Management Key Terms

Learn about the key concepts in business management

By Terri Deno

Management is a part of every business. For larger businesses, there are management teams at work to guide employees in achieving goals. Managers are also responsible for upholding the standards and best practices of the company. In smaller businesses, management still plays a significant role, but will serve as more of a direct link between the executives and the other employees. In order to understand the role of management in business, consider some key tools used by managers to improve business practices.

American Management Association (AMA)

The American Management Association is an industry organization for those in management positions. The AMA offers educational opportunities for managers to learn how to improve their businesses.
Try: The American Management Association gives its corporate and government members access to education and training opportunities to improve management strategies.

Continuous improvement plan

A continuous improvement plan is a long-term plan for a business. The plan includes a number of smaller goals that help reach the larger goal of improvement in all areas of the business.
Try: Plante Moran provides information on how specific characteristics of a continuous improvement plan can help to increase profits for a business.

Key performance indicators (KPI)

Key performance indicators are specific measurements that offer information on how a business is meeting key goals. KPIs can be use to measure manufacturing and other areas of business.
Try: Learn more about key performance indicators and how they can help any business succeed from Vorne Industries.

Focal review, calendar review

A focal review, or calendar review, is an employee review conducted by management to assess work performance and is usually scheduled once a year for employees.
Try: Halogen Software provides information on whether focal reviews are better than anniversary reviews for employees.

Organization chart

An organization chart is a document that provides information showing which employees report to specific managers or executives. This helps to establish everyone's role in the company and how their jobs relate to the overall goals of the business.
Try: Microsoft Office Online provides an example organization chart that can be downloaded.

Benchmarking

Benchmarking is a process of determining who sets the standard in the company or in a specific industry. This can be applied to the company standards or to the standards of a specific project.
Try: iSix Sigma provides an explanation of benchmarking, how it can be determined for a specific business and how to implement it to achieve better results.