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Accounting Quick Reference Glossary

Decision Support Systems Glossary

Glossary of Quality Improvement Terms

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Glossary of Quality Management Terms

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Managerial Accounting Glossary

OLAP and OLAP Server Definitions

activation

The employment of a nonconstraint resource for the sake of keeping busy unrelated to whether it is useful in supporting system throughput.

 

affirmative action

A hiring policy that requires employers to analyze the work force for under-representation of protected classes. It involves recruiting minorities and members of protected classes, changing management attitudes or prejudices towards them, removing discriminatory employment practices, and giving preferred treatment to protected classes.

 

analytic workplace design

Design based on established physical and behavioral concepts, including the known working habits of people. Produces a workplace environment well within the range of human capacity and does not generally require modification or improvement.

 

assessing

The process of conducting In Process Reviews (IPRs) and After Action Reviews (AARs). IPRs help to determine initial expectations, ascertain strengths and weakness of both employees and the organization, and identify key issues and organizations whose willing support is needed to accomplish the mission. AARs determine how well the goals are being accomplished, usually by identifying areas to sustain and improve.

 

attributes

Characteristics or qualities or properties. Attributes of the leader fall into three categories: mental, physical, and emotional.

 

authoritarian leadership

A style of leadership in which the leader tells the employees what needs to be done and how to perform it without getting their advice or ideas.

 

beliefs

Assumptions and convictions that a person holds to be true regarding people, concepts, or things.

 

benchmarking

The process of measuring the organization's products, services, cost, procedures, etc. against competitors or other organizations that display a "best in class" record.

 

benchmark measures

A set of measurements (metrics) that is used to establish goals for performance improvements. These are often derived from other firms that display "Best In Class" performance.

 

building

An activity focused on sustaining and renewing the organization. It involves actions that indicate commitment to the achievement of group or organizational goals: timely and effective discharge of operational and organizational duties and obligations; working effectively with others; compliance with and active support of organizational goals, rules, and policies.

 

brainstorming

A technique for teams that is used to generate ideas on a subject. Each person on the team is asked to think creatively and write down as many ideas as possible. After the writing session, the ideas are discussed by the team.

 

capacity

The capability of a worker, system, or organization to produce output per time period. It can be classified as budgeted, dedicated, demonstrated, productive, protective, rated, safety, or theoretical.

 

character

The sum total of an individual's personality traits and the link between a person's values and her behavior.

 

climate

The short-term phenomenon created by the current junior or senior leaders. Organizational climate is a system of the perception of people about the organization and its leaders, directly attributed to the leadership and management style of the leaders, based on the skills, knowledge and attitude and priorities of the leaders. The personality and behavior of the leaders creates a climate that influences everyone in the organization.

 

communicating

Comprises the ability to express oneself effectively in individual and group situations, either orally or in writing. It involves a sender transmitting an idea to a receiver.

 

conflict of interest

Any business activity, personal or company related, that interferes with the company's goals or that entails unethical or illegal actions.

 

constraint

Any element or factor that prevents a person from reaching a higher lever of performance with respect to her goal.

 

constraint management

The practice of managing resources and organizations in accordance with the Theory Of Constraints (TOC) principles.

 

corporate culture

The set of important assumptions that members of the company share. It is a system of shared values about what is important and beliefs about how the company works. These common assumptions influence the ways the company operates.

 

corrective action

The implementation of solutions resulting in the reduction or elimination of an identified problem.

 

counseling

Talking with a person in a way that helps that person solve a problem or helps to create conditions that will cause the person to improve his behavior, character, or values. The providing of basic, technical, and sometimes professional assistance to employees to help them with personal and work related problems.

 

courage

The virtue that enables us to conquer fear, danger, or adversity, no matter what the context happens to be (physical or moral). Courage includes the notion of taking responsibility for decisions and actions. Additionally, the idea involves the ability to perform critical self-assessment, to confront new ideas, and to change.

 

culture

The long-term complex phenomenon that can be affected by strategic leaders. Culture represents the shared expectations and self-image of the organization. The mature values that create "tradition", the play out of "climate" or "the feel of the organization" over time, and the deep, unwritten code that frames "how we do things around here" contribute to the culture. Organizational culture is a system of shared values, assumptions, beliefs, and norms that unite the members of the organization. Individual leaders cannot easily create or change culture.

