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Flashcards in Management Deck (151):
1

management

the process of working with people and resources to accomplish organizational goals

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planning

the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue.

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organization

the management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals

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leading

the management function that involves the managers efforts to stimulate high performance by employees

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controlling

the management function of monitoring performance and making needed changes

6

Managers

attain goals in an efficient and effective manner through planning, organizing, leading and controlling

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organizing activities

attracting people to the organization, specifying job responsibilities, grouping jobs into work units, marshaling and allocating resources, and creating conditions so that people and things work together to achieve maximum success.

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accountability

being responsible for your own actions

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Sole Proprietorship

One person running the business, full personal liability

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Partnership

Two or more people running the business, liability split between the owners

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C-Corporations (Conventional)

Legal entity that acts and has liability, seperate from its owners

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S-Corporations

Looks like a "C-corporation" taxed like a Partnership (personal income of owners)

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Limited Liability Corporation (LLC)

Looks like a C-corporation and taxed as a personal income (Personal asset cannot be taken if bankrupt)

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product

anything offered to the target market to satisfy their needs.

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place

the locations where products are sold and the way they are made available to consumers. also is where conssumers can obtain the product or service

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price

what customers pay and the method of payment. also can support an image of quality, service, or value in addition to spelling out cost.

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promotion

the methods used to communicate information to consumers. also helps to attract new consumers by informing and persuading them.

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target market

a clearly identified group of consumers with very similar needs to whom a company can sell its products.

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marketing mix

a combination of marketing elements designed to meet the needs of the target market.

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marketing

increased our standards of living by understanding our needs and wants and providing us with more choices and better products.

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distribution channel

the path a product travels from product to consumer.

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Basic Accounting Equation

Assets equals Liabilities plus Owner's Equity (A=L+OE)

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Assets

Resources owned by the company and used for some business purpose

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Current Assets

Those assets that typically will be consumed within a year

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Long term assets

Those assets that will not be consumed within a year

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Liabilities

The claims that creditors have against the company

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Current Liabilities

Those liabilities which will be paid within a year

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Long term liabilities

Those liabilities that will not be paid off within a year

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Owner's Equity

The claim that owners (common stockholders, general partners or sole proprietors) have against the company

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Income Statement

Identifies revenues and expenses relating to a company's business activity over a period of time, e.g., January 1, 2008 through December 31, 2008.

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Nepotism

favoritism shown to relatives or close friends by those in power (as by giving them jobs)

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middle management

This level of management includes department heads and district sales managers.

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decision-making role

By making changes in policies or resolving conflicts in the workplace, a manager is working within his or her ____.

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A Theory Y manager is most likely to ____.

assume that all workers are content with their work

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Theory Z

Management theory incorporating Japanese emphasis on collective decision making and concern for employees with American emphasis on individual responsibility is ____.

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Wheeler-Lea Act of 1938

This law guards against false advertising.

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contract

A ____ is an agreement between two parties to carry out a transaction, such as the sale of goods from a seller to buyer.

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Under the Americans with Disabilities Act, companies ____.

cannot fire or refuse to hire people because of certain disabilities and illnesses

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Profit

The difference between what a business earns (revenue) and what it spends (costs) is known as ____.

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China

The largest exporter in the world is ____.

41

Retrenchment

____ strategy is a plan to reverse negative trends in a company, such as the losses in sales.

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Procedure

A detailed series of related steps or tasks written to implement a policy is called a ____.

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corporate strategies

Strategies that deal with the most important aspects of the company's operations and provide overall direction for the company are known as ____.

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a continuous-flow operating system

Because production occurs continuously throughout the year, the 3-M company can best be described as using ____.

45

unity of command

Confusion results if a person reports to two people at once, according to ____.

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delegate the task

When a task is too time consuming for a manager to handle alone, he or she may ____.

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inside board members

Senior company managers who serve on the company's board of directors are known as ____.

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line organization

In a ____ authority originates at the top and moves downward in a line.

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growth through direction state

The company founder is no longer solely responsible for all decision making during the ____.

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chief executive officer

The person who sets the company's objectives is the ____.

