O
Object-oriented programming (OOP) Programming that focuses on grouping, simplification, streamlining, and standardization.
Objective(s) Goal, or the end toward which an effort is directed and resources and strategies are focused.
Objective and task method Procedure for preparing a promotional budget, setting out the OBJECTIVES and the budget required to achieve those objectives.
Objectivity Accounting concept that eliminates or minimizes bias and subjectivity in the examination of accounts and ensures full comparability and consistency over time.
Obligation In financial transactions, the assumption of responsibility with regard to the payment or repayment of legal and financial dues.
Observation research Market research without the intervention of a physical interviewer.
Obsolescence Fall in the value of an asset as a result of the passage of time and wear and tear, rather than from a breakdown. It has special application to CONSUMER DURABLES, which are built to endure for a certain period of time but will need to be replaced with newer models that are more efficient. The concept has applicability to manufacturing as well, where it has given birth to PLANNED OBSOLESCENCE. Most products continue to function reasonably well after they have become technically obsolete, and it is in the interests of the manufacturer to maintain consumer demand by making sure that consumer durables have a short lifetime.
Occupational hazard Risk of accident or illness at a place of work, or injury or illness directly or indirectly caused by working conditions. Occupational hazards are governed by government regulations and supervised by OSHA.
Occupational segregation Informal discrimination in employment, based on the traditional dominance of certain jobs by privileged ethnic communities.
Odd-even pricing Pricing of a product that ends in 9, as in $4.99; a psychological gimmick to lead consumers to think that they are paying less than a full dollar price.
OECD ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
Off the books Accounts that are not recorded in the financial ledgers or reported to the authorities or shareholders.
Off-balance sheet Relating to a company’s accounts and finances that do not appear on the official balance sheet. It is also known as CREATIVE FINANCING because it creates illusory profits by adding transactions that are bogus, such as factoring and consignment stock that inflate profits and conceal liabilities. Many of these transactions are legal, but they are the result of the manipulation of numbers (COOKING THE BOOKS) and concealment of debt obligations. Off-balance sheet accounts are particularly designed to hoodwink shareholders and the stock market.
Office politics Juggling for power and influence in a corporate office, often by manipulating the information channels and creating a climate for personal advancement.
Offshore account Company, fund, or bank account set up in a foreign country, such as the Cayman Islands, Switzerland, or the Channel Islands, with the goal of evading the tax laws of the home country. Also TAX HAVEN.
Offshore operations Deals involving a company not registered in the same country as its principal stakeholders, executives, or investors.
Offshoring Locating a company’s operations or offices in countries outside the home country. Compare OUTSOURCING.
Ohmae, Kenichi Japanese management consultant, whose book Mind of the Strategist (1982) introduced Japanese production techniques to the West and popularized such concepts as innovation, creativity, and strategic planning.
Ohno, Taiichi (1912–1990) Japanese business executive who is considered the father of the Total Production System, known as lean manufacturing in the United States. He wrote several textbooks about the system including Toyota Production System: Beyond Large-Scale Production (1988) and Workplace Management (1988).
Okun, Arthur Melvin (1928–1980) American economist who served as chairman of the Council of Economic Advisers (1968–69). He is the author of Okun’s law.
Okun’s law Concept developed by American economist ARTHUR OKUN that relates declines in the idleness rate of workers to increases in the GROSS NATIONAL PRODUCT, using data that exclude the first two quarters of every economic recovery.
Old Lady of Threadneedle Street Nick-name for the BANK OF ENGLAND, coined by Restoration playwright R. B. Sheridan.
Old-boy network Social and business connections, generally the alumni of prestigious state and private schools, who dominate a firm or institution.
Old-school ties Networking based on class, status, and wealth derived from childhood and early adult friendships and partnerships.
Oligarchy Organization controlled primarily by an elite or clique; in business, a company with senior management making all decisions and whose personal interests often override those of the company.
Oligopoly Market in which relatively few sellers supply multiple buyers, and who thus control the supply and the prices. Generally, it is a market in which the largest four players control more than 40% of the market.
