Famous Management Terms or Management Glossary
A
absenteeism An individual's not showing up for work
accurate information Information that provides a valid and reliable reflection of reality
administrative management The branch of the classical management perspective that focuses on managing the total organization
administrative model A decision-making model that argues that decision makers (1) have incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to "satisfice" when making decisions
adverse impact A selection standard for employment is aid to have an adverse impact when minority group members or women pass that standard at a rate less than 80 percent of the pass rate of majority group members
affirmative action Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization
Age Discrimination in Employment Act A law that prohibits discrimination against people older than forty years; passed in 1967, amended in 1978 and 1986
agreeableness In the "Big Five" model of personality, an individual's ability to get along with others
Americans with Disabilities Act A law that prohibits discrimination against people with disabilities
artificial intelligence (AI) The construction of computer systems, both hardware and software, to imitate human behavior - that is, to perform physical tasks, use thought processes, and learn
attitudes Complexes of beliefs and feelings that people have about specific ideas, situations, or other people
attribution The process of observing behavior and attributing it to a cause
audit An independent appraisal of an organization's accounting, financial, and operational systems
authoritarianism The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems such as organizations
authority Power that has been legitimized by the organization
automation The process of designing work so that it can be completely or almost completely performed by machines
avoidance A method of strengthening behavior by making it clear that there will be unpleasant consequences if the behavior is not performed
B
B2B A B2B (business to business) company is one that offers products or services directly to other businesses. The business can be a buyer, such as when a company purchases material for its products, or it can be a supplier providing products to other companies.
B2C B2C is an acronym for business-to-consumer. A B2C business is one that sells products or services directly to the consumer.
balance sheet A list of the assets and liabilities of an organization at a specific point in time
BCG matrix A method of evaluating businesses relative to the growth rate of their market and the organization's share of the market
behavioral management perspective An approach to business management that emphasizes individual attitudes and behaviors and group processes
benchmarking The process of learning how other firms do things in an exceptionally high-quality manner
benefits Things of value other than compensation that an organization provides to its workers
Big Five personality traits A popular personality framework based on five key traits
board of directors Governing body elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests
bounded rationality The concept that decision makers are limited by their values and unconscious reflexes, skills, and habits
budget A plan expressed in numerical terms
bureaucracy A model of organization design based on a legitimate and formal system of authority
bureaucratic control A form of organizational control characterized by formal and mechanistic structural arrangements
burnout A feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time
business plan A document that summarizes the business strategy and structure
business process change (reengineering) The radical redesign of all aspects of a business to achieve major improvements in cost, service, or time
business-level strategy The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market
C
capacity The amount of products, services, or both that can be produced by an organization
cellular layout A physical configuration of facilities used when families of products can follow similar flow paths
centralization The process of systematically retaining power and authority in the hands of higher-level managers
chain of command A clear and distinct line of authority among the positions in an organization
charisma A form of interpersonal attraction that inspires support and acceptance
charismatic leadership The concept that charisma is an individual characteristic of the leader
classical decision model A prescriptive approach to decision making that tells managers how they should make decisions; assumes that managers are logical and rational and that their decisions will be in the best interests of the organization
classical management perspective An approach to business management that consists of two distinct branches - scientific management and administrative management
closed system A system that does not interact with its environment
coalition An informal alliance of individuals or groups formed to achieve a common goal
code of ethics A formal, written statement of the values and ethical standards that guide a firm's actions
coercive power The power to force compliance by means of psychological, emotional, or physical threat
cognitive dissonance An uncomfortable feeling that results when an individual has conflicting attitudes
cohesiveness The extent to which members are loyal and committed to the group; the degree of mutual attractiveness within the group
collective bargaining The process of agreeing on a satisfactory labor contract between management and a union
communication The process of transmitting information from one person to another
communication network The pattern through which the members of a group communicate
communication skills The manager's abilities both to convey ideas and information to others effectively and to receive ideas and information effectively from others
compensation The financial remuneration given by the organization to its employees in exchange for their work
competitor An organization that competes with other organizations for resources
complete information Information that provides the manager with all the information he or she needs
compressed work schedule A schedule whereby employees work a full forty-hour week in fewer than the traditional five days
computer-assisted manufacturing A technology that relies on computers to design or manufacture products
conceptual skills The manager's ability to think in the abstract
concern for people The part of the Leadership Grid that deals with the human aspects of leader behavior
concern for production The part of the Leadership Grid that deals with the job and task aspects of leader behavior
conflict A disagreement among two or more individuals or groups
conglomerate (H-form) design An organization design used by an organization made up of a set of unrelated businesses
conscientiousness In the "Big Five" model of personality, the number of goals on which an individual focuses
consideration behavior The behavior of leaders who show concern for subordinates and attempt to establish a warm, friendly, and supportive climate
content perspectives Approaches to motivation that try to determine what factor or factors motivate people.
