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business
chapter 8, 6, 9,10
178
Business
Undergraduate 1
03/22/2013

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Cards

Term
human resource management (HRM)
Definition
the organizational function that deals with the people in the business (executives and managers plus frontline production, sales, and administratives staff)
Term

The functions of HRM 

(6 functions 

Definition
  1. Planning for stafffing needs 
  2. recruiting and hiring 
  3. training and motivating 
  4. evaluating 
  5. compensating 
  6. terminating and repositioning 
Term
External Recruitment
Definition
  1. word of mouth 
  2. trade shows 
  3. employment agencies 
  4. headhunters
  5. newpapers
  6. industry-specific magazines 
  7. hiring from competition 
  8. virtual job markets 
  9. internet job/ networking sites 
  10. college career fairs/ offices
Term

The hiring process 

(6 steps) 

Definition
  1. determine initial pool of condidates from applicant files 
  2. conduct inital and follow- up interviews 
  3. test for specific job skills 
  4. conduct background and reference checks 
  5. make final seclection 
  6. hire and monitor through probationary or trial period
Term

federal equal employment opportunity 

(legalities to be considered when hiring) 

Definition

(EEOC) 

works to ensure equality of opportunity by enforcing federal legislation prohibiting discrimination in employment.  

Term

The civil Rights Act of 1964 

(legalities to be considered when hiring) 

Definition
prohibits discrimination based on race, color, gender, religion and national origin.
Term

Americans with Disabilities Act 

(legalities to be considered when hiring) 

Definition

prohinits discrimination based on disabilities and also have to make reasonable accomodations 

(provide wheelchair, interpreters, etc.) 

Term

Age Discrimination in Employment Act 

(legalities to be considered when hiring) 

Definition
1967- makes it unlawful to discriminate against a person bc of his or her age with respect to employment
Term
orientation program
Definition
used to integrate a new employee into the company.
Term
on-the-job-training
Definition

employees learn skills by performing them.  

(EX: training and certification programs to become a pharmacy technician) 

Term
apprentice training program
Definition
trains individuals through classroom or gormal instruction and on-the-job traing
Term
prgrammed learning approach
Definition

employee is asked to perform step-by-step instructions or respond to questions.  

(computerized multiple choice tests that provide immediate feedback) 

Term
simulation training (or vistibule training)
Definition

provides realistic job-task training in a manner that is challenging but does not create the threat of failure.  

(suitable for airline pilots, astronauts, etc) 

Term
electronic performance support systems
Definition
another form of training technolofy that provide employees with information, advice and training when they need it, automatically so they can accomplish specific tasks quickly.
Term

management devolpment programs 

(coaching/understudy program & job rotation)  

Definition

prepare management-trainees to become managers within an organization.  

  • job rotation- employees rotate through different departments to learn firsthand various aspects of the business. 
  • coaching/understudy program - employee works directly with senior management in planning and other mangerial functions 
Term

mentors 

 

Definition
experienced individuals who help a less experienced person by explaining how to perform specific tasks, creating opportunities to learn new skills and counseling about hte consequences of actions and decisions
Term
performance appraisals
Definition
an evaluation of an employees's performance that give feedback about how well an employee is doing as well as where changes and improvements are needed
Term
performance management
Definition
an approach that combines goal setting, performance appraisals and training and development into a unified and ongoing process.
Term

compensation 

salaries 

wages 

Definition
payment for work performed is generally offered through direct financial payments in the form of fixed salaries (annual pay for a specific job) or wages (payments for hourly work).
Term
incentive-based payment
Definition
structure that has a lower base salary enhanced with commissions, compensation motivates employees to perform at their best.
Term
bonuses
Definition
compensation based on total corporate profits, help tie employees efforts to the company's bottom line.
Term
401(k) plan
Definition
a defined contribution plan in which pretax dollars are invested in a bundle of investments that are generally managed by an outside investment company.
Term

pension plan 

& two types 

Definition

are programs that provide income to individuals in their retirement 

  1. defined benefit plans 
  2. defined contribution plans 
Term
defined benefit plans
Definition
employees know ahead of time how much pension they will recieve and when they retire. (not popular with employers)
Term
defined contribution plans
Definition
specify the annual amount employees will contribute to their pension plan through payroll deductions.  Amount recieved depends on the amount contributed and the fund's investment earnings.
Term
profit sharing plan
Definition
used for a range of different types of compensation options.  If company hits certain profit targets then there is a bonus structure for employees.
Term
stock option agreements
Definition
allow an employee to purchase a specific number of shares of stock at a specific price but only at a specific point in time.
Term
employee stock purchase plans
Definition

allow employees to buy company stock at a discont (usually at 85 percent of market value) 

