtain and preserve equitable treatment for themselves
Equity: the distribution of rewards in direct proportion to the contribution of each employee to the organization
Workers compare their own input-to-outcome (reward) ratios to their perception of others’
Workers who perceive an inequity may
Decrease their inputs
Try to increase outcome (ask for a raise)
Try to get the comparison other to increase inputs or receive decreased outcomes
Leave the work situation (quit)
Switch to a different comparison other
What is the goal setting theory? (Chapter 10)
Employees are motivated to achieve goals they and their managers establish together
Goals should be very specific, moderately difficult, and ones that the employee will be committed to achieve
Rewards should be tied directly to goal achievement
What are the Advantages of Management by Objectives? (Chapter 10)
Motivates employees by involving them actively
Improves communication
Makes employees feel like an important part of the organization
Periodic review enhances control
What are the disadvantages of Management by Objectives? (Chapter 10)
Doesn’t work if the process doesn’t begin at the top of the organization
Can result in excessive paperwork
Some managers assign goals instead of collaborating on creating them
Goals should be quantifiable
What is one major key motivation Technique? (Chapter 10)
Job enrichment
Provides employees with more variety and responsibility in their jobs
What is flextime? (Chapter 10)
A system in which employees set their own work hours within employer-determined limits
What is Telecommuting? (Chapter 10)
Working at home all the time or for a portion of the work week
What are the advantages of Telecommuting? (Chapter 10)
Increased employee productivity
Lower real estate and travel costs
Reduced absenteeism and turnover
Increased work/life balance and improved morale
Access to additional labor pools
What are the disadvantages of Telecommuting? (Chapter 10)
Feelings of isolation
Putting in longer hours
Distractions at home
Difficulty monitoring productivity
What is employee empowerment? (Chapter 10)
Making employees more involved in their jobs by increasing their participation in decision making
Management must be involved to set expectations, communicate standards, institute periodic evaluations, guarantee follow-up
What is a team? (Chapter 10)
Groups of employees functioning together as a unit to complete a common goal or purpose
What are the teams stages of development? (Chapter 10)
Forming
Storming
Norming
Performing
Adjourning
What is the early history of Unions? (Chapter 11)
Apprenticeship & guilds for skilled workers
Craft union
Organization of skilled workers in a single craft or trade
Limited to a single city; lasted for a short time
Knights of Labor
Formed as a secret society
Goals: to eliminate depersonalization of worker resulting from mass production; to improve moral standards of employees and society
Lost public favor after Haymarket riot of 1886
What are union memberships? (Chapter 11)
Approx. 15.5% of the nation’s workers belong to unions
AFL-CIO
The largest union with approx 9 million members
Includes actors, barbers, construction workers, carpenters, retail clerks, musicians, teachers, postal workers, painters, steel and iron workers, firefighters, bricklayers, newspaper reporters
Teamsters
Independent labor organization with approx 1.4 million members
United Auto Workers (UAW)
Represents employees in the automobile industry with approx 640,000 members
Part of AFL-CIO
What are Membership trends? (Chapter 11)
Union membership has declined steadily since 1980
Heavily unionized industries have been decreasing or not growing as fast as nonunionized industries
Firms have moved from unionized areas (Northeast, Great Lakes region) to less unionized areas (Southeast, Southwest)
Largest employment growth is in service industries, which are typically not unionized
Some companies are moving manufacturing to other (less unionized) countries
Management is providing benefits that reduce employees’ need for unionization
What is the Norris-LaGuardia Act (Chapter 11)
Made it difficult for businesses to obtain court orders banning strikes, picketing, and union membership drives
What was the first contract in Collective Bargaining? (Chapter 11)
Pre-negotiation preparations by both parties
Exchange of initial contract demands by union and company
Bargaining over issues until agreement is reached (or strike)
Agreement is ratified by a vote of the union membership
Agreement is signed and becomes a legally binding agreement (or more negotiation)
What was the later contract in Collective Bargaining? (Chapter 11)
Pre-negotiation preparations are more intense
Each side may take a harder line on the issues in negotiations
Contract expiration date produces tension
What are the forms of employee pay? (Chapter 11)
Direct compensation: wage or salary and benefits
Deferred compensation: pension and retirement
What are the magnitudes of employee pay? (Chapter 11)
Parity with local and national industry pay levels
Real wage protection through cost-of-living clauses
Financial condition of employer
Cost-sharing for benefits
What were the detriments to employee pay? (Chapter 11)
Management seeks to tie wages to each employee’s productivity
Unions feel this creates unnecessary competition and usually suggest pay according to seniority
Management seeks to constrain benefits to only some employees
Unions want equal application of benefits
What was the security for the indivual and the job? (Chapter 11)
Security
For the individual
Job security: Protection against the loss of employment
Seniority
For the union
Membership