contingency perspective The point of view that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements
contingency planning The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate
contributions In the "psychological contract" that governs employment, what the individual provides to the organization
control The regulation of organizational activities in such a way as to facilitate goal attainment
control standard A target against which subsequent performance will be compared
controller An official in an organization who helps line managers with control activities
controlling Monitoring organizational progress toward goal attainment
coordination The process of linking the activities of the various departments of the organization
corporate-level strategy The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets
creativity The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas
crisis management The set of procedures the organization will use in the event of a disaster or other unexpected calamity
customer Whoever pays money to acquire an organization's products or services
customer departmentalization Grouping activities to respond to and interact with specific customers or customer groups
cycle time The time that an organization needs to accomplish activities such as developing, making, and distributing products or services
D
data Raw figures and facts reflecting a single aspect of reality
decentralization The process of systematically delegating power and authority throughout the organization to middle and lower-level managers
decentralized control An approach to organizational control based on informal and organic structural arrangements
decision making Part of the planning process that involves selecting a course of action from a set of alternatives
decision making The act of choosing one alternative from among a set of alternatives
decision support system (DSS) An interactive system that locates and presents information needed to support the decision-making process
decision-making process Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice
decision-making skills The manager's ability to recognize and correctly define problems and opportunities and then to select an appropriate course of action to solve problems and capitalize on opportunities
delegation The process by which a manager assigns a portion of his or her total workload to others
Delphi group A form of group decision making in which a group is used to achieve a consensus of expert opinion
departmentalization The process of grouping jobs according to some logical arrangement
development Teaching managers and professionals the skills needed for both present and future jobs
diagnostic skills The manager's ability to visualize the most appropriate response to a situation
differentiation The extent to which an organization is broken down into subunits
differentiation strategy A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services
direct investment A firm's building or purchasing operating facilities or subsidiaries in a different country from the one where it has its headquarters
diversification The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another
diversity A characteristic of a group or organization whose members differ from one another along one or more important dimensions, such as age, gender, or ethnicity
divisional (M-form) design An organization design based on multiple businesses in related areas operating within a larger organizational framework
dysfunctional behaviors Behaviors that detract from, rather than contribute to, organizational performance
E
economic community A set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system)
economy The prevailing and projected health and vitality of theeconomic system in which the organization operates.
effective Making the right decisions and successfully implementing them
effective communication The process of sending a message in such a way that the message received is as close in meaning as possible to the message intended
efficient Using resources wisely and in a cost-effective way
effort-to-performance expectancy The individual's perception of the probability that effort will lead to high performance
emotional intelligence (EQ) The extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills
employee-centered leader behavior The behavior of leaders who develop cohesive work groups and ensure employee satisfaction
empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority
enterprise resource planning (ERP) A large-scale information system for integrating and synchronizing the many activities in an extended enterprise
entrepreneur Someone who engages in entrepreneurship
entrepreneurship The process of planning, organizing, operating, and assuming the risk of a business venture
entropy A normal process leading to system decline
Equal Employment Opportunity Commission The body charged with enforcing Title VII of the Civil Rights act of 1964
Equal Pay Act of 1963 A law that requires that men and women be paid the same amount for doing the same job
equity theory A process perspective on motivation that suggests that people are motivated to seek social equity in the rewards they receive for performance
escalation of commitment A decision maker's staying with a decision even when it appears to be wrong
established market A market in which several large firms compete according to relatively well-defined criteria
ethical behavior Behavior that conforms to generally accepted social norms
ethical compliance The extent to which an organization and its members follow basic ethical standards of behavior
ethics An individual's personal beliefs about whether a behavior, action, or decision is right or wrong
European Union (EU) The first and most important international market system
executive support system (ESS) A quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers
expectancy theory A process perspective on motivation that suggests that motivation depends on two things - how much we want something and how likely we think we are to get it