(usually limited to 10 percent of their total salery) 

Term
employee stock ownership plans (ESOPs)
Definition
use a company's pension plan for employees to invest in company stock, effecetively giving employees significant ownership in a company.
Term

employee benefits

(noncash forms compensation) 

Definition

indirect financial and nonfinancial payments an employer offers that supplement cash compensation.  

(EX: health and disability insurance, vacation, and sick pay) 

Term

flexible benefit plan (or cafeteria plan) 

(noncash forms compensation) 

Definition
permit an employee to pick from a menu of several choices of taxable and nontaxable forms of compensatioin.  They can choose what is most important to them.
Term

work/life benefits

(noncash forms compensation) 

Definition

benefits that help an employee achieve a balance between the demands of life booth inside and outside the workplace.  

(EX: flexible schedules, relaxed atmospheres, and cild care and fitness programs) 

Term
domestic-partner benefits
Definition
provide for an employee's unmarried partner of the same or opposite sex.
Term
paternity and adoption benefit
Definition
allow time off for new fathers and reimbursement and paid leave for adoption
Term

alternative scheduling plans (flextime) 

 

Definition
management defines a total number of required hours as a core workday and is flexible with the starting and ending times.
Term
permanent part-time
Definition
hired on a permanent basis to work a part-time week.
Term
job sharing
Definition
an arrangement in which two employees work part-time to share on full-time job.
Term
compressec workweek
Definition
allows employes to work four 10-hour days instead of five 8 hour days each week or 9 days instead of 10 in a two-week schedule for 80 hours.
Term
telecommuting
Definition
allows employees to work in the office part-time and work from home part-time or work completely from home, making only occasional visits to the office.
Term
contingent workers
Definition
peple who are hired on an as-needed basis and lack status as regular, full-time employees.
Term
independent contractors and consultants
Definition

another form of contingent workers who are generally self-employed.   

(EX: stae of the art construction, financial activities and professional and business services) 

Term
terminations
Definition
the act of permanently laying off workers due to poor performance or a discontinued need for their services.
Term
employment at will
Definition
a legal doctrine that states that an employer can fire an employee for any reason at any time.
Term
retirement
Definition
the point in one's life where one stops participating full-time in career.
Term
work buyouts (or golden pruchases)
Definition
used to encourage older workers to retire, companies have offered financial incentives
Term
what makes the workplace so diverse?
Definition
  1. technology advancements
  2. more women in the workforce 
Term
affirmative action
Definition
requirment by filling positions with a certain number of wormen, Hispanics, or African Americans.
Term
diversity training
Definition
provided for employees to learn how to deal and interact with the different cultures.
Term
strike
Definition
occurs when workers agree to stop work until certain demands are met.
Term
labor union
Definition
alegally recognized group dedicated to protecting the interests of workers.
Term
American Federation of Labor (AFL)
Definition
1866- to protect skilled workers and the industrial workers of the world (1905- found to represent mainly unskilled workers.
Term
Congress of Industrial Organizations (CIO)
Definition
1935- to represent entire industries rather than specific workers groups.  Split from the AFL into its own organization.  -- later reunited to form the AFL-CIO
Term
bargaining unit
Definition
a group o employees that negotiates with an employer for better working conditions or pay.  when in a union they pay membership dues.
Term
union locals
Definition
created by workers of the same industry, company, region or business sector so that unions can better represent specific interests
Term
collective bargaining process
Definition
Is the result of such negotiations and it forces an employer to abide by the conditions specified in the agreement.
Term
mediation
Definition
a second means to settle the dispute.  is a process that involves a neutral third party that assists the two parties both privately and collectively to identify issues and develop proposals for resolution.
Term
arbitration
Definition
a dispute is sent to an arbitrator for a decision-- they hear both sides of a dispute and the parties involved agree in advance that the arbitrators decision is final.
Term
boycott & lockout & pickett & strikebreakers
Definition
  1. boycott: supporters refuse to buy or handle a company's products or services. 
  2. lockout: management refuses to allow union members to enter the premses.  
  3. picket: workers walk outside a company's entrances with signs that reflect the employees' grievances.
  4. strikebreakers (or scabs): hired replacement personell for those that are fired or replaced.  
Term
Information Technology (IT) 
Definition
is the deisgn and implementation of computer-based information systems
Term
chief information officer (CIO) 
Definition
the person responsible for such technology and is typically a position at the same level as CFO of a firm
Term

