Module 1: Business Management & Strategy Flashcards Preview

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Flashcards in Module 1: Business Management & Strategy Deck (37)
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0
Q

Decentralization

A

degree to which decision-making authority is given to lower levels in an organization’s hierarchy. Pushing a decision down to its lowest authority level in an organization produces a quick response to problems.

1
Q

Centralization

A

the degree to which decision-making authority is restricted to higher levels of management. When economies of scale are important, a single decision-making authority can best guarantee the consistency of results.

2
Q

strategic planning phases

A

Strategy formulation - vision and mission statements are developed. Organizational values are defined.

Strategy Development - SWOT analysis, long term objectives defined. Strategies to achieve those objectives are defined.

Strategy implementation - Short-term organizational objectives are established. Action plans to achieve those objectives are developed. Resources are allocated, focus on motivating employees to manage the plan.

Strategy Evaluation - Strategies are reviewed. Performance toward objectives is measured. Corrective action is taken.

Think F-DIE

3
Q

Environmental scanning

A

process that involves a systematic survey and interpretation of relevant data to identify external opportunities and threats and to assess how these factors affect the organization currently and how they are likely to affect the organization in the future.

Seven general factors shape the external environment and affect an organization’s success and productivity. HR professionals should consider demographic, economic, employment, international, political, social, and technological factors when conducting an environmental scan.

4
Q

Michael porter

A

According to Michael Porter, there are three potentially successful generic strategies: cost leadership, differentiation, and focus.

5
Q

Balance sheet

A

The balance sheet is a statement of a firm’s financial position: its assets, liabilities, and equity at a particular time. Balance sheets change as each transaction is recorded. Transactions without a definite monetary amount are not placed on a balance sheet.

Assets = liabilities + equity (ALE)

6
Q

Long term objective

A

A long-term objective outlines specific results that an organization seeks to achieve in pursuing its basic mission. This type of objective generally is achieved within a three- to five-year time frame.

7
Q

Roles of HR

A

Administration: focuses on dealing with compliance issues and record keeping, often via human resource information systems (HRIS)

Operations: day-to-day tasks necessary to run an organization - recruiting for current job openings, resolving employee complaints, communicating with employees—that are typically associated with the day-to-day management of people.

Strategic: may involve helping the organization prepare for change, forecasting human capital needs for specialized skills and knowledge that will be required to achieve strategic goals, leading talent management, restructuring the organization, and developing performance management systems that support strategic objectives.

7
Q

Extended organization

A

The businesses remain separate entities but may appear to outsiders as one entity. Extended organizations are commonly formed through the use of outsourcing. The extended organization is becoming more common today as supply chain partners create processes and information channels that allow their organizations to communicate and collaborate fluidly at many different functional points.

8
Q

M&A process

A
  1. Preparation: issue identification, team formation and training, preparation for change
  2. Due diligence: intensive investigation to ensure risks are understood - structural, technological, financial, legal, cultural
  3. Planning integration of the business entities
  4. Implementation, monitoring, and measurement
11
Q

Divestiture

A

Shedding assets or business units that do not contribute to the bottom line

12
Q

“Say on Pay” provision of Dodd-Frank

A

Executive compensation for publicly held financial companies must be reviewed and approved by shareholders at least every three years.

13
Q

Incremental budgeting

A

In incremental budgeting, the prior budget is the basis for funding allocation.

14
Q

Formula-based budgeting

A

In formula budgeting, a specific cost is applied to calculate funding. This method applies an average cost to comparable expenses, and general funding is changed by a specific amount. E.g 5% system wide decrease

15
Q

Zero-based budgeting

A

In zero-based budgeting, budgets start at zero and all expenditures must be justified for each new period—even those that repeat from the prior budget.

