Glossary

Accountability

refers to the management philosophy whereby individuals are held liable, or accountable, for how well they use their authority and live up to their responsibility of performing predetermined activities.

Achievement behavior

is aimed at setting challenging goals for followers to reach and expressing and demonstrating confidence that they will measure up to the challenge.

Activity

is a specified set of behavior within a project.

Adhocracy culture

is an organizational culture characterized by flexibility and discretion along with an external focus.

Adjourning,

the fifth and last stage of the team development process, is the stage in which the team finishes its job and prepares to disband.

Affirmative action program

is an organizational program whose basic purpose is to eliminate barriers against and increase employment opportunities for underutilized or disadvantaged individuals.

Alderfer’s ERG theory

is an explanation of human needs that divides them into three basic types: existence needs, relatedness needs, and growth needs.

Allocating skill

is the ability to provide the organizational resources necessary to implement a strategy.

Angel investors

are wealthy individuals who provide capital to new companies.

Appropriate human resources

are the individuals within the organization who make valuable contributions to management system goal attainment.

Argyris’s maturity–immaturity continuum

is a concept that furnishes insights into human needs by focusing on an individual’s natural progress from immaturity to maturity.

Assessment center

is a program in which participants engage in, and are evaluated on, a number of individual and group exercises constructed to simulate important activities at the organizational levels to which they aspire.

Authority

is the right to perform or command.

Automation

is the replacement of human effort by electromechanical devices.

Avoiding

is a conflict management technique whereby managers simply ignore the conflict.

Bank financing

occurs when an entrepreneur obtains financing from a financial institution in the form of a loan.

Behavior modification

is a program that focuses on encouraging appropriate behavior by controlling the consequences of that behavior.

Behavioral approach to management

is a management approach that emphasizes increasing production through an understanding of people.

Bias

refers to departures from rational theory that produce suboptimal decisions.

Bicultural stress

is stress resulting from having to cope with membership in two cultures simultaneously.

Bounded rationality

refers to the fact that managers are bounded in terms of time, computational power, and knowledge when making decisions.

Brainstorming

is a group decision-making process in which negative feedback on any suggested alternative to any group member is forbidden until all group members have presented alternatives that they perceive as valuable.

Break-even analysis

is the process of generating information that summarizes various levels of profit or loss associated with various levels of production.

Break-even point

is that level of production where the total revenue of an organization equals its total costs.

Budget

is a control tool that outlines how funds in a given period will be spent, as well as how they will be obtained.

Bureaucracy

is the term Max Weber used to describe a management system characterized by detailed procedures and rules, a clearly outlined organizational hierarchy, and impersonal relationships among organization members.

Business portfolio analysis

is an organizational strategy formulation technique that is based on the philosophy that organizations should develop strategy much as they handle investment portfolios.

Buyer power

refers to the power that customers have over the firms operating in an industry; as buyer power increases, the attractiveness of the industry decreases.

Capacity strategy

is an operational plan of action aimed at providing an organization with the right facilities to produce the needed output at the right time.

Career

is a sequence of work-related positions occupied by a person over the course of a lifetime.

Career plateauing

is a period of little or no apparent progress in the growth of a career.

Cash cow

is an SBU that has a large share of a market that is growing only slightly.

Centralization

refers to the situation in which a minimal number of job activities and a minimal amount of authority are delegated to subordinates.

Change agent

is an individual inside or outside the organization who tries to modify the existing organizational situation.

Change-related activities

are management efforts aimed at modifying organizational components.

Changing an organization

is the process of modifying an existing organization to increase organizational effectiveness.

Clan culture

is an organization culture characterized by a strong internal focus with a high degree of flexibility and discretion.

Classical approach to management

is a management approach that emphasizes organizational efficiency to increase organizational success.

Closed system

is one that is not influenced by, and does not interact with, its environment.

Coaching

is leadership that instructs followers on how to meet the special organizational challenges they face.

Code of conduct

is a document that reflects the core values of an organization and suggests how organization members should act in relation to those values.

Code of ethics

is a formal statement that acts as a guide for making decisions and acting within an organization.

Command group

is a formal group that is outlined in the chain of command on an organization chart. Command groups typically handle routine activities.

Commercial entrepreneurship

involves individuals or corporations that pursue entrepreneurial opportunities for the purposes of generating sales and profits.

Commitment principle

is a management guideline that advises managers to commit funds for planning only if they can anticipate, in the foreseeable future, a return on planning expenses as a result of long-range planning analysis.

Committee

is a task group that is charged with performing some type of specific activity.

Communication

is the process of sharing information with other individuals.

Communication macrobarriers

are factors hindering successful communication that relate primarily to the communication environment and to the larger world in which communication takes place.

Communication microbarrier

is a factor hindering successful communication that relates primarily to such variables as the communication message, the source, and the destination.

Competitive dynamics

refers to the process by which firms undertake strategic and tactical actions and how competitors respond to these actions.

Competitor awareness

refers to how mindful a company is of its competitor’s actions.

Competitor capability

refers to a firm’s ability to undertake an action.

Competitor motivation

refers to the incentives that an organization has to take action.

Compromise

means the parties to the conflict settle on a solution that gives both of them part of what they wanted.

Computer-aided design (CAD)

is a computerized technique for designing new products or modifying existing ones.

Computer-aided manufacturing (CAM)

is a technique that employs computers to plan and program equipment used in the production and inspection of manufactured items.

Conceptual skills

are skills involving the ability to see the organization as a whole.

Conflict

is defined as a struggle that results from opposing needs or feelings between two or more people.

Consensus

is an agreement on a decision by all the individuals involved in making that decision.

Consideration behavior

is leadership behavior that reflects friendship, mutual trust, respect, and warmth in the relationship between leader and followers.

