Term
| Operations Management (overview pg.411) |
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Definition
1. Productions of goods and services- processes that make it efficient, cost effective, and high quality
2. OM's develop, manage, and coordinate processes, facilities productions lines etc
3. Major function is supply chain management (flow)
4. QUALITY- controlling and maintaining
5. Quality management- statistical process control, quality cost studies, ISO 9000, process re-engineering, outsourcing |
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Term
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Definition
| the development and administration of the activities involved in transforming resources into goods and services |
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Term
| Manufacturing (Production) |
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Definition
| the activities and processes used in making tangible products |
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Term
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Definition
| the activities and processes used in making both tangible and intangible products |
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Term
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Definition
| the resources- such as labor, money, materials, and energy- that are converted into outputs |
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Term
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Definition
| the goods, services, and ideas that result from the conversion of inputs |
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Term
| Transformation related to quality |
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Definition
-Moving from inputs to outputs using equipment, administrative processes, and technology
-OMs control the process by taking measurements, and comparing them to previously established standards
-All adjustments made to create a satisfying product are a part of the transformation process |
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Term
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Definition
| A company wants the value of the outputs to exceed the combined value of all the inputs |
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Term
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Definition
Goods- imperishable, tangible, standardized, purchased THEN used, uniform products, capital intensive, productivity easily measured
Services- perishable, intangible, standardized (quality purposes), performance of service occurs at time of purchase, services are customized, labor intensive, hard to measure productivity |
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Term
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Definition
1) Decide what will be produced for who
2) Determine what processes/facilities will be used to make products
(involves marketing, research, and development) |
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Term
| Operation: Product Planning |
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Definition
-Determining what consumers want and then designing a product to satisfy the want
-Planning involves marketing and engineering/research (costly)
-Also includes designing efficient production and producing a quantity that meets demand |
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Term
| Designing Operations Processes |
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Definition
-Determining the appropriate method of transforming resources into product
3 Types of Manufacturing: Standardization, modular design, or customization |
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Term
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Definition
-the making of identical interchangeable components or products
-Large quantities- cheaper and faster
-Priced lower than custom products
-Speeds up production and quality control
-CONSISTENCY |
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Term
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Definition
-Involves building an item in self-contained units, or modules, that can be combined or interchanged to create different products
-Allows products to be repaired quickly, reducing labor costs
-Parts are expensive, materials costs high |
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Term
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Definition
-making products to meet a particular customer's needs or wants
-Unique
-Used in communication and service products
-Mass customization meets the needs of a large number of individual customers |
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Term
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Definition
-The maximum load that an organizational unit can carry or operate
-Max Capacity can be stated in terms of inputs/outputs
-Short capacity levels can mean unmet demand
-Too high capacity drives up operating costs due to unused resources
-Capacity decisions are long term, costly to change |
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Term
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Definition
-Deciding location
-Design of facility |
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Term
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Definition
-Long term decision
-Factors: proximity to market, materials availability, transportation, power, climate, labor supply, community, taxes |
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Term
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Definition
3 basic layouts:
-Fixed Position Layout
-Process
-Product |
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Term
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Definition
-Layout that brings all resources required to create the product to a central location
-Also called a Project organization |
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Term
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Definition
a company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration
-Usually make a unique product requiring skilled labor and high production costs |
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Term
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Definition
Layout that organizes the transformation process into departments that group related processes
-Sometimes called intermittent organizations |
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Term
| Intermittent Organization |
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Definition
Organizations that deal with products of a lesser magnitude than project organizations
-Products are not unique, but possess a number of differences
-Low level of output leads to high cost per unit |
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Term
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Definition
-Layout requiring that production be broken down into relatively simple tasks assigned to workers, who are usually positioned along an assembly line
-Also known as continuous manufacturing organizations |
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Term
| Continuous Manufacturing Organization |
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Definition
-Companies that use continuously running assembly lines, creating products with many similar characteristics
-Characterized by standardization, large quantities, and low cost of production |
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Term
| Computer-assisted Design (CAD) |
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Definition
| -Design of components, products, and processes on computers instead of on paper |
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Term
| Computer-assisted Manufacturing |
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Definition
| Manufacturing that employs specialized computer systems to actually guide and control the transformation processes |
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Term
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Definition
| -Direction of machinery by computers to adapt to different versions of similar operation |
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Term
| Computer-integrated Manufacturing (CIM) |
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Definition
Complete system that designs products, manages machines and materials, and controls the operation function
-Combining CAD/CAM, flexible manufacturing, robotics, computer systems |
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Term
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Definition
Connecting and integrating all parties or members of the distribution system in order to satisfy customers
-includes all activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging, and getting them to customers
-Purchasing, managing inventory, outsourcing, scheduling |
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Term
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Definition
Buying of all the materials needed by the organization; also called procurement
-Correct quantity at low price, locating suppliers |
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Term
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Definition
| All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses |
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Term
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Definition
| products that are ready for sale |
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Term
| Work-in-progress Inventory |
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Definition
| consists of those products that are partly completed or are in some stage of the transformation process |
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Term
