IQSSL GMQE flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Span of control

The number of subordinates reporting directly to one manager. Wide spans flatten the hierarchy and cut cost but demand standardised work and capable staff; narrow spans add layers.

Tuckman's stages

Forming, Storming, Norming, Performing, Adjourning. Groups pass through these phases; conflict typically peaks at Storming before roles and norms stabilize.

Accountability in delegation

A manager may delegate authority and assign tasks, but remains answerable for results. Accountability cannot be passed downward; only authority and responsibility move.

Grapevine communication

Informal, person-to-person channel that spreads quickly and is often accurate on routine matters. It cannot be abolished, so managers use it to test reaction and correct rumour.

SWOT and TOWS

SWOT lists internal strengths and weaknesses with external opportunities and threats. TOWS cross-matches them into SO, ST, WO and WT strategies to convert analysis into action.

Porter's generic strategies

Cost leadership, differentiation, and focus (cost or differentiation focus). Firms failing to choose one and becoming stuck in the middle earn below-average returns.

Five Forces model

Rates industry attractiveness through rivalry, threat of new entrants, threat of substitutes, supplier bargaining power and buyer bargaining power. Strong forces compress industry profitability.

Ansoff matrix

Four growth options from existing and new products and markets: market penetration, product development, market development and diversification. Diversification carries the highest risk.

BCG matrix

Classifies business units as stars, cash cows, question marks or dogs by market growth and relative share. Cash cows fund stars and selected question marks; dogs are candidates for divestment.

SMART objectives

Specific, Measurable, Achievable, Relevant and Time-bound. Measurability is essential because unmeasured objectives cannot be monitored or controlled against plan.

Human resource planning

Forecasting future staffing demand against current supply and expected attrition. The gap, positive or negative, sets recruitment, training or redundancy requirements.

Job description vs person specification

The job description states duties, reporting lines and conditions of the post. The person specification states qualifications, skills and experience required, and drives selection criteria.

Kirkpatrick evaluation levels

Four training evaluation levels: reaction, learning, behaviour and results. Only the results level measures transfer into business performance such as productivity or quality.

Herzberg's two factors

Hygiene factors such as pay and working conditions prevent dissatisfaction but do not motivate. Motivators such as achievement, recognition and growth create genuine satisfaction and effort.

Labour turnover rate

Leavers during a period divided by average employees in that period, multiplied by 100. Departmental comparison reveals where retention problems concentrate.

Break-even point

Fixed costs divided by contribution per unit (price minus variable cost per unit). It gives the sales volume at which total revenue equals total cost and profit is zero.

Margin of safety

Actual or budgeted sales minus break-even sales, expressed as a percentage of actual sales. It measures how far sales can fall before a loss occurs.

Current and quick ratios

Current ratio is current assets divided by current liabilities. Quick ratio excludes inventory from assets, giving a stricter test of short-term liquidity.

Material price variance

(Standard price minus actual price) multiplied by actual quantity purchased. A positive result is favourable; a negative result is adverse and reduces budgeted profit.

Net present value

The sum of future cash flows discounted at the cost of capital, minus initial investment. A positive NPV means the project adds value; accept the project.

Productivity ratio

Output divided by input, such as units per labour hour. Multi-factor productivity combines inputs, which must first be converted to a common unit such as money.

Little's Law

Work-in-process equals throughput rate multiplied by flow time. Knowing two values yields the third, useful for sizing queues, buffers and process capacity.

Economic order quantity

The order size minimising combined ordering and holding costs: square root of (2 × annual demand × order cost ÷ holding cost per unit per year).

Seven wastes of lean

Overproduction, waiting, transport, over-processing, inventory, motion and defects. Overproduction is treated as the root waste because it creates the others.

Six Sigma and DMAIC

Six Sigma targets 3.4 defects per million opportunities. DMAIC (Define, Measure, Analyze, Improve, Control) is the structured method for improving existing processes.

STP model

Segmentation, Targeting and Positioning. The market is divided into groups, attractive segments are selected, and an offer is positioned in the customer's mind.

Net Promoter Score

Percentage of promoters (scores 9-10) minus percentage of detractors (scores 0-6). Passives scoring 7-8 are excluded. Range is minus 100 to plus 100.

Customer lifetime value

Average purchase value multiplied by purchase frequency and customer lifespan, then by gross margin. Compared with acquisition cost, it shows whether a customer is worth winning.

Price elasticity of demand

Percentage change in quantity demanded divided by percentage change in price. Demand is elastic when the absolute value exceeds 1, so price rises cut revenue.

Contract essentials

Offer, acceptance, consideration, intention to create legal relations and capacity. Missing an essential element can make an agreement void, voidable or unenforceable.

Condition versus warranty

A condition is a fundamental contract term; breaching it allows termination and damages. A warranty is a minor term; breach allows damages only, not termination.

Negligence elements

The claimant must prove a duty of care existed, the defendant breached it, the breach caused the loss, and the damage was not too remote.