16
Q

Span of Control

A

Refers to the number of individuals who report to a supervisor. Narrower spans of control are typically used when tasks are complex, subordinates are poorly trained or inexperienced, or a team effort is required

17
Q

Phases of organizational evolution

A

Introduction: focus-staffing, challenge-leadership, needed-creativity
Growth: focus-staffing and training, challenge-delegation, needed-clear direction
Maturity: focus - compensation, hr planning, training, challenge - bureaucracy, needed - formal systems
Decline: focus - change management, outplacement, cross-training, challenge - change resistance, needed - streamlined decision making, flexibility, small-company thinking

18
Q

Management Functions

A

Planning: forecast/set goals
Organizing: design/assist
Directing: schedule/implement
Controlling: measure

19
Q

Five Project Management Phases

A
  1. Define the problem and gain support
  2. Plan project (responsibilities are interpersonal, informational, decisional)
  3. Implement Project Plan
  4. Monitor, control, adapt
  5. Evaluate outcomes
20
Q

Parts of a business case

A
Statement of the problem
Objectives of solution
Description of potential solutions
Project time line
Project metrics
21
Q

Gantt chart

A

Horizontal bar chart, milestone chart or activity chart. Plots sequential steps of project against time.

22
Q

PERT chart

A

Program Evaluation Review Technique - arrow diagram mapping major events. Shows critical path.

23
Q

Steps in change management process across multiple models

A
  1. Create awareness of need for change
  2. Create vision of where you want to go
  3. Facilitate change
  4. Motivate employees
  5. Incorporate the change into the organizations culture and structures
24
Q

Mission vs. vision statement

A

The mission statement describes who the organization is, what it does, where it’s going and how it’s different from others.

Vision statements are short, inspirational statement of what the organization will accomplish in the future.

25
Q

Balanced scorecard

A
  • aligns business function measures with organizational strategies
  • measures the effectiveness of a department or the entire company
  • considers perspective of all stakeholders

Developing a balanced scorecard involves three steps: planning, designing, and implementing and refining the assessment system.
design phase - an organization identifies critical success factors for implementation and collects and prepares data. Tracking measures are put into place.
Project planning - defining of roles and timelines are tasks that must be accomplished
Implementation and Refining - Performance gaps are identified and monitored

26
Q

4 P’s of the marketing function

A

Product
Price
Placement
Promotion

27
Q

Pocket veto

A

Once Congress forwards a bill, the president has 10 days to sign it. A pocket veto occurs when congress adjourns befor the 10 days are up and the president does not sign it.

If congress submits a bill to the president and stays in session, the bill becomes law if the president does not sign it within 10 days.

28
Q

Corporate Responsibility

A

Trend to define corporate responsibility in terms of sustainability—responsibility to the planet and its people.

29
Q

Whistle-blower protection

A

Tbd

30
Q

HR Budget

A

Tbd

31
Q

Compensation Strategy

A

Defines pay equity both internally and externally

32
Q

Income Statement

A

Compares revenues, expenses, and profits over a specified period of time. (More like a video than a snapshot)

Revenues - expenses = net income

Includes depreciation, gross profit margin & owner withdraws (as distributions, not operating expenses)

33
Q

Cash flow statement

A

Shows how money is flowing into and out of an organization over a defined time period.

Important indicator of organizational health for investors.

34
Q

Equation for Gross Profit Margin

A

Gross Profit / net sales

35
Q

5 concepts of Operations

A

CAPACITY - the ability to yield output. Capacity questions deal with system limitations.
STANDARDS - detailed time estimates
SCHEDULING - act of detailed planning
INVENTORY - asset considered by finance as money tied up
CONTROL - after-the-fact evaluation of the organizations ability to meet its own specifications and it’s customer’s needs

36
Q

HR audit

A

The HR audit rates the extent to which an organization has basic HR activities in place and how well they are being performed. Compliance with legal requirements is a common feature of HR audits. It focuses on HR activities and does not address activities outside the department, such as strategic planning, or individual competencies. It might assess whether an HR function is conducting employee satisfaction surveys but not the level of satisfaction.

37
Q

CFR

A

All rules implementing federal laws are published in the Code of Federal Regulations (cFR). The law itself does not include rules.