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Definition
| includes all the materials that have been purchased to be used as inputs for making other products |
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Term
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Definition
Process of determining how many supplies and goods are needed and keeping track of quantities on hand, where each item is, and who is responsible for it
-Each item in inventory carries a cost so Inventory managers try to determine the proper inventory level for each item |
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Term
| Economic Order Quantity (EOQ) Model |
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Definition
| Model that identifies the optimum number of items to order to minimize the costs of managing (ordering, storing, and using) them |
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Term
| Just-in-time (JIT) Inventory Management |
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Definition
Technique using smaller quantities of materials that arrive "just in time" for use in the transformation process and therefore require less storage space and other inventory management expense
-Minimizing inventory by providing an almost continuous flow of items
-requires reliable suppliers |
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Term
| Material-Requirements Planning (MRP) |
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Definition
Planning system that schedules the precise quantity of materials needed to make the product.
COMPONENTS
1)master production schedule
2)Bill of materials
3)inventory status file
done on computer |
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Term
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Definition
-Increasingly has become a part of supply chain management
-outsourcing = contracting of manufacturing to independent companies, usually overseas
-Can lead to lower costs |
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Term
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Definition
| sequence of operations through which the product must pass |
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Term
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Definition
| the assignment of required tasks to departments, machines, workers, or teams |
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Term
| Program Evaluation and Review Technique (PERT) |
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Definition
| Scheduling technique in which major activities are identified that are required to be completed for a project. Then they are arranged in sequence or path and then the time required for each task is recorded |
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Term
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Definition
(Scheduling)
path that requires the longest time from start to finish , it determines the minimum amount of time which the process can be completed |
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Term
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Definition
| the processes an organization uses to maintain its established quality standards |
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Term
| Total Quality Management (TQM) |
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Definition
| Philosophy that uniform commitment to quality in all areas of an organization will promote a culture that meets customers' perceptions of quality |
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Term
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Definition
| Quality is free; by contrast not having high-quality goods and services can be very expensive, especially in terms of dissatisfied customers |
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Term
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Definition
| the measuring and evaluating of the quality of the organization's goods, services, or processes as compared with the quality produced by the best performing companies in the industry |
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Term
| Advantage of quality control |
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Definition
-Quality should be viewed as an element of the product rather than as a function of operations
-it eliminates the need to rework defective products, expedites transformation process itself and allows employees to make better use of time and materials |
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Term
| Statistical process control |
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Definition
| a system in which management collects and analyzes information about the production process to pinpoint quality problems in the production system |
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Term
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Definition
| series of quality assurance standards designed by the International Organization for Standardization to ensure consisten product quality under many conditions |
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Term
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Definition
reveals whether a product meets quality standards
-Done on finished items to see what quality level is
-Done on work in progress items as a preventive measure |
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Term
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Definition
Answers the question of how many items should be inspected
-uses statistics |
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Term
| Employee Motivation Key Points (pg 457) |
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Definition
1. There are ethical and economic reasons to treat employees well
2. Productivity has an impact of cost of goods, employee motivation affects productivity
3. Employee motivation comes from intrinsic and extrinsic motives
4. Not all workers are motivated by the same thing
5. Systems of work can be built on assumptions
6. Many consequences of an unmotivated workforce
7. HR managers seek to motivate employees |
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Term
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Definition
| the study of the behavior of individuals and groups in organizational settings |
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Term
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Definition
| inner drive that directs a person's behavior toward goals |
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Term
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Definition
employee's attitude toward his or her job, employees, or colleagues
-Morale boosters include respect, involvement, appreciation, adequate compensation, promotions, pleasant work environment, and positive organizational culture |
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Term
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Definition
| the personal satisfaction and enjoyment that you feel after attaining a goal |
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Term
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Definition
| benefits and or recognition from someone else |
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Term
| Classical theory of motivation |
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Definition
theory suggesting that money is the sole motivator for workers
-Taylor believed that managers should break jobs down into components (specialization) |
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Term
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Definition
| Employees respond to attention received, leading to increased morale |
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Term
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Definition
| theory that arranges the 5 basic needs of people- phsysiological, security, social, esteem, and self actualization- into the order that people try to satisfy them |
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Term
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Definition
| most basic human need to be satisfied- water, food, shelter, etc |
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Term
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Definition
| the meet to protect oneself from physical and economic harm |
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Term
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Definition
| need for love, companionship, and friendship. desire to be accepted by others |
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Term
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Definition
| the need for respect- from self and others |
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Term
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Definition
| the need to be the best one can be |
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Term
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Definition
aspects of Herzberg's theory of motivation that focus on the work setting and not the content of the work; these aspects include:
-adequate wages
-Comfortable and safe work conditions
-fair company policies
-job security |
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Term
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Definition
aspects of Herzberg's theory of motivation that focus on the content of the work itself. Includes:
-Achievement
-Recognition
-Involvement
-Responsibility
-Advancement |
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Term
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Definition
McGregor's traditional view of management whereby it is assumed that workers generally dislike work and must be forced to do their jobs via control and coercion.