expert power The personal power that accrues to someone as a consequence of the information or expertise that she or he they possesses
export restraint agreements Accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another
exporting Making a product in the firm's domestic marketplace and selling it in another country
external environment Everything outside an organization's boundaries that might affect it
external recruiting Getting people from outside the organization to apply for jobs
extinction A method of weakening undesired behaviors by simply ignoring or not reinforcing them
extranet A communications network that allows selected outsiders limited access to an organization's internal information system, or intranet
extraversion In the "Big Five" model of personality, an individual's comfort level with relationships
F
facilities The physical locations where products or services are created, stored, and distributed
Fair Labor Standards Act A law that sets a minimum wage and requires overtime pay for work in excess of forty hours per week; passed in 1938 and amended frequently since then
Family and Medical Leave Act of 1993 A law that sets standards for pension plan management and provides federal insurance if pension funds go bankrupt
financial control Control of the organization's financial resources
financial statement A profile of some aspect of an organization's financial circumstances
first-line managers Managers who supervise and coordinate the activities of operating employees
first-mover advantage Any advantage that comes to a firm because it exploits an opportunity before any other firm does
fixed-interval schedule Provides reinforcement at fixed intervals of time, such as regular weekly paychecks
fixed-position layout A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes
focus strategy A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers
franchising agreement A contract between an entrepreneur (the franchisee) and a parent company (the franchiser); the entrepreneur pays the parent company for the use of its trademarks, products, formulas, and business plans
functional (U-form) design An organization design based on the functional approach to departmentalization
functional departmentalization Grouping jobs that involve the same or similar activities
functional group A permanent group created by the organization to accomplish a number of organizational purposes with an unspecified time horizon
G
gainsharing programs Programs designed to share the cost savings from productivity improvements with employees
Golden Parachute A golden parachute is a name given to the clause in a top executive's employment agreement or contract that defines the payout the individual will receive should they be terminated by the organization before the end of their contract.
GE Business Screen A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business
General Adaptation Syndrome (GAS) General cycle of the stress process
General Agreement on Tariffs and Trade (GATT) A trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets
grapevine An informal communication network among people in an organization
grievance procedure The means by which a labor contract is enforced
group Two or more people who interact regularly to accomplish a common purpose or goal
groupthink A situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision
H
horizontal communication Communication that flows laterally within the organization; involves colleagues and peers at the same level of the organization and may involve individuals from several different organizational units
human capital A term that reflects the organization's investment in attracting, retaining, and motivating an effective workforce
human relations movement A school of thought that argued that workers respond primarily to the social context of the workplace
human resource management (HRM) The set of organizational activities directed at attracting, developing, and maintaining an effective workforce
I
importing Bringing a good, service, or capital into the home country from abroad
impression management A direct and intentional effort by someone to enhance his or her image in the eyes of others
income statement A summary of an organization's financial performance over a period of time
incremental innovation A new product, service, or technology that modifies an existing one
individual differences Personal attributes that vary from one person to another
inducements In the "psychological contract" that governs employment, what the organization provides to the individual
informal leader A person who engages in leadership activities but whose right to do so has not been formally recognized by the organization or group
informal or interest group A group created by its members for purposes that may or may not be relevant to those of the organization
information Data presented in a way or form that has meaning
initiating-structure behavior The behavior of leaders who define the leader-subordinate role in such a way that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed
innovation The managed effort of an organization to develop new products or services or new uses for existing products or services
integration The degree to which the various subunits in an organization must work together in a coordinated fashion
interacting group or team A decision-making group or team in which members openly discuss, argue about, and agree on the best alternative
interest group A group organized by its members to attempt to influence organizations
internal environment The conditions and forces within an organization
internal recruiting Considering current employees as applicants for higher-level jobs in the organization
interpersonal skills The ability to communicate with, understand, and motivate both individuals and groups
intranet A communications network similar to the Internet but operating within the boundaries of a single organization
intrapreneurs Similar to entrepreneurs except that they develop new businesses in the context of a large organization
