Business Management Class- Mr. Sherpinsky Council Rock School
District
Slide 2
An organization that produces or distributes a good or service
for profit is a business. All businesses engage in 3 Major
Activities: 1. Production (Manufacturing) 2. Marketing (Sales) 3.
Finance (Money)
Slide 3
Production: involves a company making a product or providing a
service for the customer. What do they provide?What types of
companies? Manufacturing companies Service companies Goods
Services
Slide 4
Marketing: deals with how goods or services that are exchanged
between producers and consumers.
Slide 5
Finance deals with all money matters related to running a
business. That could include things like Investments Purchase of
raw materials Purchase of equipment to produce Cost analysis and
comparisons
Slide 6
Manufacturing firms- are businesses that produce goods
(Tangible) Service firms- are businesses that provide assistance to
satisfy specialized needs through skilled workers (Intangible)
Industry-refers to all businesses within a specific category
(examples: auto, medical, music, publishing)
Slide 7
Industrial firm- produce goods that are used by other
businesses or organizations to make things. Commercial firm-firms
engaged in marketing, finance, and furnishing services.
Slide 8
1. Effective 2. Efficient To Compete and Survive!
Slide 9
People are a firms most important asset Finding and retaining
qualified workers is the single most important activity even more
so than finance, technology, product innovation, or international
business
Slide 10
80% of Americans classified as Caucasian. High birth rates
among Hispanics and African Americans coupled with immigration
means huge shifts expected Cyclical Population Changes: 1945-1965:
(Baby boom) 42-65 age group Post-1965: (Baby bust) lowest birth
rates ever Created a shortage of young workers called busters
Businesses must prepare to meet their needs to attract their
workforce
Slide 11
Every year, 1 out of 5 changes address Shift from cities to
suburbs Frost belt (colder northern half) toward Sun belt (warmer
southern half) Factories have moved toward the people Lower wages
than in Rust belt (north central and northeastern states) where
most manufacturing was located
Slide 12
Changes affect businesses as well as individuals and many
issues transfer to work settings Competition for quality employees
is intense
Slide 13
Improving Health and Safety Wellness and fitness program Gym
memberships Employee Assist Programs Family Friendly Practices
Unpaid leave Day care facilities Flexible scheduling Telecommute:
work from home/road
Slide 14
Business Ethics refers to a collection of principles and rules
that define right and wrong for an organization
Slide 15
Code of Ethics refers to a formal, published collection of
values and rules that reflect the firms philosophy and goals
Conduct regarding: Business gifts Privacy Company property
Confidentiality
Slide 16
Social Responsibility refers to the duty of a business to
contribute to the well-being of society Stakeholders are any
individuals or groups that are affected by the firms actions, such
as owners, customers, suppliers, employees, creditors, government,
and the public
Slide 17
Began in the United States in 1860 Just before the Civil War
Period during which a country developed an industrial economy
Before the Industrial Revolution, economy based on agriculture By
the late 1800s, economy depended on industries such as oil, steel,
railroads, and manufactured goods
Slide 18
Many people left their farms to work in factories Professional
managers supervised their work Driving Changes in 3 Major Areas 1.
Technology, 2. Communication 3. Transportation Telegraph and cable
lines extended across the U.S. after the Civil War Railroad lines,
canals, roads, steamships
Slide 19
When most Americans worked on farms, sophisticated management
techniques were not necessary By the end of the nineteenth century,
giant companies employed thousands of people and distributed
products all over the country Workers performed tasks that needed
to be coordinated
Slide 20
Taylor wanted to find ways to motivate workers to work harder
To increase efficiency, he tried to figure one best way to perform
a particular task Used a stopwatch to determine which work method
was most efficient These time and motion studies lead to scientific
management principles
Slide 21
Assumes that people are basically lazy and will avoid working
if they can Managers impose strict rules and make sure that all
important decision are make only by them
Slide 22
Assumes that people find satisfaction in their work Managers
believe that people will work productively if put in the right
environment
Slide 23
Centralization The concentration of power among a few key
decision makers Decentralization Process by which decisions are
made by managers at various levels within an organization
Slide 24
Regulations are rules that the government agencies issue to
implement laws. Businesses spend a lot of time and money making
sure they comply with laws and regulations and do not face unwanted
liability.