Closed shop: Workers must be union members before they are hired; outlawed by the Taft-Hartley Act
Union shop: New employees must join the union after a probationary period
Agency shop: Employees can choose not to join the union but must pay dues
Maintenance shop: Employees who join the union must remain members as long as they are employed by the firm
What were the management rights? (Chapter 11)
The firm wants to control whom it hires, how work is scheduled, how discipline is handled
Unions seek to control these matters
Some union executives have been given seats on corporate boards of directors
What were the Grievence Procedures? (Chapter 11)
See grievance chart on portal
How customer relations are managed? (Chapter 12)
Relationship marketing: Establishing long-term mutually satisfying buyer-seller relationship
Customer relationship management (CRM): Using information about customers to create marketing strategies that develop and sustain desirable customer relationships
Customer lifetime value: a combination of purchase frequency, average value of purchases, and brand-switching patterns over the entire span of a customer’s relationship with a company
What is the marketing concept? (Chapter 12)
A component of an organization’s business philosophy that involves the entire organization in the process of satisfying customers’ needs while achieving the organization’s goals
To achieve this an organization must:
Talk to its potential customers to assess their needs
Develop a good or service to satisfy those needs
Continue to seek ways to provide customer satisfaction
What are the two types of buying behavior? Define them. (Chapter 12)
Consumer buying behavior
The purchasing of products for personal or household use, not for business purposes
Business buying behavior
The purchasing of products by producers, resellers, governmental units, and institutions
What is the classification of product? (Chapter 13)
Everything one receives in an exchange, including all tangible and intangible attributes and expected benefits
A good, service, or idea
Consumer product
A product purchased to satisfy personal and family needs
Business (industrial) product
A product bought for resale, for making other products, or for use in a firm’s operations
What are the stages of the product life cycle? (Chapter 13)
Introduction
Customer awareness and acceptance are low
Growth
Sales increase rapidly as the product becomes well known
Maturity
Sales are still increasing but at a slower rate; later in this stage, sales and profits begin to slowly decline
Decline stage
Sales volume decreases sharply and profits continue to fall
How to manage existing products. Chapter 13)
Product modification: quality, functionality, or aesthetic characteristics
Line extensions: development of a product closely related to one or more products in the existing product line but designed specifically to meet somewhat different customer needs
What are the types of brands? (Chapter 13)
Manufacturer (producer) brand
A brand that is owned by a manufacturer
Store (private) brand
A brand that is owned by an individual wholesaler or retailer
Generic brand
A product with no brand at all
What is price skimming and price penetration? (Chapter 13)
Price skimming
Charging the highest possible price for a product during the introduction stage of its life cycle
Penetration pricing
Setting a low price for a new product to quickly build market share and discourage competitors
What is involved in psychological pricing? (Chapter 13)
Odd-number pricing
Setting prices using odd numbers that are slightly below whole-dollar amounts
Multiple-unit pricing
Setting a single price for two or more units
Reference pricing
Pricing a product at a moderate level and positioning it next to a more expensive model or brand
Bundle pricing
Packaging two or more complementary products and selling them for a single price
Everyday low prices (EDLPs)
Setting a low price for products on a consistent basis
Customary pricing
Pricing on the basis of tradition
Promotional Pricing? (Chapter 13)
Price leaders
Products priced below the usual markup, near cost, or below cost
Special-event pricing
Advertised sales or price cutting linked to a holiday, season, or event
Comparison discounting
Setting a price at a specific level and comparing it with a higher price
What is transfer pricing? (Chapter 13)
Prices charged in sales between an organization’s units
What is Discounting? (Chapter 13)
Trade discounts
Discounts offered to intermediaries or middlemen
Quantity discounts
Discounts for large volume purchases
Cash discounts
Discounts for prompt payment
Seasonal discounts
Price reductions for buyers who purchase out of season
Allowances
Price reductions to achieve certain goals such as returning used equipment or increasing sales of a particular item
What are channels of distribution? (Chapter 14)
A sequence of marketing organizations that directs a product from the producer to the ultimate user
Product to consumer (Direct channel) (Chapter 14)
No intermediaries
Used by all services and by a few consumer goods
Producers can control quality and price, do not have to pay for intermediaries, and can be close to their customers
Examples: Dell Computer, Mary Kay Cosmetics
Producer to retailer to consumer
Chapter 14
Producers sell directly to retailers when retailers (Wal-Mart) can buy in large quantities
Most often used for bulky products for which additional handling would increase selling costs, and for perishable or high-fashion products that must reach consumers quickly
Producer to wholesaler to retailer to consumer
Chpt 14
The traditional channel
Used when a producer’s products are carried by so many retailers that the producer cannot deal with them all