Oligopsony Market in which there are numerous sellers but only a limited number of buyers, especially in soft commodities, where the buyers have the advantage in setting prices and choosing sellers.
Ombudsman Official charged with handling grievances and acting as go-between for both parties in an attempt to reach a resolution satisfactory to both.
Omikoshi In Japanese, bottom-up management.
Omnibus research Marketing surveys that are broad in scope and that ask wide-ranging questions.
On approval Allowance for potential buyers to receive goods for inspection and trial before deciding to purchase.
One-pack giveaway Gift given with the purchase of a good, designed to encourage further purchases.
On-the-job training Informal job training, in which colleagues serve as teachers and actual work experience is counted as education.
One-two-three bank Member of the secondary banking sector, whose status is only slightly above that of a moneylender.
OOP OBJECT-ORIENTED PROGRAMMING
Open-door policy 1. Relating to imports from all countries, without discrimination or favoritism. 2. Management philosophy that is receptive to ideas from subordinates.
Open economy Economy in which a large portion of the national income is derived from exports and imports, rather than from domestic industry.
Open-ended Activity without an assigned termination date or an exit strategy.
Opening Job vacancy for which applications are being accepted.
Opening bell Bell that marks the opening of a trading day on a stock exchange. It is usually rung by a celebrity.
Open market Purchase or sale by a CENTRAL BANK of government bonds in exchange for money, with the intention of influencing liquidity in the private banking sector and thus controlling the money supply.
Open-plan office Large single room for employees that has been divided into workstations, with no fixed halls or partitions.
Open position Situation in which a trader had stock on hand that is unhedged or unsold, and thus is vulnerable to sudden fluctuations in price.
Open system Management system that is continuously receiving inputs and producing outputs.
Operant conditioning Systematic program of rewards and punishments to influence behavior. It grew out of B. F. SKINNER’S theory of BEHAVIORISM, which states that actions have consequences and that awareness of consequences can be used to motivate performance.
Operating cycle Average time, expressed in days, between the purchase of materials and receipt of payment.
Operating statement Financial and quantitative statement outlining key performance indicators, especially providing comparative data for a selected budget period.
Operating system Configuration of activities through which management maintains control of the business activities that transform resources into assets, trying to achieve an optimum match between capabilities and outcomes.
Operation Activity encompassing the transformation of inputs into outputs, the harnessing of resources, and the aggregation and oversight of responsibilities, skills, and functions for achieving stated goals and objectives.
Operational research Element of scientific management that designs models and scenarios representing best possible solutions and strategies to real problems, especially those outside the textbook. It makes use of GAME THEORY, CRITICAL-PATH ANALYSIS, and SIMULATION.
Operations manager Manager entrusted with responsibility for a particular operational division or department and synchronizing that operation with that of the entire company.
Operations strategy Conversion of production blueprints and objectives into deliverable products, ensuring acceptable quality and costs.
Opinion leader A person whose opinions are highly valued by his or her peers so that they subscribe to them.
Opportunity cost Economic cost of nonaction, measured in terms of the benefits lost by not pursuing a course of action, as when returns on an investment are judged against the potential profits of other investments using the same amount of money.
Optimization Process by which all factors affecting a decision or plan are weighed to produce the most effective outcome.
Optimized production technique Manufacturing control based on the elimination of bottlenecks in getting the materials to the output stage.
Optimum bias In management psychology, the tendency of planners to underestimate risks and overestimate benefits, based on their own biases or past experiences. It leads them to take increased risks, overlook uncertainties, ignore the need for exit strategies, make unfounded assumptions, underestimate costs and overestimate benefits, and fail to heed critics.