roles of the IT department 

(3 roles) 

Definition
  • selecting the appropiate software programs 
  • providing employees with training 
  • keeps equiptment operational and current 
Term
information system (IS) or a management information system (MIS) 
Definition
is focused on applying IT to solves business and economic problems.  (bridge the gap between purely technical knowledge and how it will impact a business)
Term
data vs. information
Definition

data = the representations of a fact or idea, number, a word, image, or sound 

information = data that have been organized or arranged in a way that makes the data useful.  

Term
decision support system (DSS) 
Definition
a software system that enables companies to analyze collected data so they can predict the impact of business decisions.
Term
executive information system (EIS) 
Definition

software system that is specially designed for the needs of mangement.  

(often uses spreadsheets and shows one department or product at a time) 

Term
business intelligence software 
Definition
assist managers in reporting, planning, and forecasting workforce performance.
Term
database management systems (DBMSs) 
Definition
collections of tables of data that organize the data and allow simple analysis and reporting.
Term
data warehouses 
Definition
can hold terabytes of transactions of data
Term
data marts 
Definition
smaller data sets
Term
data mining 
Definition
the process of exploring and analyzing the data mart to uncover data relationships and data patterns that help the business.
Term
spreadsheet programs 
Definition
can run hundreds of different statistical and financial functions with no programming required.
Term
database programs 
Definition

allow businesses to quickly enter data, filter and sort information and generate reports.  

(EX: customer surveys or time cards) 

Term
online analysis packages (OLAP)
Definition
software application that enables very quick analysis of combinations of different business factors
Term
VoLip 
Definition
voice over internet protocol -- lets users check their voicemail messages from any internet browser
Term
remote conferencing 
Definition
allows many people to join a common discussion regardless of their physical location.
Term
network
Definition
a set of computers and other devices joined together using cables,and wireless connections.
Term
intranet 
Definition
a network that is accessible only to employees or others with authorization
Term
extranet
Definition
an intranet that is partially accessible to authorized outsiders
Term
local area networks (LANs) 
Definition
network that include only machines in close physical proximity to one another, such as the computers in one office building.
Term
wireless LAN
Definition
connected wirelessly instead of with cables
Term
wi-fi hotspots 
Definition
places where access to a wireless LAN is available
Term
wide-area network (WAN)
Definition
collection of LANs can be joined into one network.
Term
virtual private networks (VPNs) 
Definition
may connect some of its systems by cables that the company owns but other sections of the network will be joined using the public internet.
Term
internet2 
Definition
a network of networks that can communicate at speeds of hundred to a thousand times faster than the original internet
Term
World Wide Web (WWW) 
Definition
a way of accessing information available on the internet
Term

Hypertext transfer protocol (HTTP) 

& protocols 

Definition

to send data between system.  

& Protocols: the different languages that are used to transfer information across the internet.  

Term
cloud computing 
Definition

refers to the sharing of information, resources and software over the internet and is another new trend in business technology.  

