An activity ratio is a key metric in management accounting that compares the actual production achieved during an accounting period with the production level deemed achievable for that period. It provides insights into the efficiency and productivity of an organization.
The Administrative Management Society (AMS) is a professional management society that promotes the application of management methods in commerce and industry to increase productivity, lower costs, and improve quality. Additionally, it encourages research and emphasizes sound employer/employee relations.
The total time in which a job should be completed at standard performance, inclusive of allowances for fatigue, rest, personal needs, and contingencies, commonly referred to as Standard Time.
Available hours refer to the total number of hours that can be allocated to complete a job, task, or process within an accounting period, expressed in terms of machine hours, direct labor hours, or production hours.
The phrase 'get down to brass tacks' implies breaking off preliminaries and proceeding directly to the essential matters.
Capital deepening refers to the process of increasing the amount of capital per worker in an economy. This typically means that each worker has more tools, equipment, or technology to use in their work, leading to higher productivity and economic growth.
Capital widening in macroeconomics refers to the process of increasing an economy's capital stock to enhance production levels.
Demoralize refers to a decrease in morale, which can be caused by factors such as lack of appreciation by superiors, layoffs, and salary givebacks. Addressing demoralization is crucial to maintain worker productivity, accuracy, and reduce employee turnover.
Disguised unemployment refers to individuals who want full-time employment but do not have it and are not actively seeking work, thus are not reflected in official unemployment statistics. It also pertains to individuals who are on payroll but do not contribute to productivity.
Division of labor refers to the separation of the workforce into distinct categories of labor and assigning specific tasks required to produce a product to different workers. This concept is integral to increasing efficiency and productivity in various industries.
A comprehensive financial analysis method used to break down return on investment (ROI) into component parts: margin and turnover. This formula helps identify key drivers of a company's profitability.
Employee empowerment refers to the practice of giving employees more responsibility and autonomy in decision-making processes within an organization. This approach can lead to improved decision-making, as well as enhanced training, motivation, and productivity among employees.
Ergonomics is the scientific discipline concerned with understanding interactions among humans and other elements of a work system, and the profession that applies theoretical principles, data, and methods to design in order to optimize human well-being and overall system performance.
Growth accounting is a method used in economics to determine the contribution of different factors (such as labor, capital, and technology) to economic growth.
Incentive pay is a wage system that rewards a worker for productivity above an established standard, typically in the form of a bonus. This system is a variation of the piece-rate system developed by Frederick W. Taylor.
A wage program where wages rise with productivity increases above an established standard, incentivizing individual or group performance.
An industrial engineer studies industrial productivity and implements recommended changes to optimize integrated systems comprising workers, materials, and equipment. This involves applying mathematical, physical, and social sciences combined with engineering principles and methods to improve system efficiency and productivity.
Innovation refers to the use of a new product, service, or method in business practice immediately subsequent to its discovery. It plays a critical role in the growth and success of businesses by fostering competitive advantage, enhancing productivity, and driving industry evolution.
A manufacturing method where several different products are produced on the same production line, one after the other, to maximize productivity.
The Law of Diminishing Returns, also known as the principle of diminishing marginal productivity, is an economic rule stating that if one factor of production is increased while other factors are fixed, a point will be reached at which additions of the factor will yield progressively smaller increases in output.
The Lump of Labor Hypothesis is an economic assertion that suggests a zero-sum game scenario where there is a fixed amount of work available within an economy, implying that any increase in productivity or technological advancement will directly reduce the number of available jobs. This hypothesis is widely considered to be fallacious by most economists.
The Malthusian Law of Population is a proposition by the early 19th-century philosopher Thomas Malthus that suggests economic growth occurs more slowly than population growth, implying that general prosperity is impossible. Malthus did not account for the rapid increases in productivity brought on by industrialization.
A managerial integrator is a staff manager responsible for coordinating the functions and activities of various departments to achieve maximum cooperation and productivity without direct operational responsibilities.
The time taken to produce a specified quantity of products, from the start of production to the end of production, encompassing all phases including setup, actual production, and any necessary adjustments.
Mechanization refers to the process of performing tasks using machines, mechanical equipment, or mechanical aids. Unlike automation, mechanization does not typically include self-correcting feedback mechanisms.
Methods-Time Measurement (MTM) is a predetermined motion time system used for the analysis of work tasks to standardize the time needed to complete a task by determining the average production time interval.