 

decision making

The process of reaching logical conclusions, solving problems, analyzing factual information, and taking appropriate actions based on the conclusions.

 

decision matrix

A matrix used by teams to evaluate possible solutions to problems. Each solution is listed. Criteria are selected and listed on the top row to rate the possible solutions. Each possible solution is rated on a scale from 1 to 5 for each criterion and the rating recorded in the corresponding grid. The ratings of all the criteria for each possible solution are added to determine each solution's score. The scores are then used to help decide which solution deserves the most attention.

 

 

deficiency

Failure to meet a set performance standard.

 

delegative leadership

A style of leadership in which the leader entrusts decision making to an employee of a group of employees. The leader is still responsible for their decisions.

 

Deming's 14 points

Management philosophy to help organizations increase their quality and productivity:

1. Create constancy of purpose for improving product or service.
2. Adopt the new philosophy.
3. Stop dependency on inspection to achieve quality
4. End the practice of awarding business on price alone - minimize cost by working with a single vendor.
5. Constantly improve every process for planning, production, and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the work force.
11. Eliminate numerical quotas and goals for the workforce and management.
12. Remove barriers that rob people of pride in workmanship and eliminate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everyone in the organization to work to accomplish the transformation.

 

developing

The art of developing the competence and confidence of subordinate leaders through role modeling and training and development activities related to their current or future duties.

 

diversity

Committing to establish an environment where the full potential of all employees can be tapped by paying attention to, and taking into account their differences in work background, experience, age, gender, race, ethic origin, physical abilities, religious belief, sexual orientation, and other perceived differences.

 

efficiency

A measure (as a percentage) of the actual output to the standard output expected. Efficiency measures how well someone is performing relative to expectations.

 

empowerment

A condition whereby employees have the authority to make decisions and take action in their work areas, jobs, or tasks without prior approval. It allows the employees the responsibility normally associated with staffs. Examples are scheduling, quality, or purchasing decisions.

 

environment

1. The political, strategic, or operational context within the organization. 2. The external environment is the environment outside the organization.

 

esprit

The spirit, soul, and state of mind of an organization. It is the overall consciousness of the organization that a person identifies with and feels a part of.

 

ethical climate

The "feel of the organization" about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave.

 

evaluation

Judging the worth, quality, or significance of people, ideas, or things.

 

executing

The ability to complete individual and organizational assigned tasks according to specified standards and within certain time criteria or event criteria.

 

feedback

The flow of information back to the learner so that actual performance can be compared with planned performance.

 

five focusing steps

In the Theory of Constraints, a process to continuously improve organizational profit by evaluating the production system and market mix to determine how to make the most profit using the system constraint. The steps consist of:

1. Identify the constraint to the system.
2. Decide how to exploit the constraint to the system.
3. Subordinate all nonconstraints to the constraint.
4. Elevate the constraint to the system
5. Return to step 1 if the constraint is broken in any previous step, while not allowing any inertia to set in.

five why's

The practice of (Japanese) asking "why" five times when confronted with a problem. By the time the fifth why is answered, they believe they have found the ultimate cause of the problem.

 

flexibility

The ability of a system to respond quickly, in terms of range and time, to external or internal changes.

 

flextime

An arrangement in which employees are allowed to choose work hours as long as the standard number of work hours are met. Also, some flextime systems require that the hours fall within a certain range, e.g. 5:00 A.M. to 9:00 P.M.

 

follow-up

Monitoring of job, task, or project progress to see that operations are performed on schedule.

 

honor

A state of being or state of character, that people possess by living up to the complex set of all the values that make up the public moral code. Honor includes: integrity, courage, loyalty, respect, selfless-service, and duty. Honor demands adherence to a public moral code, not protection of a reputation.

 

hoshin planning

A Japanese strategic panning process in which a company develops up to four vision statements that indicate where the company should be in the next five years. Goals and plans are developed based on the vision statements. Audits are conducted periodically to monitor progress.

 

human nature

The common qualities of all human beings.

 

improving

A focus on sustaining and renewing the development of individuals and the organization (with a time horizon from months to decades) that requires a need for experimentation and innovation with results that are difficult to quantify. Usually it entails long-term, complex outcomes.

