N
N Ach NEED FOR ACHIEVEMENT
N Aff NEED FOR AFFILIATION
Nader, Ralph American lawyer and consumer advocate; the father of CONSUMERISM. His early investigation of the safety of GM’s Corvair automobile gave birth to the consumer movement and made the safety of consumer products a national issue.
NAFTA NORTH AMERICAN FREE TRADE AGREEMENT
NAICS NORTH AMERICAN INDUSTRIAL CLASSIFICATION SYSTEM
NAIRU NONACCELERATING INFLATION RATE OF UNEMPLOYMENT
Naive quantitative method Technique used to forecast future trends, using historical data plotted in a time series. It displays the underlying trends, seasonal and cyclical variations, and random elements that are then decomposed to reveal underlying patterns.
Narrow market Market that is sensitive to changes in supply and demand, resulting in fluctuations in price.
Narrow money Informal name for M0 or M1, or that part of the money supply used as a medium of exchange.
NASDAQ National Association of Securities Dealers Automated Quotations System, an electronic marketplace for securities, founded in 1971.
Nash, John Forbes, Jr. (1928–) American mathematician who made important contributions to GAME THEORY, differential geometry, illustrating the forces that govern chance and events in daily life. His theories are used in market economics, computing, artificial intelligence, and military theory. He was a co-recipient of the Nobel Prize in Economic Sciences in 1994.
Nationalization Takeover by the state of companies and utilities that have a vital national interest and their operation henceforth under government control. Nationalization generally occurs in a socialist economy and reflects the view that private enterprise is more interested in profits than in public welfare. Nationalization is more a political move than an economic one. Opposite of PRIVATIZATION.
Natural capital Land as a factor of production.
Natural wastage Reduction of the workforce through attrition rather than layoffs.
Near-market research Scientific research with commercial potential.
Near money Assets, such as bills of exchange, that are immediately transferable and may be used to settle some, but not all, debts. Also termed Quasi money.
Need Any of several drivers in human psychology, such as the need for achievement, need for affiliation, need for power, and need to make sense.
Need for achievement Concept developed by social psychologist DAVID MCCLELLAND, describing the human need for achievement as a strong driver of performance, especially in entrepreneurs and managers.
Need for affiliation Concept in social psychology developed by DAVID MCCLELLAND, referring to the basic human need for company and a sense of belonging, which enable us to thrive in a corporate environment.
Need for power Concept in social psychology developed by DAVID MCCLELLAND, describing the thrill of exercising power over others, which can cause aggressive and antisocial behavior. The need for power stems from an inherent sense of insecurity and is an effort to affirm one’s own worth.
Need to make sense Basic human need for relevance, a sense of purpose, and validity that can come only from the external environment and the projection of one’s own values onto the world.
Need-pull Unmet need, or a new regulation or opportunity that creates a new need or demand.
Negative equity Difference between the value of a property and the outstanding amount borrowed against that property, where the latter is greater than the former.
Negative income tax Income redistribution program by which the state pays those with income levels below a stated amount a subsidy.
Negotiability Characteristic of a document entitling its owner to pass on legal ownership by endorsing it. Bills of exchange and checks are negotiable when they are signed on the back by the endorser.
Negotiate To confer with a view toward arriving at mutually acceptable terms for a contract or agreement.
Nellie, sitting next to Informal training program, whereby the learner sits close to an older worker and learns how he or she operates.
Nemoto’s principles of leadership From Masao Nemoto, managing director of Toyota, his ideas of CONTINUOUS IMPROVEMENT, coordination among divisions, better communication, rotation of best employees, setting deadlines, action following inspection, and rehearsal of presentations.
Nenko Human resources management system used in Japanese organizations.
Neoclassical economics School of MICROECONOMICS developed in the late 19th century, focusing on the allocation of capital and individual-level supply and demand. In combination with NEO-KEYNESIAN ECONOMICS, it was a dominant school of economic thought in the 20th century.
Neo-Keynesian economics Application of the MACROECONOMIC theories of KEYNESIAN ECONOMICS to the postwar period. It was combined with NEOCLASSICAL ECONOMICS to form the neoclassical synthesis, which became the mainstream economic approach until the latter part of the 20th century and the introduction of CHICAGO SCHOOL monetary theories.
Nepotism showing favoritism in employment or promotion, based on family ties rather than merit.
Net Amount remaining after specific deductions are made, as in net assets, net earnings, net dividends, net income, net investment, net profit, receipts, net value, and net worth.
Net national product GROSS NATIONAL PRODUCT less capital consumption.
Netiquette Informal rules and regulations that govern Internet communications.
Network Arrangement of parts, as in an organization, with interconnecting lines of communication and support, but functioning independently and simultaneously.
Network analysis Use of a network to plan a series of activities, to make the best use of resources, or to ensure control over a schedule.
Network marketing Selling of products or services through a network of self-employed agents and representatives.
Neumann, John von (1903–1957) Hungarian-American mathematician and polymath, considered a towering intellect and one of the greatest mathematicians of modern times. His contributions straddle many disciplines, including mathematics, physics, economics, computer science, and programming and statistics. He was a principal member of the Manhattan Project and a member of the Institute of Advanced Study at Princeton.
Neurotic organization Dysfunctional organization that exists at the whim of its top executive, whose capricious demands create instability at all levels. Ford Corporation under Henry Ford is an example.
New economics See KEYNESIAN ECONOMICS.
New product development Marketing strategy by which new and untried ideas are developed and converted into marketable innovations and inventions, through tests and analysis of their profitability, viability, and need. Prototypes are then made, tested, refined, and then test-marketed.