intuition An innate belief about something, without conscious consideration
inventory control Managing the organization's raw materials, work in process, finished goods, and products in transit
ISO 14000 A set of standards for environmental performance
ISO 9000:2000 A set of quality standards created by the International Organization for Standardization and revised in 2000
J
job analysis A systematized procedure for collecting and recording information about jobs within an organization
job characteristics approach An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences
job enlargement An alternative to job specialization that involves giving the employee more tasks to perform
job enrichment An alternative to job specialization that involves increasing both the number of tasks the worker does and the control the worker has over the job
job evaluation An attempt to assess the worth of each job relative to other jobs
job rotation An alternative to job specialization that involves systematically moving employees from one job to another
job satisfaction or dissatisfaction An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work
job sharing A work arrangement in which two part-time employees share one full-time job
job specialization The degree to which the overall task of the organization is broken down into smaller component parts
job-centered leader behavior The behavior of leaders who pay close attention to the job and to work procedures involved with that job
joint venture A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis
just-in-time (JIT) method An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the company's investment in storage space and inventory is minimized and the production process is not interrupted
K
knowledge workers Workers whose contributions to an organization are based on what they know
L
labor relations The process of dealing with employees who are represented by a union
Labor-Management Relations Act A law passed in 1947 to limit union power; also known as the Taft-Hartley Act
layout The physical configuration of facilities, the arrangement of equipment within facilities, or both
leader-member exchange (LMX) model A model of leadeship that stresses that leaders have different kinds of relationships with different subordinates
leaders People who can influence the behaviors of others without having to rely on force; those accepted by others as leaders
leadership As a process, the use of noncoercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organization culture; as a property, the set of characteristics attributed to individuals who are perceived to be leaders
leading The set of processes used to get members of the organization to work together to further the interests of the organization
learning organization An organization that works to facilitate the lifelong learning and personal development of all of its employees, while continuously transforming itself to respond to changing demands and needs
least-preferred coworker (LPC) measure A measuring scale that asks leaders to describe the person with whom they are able to work least well
legal compliance The extent to which an organization complies with local, state, federal, and international laws
legitimate power Power granted through the organizational hierarchy; the power defined by the organization to be accorded to people occupying particular positions
licensing An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales
location The physical positioning or geographic site of facilities
location departmentalization Grouping jobs on the basis of defined geographic sites or areas
locus of control The degree to which an individual believes that his or her behavior has a direct impact on the consequences of that behavior
LPC theory A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness
M
Machiavellianism Behavior directed at gaining power and controlling the behavior of others
Malcolm Baldridge Award Award Named after a former secretary of commerce, this prestigious award is given to firms that achieve major quality improvements
management A set of activities (including planning and decision making, organizing, leading, and controlling) directed at using an organization's resources (human, financial, physical, and information) to achieve organizational goals in an efficient and effective manner
management by wandering around An approach to communication that involves the manager's literally wandering around and having spontaneous conversations with others
management information system (MIS) An information system that supports an organization's managers by providing daily reports, schedules, plans, and budgets
management science The branch of the quantitative approach to management that focuses specifically on the development of mathematical models
managerial ethics Standards of behavior that guide individual managers in their work
managerial innovation A change in the management process in an organization
manufacturing A form of business that combines and transforms resource inputs into tangible outcomes
maquiladoras Light assembly plants that are built in northern Mexico close to the U.S. border and are given special tax breaks by the Mexican government
Maslow's hierarchy of needs A content perspective on motivation that suggests that people must satisfy the following five levels of needs in the following order - physiological, security, belongingness, esteem, and self-actualization needs
matrix design An organization design based on two overlapping bases of departmentalization
mechanistic organization An organization design that is similar to the bureaucratic model but is most frequently found in stable environments
merit pay Pay awarded to employees on the basis of the relative value of their contributions to the organization
merit pay plan Compensation plan that formally bases at least some meaningful portion of compensation on merit
middle managers The relatively large set of managers responsible for implementing the policies and plans developed by top managers and for supervising and coordinating the activities of lower-level managers.