Producer to agent to wholesaler to retailer to consumer
Chpt 14
Agent—functional middlemen that do not take title to products and are compensated by commissions paid to the producers
Often used for inexpensive, frequently purchased items, for seasonal products, and by producers that do not have their own sales forces
Producer to business user
Chpt 14
Usually used for heavy machinery, airplanes, major equipment
Allows the producer to provide expert and timely services to customers
Producer to agent middleman to business user
Chpt 14
Usually used for operating supplies, accessory equipment, small tools, standardized parts
Justifications for marketing intermediaries
Chpt 14
Intermediaries perform essential marketing services
Manufacturers would be burdened with additional record keeping and maintaining contact with numerous retailers
Costs for distribution would not decrease and could possibly increase due to the marketing inefficiencies of producers
Wholesalers’ Services to Retailers Chpt 14
Buy in large quantities and then sell in smaller quantities
Deliver goods
Stock in one place a variety of goods
Promote products to retailers
Provide market information for both producers and retailers
Provide financial aid in the form of inventory management, loans, delayed billing
Wholesalers services to manafactuers Chpt 14
Provide instant sales forces to manufacturers
Reduce manufacturers’ inventory costs by purchasing finished goods in sizable quantities
Assume the credit risks associated with selling to retailers
Furnish market information gleaned from the market and customers to the manufacturers
Classes of In-Store Retailers Chpt 14
Catalog showroom
A retail outlet that displays well-known brands and sells them at discount prices through catalogs within the store
Warehouse showroom
A retail facility in a large, low-cost building with large on-premises inventories and minimal service
Convenience store
A small food store that sells a limited variety of products but remains open well beyond normal business hours Supermarket
A large self-service store that sells primarily food and household products
Superstore
A large retail store that carries not only food and nonfood products ordinarily found in supermarkets but also additional product lines
Warehouse club
A large-scale, members-only establishment that combines features of cash-and-carry wholesaling with discount retailing Traditional specialty store
A store that carries a narrow product mix with deep product lines
Off-price retailer
A store that buys manufacturers’ seconds, overruns, returns, and off-season merchandise for resale to consumers at deep discounts
Category killer
A very large specialty store that concentrates on a single product line and competes on the basis of low prices and product availability
Kinds of Nonstore Retailing Chpt 14
A type of retailing whereby consumers purchase products without visiting a store
Direct selling
The marketing of products to ultimate consumers through face-to-face sales presentations at home or in the workplace
Direct marketing
Using computers, telephones, and nonpersonal media to show products to customers, who can then purchase them by mail, telephone, or online Catalog marketing
An organization provides a catalog from which customers make selections and place orders by mail or telephone
Direct-response marketing
A retailer advertises a product and makes it available through mail or telephone orders
Telemarketing
The performance of marketing-related activities by telephone
Planned Shopping Centers
Chpt 14
A self-contained retail facility constructed by independent owners and consisting of various stores
Lifestyle shopping center
Has an open-air configuration and is occupied by upscale national chain specialty stores
Neighborhood shopping center
Comprises several small convenience and specialty stores
Community shopping center
Includes one or two department stores and some specialty stores, along with convenience stores
Regional shopping center
Contains large department stores, numerous specialty stores, restaurants, movie theaters, and sometimes hotels
Physical Distribution Chpt 14
All those activities concerned with the efficient movement of products from the producer to the ultimate user
Inventory management
The process of managing inventories in such a way as to minimize inventory costs, including both holding costs and potential stock-out costs
Holding costs—the costs of storing products until they are purchased or shipped to customers
Stock-out costs—the costs of sales lost when items are not in inventory when needed
Order processing
Activities involved in receiving and filling customers’ purchase orders Warehousing
The set of activities involved in receiving and storing goods and preparing them for reshipment
Receiving goods
Identifying goods
Sorting goods
Dispatching goods to storage
Holding goods
Recalling, picking, and assembling goods
Dispatching shipments
Types of warehouses
Private warehouses—owned and operated by a firm
Public warehouses—offer their services to all firms Materials handling
The physical handling of goods, in warehousing as well as during transportation
Transportation
The shipment of products to customers
Carrier—a firm that offers transportation services
Common carriers—services are available for hire to all shippers
Contract carriers—available for hire by one or several shippers; not available to the general public
Private carriers—owned and operated by the shipper
Freight forwarders—agents who facilitate the transportation process for shippers by handling the details of the process
Railroads—in terms of total freight carried, these are America’s most important mode of transportation