Ch. 2 (MindTap note cards) UWM Bus. Adm 230

Organizational structure
Definition:
Organizational subunits and the way they relate to the overall organization.
net present value
Definition:
A method of evaluating a project is the sum of the present value of the net cash flow for each time period.
cash flow
Definition:
Takes into account all the increases and decreases in cash flow associated with the project.
offshore outsourcing (offshoring)
Definition:
An outsourcing arrangement where the organization providing the service is located in a country different than the firm obtaining the services.
strategic alliance (strategic partnership)
Definition:
An agreement between two or more companies that involves the joint production and distribution of goods and services.
organization
Definition:
A group of people that is structured and managed to meet its mission or set of group goals.
value chain
Definition:
A series (chain) of activities that an organization performs to transform inputs into outputs in such a way that the value of the input is increased.
Supply chain management (SCM)
Definition:
The management of all the activities required to get the right product into the right consumer’s hands in the right quantity at the right time and at the right cost, from acquisition of raw materials through customer delivery; a system that includes planning, executing, and controlling all activities involved in raw material sourcing and procurement, converting raw materials to finished products, and warehousing and delivering finished products to customers.
traditional hierarchical organizational structure
Definition:
An organizational structure in which the hierarchy of decision making and authority flows from the strategic management at the top down to operational management and nonmanagement employees.
flat organizational structure
Definition:
An organizational structure with a reduced number of management layers.
empowerment
Definition:
Giving employees and their managers more responsibility and authority to make decisions, take action, and have more control over their jobs.
matrix organization structure
Definition:
An organization structure in which an individual has two reporting superiors (managers)—one functional and one operational.
project organizational structure
Definition:
A structure focused on major products or services, with program managers responsible for directing one or more projects.
virtual team
Definition:
A group of individuals whose members are distributed geographically, but who work as a coherent unit through the use of information systems technology.
reengineering
Definition:
The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.
continuous improvement
Definition:
Constantly seeking ways to improve business processes and add value to products and services.
culture
Definition:
A set of major understandings and assumptions shared by a group, such as within an ethnic group or a country.
organizational culutre
Definition:
The major understandings and assumptions for a business, corporation, or other organization.
organizational change
Definition:
How for-profit and nonprofit organizations plan for, implement, and handle change.
change model
Definition:
A representation of change theories that identifies the phases of change and the best way to implement them.
Leavitt’s diamond
Definition:
A theory that proposes that every organizational system is made up of four main components—people, tasks, structure, and technology—with an interaction among the four components so that any change in one of these elements will necessitate a change in the other three elements.
Organizational learning
Definition:
The adaptations and adjustments based on experience and ideas over time.
technology acceptance model (TAM)
Definition:
A model that specifies the factors that can lead to better attitudes about an information system, along with higher acceptance and usage of it.
diffusion of innovation theory
Definition:
A theory developed by E.M. Rogers to explain how a new idea or product gains acceptance and diffuses (or spreads) through a specific population or subset of an organization.
quality
Definition:
The ability of a product or service to meet or exceed customer expectations.
Lean enterprise management
Definition:
A philosophy that considers the use of resources for any purpose other than to create value for the customer to be wasteful and therefore a target for elimination.
Total quality management
Definition:
A management approach to long-term organizational success through satisfying customer needs.
Six Sigma
Definition:
A measurement-based strategy to improve processes and reduce variation through completion of Six Sigma projects.
Outsourncing
Definition:
A long-term business arrangement in which a company contracts for services with an outside organization that has expertise in providing a specific function.
offshore outsourcing
Definition:
An outsourcing arrangement where the organization providing the service is located in a country different than the firm obtaining the services.
Downsizing
Definition:
Reducing the number of employees to cut costs.
competitive advantage
Definition:
A significant and ideally long-term benefit to a company over its competition.
five-forces model
Definition:
A widely accepted model that identifies five key factors that can lead to attainment of competitive advantage, including (1) the rivalry among existing competitors, (2) the threat of new entrants, (3) the threat of substitute products and services, (4) the bargaining power of buyers, and (5) the bargaining power of suppliers.
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strategic alliance
Definition:
An agreement between two or more companies that involves the joint production and distribution of goods and services.
time value of money
Definition:
Takes into account the fact that a dollar today is worth more than a dollar paid in the future.
payback period
Definition:
Takes into account all the increases and decreases in cash flow associated with the project.
internal rate of return
Definition:
The rate of return that makes the net present value of all cash flows (benefits and costs) generated by a project equal to zero.
Certification
Definition:
A process for testing skills and knowledge, which results in a statement by the certifying authority that confirms an individual is capable of performing particular tasks.
functional structure
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reengineering (process redesign)
Definition:
The radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results.