mission A statement of an organization's fundamental purpose
motivation The set of forces that cause people to behave in certain ways
N
National Labor Relations Board (NLRB) A body established by the Wagner Act to enforce its provisions
need for achievement The desire to accomplish a goal or task more effectively than in the past
need for affiliation The desire for human companionship and acceptance
need for power The desire to be influential in a group and to control one's environment
negative affectivity A tendency to be generally downbeat and pessimistic, to see things in a negative way, and to seem to be in a bad mood
negative emotionality In the "Big Five" model of pesonality, a measure of the extent to which an individual is poised, calm, resilient, and secure
niche A segment of a market not currently being exploited
nominal group A structured technique used to generate creative and innovative alternatives or ideas
nonprogrammed decision A decision that is relatively unstructured and occurs much less often than a programmed decision
nonverbal communication Any communication exchange that does not use words or that amplifies the meanings of words to convey more than the strict definition of the words themselves
norms Standards of behavior that the group accepts for its members and to which it expects them to adhere
North American Free Trade Agreement (NAFTA) An agreement between the United States, Canada, and Mexico to promote trade with one another
O
open system A system that interacts with its environment
openness In the "Big Five" model of personality, a measure of an individual's rigidity of beliefs and range of interests
operational goal A goal set by and for lower-level managers of the organization
operations control Control of the processes the organization uses to transform resources into products or services
operations management The branch of the quantitative approach to management that is concerned with helping the organization more efficiently produce its products or services
operations management The total set of managerial activities used by an organization to transform resource inputs into products, services, or both
oral communication Face-to-face conversation, group discussions, telephone calls, and other circumstances in which the spoken word is used to transmit meaning
organic organization A very flexible and informal model of organization design, most often found in unstable and unpredictable environments
organization A group of people working together in a structured and coordinated fashion to achieve a set of goals
organization change Any substantive modification to some part of the organization
organization culture The set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization understand what it stands for, how it does things, and what it considers important
organization development (OD) An effort that is planned, organizationwide, and managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge
organization structure and design The set of elements that can be used to configure an organization
organizational behavior Behavioral perspectives on management that acknowledge that human behavior in organizations is very important
organizational citizenship Behavior of individuals that makes a positive overall contribution to the organization
organizational commitment An attitude that reflects an individual's identification with and attachment to the organization itself
organizational life cycle Progression through which organizations evolve as they grow and mature
organizational opportunity An area in the environment that, if exploited, may generate higher performance
organizational size The total number of full-time or full-time-equivalent employees
organizational strength A skill or capability that enables an organization to conceive of and implement its strategies
organizational threat An area in the environment that increases the difficulty of an organization's achieving high performance
organizational weakness A deficit in skills or capabilities that prevents an organization from choosing and implementing strategies that support its mission
organizing Determining how activities and resources are to be grouped
outcomes Consequences of behaviors in an organizational setting, usually rewards
outsourcing Subcontracting services and operations to other firms that can perform them more cheaply or better
overall cost leadership strategy A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms
owner Whoever can claim property rights to an organization
P
participation The process of giving employees a voice in making decisions about their own work
path-goal theory A theory of leadership that suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards
perception The set of processes by which an individual becomes aware of and interprets information about the environment
performance appraisal A formal assessment of how well an employee is doing his or her job
performance behaviors The total set of work-related behaviors that the organization expects the individual to display
performance-to-outcome expectancy The individual's perception that performance will lead to a specific outcome
personality The relatively permanent set of psychological and behavioral attributes that distinguish one person from another
person-job fit The extent to which the contributions made by the individual match the inducements offered by the organization
philanthropic giving Awarding funds or gifts to charities or other worthy causes
piece-rate incentive plan A reward system wherein the organization pays an employee a certain amount of money for every unit she or he produces
planned change Change that is designed and implemented in an orderly and timely fashion in anticipation of future events
planning Setting an organization's goals and deciding how best to achieve them
policy A standing plan that specifies the organization's general response to a designated problem or situation
political behavior Activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes
political-legal climate The government regulation of business and the relationship between business and government.
pooled interdependence A form of interdependence in which units operate with little interaction, and their output is simply pooled
portfolio management technique A method that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance
positive affectivity A tendency to be relatively upbeat and optimistic, to have an overall sense of well-being, to see things in a positive light, and to seem to be in a good mood.
