Managerial terms

Key managerial terms

Abandonment- Controlling party giving up rights to property voluntarily.

A 1 line manager – First line managers direct the work of non-management employees.

Abnormal returns -The component of the return that is not due to systematic influences (market-wide influences)

Acceptance criteria-The criteria a product must meet to successfully complete a test phase or meet delivery requirements.

Activity Measures-These measures typically track the actions or behaviors an organization performs
Additional hedge-A protection against borrower fallout risk in the mortgage pipeline.

Amortization-The repayment of a loan by installments.

Article -The Prime system or equipment being acquired under a contract

Authentication-The procedure (essentially approval) used by the approval authority in verifying that specification content is acceptable

Benchmarking-The comparison of similar processes across organizations and industries

Brokered market-A market in which an intermediary offers search services to buyers and sellers.

Butterfly shift- A non parallel shift in the yield curve involving the height of the curve.

Certification- A process by which a contractor provides evidence to the acquirer that a product meets specified requirements.

Critical Success Factors (CSF) - These are activities that must be done well in order for the organization to succeed

Contract- A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them.

Covers- .A product "covers" a given set of items if every item in the set has been dealt with in the specific product.
Database. A collection of related data stored in one or more computerized files
Decision support systems – special purpose applications that exist to support the resolution of particular problems.
Developer- An organization that develops products for itself or another organization.
Disenchantment – followed in the ranks of managers and professionals.

Disillusionment – followed in the ranks of managers and professionals.

Disappointment – followed in the ranks of managers and professionals.
Model – a simplified representation of the key properties of an object, event or relationship, can be verbal, physical or mathematical.

Distribution statement- A statement used in marking a technical document to denote the extent of its availability for distribution

Differential rate system – F.W Taylor compensation system involving the payment of higher wages to more efficient workers.

Direct action elements- Elements of the environment that directly influence organizations activities.

Documented procedure- A written description of a course of action to be taken to perform a given task.

Domain-The part of the external world, including users and inmates of the system that effects and is affected by the system.

Evaluation-The process of determining whether an item or activity meets specified criteria.
Executive support systems – systems employed by very senior managers to keep abreast of the organization in broad.

Flows– Components such as information, material and energy that enter and leave a system.

Goals - Synonymous with Priorities and Objectives.

Hot money- Money that moves across country borders in response to interest rate differences and that moves away when the interest rate differential disappears.

Hybrid- A package of two or more different kinds of risk management instruments that are usually interactive.
Initiatives- The specific programs, activities, projects or actions an organization undertakes to meet targets.

Input Measures-These measures track resources used to drive organizational results

Lagging Indicators- Performance measures that represent the consequences of actions previously taken

Leading Indicators- These measures are considered the “drivers” of lagging indicators

Mission Statement- A mission statement defines the core purpose of the organization

Management Information Systems – facilitates the management of those day to day activities

Outcome Measures- These measures track the benefit received by the stakeholder as a result of the organizations operations

Oligopoly - A Market characterized by a small number of large buyers who control all purchases and therefore the market price of a good or service.

Overwriting - A speculative options strategy that involves selling call or put options on stocks that are believed to be overpriced or under priced; the options are expected not to be exercised.

Owner's equity - Paid-in capital plus donated capital plus retained earnings less liabilities.

Office automatic systems – facilitate office activities such as the preparation and communication of correspondence.

Reengineering – this occurs when an organization conducts a significant reassessment of what is all about.

Short straddle- A straddle involves both purchase and sale. In short straddle one put and one call are sold.

Short-term capital gain- A profit on the sale of a security or mutual fund share that has been held for one year or less.

Speculative motive- A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.

Spread order- An order listing the series of options that the customer wants to buy and sell and the desired spread between the premiums paid and received for the options.

Stagnation- A period of slow economic growth, or, in securities trading, a period of inactive trading.

Stakeholders- All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government.

Strategy- Describes the differentiating activities an organization pursues to gain competitive advantage

Transaction – processing system –day to day activities of the organization

Theoretical value- Mathematically determined value of a derivative instrument as dictated by a pricing model such as the Black-Scholes model.

Theta - The ratio of the change in an option price to the decrease in time to expiration.

Trenches- One of several related securities offered at the same time.

Volume discount- A reduction in price based on the purchase of a large quantity.

Voluntary accumulation plan- Arrangement allowing shareholders of a mutual fund to purchase shares over a period of time on a regular basis

Voluntary bankruptcy- The legal proceeding that follows a petition of bankruptcy.

Voluntary liquidation- Liquidation proceedings that are supported by a company's shareholders.

Voluntary plan- A pension plan supported partially by the employee by pension contributions deducted from each paycheck.

Volatility risk- The risk in the value of options portfolios due to the unpredictable changes in the volatility of the underlying asset.

Voting Instruction Card - The voting card sent to participants in an employee plan giving the trustee of the plan the authority to vote the shares as indicated on a proxy card.

Volume - This is the daily number of shares of a security that change hands between a buyer and a seller.

Voting certificate- Certificates issued by a voting trust to stockholders in exchange for their common stock, which represent all the rights of common stock except voting rights.

Zone of indifference –inclinations conditioning individuals to accept orders that fall within a familiar range of responsibility or activity.