 

influencing

The key feature of leadership, performed through communicating, decision making, and motivating.

 

integrity

A moral virtue that encompasses the sum total of a person's set of values and moral code. A breach of any of these values will damage the integrity of the individual. Integrity, comes from the same Latin root (integritas) as the word "integer," refers to a notion of completeness, wholeness, and uniqueness. Integrity also entails the consistent adherence of action to one's personal moral beliefs.

 

job enlargement

An increase in the number of tasks that an employee performs. It is associated with the design of jobs to reduce employee dissatisfaction.

 

job enrichment

An increase in the number of tasks that an employee performs and an increase in the control over those tasks. It is associated with the design of jobs and is an extension of job enlargement.

 

kaizen

The Japanese term for improvement. It involves both workers and managers.

 

leadership

The process of influencing people while operating to meet organizational requirements and improving the organization through change.

 

learning

An essential shift or progress of the mind where recreation is evident and enjoins activities such as re-engineering, envisioning, changing, adapting, moving into, and creating the future.

 

learning curve

A curve reflecting the rate of improvement in performing a new task as a learner practices and uses her newly acquired skills.

 

loyalty

The intangible bond based on a legitimate obligation; it entails the correct ordering of our obligations and commitments. Loyalty demands commitment to the organization and is a precondition for trust, cooperation, teamwork, and camaraderie..

 

management by objectives (MBO)

A participative goal-setting process that enables the manager or supervisor to construct and communicate the goals of the department to each subordinate. At the same time, the subordinate is able to formulate personal goals and influence the department's goals.

 

model

(1) A person that serves as a target subject for a learner to emulate. (2) A representation of a process or system that show the most important variables in the system in such a way that analysis of the model leads to insights into the system.

 

morale

The mental, emotional, and spiritual state of an individual.

 

motivating

Using an individuals wants and needs to influence how the person thinks and what does. Motivating embodies using appropriate incentives and methods in reinforcing individuals or groups as they effectively work toward task accomplishment and resolution of conflicts / disagreements. Coupled with influence, motivating actively involves empowering junior leaders and workers to achieve organizational goals and properly rewarding their efforts as they achieve the goals.

 

motivation

The combination of a person's desire and energy directed at achieving a goal. It is the cause of action.

 

operating

A focus on action to meet the immediate situation (with a time horizon from minutes to months) that requires standard procedures and structures with an expectation of prompt, measurable results. Usually it has a relatively clear linkage between cause and effect and contains much hard data often conveniently available for decision making.

 

operating efficiency

A ratio (percentage) of the actual output of a department as compared to the desired or planned output.

 

optimization

Achieving the best possible solution to a problem in terms of a specified objective function.

 

participative leadership

A style of leadership in which the leader involves one or more employees in determining what to do and how to do it. The leader maintains final decision making authority.

 

performance efficiency

A ratio (percentage) of the actual output of a person as compared to the desired or planned output.

 

performance rating

Observation of a person's performance to rate productivity in terms of the performance standard

 

performance standard

A criterion or benchmark against which actual performance is measured.

 

planning

A course of action for oneself and others to accomplish goals; establishing priorities and planning appropriate allocation of time and resources and proper assignment of people to achieve feasible, acceptable, and suitable goals.

 

plan-do-check-action (PDCA)

Sometimes referred to as the Shewhart Cycle, for the inventor - Walter A. Shewhart. A four step process for quality improvement:

• Plan - A plan to effect improvement is developed.
• Do - The plan is carried out, first, on a small scale if possible.
• Check - The effects of the plan are observed.
• Action - The results are studied and observed to determine what was learned and what can be predicted.

 

process improvement

Activities designed to identify and eliminate causes of poor quality, process variation, and non-value added activities.

 

productivity

An overall measure of the ability to produce a product or service. It is the actual output of production compared to the actual input of resources.

 

program

A significant long-term activity, as opposed to a project. Normally defined as a line item in the organization's budget.

 

project

An endeavor with a specific objective to be met within a prescribed time and dollar limitation.

 

quality

Conformance to the requirements of a stated product or service attribute.

 

respect

The regard and recognition of the absolute dignity that every human being possesses. Respect is treating people as they should be treated. Specifically, respect is indicative of compassion and consideration of others, which includes a sensitivity to and regard for the feelings and needs of others and an awareness of the effect of one's own behavior on them. Respect also involves the notion of treating people justly.