New York Stock Exchange (NYSE) Principal U.S. stock exchange, founded in 1792. It moved to Wall Street in 1793.
Next in, first out (NIFO) Method of valuing raw materials or finished goods issued from stock, using the next unit price at which consignments will be received. Compare FIRST IN, FIRST OUT; LAST IN, FIRST OUT.
NIC Newly industrializing countries.
Niche market Tightly defined market with relatively few customers, who support high levels of demand for a specific product or service.
Niche width Size of a niche market in terms of the number of customers and the depth of their demand. Generally, this is divided into broad niche markets and narrow niche markets.
NIH For “not invented here,” a derogatory term applied to foreign inventions and ideas, reflecting reluctance to benefit from globalization.
Nikkei stock average Index of prices on the Tokyo Stock Exchange, launched in 1949.
Noise 1. In communication theory, disruption in communications through chatter and background static. 2. In statistics, random fluctuations in data. 3. In finance, excess volatility in stock prices induced by nonstandard techniques for analyzing and valuing stocks.
Nominal group technique (NGT) Group problem-solving technique in which each member of a group is asked to write down ideas without consulting colleagues. These ideas are then discussed, without awareness of the origin. Similar ideas are grouped or merged, and the remaining ideas are ranked on the basis of potential. The individual rankings are combined mathematically and the ideas at the top are adopted. NGT avoids the distortions associated with GROUPTHINK, caused by deference to authority, peer pressure, office politics, and personal idiosyncrasies.
Nominal price Minimal price, fixed for considerations other than market value and generally a concession to a most favored party.
Nominee Person named to act on someone’s behalf, generally to conceal the identity of a stakeholder.
Nomothetic Approach to the study of human behavior that emphasizes general or universal principles. Opposed to IDEOGRAPHIC.
Nonaccelerating inflation rate of unemployment (NAIRU) Rate of unemployment that does not affect wage inflation.
Nonadjusting event In accounting, an event occurring between the date of the balance sheet and the date of the financial statements reflected on the balance sheet.
Nonaka, Ikujiro (1935–) Influential Japanese writer and Professor Emeritus of Hitotsubashi University Graduate School of International Corporate Strategy. He was also a Distinguished Scholar at the Drucker School and Institute, Claremont Graduate University and Distinguished Scholar at the University of California, Berkeley. He is best known for his study of Knowledge Management, a field that he founded with his book, The Knowledge-Creating Company.
Noncompete agreement Contract in which one party agrees not to compete with the other or to divulge any secrets to a third party. Such agreements are most common in employment contracts or in licensing agreements.
Nondisparagement clause Agreement that bars a present or past employee from criticizing the employer, especially on the Internet.
Nonequity share Share in a company, whereby the shareholder receives payment for a limited amount without reference to the company’s assets, profits, or dividends; or whereby the share is redeemable on the request of the issuer.
Nonexecutive director Executive of a company not involved in its day-to-day management but, rather, to provide independent and objective advice and counsel.
Nonfinancial performance Measure of performance that cannot be quantified and does not appear on the company books. It incorporates an array of techniques, such as defect rates, response times, and delivery commitments, that serve as strategic weapons, differentiating one firm from another.
Nonmonetary considerations Relating to aspects of an employee’s hire, including commuting time, boredom, morale, work environment, recognition, and self-fulfillment.
Nonnegotiable Relating to a negotiation’s demands or points that are outside the purview of discussion, and therefore where no concession is likely.
Nonprobability sampling In marketing, a sampling procedure in which the sample is chosen on the basis of personal preference rather than at random, and where bias in selection is likely to skew the responses.
Nordstrom, Kjell Anders (1958–) Swedish economist. Writer of popular business books, including Funky Business: Talent Makes Capital Dance (2000) and Karaoke Capitalism:Management for Mankind (2003).
Normal distribution In Gaussian terms, the symmetrical or bell-shaped frequency curve that appears when a range of values is plotted on the vertical axis and the values of a random variable are on the horizontal axis. The bell shape results because extreme values are infrequent toward the ends while median values are clustered around the middle.
Normative Conforming to an ideal or desirable standard, as in work behavior.
Norming Process by which an individual melds into the group and adopts the attitudes and values that are exhibited by the majority in the group, thus contributing to a cohesive corporate culture.
North General reference to the developed or industrialized countries of the Northern Hemisphere, including Japan, the United States, Canada, and Europe, as well as Australia in the Southern Hemisphere. Compare SOUTH.
North American Free Trade Agreement (NAFTA) A commerce trade agreement among Mexico, the United States, and Canada.
North American Industrial Classification System (NAICS) Taxonomy of business establishments according to the type of economic activity that replaced the older Standard Industrial Classification System. Its numbering system employs a six-digit code at the most detailed industry level. The first five digits are common to Canada, Mexico, and the United States. The last digit designates national industries. The first two digits designate the largest business sector, the third digit designates the subsector, the fourth digit designates the industry group, and the fifth digit designates the industries.
Norton, David P. American founder of the Palladium Group and co-author of The Execution Premium: Linking Strategy to Operations for Competitive Advantage (with Robert KAPLAN).
Nostro account Domestic bank’s account in a foreign bank, in the currency of that foreign country; used primarily to settle money exchanges.
Nostro and Vostro (Italian, from Latin, noster, ours and voster, yours) Accounting terms used to distinguish an account from an account held by another entity. The entities in question are almost always banks.
Not-for-profit Classification of charitable or public service institutions that are not designed to create profit and that therefore enjoy tax-exempt status.
Novation Replacement of one legal agreement with a new obligation, done with the consent of the parties involved.
Numeracy Ability to understand and work with numbers and statistical data.