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Informal work groups can affect ____.

productivity, the success of the managers, and the morale of the other employees

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Ethics

Principles of right conduct and moral values

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Integrity

Moral or ethical strength; the quality of being honest

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Respect

The instant willingness to show consideration or appreciation

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Self-Esteem

A sense of one's own dignity or worth

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Teamwork

Cooperative effort by the members of a group or team to achieve a common goal

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acquisition

occurs when one business buys all or part of another business

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benchmarking

the process of comparing an organization's products or services and processes with those of another companies

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contingency plans

alternative plans to be implemented if uncontrollable event occur

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functional strategies

strategies developed and implemented by managers in marketing, operations, human resources, finance, and other departments

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grand strategies

an overall corporate strategy for growth, stability, or turnaround and retrenchment, or for some combination of these

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growth strategies

strategies a company can adopt in order to grow: concentration, backward and forward integration, and related and unrelated diversification

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management by objectives (MBO)

the process in which managers and their employees jointly set objectives for the employees, periodically evaluate performance, and reward according to the results

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merger

occurs when two companies form one corporation

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objectives

a statement of what is to be accomplished that is expressed in singular, specific, and measurable terms with a target date

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THE IMPORTANCE OF ETHICAL LEADERSHIP

Management's behavior sets the ethical tone of the firm; attitude of mgmt affects attitude of employees.

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The Principle of Rights

Duty-based ethical standards imply that human beings have basic rights.

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OUTCOME-BASED ETHICS

Utilitarianism: outcome oriented, focuses on the consequences of an action, not on the nature of the action itself or on any set of preestablished moral values or religious beliefs.

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CORPORATE SOCIAL RESPONSIBILITY

the idea that those who run corporations can and should act ethically and be accountable to society for their actions.

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CREATING ETHICAL CODES OF CONDUCT

- Providing ethics training to employees, policies and importance of ethical conduct must be clearly communicated to the employees at the hire stage; some companies hold periodic ethics seminars during which employees can openly discuss any ethical problems they face.

71

Making Ethical Business Decisions: 6 factors:

The law = is the action legal? If dont know find out the legality.
Rules and procedures. = Do only what is consistent with your company's procedures and policies.
3. Values. = laws and internal company policies reinforce society's values.
4. Conscience. = let your conscience be your guide.
5. Promises = live up to the commitments you have made to others, both inside and outside of the business.
6. Heroes = how would your hero act?

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Prime Rate

Non-fluctuating rate that banks use to offer short-term loans of high dollar amounts made up of several interest rates

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Extension

An extra amount of time granted to a party to make a payment

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Business Budget

A tool designed to help managers and owners monitor the profitability of their actions

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Loan

A purchase made with the use of borrowed money requiring a promise to pay it back on an agreed upon schedule.

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Maturity

The length of a loan or the date on which a financial obligation must be repaid

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Interest

This is the charge made by a lending institution which it uses to cover the administrative and operating costs and profit for the institution

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Collateral

Any asset pledged towards the loan balance in case payment cannot be made

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Banking

Any process of transacting business with a financial institution; depositing or withdrawing funds or requesting a loan, etc.

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Line of credit

A limited amount of credit they have authorized you to borrow against with your promise to pay back in the future

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Budgeting

A plan to control income and the advance any type of expenditures

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Investing

commit (money or capital) in order to gain a financial return

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Risk

The variability of returns from an investment

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Net Income

The excess of revenues minus all liabilities in a given time period.

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Balance Sheet

A document which shows the company assets, liabilities and owners' investment as of a specified date

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Depreciation

An allowance made for a loss in value of property over a period of time.

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Philosophy

Statement of beliefs and values that direct behavior, clear concise manner and included in staff handbooks and annual reports.

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Policy

A governing plan for accomplishing goals and objectives. Explain how goals will be achieved. Define the general course and scope of activities. Serve as basis for future decisions, actions and help coordinate plans. Control performance, increase consistency of action. Implied or Expressed.

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Goals

____ help focus attention on what is important and are broader statements than objectives. More quantitative the ____, the more likely its achievement is to receive attention and less likely it is to be distorted. The end or outcome to be accomplished. State actions for achieving the mission and philosophy. Central to whole management process.

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Long-range or strategic planning

Extends 3 to 5 years into the future. Begins with in-depth analysis of internal environment's strengths and weaknesses. Reviews external opportunities and threats so realistic goals can be set

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Short-range or operational planning

Done in conjunction with budgeting. Develops departmental maintenance and improvement goals for the coming year.

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Purpose of Strategic Planning

Leaders need vision that is realistic and feasible. The strategic vision should be clear, cohesive, consistent and flexible. Includes analysis of the agency's internal and external environments (strengths, weaknesses, opportunities, and threats, or SWOT), capabilities, and resources

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Organizational Structure

Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.

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Organizational Chart

Is a drawing that represents every job in the organization and the formal reporting relationships between those jobs.

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Work Specialization

Is the way in which tasks in an organization are divided into separate jobs.

96

Chain of Command

within an organization essentially answers the question "Who reports to whom?"

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Span of Control

Represents how many employees the manager is responsible for in the organization.

98

Matrix Structures

Are a more complex form of organizational design that tries to take advantage of two types of structures at the same time.

99

Restructuring

The process of changing an organization's structure.
-Has a small negative effect on task performance.
-Has a more significant negative effect on organizational commitment.

