EJ Organizations Systems & Climates

EJ ORGANIZATIONS, SYSTEMS, AND CLIMATES

EJ1 Define profit and evaluate the cost of conducting business

EJ2 Identify "big picture" issues in conducting business

EJ3 Identify role in fulfilling the mission of the workplace

EJ4 Identify the rights of workers (e.g., adult and child labor laws and other equal employment opportunity laws)

EJ5 Recognize the chain of command, organizational flow chart system, and hierarchy of management within an organization

THE BIG PICTURE

Look Beyond the Day-to-Day Decisions
Most of us make multiple decisions every day. Some have big consequences; others have small implications. Big picture thinkers automatically consider the wide-ranging consequences of each decision they make. Top performers from our leadership simulation assessment understand that they don’t operate in a vacuum and that one move leads to another.
If you want to improve your strategic thinking behaviors, look beyond your immediate leadership decisions to the effect they will have on others and into the future.
Learn More About What’s Happening Both In and Beyond Your Own Company
Strategic thinkers tune into what other companies in their marketplace are doing and track trends that might affect their business. To improve your strategic thinking behaviors, know what’s going on in your industry, what customers are saying about what they want and need, and identify adjustments that might make sense in your business to stay ahead of the competition.
This means educating yourself about your own company’s situation by reading the annual report, knowing which products and services are in development, and understanding what the strategy success metrics really mean.
Be Thoroughly Versed On Your Organization’s Strategy and Culture
Understand where your company is headed, why your company exists, and what shapes your company culture. Learn the company’s:
— Strategic vision for success
— Mission statement
— Corporate values
— Unique value proposition
— Ideal target clients
— Strategic big bets
— Strategy success metrics

Kentucky workers have rights to fair wages ($7.25 minimum, overtime pay), protection from discrimination (race, sex, age, etc.), mandated meal/rest breaks (paid 10 min/4 hrs worked; 30 min lunch), unemployment/workers' comp benefits, and safety protections, though it's an "at-will" state, meaning termination can happen without cause, and a "Right-to-Work" law prevents mandatory union dues, notes the Kentucky Education and Labor Cabinet and Jibble.

Key Worker Rights in Kentucky:

Wages & Hours: $7.25 minimum wage, 1.5x pay for over 40 hours/week, timely final pay.
Breaks: 10-minute paid rest break for every 4 hours worked; at least 30-minute unpaid lunch break.
Anti-Discrimination: Protected from bias based on race, color, religion, sex, national origin, age (40+), disability (Kentucky Civil Rights Act).
Safety: Right to a safe workplace under OSHA, with necessary training and equipment.
Unemployment & Workers' Comp: Eligibility for state-provided benefits if unemployed through no fault of your own or if injured on the job.
Right-to-Work: Employees cannot be forced to join a union or pay dues as a condition of employment.

Employer Responsibilities:

Pay minimum wage & overtime.
Provide mandated breaks.
Follow anti-discrimination laws for employers with 8+ (or 15+ for disability) employees.
Contribute to unemployment/workers' comp funds.

An organization's hierarchy, reflected in its flowchart, defines the chain of command: a top-down structure showing who reports to whom, from executives (like the CEO/C-Suite) down to entry-level staff, ensuring clear authority, accountability, and communication flow, typically represented by vertical lines on a chart showing levels of increasing/decreasing authority, fostering structure but sometimes slowing decisions.

Key Components

Hierarchy: The layered structure of authority and responsibility, often depicted as a pyramid where top levels handle strategy (C-Suite, Board) and lower levels handle operations (employees).
Chain of Command: The unbroken line of authority from the top executive down to the lowest employee, dictating communication and reporting.
Organizational Chart (Org Chart): A visual diagram (often hierarchical) mapping roles, reporting relationships, and departments, showing who is accountable to whom.
Levels:
- Top-Level (Strategic): CEO, Board; set vision and direction (e.g., Sony, IBM).
- Middle-Level (Tactical): Managers; implement leadership directives.
- Lower-Level (Operational): Employees; perform daily tasks.

Profit

is the financial gain a business realizes when its total revenue exceeds its total expenses. It is often referred to as the "bottom line" and is a primary indicator of a company's overall financial health and operational efficiency.

The formula for profit is:

Profit=Total Revenue−Total Expenses[1.4.3]Profit equals Total Revenue minus Total Expenses open bracket 1.4 .3 close bracket

Profit=Total Revenue−Total Expenses[1.4.3]

The Cost of Conducting Business

The cost of conducting business is a comprehensive term that encompasses all monetary expenses and outlays a company incurs to operate, produce goods or services, and generate revenue. These costs are generally categorized as follows:

1. Cost of Goods Sold (COGS)

These are the direct costs attributable to the production of the goods sold or the delivery of services.

Examples:
- Raw materials and inventory
- Direct labor costs for production staff
- Manufacturing overhead

2. Operating Expenses (OpEx)

These are the indirect, day-to-day costs required to keep the business running, which are not directly tied to production.

Examples:
- Rent and utilities
- Salaries for administrative and sales staff
- Marketing and advertising
- Insurance premiums
- Depreciation and amortization of assets

3. Non-Operating Expenses

These are costs incurred outside of a company's primary business activities.

Examples:
- Interest payments on loans and debt
- Losses from the sale of assets or investments
- One-time legal settlement fees or restructuring costs
- Taxes (income tax, sales tax, property tax)

EJ ORGANIZATIONS, SYSTEMS, AND CLIMATESEOP Vocab, Lessons, & Assessments

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