(makes businesses more agile and efficient) 

Term
green computing 
Definition
the careful monitoring of power consumption and other environmental inpacts of computing devices.
Term
telecommuting 
Definition
also reducing business traffic and office energy needs and is contributing to a more environment friendly, greener business landscape.
Term
electronic monitoring 
Definition
commonly used to track employees' keystrokes and emails. examine their internet browsing histories and monitor their cell phones.
Term
Hackers 
Definition
individuals who gain unauthorized entry into a computer system
Term
cookies 
Definition
small text files written to a user's hard idsk that track customer preferences and Web click or they store previous responses to onlin forms.
Term
offshoring 
Definition
the relocation by a company of a business process from the U.S to another nation.
Term
near-shoring 
Definition

a form of offshoring in which a company moves jobs to a foreign location that is geogrpahically close or linguistically and cultually similar to the domestic country.  

(EX: Canada, UK, Australia) 

Term
outsourcing 
Definition

takes place when a company contracts with an outside firm to handle a specific part of its daily business activities.  

(EX: includes a real estate company hiring a graphic design firm to create a special layout for a sales brochure) 

Term
Ethics
Definition
is the study of the general nature of morals and the specific moral choices a person makes.  (the guidelines for everyday decisions)
Term
moral relativism
Definition
a perspective that holds that there is no universal moral truth; there are only people's individual beliefs, perspectives and values.
Term
situational ethics
Definition
people make decisions based on a specific situation instead of universal laws.
Term
Judeo-Christian ethics
Definition

the common set of basic values shared across both jewish and Chrisitan religious traditions.  

(respect properties, relationships, and being kind to others) 

Term
unethical behaviors
Definition
behavior that does not conform to a set of approved standards of social or professional behavior
Term
amoral behavior
Definition
a person has no sense of right and wrong and no interest in the moral consequences of his or her actions.
Term
personal ethics
Definition
the principles that guide the decisions you make in  your life.
Term
price fixing
Definition
occurs when a group of companies agree amoung themselves to set a products prices, independent of the markets demand or supply.
Term
Code of Ethics
Definition
a statement of their commitment to certain ethical practices.
Term
mission statement
Definition
defines the core purpose of the organization - why it exists.
Term

corportate social responsibility 

& its five major areas 

Definition

a company's obligation to conduct its activites with the aim of achieving social, environmental, and economic development.  

  1. human rights and employment 
  2. ethical sourcing and procurement 
  3. marketing and consumer issues 
  4. environmental, health, and saftey concerns 
  5. community and good neighbor policies
Term

reasons for rise in globalization

(2 reasons) 

Definition
  1.  decline in trade and investment barriers (taxes & tarrifs) 
  2. technological innovations 
Term
World Trade Organization (WTO)
Definition

152 members 

arbitrates global trade disputes, has power to enforce decisions 

Term
Trade deficit & surplus
Definition

deficit: the value of imports exceedsthe value of its exports 

surplus: "vice versa" 

Term
Human Rights and employment standards in the workplace.
Definition
concerns afect the world outside the office in both local and global communites.
Term
social audit
Definition
a study of how well a compnay is meeting its social responsibilities.
Term
corportate philanthropy
Definition
donating some of their progits or resources to charitable organizations
Term
socially responsible investing (SRI)
Definition
investing only in companies that have met a certain standard of CSR
Term
legal regulations
Definition
the specific laws governing the products or processes of a specific industry.
Term
consumer Bill of Rights
Definition

** made the ethical standards legal rights.** 

  1. the right to saftey 
  2. the right to choose
  3. the right to information 
  4. the right to be heard.   
Term
legal compliance
Definition
refers to conducting a business within the boundaries of all the legal regulations of that industry
Term
respect
Definition
mutual respect with communites and stakeholders affected by the company's operations
Term
integrity
Definition
examining the impacts, positive and negative, of the business on the environment and society and integrating human health, social, and environmental considerations into the company's management and value system.
Term
excellence
Definition
continuing to improve performance and encouraging business partners and suppliers to adhere to same standards
Term
whistle-blower
Definition
an employee who reports misconduct most often to an authority outside the firm.
Term

how firms create business by acting ethically? 