-Assumes employees want to be directed
-managers take no input from subordinates
-Does not take into account the need for companionship, esteem, and personal growth |
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Term
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Definition
-Managers assume that workers like to work and that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem and self actualization
-People exercise self direction and self control to achieve objectives
-People seek and accept responsibility
-imagination, ingenuity, and creativity help solve organizational problems
-managers use less control and supervision
-allow subordinates to participate in decision making
-addresses high level needs as well as physio. and security |
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Term
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Definition
management philosophy that stresses employee participation in all aspects of company decision making
-managers and workers share responsibilities, management is participative, employment is long term |
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Term
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Definition
an assumption that how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange
-Inputs (time, effort, skills) vs Output (pay, benefits, recognition) |
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Term
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Definition
| the assumption that motivation depends not only on how much a person wants something but also on how likely he or she is to get it |
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Term
| Behavior modification (Skinner) |
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Definition
changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself
-two consequences modify behavior; reward and punishment |
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Term
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Definition
movement of employees from one job to another in an effort to relieve the boredom often associated with job specialization
-employees fight boredom by learning new skills |
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Term
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Definition
| the addition of more tasks to a job instead instead of treating each task as separate |
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Term
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Definition
| the incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement into a job |
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Term
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Definition
| a program that allows employees to choose their starting and ending times, providing that they are at work during a specific core period |
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Term
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Definition
| a four day (or shorter) workweek during which employees work 40 hours |
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Term
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Definition
| performance of one full-time job by two people on part time hours |
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Term
| Human Resource Management Tools (pg. 477) |
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Definition
1. HR managers must focus on attracting, developing, and maintaining an effective workforce. Also who to hire/fire
2. Job analyses
3. recruiting, internal vs external hires
4. selection methods
5. performance appraisal systems
6. Compensation includes pay and fringe benefits
7. Using money efficiently on training programs
8. employment at will |
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Term
| Human Resource Management (HRM) |
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Definition
| all the activities involved in determining an organization's human resources needs, as well as acquiring, training, and compensating people to fulfill those needs |
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Term
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Definition
| the determination through observation and study, of pertinent information about a job- including specific tasks and necessary abilities, knowledge and skills |
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Term
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Definition
| a formal, written explanation of a specific job, usually including job title, tasks, relationship with other jobs, physical and mental skills required, duties, responsibilities, and working conditions |
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Term
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Definition
| a description of the qualifications necessary for a specific job, in terms of education, experience, and personal and physical characteristics |
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Term
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Definition
forming a pool of qualified applicants from which management can select employees
-Can come from internal and external sources |
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Term
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Definition
the process of collecting information about applicants and using that information to make hiring decisions
1) application
2) interview
3) testing
4) Reference checking |
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Term
| Legal issues in recruiting and selecting |
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Definition
-Title VII of the Civil Rights Act prohibits discrimination in employment and created the Equal Employment
Opportunity Commission to make more jobs for women and minorities by eliminating job discrimination based on race, religion, color, sex, national origin, or handicap
-Equal Pay Act mandates that men and women must receive the same wage |
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Term
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Definition
| familiarizing newly hired employees with fellow workers, company procedures, and the physical properties of the company |
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Term
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Definition
| teaching employees to do specific job tasks through either classroom development or on the job experience |
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Term
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Definition
| training that augments the skills and knowledge of managers and professionals |
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Term
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Definition
-performance appraisal is crucial because it gives employees feedback on how they re doing and what they need to do to improve
-generates information on the quality of the firm's selection, training, and development activities
-objective (numbers) or subjective
-it is vital that results of assessment are shared with employee |
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Term
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Definition
occurs when employees quit or are fired and must be replaced by new employees
-results in lost productivity, costs from to recruit, interview, and train new employees |
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Term
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Definition
| an advancement to a higher-level job with increased authority, responsibility, and pay |
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Term
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Definition
| a move to another job within the company at essentially the same level and wage |
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Term
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Definition
| employment changes involving resignation, retirement, termination, or layoff |
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Term
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Definition
| a study that tells a company how much compensation comparable firms are paying for specific jobs that the firms have in common |