100

Three reasons nations trade

obtain goods they cannot produce, reflect comparative advantage, and create jobs

101

Exchange Rate

The price of your nation's currency is in terms of another nation's currency

102

Out-sourcing

transferring work to another country

103

World Health Organization (WHO)

Purpose is to direct and coordinate international health work and their goal is to bring the highest level of health to people across the globe

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Supply

How much of the product there is

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Demand

how much the costumers want the product

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Producer

Maker of the item/supply

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Market

The Combination of suppliers and Demande for a product

108

Competition

Two companies that are selling similar products

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franchise

a written contract granting permission to operate a business to sell products and services in a set way

110

mission statement

a short, specific written statement of the reason a business exists and what it wants to achieve.

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goal

a precise statement of results the business expects to achieve.

112

Pure Competition

independent and well informed buyers and sellers of the exact same product (farmers markets)

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Imperfect Competition

market structure that does not meet all conditions of perfect competition, three catagories: monopolistic, oligopoly & monopoly

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Monopolistic Competition

a type of imperfect competition such that competing producers sell products that are differentiated from one another as good but not perfect substitutes (such as from branding, quality, or location). In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.

115

Oligopoly

very few large firms dominate the market such as coke, pepsi, GM, McDonalds

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Collusion

formal agreement to set prices. Sometimes illegal, but is typically secretive

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Price Fixing

a form of collusion, agree to charge the same prices, usually higher than the price set by competition

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Monopoly

one seller of a product - denies people competition and is against the law (They can typically raise prices)

119

Patent

exclusive right to manufacture, sell or use a new invention, prevents someone from stealing and profiting from your invention

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Copyright

protects art and literary work, give authors exclusive right to publish, sell and reproduce their work

121

Sherman Antitrust Act

protected trade and commerce against unlawful restraint or monopolies (1890)

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Clayton Antitrust Act

more specific than the Sherman Antitrust Act, gave the government more power against monopolies

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Federal Trade Commission

helped enforce the Clayton Act, gave the government the power to issue cease and desist orders to stop unfair business practices (1914)

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Robinson-Patman Act

strengthened the Clayton Act and dealt with price discrimination

125

labor

the workforce of a business

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capital

artificial resource made by labor

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opportunity cost

the benefit lost from the next best alternative; what you have to give up, to get what you want or need the most

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methods of finance for an expanding business

private funds, partners/shareholders, bank loans, asset leasing and hire purchase, venture capital/business angels, merger capital, retained profits

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SWOT analysis

S- strengths
W- weaknesses
O- opportunities
T- threats
strengths and weaknesses are internal factors of the company; opportunities and threats are external factors towards the company

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downsizing

creating a flatter organization structure normally cutting out middle management

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responsibility

being accountable or being able to justify an action

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authority

the ability to carry out a task

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job rotation

changing jobs or tasks from time to time

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quality control circles

small groups in the same work area that have scheduled meetings about problems and how to fix them

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empowerment

delegating more power to employees

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forecasting

using relative information to predict how many jobs will be needed

137

Maslow's hierarchy of needs

can't have higher level, or class without the lower level; physiological needs, safety needs, feeling of love and belonging, esteem needs, self-actualization

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theory x

people are lazy

139

theory y

people are internally motivated

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Herzberg's two-factor theory

motivator and hygiene factors need to be met to prevent dissatisfaction

141

organization behavior modification

positive reinforcement, negative reinforcement, punishment

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positive reinforcement

rewarded for good performance; something the employee likes is praised

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negative reinforcement

something that the employee dislikes is taken away

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fringe benefit

payments other than wages or salaries, other benefits

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Autocratic Leadership style

Making decisions without consulting anyone

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Democratic Leadership Style

Managers and workers cooperating as a team

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laissez-faire Leadership style

Lots of leeway to workers to meet goals

148

OSHA

a government agency in the Department of Labor to maintain a safe and healthy work environment

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Affirmative Action

refers to policies that take factors including "race, color, religion, gender, sexual orientation or national origin" into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination.

150

Fair Labor Standards Act (FLSA)

The most sweeping federal law that restricts the employment and abuse of child workers. Child labor provisions are designed to protect the educational opportunities of youth and prohibit their employment in jobs that are detrimental to their health and safety.

151

Variance

2 definitions:
1. Permission granted by a zoning authority to a property owner to allow for a specified violation of the zoning requirements.
Variances are generally granted when compliance is impossible without rendering the property virtually unusable.
2. difference of revenues, costs, and profit from the planned amounts.
One of the most important phases of responsibility accounting is establishing standards in costs, revenues, and profit and establishing performance by comparing actual amounts with the standard amounts. The differences (variances) are calculated for each responsibility center, analyzed, and unfavorable variances are investigated for possible remedial action.