Option Right to buy or sell a fixed quantity of a commodity, currency, or security at a particular date at a particular price. A traded option may be bought or sold at any time on any exchange, as opposed to a traditional option, which once bought cannot be resold. An option to buy is called a CALL OPTION and an offer to sell is a PUT OPTION. Options allow traders to hedge against the risk of wide variations in prices; they also allow dealers and speculators to gamble for large returns with limited initial payments. Traders purchase combinations of options to cover a variety of expectations and contingencies. With a European option, the buyer can exercise his or her rights only on the expiry date, whereas with an American option, this right may be exercised at any time up to the expiry date, thus giving the holder more chance of buying at the most favorable price. An option is distinguished from FUTURES, which do not bind the purchaser by bid and may lapse.
Option to purchase Right of a shareholder to buy shares at a reduced price in certain specified circumstances.
Ordinary activity Activity that furthers the normal business of a company designed to increase its profits or help it comply with the regulatory environment.
Ordinary share Fixed unit of the share capital of a company.
Organic organization Company structure with the freedom to reinvent itself in response to emerging needs; it is open, flexible, and informal, with control and decision making decentralized, little reliance on authority as the final arbiter, and interactions both vertical and horizontal.
Organismic theory Developed by Hungarian-American psychiatrist ANDRAS ANGYAL and applied to business, the concept that the link between producer and individual consumer or group of consumers is organic.
Organization Structured corporate entity operating under defined rules, protocols, roles, and responsibilities, with a stated goal. It may be for profit or nonprofit.
Organization and methods (O&M) Form of work study involving procedures and controls, and management oversight involving efficiency and productivity.
Organization behavior Discipline concerned with the study of human behavior in the corporate setting. It integrates performance, attitude, commitment, and leadership.
Organization for Economic Cooperation and Development (OECD) Group of developed countries that act in concert to protect their economic interests and to assist developing countries to bridge the economic divide.
Organization hierarchy Vertical layers of management within an organization and the echelons that constitute the pyramid of authority.
Organization man Title of William Whyte’s classic 1956 novel of a man totally devoted to the corporate culture and to the advancement of his career within it. The book led to critical examination of the idea of lifelong commitment to an organization.
Organizational agility An organization’s capacity to anticipate changes in marketplace conditions and trends and preemptively adapt policies and technologies to continuously add value. It involves strategic visioning and planning.
Organizational analysis Development of models and theories that provide a basis for how an organization functions and how it can initiate change.
Organizational audit See MANAGEMENT AUDIT.
Organizational chart Diagrammatic representation of an organization in the form of a family tree, showing the flow of authority, chain of command, titles, and functions.
Organizational behavior Social behavior determined by the interaction of individuals in a corporate environment and shaped by a corporate culture.
Organizational climate Atmosphere created by a mode or style of management, determining the degree of teamwork, cohesion, commitment, creativity, and employee participation.
Organizational commitment Psychological devotedness to a company’s culture and a desire to remain attached to it. It is normally measured by attitudinal vectors and identification with the goals and values of an organization.
Organizational culture Norms and protocols by which an organization conducts its business and the codes of communication and behavior that govern interpersonal relations and individual responses to corporate values. Organizational culture is of three kinds: (1) integrative culture, which emphasizes consensus and consistency, predictability, and clarity; (2) differentiated culture, which tolerates subcultures with some variations in values and behavioral vectors; and (3) fragmented culture, which allows diversity to be the rule rather than the exception.
Organizational design The flow of authority within an organization, outlining the duties, tasks, privileges, and responsibilities of each member, the chain of command, and the resulting hierarchy of relationships.
Organizational development Long-term, systematic, and prescriptive approach to planned organizational change. Each organization is similar to a social or biological unit, which responds in rational ways to external stimuli. Organizational development tries to modify these responses to maximize output.
Organizational ecology Biological principles at work in an organization, determining its evolution and response to change, stress, and natural selection.
Organizational knowledge Knowledge shared by a group and based on its common values and experiences. It encompasses all knowledge resources within an organization. In professional terms, it is communal knowledge embedded in the structure of the mission of the firm.
Organizational learning Culture of learning and constant improvement within an organization, marked by the pursuit of excellence.
Organizational life cycle Evolutionary model of a corporation from founding to growth to maturity; and the organizational structure, leadership style, and strategy that support each stage of growth.
