Glossary - Agribusiness Management - page 434

Maslow's needs hierarchy A theory of human behavior based on the idea that different
kinds of needs have different levels of importance to individuals, and depend on the
needs that are currently being satisfi ed.
master production schedule (MPS) In operations management, details the fi nal quanti-
ties stocking keeping units that are to be made in specifi c blocks of time; created once
specifi c orders for products have been received and / or short-range sales forecasts have
been determined.
master scheduler In operations management, the individual(s) that must consider the total
demand on the resources and capacities of the agribusiness as well as the supplier's
capacities in developing production plans.
material requirement planning (MRP) A computerized information system for manag-
ing production operations; purpose is to ensure that the right materials, components, and
sub-assemblies are available in the right quantities at the right time so that fi nished
products can be produced according to the master production schedule.
m aturity stage A period in the product life cycle characterized by slow growth or even
some decline of sales as the market becomes saturated.
merchant wholesalers Firms in the market channel that buy products from processors or
manufacturers, and then resell those products to retailers, institutions or other busi-
nesses.
m icroeconomics The study of how scarce resources are allocated, primarily focused on
consumer choice and fi rm production decisions, and how these are related to markets
and prices.
minimal layer principle In organizational structure, the idea that the number of levels of
management should be kept at a minimum, while at the same time maintaining an effec-
tive span of control.
mission statement A fi rm's declaration of the business they are in, the customers they
serve, and the basic concepts or beliefs they hold.
model An abstract representation of a system or situation, usually in mathematical
terms, that exhibits the factors believed to be most pertinent to the system or
situation.
motivation A stimulus that produces action.
motivators An element of Herzberg's two-factor theory of motivation; reward producers,
or conditions that encourage employees to apply themselves, mentally and physically,
more productively to their jobs.
negative strokes In interpersonal communications, an interaction which often takes
the form of verbal criticism and reprimands; do not make individuals feel as good as
positive strokes, but gives the person attention which may be preferred to being
ignored.
net cash fl ow The difference between total cash infl ows and total cash outfl ows for an
operating period.
net farm income At the aggregate level, the portion of the net value added by agriculture
to the national economy that is earned by farm operators. At the fi rm level, net operating
income or profi t, plus other income and minus the interest expense. Net farm income
can be reported as either before or after taxes.
net income (profi t) after taxes Net profi t before taxes and after adjusting for the federal
business profi ts tax; sometimes called net income.
net income (profi t) before taxes The amount remaining after net operating profi t is
adjusted for any non-operating revenue or expenses.