Slide 25
Sole proprietorships Owned, operated, & organized by only
one person Partnerships Uniform Partnership Act governs general
partners requires them to by owned by two or more parties and share
in the profits. Two or more persons needed to form Joint owners are
known as partners
Slide 26
Corporations Must comply with more regulations and laws over
the other types of businesses Exists separate from its owners Has
rights just as a person Own property Sue or be sued Etc
Slide 27
Intellectual Property Law: regulates how business can protect
inventions and new products. Protects something of value to the
business
Slide 28
Businesses are protected by intellectual property laws Patents
Document issued by the federal government to inventors and
companies that gives them the exclusive rights to make, use, and
sell their inventions for 17 years.
Slide 29
Trademarks Word, name, symbol or slogan a business uses to
identify its own goods and set them apart from others. Good for ten
(10) years. Copyrights Protection provided for a creative work,
such as literary works, musical compositions, plays, dances,
paintings, movies, maps, and computer programs. Good for the
holders life plus 70 years.
Slide 30
Regulate the relationship between companies and their workers
and gives workers significant rights and benefits. Equal Employment
Opportunity (EEO) laws Title VII Age Discrimination Act American
with Disabilities Act Workers Compensation Act
Slide 31
Title VII of the Civil Rights Act of 1964 Companies cannot
discriminate against an employee because of race, color, religion,
sex, or national origin. EEOC can sue a company that discriminates
against an employee.
Slide 32
Age Discrimination in Employment Act Also known as the ADEA Act
Protects workers 40-70 years of age.
Slide 33
Americans with Disabilities Act (ADA) Cannot discriminate based
on disabilities and illnesses (blindness or diabetes) Must provide
reasonable accommodations
Slide 34
Workers compensation If you sustain a job injury or a
work-related illness, the Pennsylvania Workers Compensation Act
(Act) provides for your medical expenses and, in the event you are
unable to work, wage-loss compensation benefits until youre able to
go back to work. Additionally, death benefits for work-related
deaths are paid to your dependent survivors.
Slide 35
Human Resources Also know as (HR) The department that recruits
employees, manages training and compensation, and plans for future
personnel
Slide 36
Four Major Steps: 1. Preliminary Screening 2. Testing 3.
Employment Interview 4. Personal Judgment
Slide 37
Employment interviewing Structured Interview Pre-prepared list
of questions Provides uniform information for each applicant
Unstructured Interview A conversation between employer and
applicant in a relaxed environment Ask open-ended questions
Slide 38
Employment interviewing First Impressions on personal
attributes can be taken into consideration Halo Effect Single
characteristic dominates the interviewers impression of the
applicant (I.E.) - Pleasant Personality dominates the perception of
the applicant and other concerns are overlooked Doesnt indicate if
the candidate is qualified
Slide 39
On-the-Job Training Employee works and trains under close
supervision until he or she understands the task and performs it
correctly Job Rotation Perform each job for a fixed period Allows
employee to master many skills Cross-Training: a form of on-the-
job training that exposes employees to several jobs within an
organization for shorter period of time
Slide 40
Vestibule Training Training area is set up with equipment
similar to that used in the actual job Employees learn and practice
in a simulated work environment Used to train cashiers, bank
tellers, clerks, and technicians
Slide 41
Apprenticeship Training Time-tested form of on-the-job training
Experienced worker (mentor) passes on skills to an assistant
Skilled occupations Carpentry Mechanics Physicians
Slide 42
Classroom Training Presents general information about the
organization, rules, safety, and job concepts in a classroom
setting Lectures, Q & R, Open Discussion Allows for information
to be shared with large groups at low cost
Slide 43
Computer-based Training Internet training in the classroom or
on an individual basis, contributes to employee development at a
low cost View material at computer workstations and answer
questions at their own pace
Slide 44
Essay Appraisal Manager describes the employees performance in
a written narrative Writing Skills are necessary May be subjective
and difficult to defend against accusations of unfairness
Slide 45
Critical-Incident Appraisal Manager records specific situations
that reflect the employees performance, behavior, and attitudes on
the job Used as a basis for appraisal and feedback Produces large
volume of material and recording is time-consuming Problems of
subjectivity based on the likeability of the employee by the
supervisor
Slide 46
An appraisal system that is fair and legal should: Be based on
Job Descriptions Emphasize performance rather than personal traits
Communicate appraisal results to employees Be consistent
Slide 47
The management, control, and prevention of exposure to internal
or external risks