positive reinforcement A method of strengthening behavior by administering rewards or positive outcomes after a desired behavior is performed
postaction control Operations control that monitors the outputs or results after the transformation of resources into products or services is complete
power The ability to affect the behavior of others
preliminary control Operations control that attempts to monitor the quality or quantity of financial, physical, human, and information resources before they actually become part of the system
process innovation A change in the way a product or service is manufactured, created, or distributed
process layout A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products
process perspectives Approaches to motivation that focus on why people choose certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained these goals
product departmentalization Grouping activities around products or product groups
product innovation A change in the physical characteristics or performance of an existing product or service or the creation of new products or services
product layout A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed
product life cycle A model that portrays how sales volume for products changes over the life of products
productivity An economic measure of efficiency that summarizes the value of what is produced relative to the value of the resources used to produce it
program A single-use plan for a large set of activities
programmed decision A decision that is fairly structured or recurs with some frequency (or both)
project A single-use plan of less scope and complexity than a program
psychological contract The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return
punishment A method of weakening undesired behaviors by administering negative outcomes or unpleasant consequences when the behavior is performed
purchasing management Management concerned with buying materials and resources needed to produce products and services
Q
quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs
quantitative management perspective An approach that applies quantitative techniques to business management
quota A limit on the number or value of goods that can be traded
R
radical innovation A new product, service, or technology that completely replaces an existing one
ratio analysis The calculation of one or more financial ratios to assess some aspect of the organization's financial health
reactive change A piecemeal response to circumstances as they develop
realistic job preview (RJP) The practice of providing the applicant with a realistic picture of what it will be like to perform the job that the organization is trying to fill
reciprocal interdependence A form of interdepemdence in which activities flow both ways between units
recruiting The process of attracting individuals to apply for jobs that are open
referent power The personal power that accrues to someone on the basis of identification, imitation, loyalty, or charisma
regulator A body that has the potential to control, legislate, or otherwise influence the organization's policies and practices
regulatory agency An agency created by the government to regulate business activities
reinforcement theory An approach to motivation that argues that behavior that results in rewarding consequences is likely to be repeated, whereas behavior that results in punishing consequences is less likely to be repeated
related diversification A strategy in which an organization operates in several businesses that are somehow linked with one another
relevant information Information that is useful to managers in their particular circumstances for their particular needs
resource deployment How an organization distributes its resources across the areas in which it competes
reward power The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments
reward system The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded
risk propensity The extent to which a decision maker is willing to gamble when making a decision
risk propensity The degree to which an individual is willing to take chances and make risky decisions
robot Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings
role ambiguity Ambiguity that arises in the role structure within a group when the sent role is unclear and the individual does not know what is expected of him or her
role conflict Conflict that arises within the role structure of a group when the messages and cues that make up the sent role are clear but contradictory or mutually exclusive
role overload A consequence of a weak role structure within a group, which occurs when expectations for the role assigned to an individual exceed his or her capabilities to perform
role structure The set of defined roles and interrelationships among those roles that the group members define and accept
roles The parts that individual members of a group play in helping the group reach its goals
rules and regulations Standing plans that describe exactly how specific activities are to be carried out
S
Sarbanes-Oxley Act of 2002 A law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms' financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption.
satisficing The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency
Scanlon plan A program similar to gainsharing, but the distribution of gains is tilted much more heavily toward employees
scientific management The branch of the classical management perspective that is concerned with improving the performance of individual workers
scope When applied to strategy, the range of markets in which an organization will compete
screening control Operations control that relies heavily on feedback processes during the transformation of resources into products or services
selective perception The process of screening out information that we are uncomfortable with or that contradicts our beliefs
self-efficacy An individual's beliefs about her or his capabilities to perform a task
self-esteem The extent to which a person believes that he or she is a worthwhile and deserving individual
sequential interdependence A form of interdependence in which the output of one unit becomes the input for another in sequential fashion
service organization An organization that transforms resources into services
single-product strategy A strategy in which an organization manufactures just one product or service and sells it in a single geographic market
single-use plan Developed to carry out a course of action that is not likely to be repeated in the future
situational view of organization design A view of organization design that is based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors
small business A business that is privately owned by one individual or a small group of individuals and has sales and assets that are not large enough to influence its environment
social responsibility The set of obligations an organization has to protect and enhance the societal context in which it functions
socialization Generalized norm conformity that occurs as a person makes the transition from being an outsider to being an insider in the organization
soldiering Employees' deliberately working at a slow pace
span of management The number of people who report to a particular manager
standard operating procedure (SOP) A standing plan that outlines the steps to be followed in particular circumstances.
