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Derived Demand The part of demand for a good that is derived from the production and sale of other goods. Direct Demand The part of demand for a good that comes from the desire of buyers to directly consume the good itself.

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To avoid hiring “lemons,” we can also screen candidates e.g. Sanford Bernstein analysts: intensive screening via credentials, tests, psychometric evaluations, interviews risky hires more relevant if there is high upside potential screening more relevant when the issue is avoiding downside risk Most screening methods are disappointingly ineffect...

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Models are like maps – using visual methods, they simply the process and facilitate understanding of complex concepts. Microeconomic models need to: Resemble Reality Be Understandable Be an Appropriate Scale

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the riskier the candidate (holding expected productivity constant) young candidates w/ less experience new positions the smaller the downside, larger the upside if you are hiring a “portfolio” of people & can diversify the lower are termination costs creative jobs with high upside potential creative / adaptable people if the firm can pay...

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Managers’ bottom line defined by the “3 P’s” People – invest in the well-being of employees and provide interesting and rewarding jobs that offer the opportunity to be productive Profit – ensure that the company is financially healthy Planet – protect and support the environment, causes, and communities Corporate social responsibility (p. 9)

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Better price Quality Performance Delivery Responsiveness to customer demand

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Intranet = an internal communications system that uses the technology and standards of the Internet but is accessible only to people within the organization Extranet = external communicati0ns system that uses the Internet and is shared by two or more organizations

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Top-down budgeting Middle and lower-level managers set departmental budget targets Done in accordance with overall company revenues and expenditures specified by top management Bottom-up budgeting Lower-level managers budget their departments’ resource needs Pass up to top management for approval

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Vertical - composed of a manager and subordinates, sometimes called functional or command teams. Horizontal - composed of employees from the same hierarchical level but from different areas of expertise. Special-Purpose - created outside the formal organization for special projects and disband once project is completed.

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Process by which information is exchanged and understood by two or more people, usually with the intent to motivate or influence behavior Manager = 80% every working day in direct communication with others – 48 min/hour Manager = 20% every work day in communication in the form of reading and writing -12 min/hour

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