Morale is the collective feeling or attitude in a workgroup that significantly impacts motivation and goal achievement. A high morale typically results in increased productivity and a positive work environment.
Multitasking refers to the capability of an operating system to run multiple computer applications concurrently. This allows users to perform multiple operations, such as printing a document, working on a different program, and downloading content from the Internet simultaneously.
The rate of growth in national income that maintains the current level of employment and wages. This rate equals the growth rate of the labor force added to the rate of productivity.
Nonproductive activities or assets do not contribute to the production of the desired goods or realization of the expected effects, often resulting in wasted effort and financial resources.
Organizational Psychology, also known as Industrial-Organizational (I-O) Psychology, is the scientific study of human behavior in organizations and the workplace. This field applies psychological theories and principles to organizations, focusing on increasing workplace productivity and related issues such as the physical and mental well-being of employees.
Output refers to the amount produced, whether it's the results provided by a computer system or the tangible results of a production process.
The Overhead Efficiency Variance measures the difference between the standard overhead cost allocated based on standard hours and the actual overhead cost incurred based on actual hours worked.
An open form of management where employees have a strong decision-making role. Developed by managers seeking a cooperative relationship with their employees, participative management aims to increase productivity, improve quality, and reduce costs.
Performance appraisal is a personnel evaluation method that seeks to measure employee work effectiveness using objective criteria. Performance appraisal systems strive to achieve higher productivity outcomes by delineating how employees meet job specifications.
Potential GDP is the maximum feasible level of Gross Domestic Product (GDP) that an economy can achieve when its resources, including capital and labor, are fully utilized.
The production rate is a vital metric in manufacturing, representing the speed at which a production line manufactures products. It informs stakeholders about productivity efficiency and capacity utilization.
The state of being able to generate creative and valuable output efficiently. Often associated with high levels of creativity, efficiency, and often substantial yields of work in a given period.
Productivity measures the relationship between the quantity and quality of units produced and the labor per unit of time.
Reengineering involves making major structural changes in a corporation or important business operations to improve efficiency and productivity.
Reindustrialization refers to the process of revitalizing a former industrial area by means of recapitalization and the introduction of new technology. This process helps rejuvenate economies by modernizing infrastructure, reducing unemployment, and boosting productivity.
Commitments and duties associated with a position in an organization. The manner in which responsibilities are fulfilled determines overall organizational effectiveness and productivity.
Speedup refers to the efforts by employers to obtain increased productivity from workers without a corresponding increase in wages. This practice is commonly seen in both industrial and corporate settings where efficiency is crucial.
A standard is an established and fixed measure or norm used in assessing quality or performance. Standards ensure consistency, reliability, and quality across various domains, such as products, processes, or services.
A standard minute is a unit of time measurement. It represents one sixtieth of a standard hour, commonly used in various industries for standardizing time measurements in productivity and efficiency studies.
A pivotal work by Kenneth Blanchard and Spencer Johnson which encapsulates management principles through simplified, actionable techniques like one-minute praise or reprimand, aimed at increasing productivity and employee satisfaction.
Theoretical Capacity refers to the maximum output that could be achieved by an organization or machinery without interruptions or inefficiencies.
A management theory developed by William Ouchi, describing the Japanese system of management characterized by workers' deep involvement in management, higher productivity than the U.S. management model, and a highly developed system of organizational and sociological rewards.
Time management refers to the process of planning and controlling how much time to spend on specific activities to achieve maximum productivity, efficiency, and effectiveness.
Wage incentive is a method of motivating workers to increase their productivity by offering them higher wages for greater output.
Wage-push inflation is an inflationary situation in which increasing wages are not offset by rising productivity, leading to higher production costs and, consequently, increased prices for goods and services.
Employee-centered programs featuring proactive personal fitness initiatives, including physical examinations, substance abuse and group counseling, and individualized diet and exercise programs. Wellness programs have proven effective in enhancing employee productivity while reducing absenteeism and healthcare costs.
An estimate of the time required to carry out a series of manufacturing procedures, by studying the operations involved by means of time, methods, and work studies.
Workload refers to the measure of the amount and types of work performed by an individual within a given period of time. It encompasses both quantitative and qualitative aspects, assessing not only the total work executed but also the individual's perception of their capability to handle it.