(4 ways) 

Definition
  1. offering clean fuel 
  2. creating medical vaccines 
  3. fighting censorship 
Term
sustainability
Definition
the process of working to improve the quality of life in ways that simultaneously protect and enhance the earth's life support system.
Term
ethics training programs
Definition
designed to boost the awareness of their employees about ethical issues.
Term
importing and exporting
Definition
buying products from other countries or selling domestically produced products to other countries
Term
globalization
Definition
the movement toward a more interconnected and interdependent world economy, may be one of the most profound factors affecing people in the U.S and around the globe.
Term
globalization of markets
Definition
refers to the movement away from thinking of the market as being the local market or the national market to thinking of the market as being the entire world.
Term
globalization of production
Definition
the rend of individual firms moving production to different locations around the globe to take advantage of lower costs or enhance quality.
Term
foreign direct investment
Definition
the purchasing of property and businesses in foreign nations
Term
multinational enterprises
Definition
businesses that maufacture and market products in two or more countries.
Term
comparative advantage
Definition
states that specialization and trade between countries benefit all who are involved.  suggests that a country should sell to other countries the goods that it manufactuers most efficiently and effetively and buy from other countries the goods it cannot manufacture as efficiently.
Term
absolute advantage
Definition
which is the ability to produce more of a good or serivce than any other country.
Term
infrastructure
Definition
includes roads, bridges, dams, electric grid lines, and telecommunication satellites that enhance productivity
Term
Free Trade
Definition

refers to the unencumbred flow of goods and services across national borders.  

(free from government intervention or other impediments that can block the flow of goods across borders) 

Term
Three types of trade barriers:
Definition
  1. tariffs and subsidies 
  2. quotas and embargoes 
  3. adminstrative trade barriers 
Term
tariff
Definition
a tax imposed on an imported good or service, such as French wine
Term
subsidy
Definition
governments make payments to domestic producers, such as CA wine growers.
Term
quota
Definition

a limitation on the amount of an import allowed to enter a country

(EX: quota on French Wine might limit the quantity to 10,000 cases per day.) 

Term
embargo
Definition

a total restriction on an import (or export) 

(EX: U.S has an embargo with most goods from Cuba) 

Term
adminstrative trade barriers
Definition
government rules designed to limit imports
Term

local content requirement 

(adminstrative trade barriers) 

Definition
a requirement that some portion of a good be produced domestically. Usually drives up the cost of an import
Term
Who benefits and who suffers from tade barriers?
Definition

benefit: domestic producers and their workers (drives up domestic sales

--more profitability creates job security for employees

 

hurts: domestic consumers (drives up pricess) 

-- the overall quanity, variety and quality of products are lower as a result of curtailing foreign competition) 

Term
4 things in favor of protectionist trade barries?
Definition
  1. national security 
  2. infant-industry 
  3. cheap foreign labor 
  4. threat of retaliation 
Term
national security arguement
Definition
states that certain industries critical to national security should be protected from foreign competition.
Term
infant-industry argument
Definition
states taht an undeveloped domestic industry needs time to grow and devlop to acquire a comparative advantage in the global economy.
Term
cheap foreign labor argument
Definition
centers on lower wages paid to workers of foreign companies.
Term
threat of retaliation
Definition
says that if a trading partner increases its trade barriers on our xports or fails to reduce
Term
dumping
Definition
refers to selling aproduct a price below the price charged in the producing country; it is illegal and can be difficult tp prove.
Term
economic benefits of free trade
Definition
greate quantity and variety o higher quality products at a lower price
Term
economic costs of free trade
Definition
reduced sales and lower prices for domestic firms that find it difficult to compete internationally, which reduces their profitability and lowers job security
Term
economic benefits for protectionism
Definition
increased sales at higher prices improves the profitability of protected domestic companies, creating greater job security for their workers.
Term
economic costs for protectionism
Definition
lower quantity and variety of lower-quality products at higher prices
Term
General Agreement on Tariffs (GATT)
Definition
created with 23 member nations and negotiated to reduce tariffs and other obstacles to free reade on goods..
Term
World Trade Organization (WTO)
Definition
replaced GATT and increased protection for intellectual property rights and takes responsibility for arbitrating trade disputes and monitoring the trade policies of member countries.
Term
free trade areas
Definition
compacts abolishing trade barriers amoung member countries.
Term
North American Free Trade Agreement (NAFTA)
Definition
ongoing agreement to move the U.S, Mexico and Canada closer to true free trade.
Term
Global Strategy
Definition

to sell a standardized product across the globe.   