 

selfless service

the proper ordering of priorities. Think of it as service before self. The welfare of the organization come before the individual. This does not mean that the individual neglects to take care of family or self. Also, it does not preclude the leader from having a healthy ego or self esteem, nor does it preclude the leader from having a healthy sense of ambition. It does, however, preclude selfish careerism.

 

self-directed work team

A small independent, self-organized, and self-controlling group in which members plan, organize, determine, and manage their duties and actions, as well as perform many other supportive functions.

 

seven tools of quality

Tools that help an organization understand its processes in order to improve them:

• cause and effect diagram (Ishikawa diagram) - A tool developed by Kaoru Ishikawa for analyzing process dispersion. It illustrates the main causes and subcauses leading to an effect or symptom. It is sometimes referred to as a fishbone chart because it resembles a fish skeleton
• check sheet - A data recording tool designed by the user to facilitate the interpretation of results.
• control chart - A graphic comparison of actual performance with precomputed control limits. The performance data consists of groups of measurements selected in sequence of production that preserves the order. It is used to detect assignable causes of variation in a process as opposed to random variation.
• flowchart - A type of planning and control chart designed to show graphically the relationship between planned performance and actual performance over time. It was named after its originator, Henry L. Gantt. It follows job progress, where one horizontal line represents the time schedule and another adjacent line represents the actual performance of the project.
• histogram - A graph of contiguous vertical bars representing a frequency distribution in which the groups of items are marked on the x axis and the number of items in each class is indicated on the y axis. The pictorial nature allows people to see patterns that are difficult to see in a table of numbers.
• Pareto chart - A graphical tool for ranking causes from most significant to least significant. It is based on the Pareto principle which states that a small percentage of a group accounts for the largest fraction of the impact, value, etc. That is 80% of the effects come from 20% of the possible causes.
• scatter chart - A graphical technique used to analyze the relationship between two variables. Two sets of data are plotted on a graph, with the y axis used for the variable to be predicted, and the x axis used for the variable to make the prediction.

 

 

skills (competencies)

Those abilities that people develop and use with people, with ideas, and with things, hence, the division of interpersonal, cognitive, and technical skills.

 

standard

An established norm against which measurements are compared. The time allowed to perform a task including the quality and quantity of work to be produced.

 

standard time

The length of time that should be required to perform a task through one complete cycle. It assumes an average worker follows prescribed procedures and allows time for rest to overcome fatigue.

 

stress

The real or perceived demand on the mind, emotions, spirit, or body. Too much stress puts an undo amount of pressure upon us and drives us into a state of tension. Controlled stress is good as it is what motivates us.

 

supervising

The ability to establish procedures for monitoring and regulating processes, tasks, or activities of employees and one's own job, taking actions to monitor the results of delegated tasks or projects.

 

theory of constraints (TOC)

A management philosophy developed by Dr. Eliyahu M. Goldratt that is broken down into three interrelated areas - logistics, performance measurement, and logical thinking. Logistics include drum-buffer-rope scheduling, buffer management, and VAT analysis. Performance measurement includes throughput, inventory and operating expense, and the five focusing steps. Logical thinking includes identifying the root problem (current reality tree), identifying and expanding win-win solutions (evaporating cloud and future reality tree), and developing implementation plans (prerequisite tree and transition tree).

 

total employee involvement

An empowerment technique where employees participate in actions and decision making that were traditionally reserved for management.

 

total quality management (TQM)

Describes Japanese style management approaches to quality improvement. It includes the long term success of the organization through customer satisfaction and is based on participation of all members of the organization in improving process, products, service, culture, etc.

 

trait

A distinguishing quality or characteristic of a person. For a trait to be developed in a person, that person must first believe in and value that trait.

 

values

Ideas about the worth or importance of things, concepts, and people.

 

what-if-analysis

The process of evaluating alternate strategies by answering the consequences of changes to the way a job, task, etc. is changed.

 

worker efficiency

A measure (usually computed as a percentage) of worker performance that compares the standard time allowed to complete a task to the actual worker time to complete it.

 

work sample

The use of number of random samples to determine the frequency with which certain activities are performed.