Entrepreneur - definition

Entrepreneur is a person who initiates new business enterprise, at his own expense and risk, with the purpose to make profit.  To be a successful entrepreneur one must find market demand (niche) and develop and sell products or services (or to hire the right people to do the job) that meet this demand.
See article: The Entrepreneur and the Transition to Professional Company Management


Existential (spiritual) Intelligence

E. Dayton defines the existential (spiritual) intelligence as the basic desire to find ultimate meaning and purpose in life and to live by them. 


Heuristics - definition

Heuristics is a system of techniques, based on experience, for problem solving, learning and discovery.  The most fundamental heuristic is “trial and error”.
Heuristics aims to develop three basic abilities:

  • prompt ability - detection of problems and inconsistencies;
  • discovery ability - how and where to look for possible solutions;
  • practical solution ability- solving problems, transform them into executable plans and programs.

Innovation - definition

Innovation is a new way of doing something or "new stuff that is made useful".  It may refer to incremental and emergent or radical and revolutionary changes in thinking, products, processes, or organizations.  In economics the change must increase value, customer value, or producer value.  The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.
See post:  Innovations in Company Policy


Leader - definition

Leader is someone with clear vision and followers.  Originally leader was used for the head of a political party.
See also: business leader, manager


Leadership - definition

Leaders do not constitute leadership. Leadership combines all management personnel in a company (not just the business leaders). The good business leaders do not just build their personal credibility and reliability. The leaders  also build the leadership skills in an organization and its capacity to promote future leaders.  The individual leaders are important members of the organization, but building leadership is even more important to create the next generation of leaders who can deliver high results. Leadership occurs when a company has created more than one or two individual leaders. Leadership is more important because it is not tied to a particular person, but to the process of building leaders.  D. Ulrich, N. Smallwood (2007). Ken Blanchard (2009) defines leadership as the capacity to influence others by unleashing their power and potential to
impact the greater good
.
See also: business leadership.


Lean practicies - definition

Lean practices are a set of methods and techniques for continuous improvement of product value and cost savings in seven areas: inventory, transportation, movement, production processes, waiting time, overproduction, and defective products.


Management - definition

(1) Management is marketing and innovations (Drucker, 1909-2005). (2) Management is the organization and coordination of the activities of a business entity in order to achieve pre defined goals. (3) Management consists of creating strategies, organizing, planning, controlling and directing of an organization's reаsources in order to achive the objectives of these strategies.


Manager - definition of a manager

Manager is a person that has been granted legal power in an official organizational structure and the responsibility for (1)planning, (2)organizing, (3)directing, (4)coordinating and (5)controlling the work of a group of individuals towards a preset goal (Henri Fayol, 1841-1925).  Managers deal predominantly with non-behavioral issues. In XXI century prof. Richard Daft (1964-) defines the five responsibilities of the manager as: (1)planning, (2)organizing, (3)leading, (4)controlling and (5)forecasting.
The semantic meaning of manager is directing people.

See also: business leader, leader


Marketing - definition

21st century marketing is the process by which companies create customer interest in goods or services.  It generates the strategy that underlies sales techniques, business communication, and business developments.  It is an integrated process through which companies build strong customer relationships and create value for their customers and for themselves.  Marketing is used to identify the customer, to satisfy the customer, and to keep the customer.


Marketing Mix definition

N. Borden first implemented the term 'marketing mix' in 1960 to address the set of activities executed by a company to motivate customers buy its products or services.  J. McCarthy (1960) defines the four elements of the marketing mix (4Р): Price, Product, Promotion, and Place. At the cost of some overlapping some authors added 6 more elements: Positioning, Packaging, People, Partnership, Physical Environment, and Process.


Mentor - definition

Mentor was a friend of Odysseus.  Mentor was put in charge of Odysseus's son and palace when Odysseus left for the Trojan War.  20 years Mentor successfully protected Odysseus's wife from the insistant noblemen that courted her.  Mentor also brought up Telemachus, the son of Odysseus, to an esteemed Greek hero.
Nowadays, mentor is used as synonymous of preceptor.  The mentor is supposed to reveal and develop the leadership potential of his disciple and boost his career development. The mentor acts as trusted guide who provides advice when asked.
See also: coach, personal consulting


Mentoring - definition

Mentoring is a process of directing, instructing and consulting individuals to develop specific skills and knowledge that will boost their career and personal development.  The initiative for the mentoring lies with the trainee. The initiator and the goal set the 2 major differences between coaching and mentoring
See also: coaching, personal consulting


Mission statement - definition

The mission statement should be an inspiring message answering the question: "How do we intend to win in this business?" (definition of Jack Welch, former   General Electric CEO 1981-2001).
Unlike vision, the mission is aimed more towards the external environment (clients, suppliers) than to internal ones (employees).
In our view, many authors are wrong to believe that the mission describes the business you are involved in, the organization, its customers or the purpose for which the company exists (the latter is the task of the vision).  As a result, most mission statements are hollow messages known only to their creators and do not fulfill their basic purpose to inspire and guide.
See also: Vision statement


Motivation - definition

Motivation is the activation or energization of goal-oriented behavior. Another short explanation - motivation is to do something willingly. Motivation consists of internal and external to the individual forces. These forces cause a certain behavior and determine the intensity, appearance, duration and direction of that behavior. By its nature the motivation is temporary and dynamic state that should not be confused with personality and emotions.


Outsourcing - definition

Essentially outsourcing is a division of labour.  Contractor assigns business activities to subcontractor.  The outsourcing leverages both companies' specializations and subsequent advantages.  The decision whether to outsource or to do inhouse is usually based upon reducing cost, focusing manpower energy on the core competencies of a particular business, making more efficient use of labor, capital, information technology or land resources.  Outsourcing became popular during the 1980s.  Example: Underware producer (with 50 items) outsources the production of baby T-shirts (1 item) to a foreign company.
See also: Outsourcing - Why, When and How


Pareto Principle

In the late 19th century Vilfredo Pareto formulated "80-20 rule", also called "Law of the vital few" or "Principle of factor sparsity":
In any society, 20% of people produce 80% of the benefits and profits.  At the other end of the curve, 20% of people create 80 percent of the problems and losses.
In economics, the following two interpretations apply: in any business project, 20% of the invested resources contribute 80% of the output, and 80% of the sales come from 20% of the customers.


Scale of manageability

Scale of manageability is the number of direct subordinates of a manager.  Each additional subordinate increases the number of possible intercommunications (direct, individual, group direct, crossed).  V. Greykunas’ formula , k (2k-1 + k-1), enables us calculate that 6 subordinates result in 222 intercommunications, 8 – in 1080.


Soft skills - definition

Soft skills is a sociological term relating to a person's emotional intelligence.  Soft skills are personal attributes that enhance an individual's interactions, job performance and career prospects. Unlike hard skills, which are about a person's skill set and ability to perform a certain type of task or activity, soft skills relate to a person's ability to interact effectively with co-workers and customers and are broadly applicable both at work and outside. Soft Skills are behavioral competencies. Also known as Interpersonal Skills, or people skills, they include proficiencies such as conflict resolution and negotiation, personal effectiveness, creative problem solving, strategic thinking, team building, communication skills, influencing skills, selling skills, etc.


Staff Assessment – definition

Staff assessment is a periodic process, executed by the respective manager through clear and public criteria.  The assessments must evaluate the performance of the individual. They have to disclose what he can do.
See article:  Leadership and Staff Appraisal


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