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Term
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Definition
| financial rewards based on the number of hours the employee works or the level of output achieved |
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Term
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Definition
based on hours worked
-disadvantage is that is does not provide incentive to increase productivity
-advantage is easy computation |
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Term
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Definition
wages based on the level of output achieved
-advantage is that they motivate employees to supervise themselves and increase output |
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Term
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Definition
| an incentive system that pays a fixed amount or percentage of the employee's sales |
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Term
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Definition
| a financial reward calculated on a weekly, monthly, or annual basis |
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Term
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Definition
| monetary rewards offered by companies for exceptional performance as incentives to further increase productivity |
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Term
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Definition
| a form of compensation whereby a percentage of company profits is distributed to the employees whose work helped to generate them |
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Term
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Definition
nonfinancial forms of compensation provided to employees, such as pension plans, health insurance, paid vacation, and holidays
-increase employee security and to a certain extent, their morale and motivation |
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Term
| Labor Relations (pg. 497) |
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Definition
1. Unionization still has effects even though the percentage of unionized workers has dropped
2. what happens in the nonunion world is often shaped by what happens in the unionized sector
3. Unionization has changed over time
4. There are many reasons to join unions (increase pay, benefits, power)
5. Unions are declining for many reasons
6. Inions have a lot of effects on management and HR |
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Term
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Definition
| an employee organization that has the main goal of representing member in employee-management bargaining over job-related issues |
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Term
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Definition
| an organization of skilled specialists in a particular craft or trade |
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Term
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Definition
| a type of contract that required employees to agree as a condition of employment not to join a union; was prohibited by the Norris-LaGuardia Act in 1932 |
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Term
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Definition
| the process whereby union and management representatives form a labor-management agreement, or contract, for workers |
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Term
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Definition
-expanded labor's right to collectively bargain, and obligated employers to meet at reasonable times and bargain in good faith with respect to hours, wages, and other terms of employment.
-Established and administrative agency, the National Labor Relations Board |
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Term
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Definition
| the formal process whereby a union is recognized by the NLRB as the bargaining agent for a group of employees |
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Term
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Definition
| the process by which workers take away a union's right to represent them |
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Term
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Definition
70s- additional pay and benefits
80s- job security and union recognition
90s/00s- job security and global competition |
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Term
| Negotiated labor-management agreement (labor contract) |
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Definition
| agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time |
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Term
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Definition
| provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to the union |
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Term
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Definition
| clause in labor-management that specified workers had to be memeber of a union before being hired (Outlawed by Taft-Hartley Act) |
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Term
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Definition
| clause in labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period |
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Term
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Definition
| clause in labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee |
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Term
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Definition
| legislation that gives workers the right, under an open shop, to join or not join a union if it is present |
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Term
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Definition
| agreement in right to work states that gives workers the option to join or not join a union, if one exists in their workplace |
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Term
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Definition
| a charge by employees that management is not abiding by the terms of the negotiated labor-management agreement |
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Term
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Definition
| Union officials who work permanently in an organization and represent employee interests on a daily basis |
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Term
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Definition
| the range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse |
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Term
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Definition
| the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute |
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Term
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Definition
| the agreement to bring in an impartial third party (a single arbitrator or a panel of arbitrators) to render a binding decision in a labor dispute |
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Term
| Managing a Diverse Workforce in a Diverse Workplace (pg. 509) |
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Definition
1. The workforce is becoming increasingly professional and service oriented
2. The workforce is becoming increasingly female, older, and nonwhite
3. Managers need to understand and appreciate the different life experiences and needs of new workers |
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Term
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Definition
the participation of different ages, genders, races, ethnicities, nationalities and abilities in the workplace
-Primary and secondary characteristics |
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Term
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Definition
-Inborn and cannot be changed
age, gender, race, ethnicity, abilities, and sexual orientation |
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Term
| Secondary Characteristics |