(EX: agricultural products, oil, raw material commodities)

** low prices **  

Term
Multidomestic strategy
Definition

customize or differentiate their products to meet unique local needs, taste, or preferences 

** important whether product meets their needs or is distinct from a competitor's product** 

Term
transnational strategy
Definition
offer a customized product whil simultaneously selling it at the lowest possible price.
Term
exporting
Definition

the sale of domestically produced good in a foriegn market 

Advantages: speed of entry and prodcution site in lowest-cost location 

Disadvantages: high transportation costs and threat of trade barriers such as tariffs. 

Term
turnkey project
Definition

When firms export their technoligical know-how in exchange for a fee.  Common in the production of sophisticated and complex manufacturing facilities, such as those involved in steel, and hydroelectric engery production

Advantages: increased profits for high-tech firms 

Disadvantages: loss of technical know-how to potential competitors 

Term
Franchising
Definition

involves selling a well-known brand name or a proven method of doing business to an investor in exchange for a fee and a percentage of sales or profits.  

Advantages: costs and risks of opening the foreign market fall on the franchise 

Disadvantages: difficulty in maintaining quality control over distant franchises 

Term
licensing
Definition

an agreement in which the licensor's intabgible property - patents, trademarks or trade secrets may be sold or made available to a licensee in exchange for a royalty fee.

Advantages: speed of entry 

Disadvantages: licensee may become competitor and loss of knowledge to potential competitor

Term
Joint ventures
Definition

involve shared ownership in a subsidairy firm.

Advantage:  gaining local knowledge of the economic, social and political landscape while sharing the costs and risks of accessing a foreign market and high potential for learning 

 

Disadvantage: losing contol over a company because compromise with partner is inevitable. 

Term
strategic alliances
Definition

cooperative arrangements between actual or potential competitors.  Each partner retains it's business independence.  

Advantages: pooled talents and expertise and shared costs and risks 

Disadvantages: risk of losing specialized technology to partner 

Term
contract manufacturing
Definition

occurs when a firm subcontracts part or all of its goods to an outside firm as an alternative to owning and operating its own production facility.  

Advantages: speed of entry and Low test-marketing costs 

Disadvantages:lack of quality control over distant subcontractor 

Term
wholly owned subsidiary
Definition

involves establishing a foreign facility that is owned entirely by the investing firm 

Advantages: total control over all operations & preservation of proprietary technology 

Disadvantage: risks and costs of entering foreign market 

Term
exchange rates
Definition

the rates at which currencies areconverted into another currency 

(EX: U.S prefers a weak dollar bc their products will be more affordable to foreigners.) 

Term
currency appreciation
Definition
an increase in the exchange rate value of a nation's currency causes the relative price of imports to fall as the relative price of exports rises.
Term
currency depreciation
Definition
a decrease in the exchange rate value of a nation's currency, has the opposite effect on the relative prices of exports and imports
Term
trade defecits
Definition

exists when the value of a country's imports exceeds the value of its exports 

(EX: stronger dollar create a trade deficit for US bc a strong dollar can cause export prices to rise as import prices fall) 

Term
trade surplus
Definition
occurs when the value of a country's exports exceeds the value of its imports.
Term
sovereign wealth funds (SWFs)
Definition
government investment funds that are managed separately from the official currency reserves of the country.
Term
freely floating exchange rate system
Definition
system in which the global supply and demand for currencies determines exchange rates.
Term
nonconvertible currency
Definition
a currency that can't be concerted into anoter currency in the foriegn exchange market.
Term
capital flight
Definition
the transfer of domestic funds into a foeign currency held outside the country.
Term
countertrade
Definition
a form of international barter and swapping goods and services for other goods and services.
Term
unit labor costs
Definition
a measure that divides a worker's wages by the average productivity of that worker.
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