O
Objective: An end toward which effort is directed and on which resources are focused, usually to achieve an organization’s strategy.
Obsolescence: The decline of products in a market due to the introduction of better competitor products or rapid technology developments.
Off-the job training: Being trained away from the workplace, usually by specialist trainers.
One-way communication: Transmission of a message which does not call for or require a response.
On-the job training: Watching a more experienced worker doing the job and learning skills under their supervision.
Open-end credit: A form of credit that does not have a upper limit on the amount that can be borrowed or a time limit before repayment is due.
Opening cash (or bank) balance: The amount of cash held by the business at the start of the month.
Open market: A market that is widely available.
Operating cash flow: The amount used to represent the money moving through a company as a result of its operations, as distinct form its purely financial transactions.
Operating costs: Expenditures arising out of current business activities. The costs incurred to do business such as salaries, electricity, rental. Also may be called ‘overhead’.
Operational decisions: see
business decisions.
Opportunity cost: The next best alternative give up by choosing another item.
Optimize: To allocate such things as resources or capital as efficiently as possible.
Option: A contract for the right to buy or sell an asset, typically a commodity, under certain terms.
Order: A contract made between a customer and a supplier for the supply of a range of goods or services in a determined quantity and quality, at an agreed price, and for delivery at or by a specified time.
Organizational market: A marketplace made up of producers, trade industries, governments and institutions.
Organizational structure: The levels of management and division of responsibilities within an organisazation.
Outsourcing: Term used in business to identify the process of subcontracting work to outside vendors. The transfer of the provision of services previously carried out by in-house personnel to an external organization, usually under a contract with agreed standards, costs, and conditions.
Overdraft: The amount by which the money withdrawn from a bank account exceeds its balance.
Overhead: A general term for costs of materials and services not directly adding to or readily identifiable with the product or service being sold.
Overprice: To set the price of a product or service too high, with the result that it is unacceptable to the market.
Overtime ban: A form of industrial action when employees refuse to work longer than their normal working hours.