Organizational mirror Technique by which each group in a corporation is critiqued by other groups, in order to explore weaknesses and to learn from each other.
Organizational multiplier Factor by which a primary change in a particular sector of an organization is multiplied to determine the total change to the whole organization.
Organizational pathology Factors taken together that affect the health of an organization and the climate in which it functions, such as reality testing, adaptability, identity, and unity.
Organizational planning Design of the structure of an organization and the division of its responsibilities and chains of command.
Organizational structure Framework of responsibility and the chain of command in an organization to achieve optimum efficiency.
Organizational theory Study of the design, structure, and process of decision making in an organization and the sociology of its organizational system. It focuses on the ways in which decisions are made and how they are influenced by reason and the bottom line, rather than by altruism or abstract theory.
Orientation Induction training or a refresher course for a new task or new set of working conditions.
Orphan product Drug that is not developed for commercial use because the number of prospective users is not sufficient to justify its high production costs.
Osborn, Alex Faickney (1888–1966) American advertising executive and pioneer of brainstorming. Along with Sidney Parnes, he developed the Osborn-Parnes Creative Problem Solving Process. He wrote extensively on creative advertising. His books included A Short Course in Advertising (1921), Wake Up Your Mind (1952), Applied Imagination (1953), and The Goldmine between Your Ears (1955).
OSHA Occupational Safety and Health Administration, a federal agency that oversees safety in the workplace and regulates industrial policies regarding accidents.
OTC OVER THE COUNTER
Ouchi, William G. (1943–) American expert in business management and a professor at the Anderson School of Management at the University of California at Los Angeles. His first successful book was Theory Z: How American Management Can Meet the Japanese Challenge (1981). It was followed by The M Form Society: How American Teamwork Can Recapture the Competitive Edge. He described three types of organizational control: bureaucratic, market, and clan.
Outbound logistics Movement of materials from a production center comprising storage, transportation, and distribution.
Outplacement Counseling of laid-off employees to help them find work.
Outsourcing Contracting out work to foreign or domestic companies for the production of materials, spare parts, or services such as telemarketing. This is an effort to reduce the workforce or downsize a company’s production facilities, invariably leading to considerable savings, especially when the work is outsourced to countries like China and India where labor costs are lower. The downside is that outsourcing leads to or reinforces domestic unemployment and creates dependence on foreign expertise. It also leads to a general weakening of industrial dominance in the countries that outsource.
Outwork Work by generally poorly paid workers, done outside a company’s premises by freelance workers. Also termed telework.
Over the counter (OTC) Market in which financial obligations are bought and sold outside the jurisdiction of recognized financial markets or stock exchanges. The OTC markets are specifically designed for DERIVATIVES.
Overachiever Person who exceeds the expectations of peers in terms of performance and rise to positions of authority.
Overall reciprocity Unrestricted trade concessions, as among members of trading blocs.
Overcapitalization Condition of having too much subscribed capital, caused by an overestimation of financial needs.
Overhead Recurrent daily expenditures incurred in running a company, apart from labor costs and materials. Included in overhead are rent, repairs, heating, and lighting. These overhead costs are due and payable whether the company makes a profit or not.
Overheated economy Situation whereby very high aggregate demand leads to higher prices but not necessarily higher output.
Overpositioning Attempt to give investors a narrow and skewed profile of a company’s strengths.
Overshooting In financial markets, the tendency for a security, commodity, or currency to experience extremely volatile ups and downs before settling into equilibrium.
Oversubscription Situation in which subscribers are willing to invest more in shares than the company’s required capital. In such cases, applications are scaled down or shares are allotted by ballot.
Owens, Robert (1771–1858) Scottish industrialist, believed to be the first manager of a manufacturing firm. He was concerned with management problems such as motivation, productivity, and attitudes.
Own brand Product sold under the name or trademark of the distributor and through its own outlets at a price considerably less than the manufacturer’s brand. Chain stores and grocery outlets have their own brands that compete directly with a known manufacturer’s brand. Also known as house brand.