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Definition
-Can be changed
work background, income, marital status, military experience, religious beliefs, geographic location, parental status, and education |
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Term
| Benefits of workplace diversity |
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Definition
1. more productive use of company's resources
2. reduced conflict among employee of different ethnicities, races, religions, and sexual orientation as they learn to respect each other's differences
3. more productive working relationships among diverse employees, they learn to accept each other
4. Increased commitment to and sharing of organizational goals
5. increased innovation and creativity as diverse employees bring new, unique perspectives to decision making and problem solving
6. increased ability to serve the needs of an increasingly diverse customer base |
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Term
| Consequences of not valuing diverse workforce |
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Definition
-companies are likely to experience greater conflict, prejudice, and discrimination
-Harm productivity and morale
-Increase turnover |
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Term
| Affirmative action programs |
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Definition
| legally mandated plans that try to increase job opportunities for minority groups by analyzing the current pool of workers, identifying areas where women and minorities are underrepresented, and establishing specific hiring and promotion goals, with target dates, for addressing the discrepancy |
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Term
| Managing Information (pg. 217) |
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Definition
1.Information is a strategic asset- it is used in various business activities
2. BI is an umbrella term- analysis turns data into information
3. Data comes from external and internal sources
4. information must be sorted, processed, and managed
5. the business is faced with complex issues surrounding disaster recovery, stability, security, and privacy
6. Future success in business will increasingly rely on collaboration to access and use information |
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Term
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Definition
| name for business technology in the 70s; included technology that supported an existing business and was primarily used to improve flow on financial information |
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Term
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Definition
| technology that helps companies do business; includes such tools as automated teller machines (ATMs) and voice mail |
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Term
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Definition
| technology that helps companies change business by allowing them to use new methods |
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Term
| Chief Information Officer (CIO) |
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Definition
-finds ways to use technology to boost business by participating in purchasing decisions, operational strategy, and marketing.
-help business use technology to communicate with others while offering better services and lower costs |
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Term
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Definition
| accessibility through technology that allows business to be conducted independent of location |
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Term
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Definition
-What IT became known as in the 00s
-any variety of software applications that analyze an organization's raw data and take out useful insights from it |
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Term
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Definition
-Business process information
-physical world observations
-Biological data
-public data
-data that indicate personal preferences or intentions |
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Term
| Business process information |
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Definition
| includes all transaction data gathered at the point of sale as well as information gained through operations such as enterprise resource planning, supply chain management, and customer relations |
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Term
| Physical world observations |
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Definition
observations that result from the use of radio frequency identification devices (RFID), mini cameras, wireless access, GPS, sensors.
-has to do with where people or items are located and what they're doing |
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Term
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Definition
| forms of identification include fingerprinting, which while not new can now be taken and shared more easily than ever before |
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Term
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Definition
free and accessible
-includes electronic traces that people leave when posting to the internet, sending email, and IM |
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Term
| Data the indicate personal preferences or intentions |
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Definition
| internet shoppers leave a trail of information that can reveal personal likes and dislikes |
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Term
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Definition
overabundance of information
-too much information can confuse issues rather than clarifying them |
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Term
| 4 characteristics of useful information |
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Definition
1. Quality- information is accurate and reliable
2. Completeness- enough information to allow you to make a decision but not too much
3. Timeliness- information must reach managers quickly
4. Relevance- different managers have different information needs |
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Term
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Definition
| store data on a single subject over a specific period of time |
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Term
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Definition
| looking for hidden patterns in a data warehouse |
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Term
| Issues surrounding reliance on information |
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Definition
1) human resource changes
2) security threats
3) privacy concerns
4) stability |
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Term
| Information- human resource issues |
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Definition
-HR managers need to recruit employees who are good with computers
-Telecommuting can lead to feelings of disconnect from workplace
-Electronic communication cannot replace human communication |
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Term
| Information- Security Issues |
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Definition
-Secure information can be stolen by hackers
-Viruses
-Phishing
-Identity and credit card theft |
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Term
| Information- Privacy issues |
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Definition
emails can be snooped, internet history can easily be viewed
-cookies save previously entered information
-spyware can infect computers with viruses and track online behavior |
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Term
| Information- Stability Issues |
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Definition
-Systems can be infected or bugged
-Combination of computer error, human error, malfunctioning software, and an overly complex marriage of software, hardware, and networking equipment |
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