standing plan A plan developed for activities that recur regularly over a period of time
state of certainty A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative
state of risk A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates
state of uncertainty A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have
statistical quality control (SQC) A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and in-process sampling
steps in rational decision making Recognize and define the decision situation; identify appropriate alternatives; evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; follow up and evaluate the results of the chosen alternative
stereotyping The process of categorizing or labeling people on the basis of a single attribute
stock option plan An aspect of compensation established to give senior managers the option to buy company stock in the future at a predetermined fixed price
strategic alliance A cooperative arrangement between two or more firms for mutual gain
strategic control Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals
strategic goal A goal set by and for top management of the organization
strategic leadership The capability to understand the complexities of both the organization and its environment and to lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment
strategic partner (strategic ally) An organization working together with one or more other organizations in a joint venture or similar arrangement
strategy formulation The set of processes involved in creating or determining the strategies of the organization; it focuses on the content of strategies
strategy implementation The methods by which strategies are operationalized, or executed, within the organization; it focuses on the processes through which strategies are achieved
stress An individual's response to a strong stimulus, which is called a stressor
structural control Monitoring, and when necessary adjusting, how effectively the elements of the organization's structure are serving their intended purpose
substitutes for leadership A concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of subordinates, the task, and the organization
subsystem A system within another system
supplier An organization that provides resources for other organizations
supply chain management The process of managing operations control, resource acquisition, and inventory so as to improve overall efficiency and effectiveness
SWOT An acronym that stands for strengths, weaknesses, opportunities, and threats
synergy Two or more subsystems working together to produce more than the total of what they might produce working alone
system An interrelated set of elements functioning as a whole
T
tactical goal A goal set by and for middle managers of the organization
tariff A tax collected on goods shipped across national boundaries
task group A group created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon
team A group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities
team organization An organization that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy
technical innovation A change in the appearance or performance of products or services, or in the physical processes through which a product or service passes
technical skills The skills necessary to accomplish or understand the specific kind of work being done in an organization
technology The set of processes and systems used by organizations to convert resources into products or services
technology Conversion processes used to transform inputs into outputs
technology The set of processes and systems used by organizations to convert resources into products or services
telecommuting A work arrangement that allows employees to spend part of their time working offsite, usually at home
theory A conceptual framework for organizing knowledge and providing a blueprint for action
Theory X A pessimistic and negative view of workers that is consistent with the views of scientific management
Theory Y A positive view of workers that reflects the assumptions that human relations advocates make
timely information Information that is available in time for appropriate managerial action
time-management skills The manager's ability to prioritize work, to work efficiently, and to delegate appropriately
Title VII of the Civil Rights Act of 1964 Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship
top managers The relatively small group of senior executives who manage the overall organization
total quality management (TQM) (quality assurance) A strategic commitment by top management to change its whole approach to business in order to make quality a guiding factor in everything it does
training Teaching operational or technical employees how to do the job for which they were hired
transaction-processing system (TPS) An application of information processing for basic day-to-day business transactions
Transformational leadership Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking
turnover The loss of employees that occurs when people quit their job
two-factor theory of motivation A content perspective on motivation that suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors - motivation factors and hygiene factors
Type A Individuals who are extremely competitive, are very devoted to work, and have a strong sense of time urgency
Type B Individuals who are not particularly competitive, are only moderately devoted to work, and do not have a strong sense of time urgency
U
unethical behavior Behavior that does not conform to generally accepted social norms
universal perspective The point of view that there is "one best way" to do something
unrelated diversification A strategy in which an organization operates multiple businesses that are not logically associated with one another
V
valence An index of how much an individual desires a particular outcome; the attractiveness of the outcome to the individual
validation Determining the extent to which a selection device is really predictive of future job performance
value-added analysis The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers
variable-interval schedule Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor
variable-ratio schedule Provide reinforcement after varying numbers of behaviors are performed, such as the use of compliments by a supervisor on an irregular basis
venture capital company A group of small investors seeking to make profits on companies that have the potential for rapid growth
vertical communication Communication that flows up and down the organization, usually along formal reporting lines; takes place between managers and their subordinates and may involve several different levels of the organization
virtual organization An organization that has little or no formal structure
Vroom's decision tree approach An approach to leadership that predicts what kinds of situations call for different degrees of group participation
W
whistle blowing The disclosure, by an employee, of illegal or unethical conduct on the part of others within the organization
work team An alternative to job specialization that allows an entire group to design the work system it will use to perform an interrelated set of tasks
workplace behavior A pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness
World Trade Organization (WTO) An organization, which currently includes 140 member nations and 32 observer countries, that requires members to open their markets to international trade and to follow WTO rules
written communication Memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning
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