Management Glossary

  Terms beginning with o
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operations management
The management discipline concerned with ensuring that business operations function productively and that they achieve the organization's goals as efficiently as possible. Chief among the concerns of operations managers are the efficient allocation and deployment of resources and the optimal organization of business processes.
Contributed by: Managerwise Staff

OPM
Other People's Money
Contributed by: Managerwise Staff

opportunity cost
The amount forfeited by choosing one course of action that excludes other actions. For example, imagine that you are considering two and only two opportunities, "A" and "B", but can only undertake one of them. If "B" would show a profit of $1,000, then the opportunity cost of choosing "A" is $1,000, the amount forgone by choosing "A" rather than "B".

If you are considering several options and can only choose one, the opportunity cost of any one option is the potential profit of the most profitable of the other options.
Contributed by: ManagerWise Staff

optimal order quantity

A synonym for economic order quantity. Abbreviated as Q*.

Contributed by: Managerwise Staff
See: economic order quantity

organic growth
Business growth generated internally as opposed to through mergers and/or acquisitions.
Contributed by: ManagerWise Staff

organizational behavior
The study of and application of principles concerning how people act and interact within organizations.
Contributed by: ManagerWise Staff

orientation
Contributed by: Managerwise Staff
See: induction

original equipment manufacturer
Typically abbreviated as OEM, this term is a misnomer. An original equipment manufacturer is not a manufacturer (at least not for the product(s) sold under an OEM agreement, but possibly for other products). Instead an OEM sells products made by others. The OEM may design the products, but not manufacture them. The products are sold under a brand owned by the OEM, not the original manufacturer--although some recognition may be given to the manufacturer. Even "manufacturer" is misleading as the term OEM is also used in the software industry. In this case, software is sold under a brand name that is not owned by the company that developed the software. OEM software may be a complete product, but it may also be a component within a broader application that includes some software developed by the OEM and/or others.
Contributed by: Managerwise Staff

outplacement

Services offered by a company to assist a former or soon-to-be-former employee to find another job after the company has terminated the person's employment.

Contributed by: Managerwise Staff

outside director

Also known as non-executive director

Contributed by:
See: non-executive director

outsourcing
Using outside individuals or firms to perform functions that were previously performed within the company (or that are usually performed within the firm at other similar companies within the same industry). The term outsourcing applies equally well whether the work is sent to another country or it is done within the same country as where the company that is outsourcing the work is domiciled.
Contributed by: ManagerWise Staff
See: offshoring, nearshoring

overhead cost
Costs that are not directly or closely related to the volume of goods and services produced. Examples include lease and administrative costs.
Contributed by: ManagerWise Staff

owners' equity
The book value worth of the company that is attributable to shareholders.
Contributed by: ManagerWise Staff



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