Marketing Principles A. Definitions 1. ABC ABC stands for activity based costing. This is defined as a method which identifies various activities needed to provide a product and determines the cost of these activities. I would say it is a method of breaking down the process of the business’ activity down to its root components. Then the causes of profit losses can be weeded out.
For example, in a warehouse setting in which I worked, there were a few major departments which included receiving, stock dept., pick/pack, and shipping department. Merchandise traveled through the warehouse along this pathway. If say, production (boxes shipped) is down, we can specify the cause using this technique. Instead of just knowing that production is down, we may learn that the receiving dock is backed up , which leads to no merchandise for the stock dept., which results in orders being held up on the flows. Management can then find the cause of the backup in receiving and go from there.
2. ADEA Stands for the Age Discrimination in Employment Act, which, according to text, prohibits age discrimination and mandatory retirement. It was established in 1967. It pretty much explains itself. Basically, there cannot be a maximum age for employees, and termination can not be based solely on age. A good example of this would be a mother returning to the work force.
They may be frowned upon due to their age. I have read somewhere that people over the age of forty are in a protected class, and cannot be discriminated against by virtue of the law. 3. BARS This stands for Behaviorally Anchored Scale. It is defined as a rating technique that relates an employees performance to a specific job related incident. This definition doesn’t really help me. It seems that the procedure is to define certain personality traits that are essential for a certain function, then to rate the prospective employee based on a scale of these trait. For example, someone applying to be a chef would be hired on base on a number of traits, one being prior experience.
A ten on the scale would be something like, “10+ years of experience in a 4 star restaurant”, while a zero would be “no experience”. The employees “worth” could be determined by a composite of all these scales. 4. COBRA Stands for Consolidated Omnibus Budget Reconciliation Act. This is defined as a policy established in 1985 which required continued health coverage (paid by employee) after job termination. This means that health insurers cannot discriminate base on a person’s employment status.
An example would be a victim of a downsized company, forced to work for a company which does not provide health insurance, and so must continue their current plan. 5. E P Stands for Effort yields performance, and is defined as: The degree of expectation that putting effort into a given task will lead to high performance. I would say, “Is it worth all the trouble?” For example, no matter how much effort I put into reading a first edition Crime and Punishment, written in Cyrillic figures, my performance in reading Russian will not improve in the least. However, if I put a good deal of effort in actually learning Russian from the beginning, taking a class or reading a how to book, there is a greater chance that my performance will increase. 6.
EVA Stands for Economic Value Added system. It is defined as a control system that measures after-tax profits minus the cost of capital invested in tangible assets. This , according to text, is intended to capture all the things a company can do to add value from its activities. I would guess that this method roots out all unnecessary assets, as can be shown by increases and decreases in this figure. If a company is buying new real estate every year, this may lead to loss of net profits, if the real estate is purchased carefully.
This fact could be discovered using this method. 7.ERG Theory Defined as a simplification of Maslow’s hierarchy of needs. This theory has three levels; existence, relatedness, and growth. This is a simplification which makes this psychological theory applicable to the business world. The achievement of these needs make for a satisfied worker.
A warehouse worker first want to feel safe and physically comfortable at work (existence), then would like to get along with their fellow employees (relatedness), and finally, would like to know that they are not in a dead end job. If it is 120 degrees in the warehouse, their first need is not met, and therefore no progress will be made. In a comfortable warehouse full of jerks, the worker will still have a ceiling of satisfaction. Finally, even the best environment combined with a dead-end job will make for an unhappy worker. 8. FDA Food and Drug administration, a government agency which approves the safety of food products and drugs as safe for human use. An example of their legislation is the approval of the abortion pill.
Although some may believe it is immoral, the FDA still approved it. This is because they felt it was safe for consumption, which is the ethical decision. The FDA is not influenced by moral issues. 9. GATT General Agreement on Tariff & Trade, which basically mapped out international trade regulation.
The main function is to protect the “little guy” from unfair trade practices. For example, the United States cannot hamper the chances of a third world county in the global economy, by imposing unfair tariffs, etc. This is an attempt to bride the gap between wealthy and poor nations, which evidently hasn’t accomplished much. 10. HMO Stands for health maintenance organization.
I couldn’t find much in the text about this one, although I know that it is the same as health insurers. Their major downfall, it seems, is that they have lost a “human touch”, which is at the root of the medical profession (Hippocratic Oath). For example, possibly an extreme example, a covered person who receives medical service could possibly not be covered because of something like forgetting to cross a “T”. All business. 11.
HR Human Resources, name for employees, or a department of a company which is responsible for recruiting, hiring, and keeping employees happy. They can implement strategies to departments for particular company goals. The functions of the HR dept. at my company which have affected me include hiring me, referring me to my department, orientation, explanation of benefits, and approval of my tuition assistance. 12.
MBO Management by objective, basically setting goals for employees as a means of management. Problems with this method of management is that it does not account for any major changes in the future. In my warehouse work, we were required to maintain a rate of 75 picks per hour. This is a decent environment for this type of management, since there is no major fluctuation in the work. It failed, however, to account that most of its employees couldn’t count to 75.
13. OSHA Occupation safety and health Act, it establishes mandatory safety and health standards in organizations. Basically, creates a safe work environment for employees. At almost any new job, you are required to watch a video about safety with chemicals in the workplace, even if there are no chemicals. Many places in which I have worked have a huge book which contains hazards of many chemicals.
Also, when I used to do house painting, all of our ladders had to be OSHA approved, in order to ensure safety. 14. P O The next step of E P, which means performance yields outcome. Back to my prior example of learning Russian, I ask myself, “Does my increased performance enhance the outcome of my work?” For my current job, the answer is a resounding “no”. But if I were relocated in Russia, my increased performance would lead to greater work outcome.
This seems to be rooted in operant conditioning (Skinner), “If I press this bar (performance), will there be a food pellet (outcome)? 15. SWOT Stands for Strengths, Weaknesses, Opportunities and threats. This is what is searched for in a situation analysis, which is used to determine organization performance. According to the text, this is especially important for companies considering globalization. Personally, I think this type of strategy would be useful for everyday decision making.
These factors, although I didn’t know of this particular strategy, affected my decision to continue my schooling while working full time. I will demonstrate a more detailed example later in the exam. B. 1. The new management paradigm is based in the idea of a learning organization, which all employees are participants in the decision making process.
This is a major diversion from the old paradigm, which is based in a vertical setup, where all of the power sits at the top. In the new paradigm, employees are given access to company information, which results in a more participatory decision making process. This new paradigm is a result of a very rapidly changing, globalizing economy, diversity in the workplace, chaos, and the new speed in which information is moved throughout the world. All of these factors point to the idea of chaos. In the old structure, stability was the main premise of its success.
We are fining now that the non-adaptibilty of these old structures have lead to their downfall. In a learning organization, the structure is very dynamic, due to the input of more employees, and the development of better ideas. All of my jobs have held to the old paradigm. Especially warehouse work, where we are essentially robots, all legislation is from the top down. Suggestions were humored, but never acted upon.
Although the new global economy is pushing major global corporation into the new paradigm, the old paradigm still rings true and is very effective for many smaller, more localized companies, which are still a vital part of our world today. 2. Symbols can be very im …