Content theory of motivation

is an explanation of motivation that emphasizes people’s internal characteristics.

Contingency approach to management

is a management approach emphasizing that what managers do in practice depends on a given set of circumstances—a situation.

Contingency theory of leadership

is a leadership concept that hypothesizes that, in any given leadership situation, success is determined primarily by (1) the degree to which the task being performed by the followers is structured, (2) the degree of position power possessed by the leader, and (3) the type of relationship that exists between the leader and the followers.

Control

entails ensuring that an event occurs as it was planned to occur.

Control tool

is a specific procedure or technique that presents pertinent organizational information in a way that helps managers to develop and implement an appropriate control strategy.

Controlling

is the process managers go through to control. It is “a systematic effort . . . to compare performance to predetermined standards, plans, or objectives to determine whether performance is in line with these standards” or needs to be corrected.

Coordination

is the orderly arrangement of group effort to provide unity of action in the pursuit of a common purpose. It involves encouraging the completion of individual portions of a task in an appropriate, synchronized order.

Corporate entrepreneurship

is the process in which an individual or group of individuals in an existing corporation creates a new organization or instigates renewal or innovation within that corporation.

Corrective action

is managerial activity aimed at bringing organizational performance up to the level of performance standards.

Cost leadership

is a strategy that focuses on making an organization more competitive by its producing products more cheaply than competitors can.

Creativity

is the ability to generate original ideas or new perspectives on existing ideas.

Critical path

is the sequence of events and activities within a program evaluation and review technique (PERT) network that requires the longest period of time to complete.

Critical question analysis

is a strategy development tool that consists of answering basic questions about the present purposes and objectives of the organization, its present direction and environment, and actions that can be taken to achieve organizational objectives in the future.

Cross-functional team

is an organizational team composed of people from different functional areas of the organization who are all focused on a specified objective.

Cultural artifact

is a dimension of an organization that helps to describe and reinforce the culture—or the beliefs, values, and norms—in which an artifact exists.

Culture

is the set of characteristics of a given group of people and their environment.

Customer dimension of organization culture

is a facet of organization culture that focuses on catering to the needs of those individuals who buy goods or services the organization produces.

Data

are facts or statistics.

Decentralization

refers to the situation in which a significant number of job activities and a maximum amount of authority are delegated to subordinates.

Decision

is a choice made between two or more available alternatives.

Decision tree

is a graphic decision-making tool typically used to evaluate decisions involving a series of steps.

Decision tree analysis

is a statistical and graphical, multiphased decision-making technique that contains a series of steps showing the sequence and interdependence of decisions.

Decline stage

is the fourth and last stage in career evolution; it occurs near retirement age, when individuals of about 65 years of age show declining productivity.

Decoder/destination

is the person or persons in the interpersonal communication situation with whom the source is attempting to share information.

Delegation

is the process of assigning job activities and related authority to specific individuals within the organization.

Delphi technique

is a group decision-making process that involves circulating questionnaires on a specific problem among group members, sharing the questionnaire results with them, and then continuing to recirculate and refine individual responses until a consensus regarding the problem is reached.

Demographics

are statistical characteristics of a population.

Department

is a unique group of resources established by management to perform some organizational task.

Departmentalizing

is the process of establishing departments within the management system.

Developing

is that step of the innovation process that makes a new idea practical.

Differentiation

is a strategy that focuses on making an organization more competitive by its developing a product or products that customers perceive as being different from products offered by competitors.

Diffusing

is that step of the innovation process that puts a new idea to use by end users or customers.

Direct investing

is using the assets of one company to purchase the operating assets of another company.

Directive behavior

is aimed at telling followers what to do and how to do it.

Discrimination

is the act of treating an issue, person, or behavior unjustly or inequitably on the basis of stereotypes or prejudices.

Diversity

refers to characteristics of individuals that shape their identities and the experiences they have in society. Major areas of diversity are gender, race, ethnicity, religion, social class, physical ability, sexual orientation, and age.

Diversity dimension of organization culture

is a component of organization culture that encourages the existence of basic human differences among organization members.

Diversity training

is a learning process designed to raise managers’ awareness and develop their competencies to deal with the issues endemic to managing a diverse workforce.

Divestiture

is a strategy adopted to eliminate a strategic business unit that is not generating a satisfactory amount of business and has little hope of doing so in the near future.

Division of labor

is the assignment of various portions of a particular task among a number of organization members. Division of labor calls for specialization.

Dog

 is an SBU that has a relatively small share of a low-growth market.

Domain definition

occurs when a firm proactively seeks to create a new product market position that competitors have not recognized.

Domestic organization

is an organization that essentially operates within a single country.

Dominant organization culture

is the shared values about organizational functioning held by the majority of organization members.

Downside loss

refers to the resources (i.e., money, relationships, etc.) that the entrepreneur could lose if the opportunity does not succeed.

Economics

is the science that focuses on understanding how people of a particular community or nation produce, distribute, and use various goods and services.

Effectiveness

is the degree to which managers attain organizational objectives; it is “doing the right things.”

Efficiency

is the degree to which organizational resources contribute to production; it is “doing things right.”

Emotional intelligence

is the capacity of people to recognize their own feelings and the feelings of others, to motivate themselves, and to manage their own emotions as well as their emotions in relationships with others.

Employee-centered behavior

is leader behavior that focuses primarily on subordinates as people.

Entrepreneur

is an individual who identifies, evaluates, and exploits opportunities.

Entrepreneurial alertness

refers to an individual’s ability to notice and be sensitive to new information about objects, incidents, and patterns of behavior in the environment.

Entrepreneurial opportunity

is an occasion to bring into existence new products and services that allow outputs to be sold at a price greater than their cost of production.

Entrepreneurial risk

is the likelihood and magnitude of the opportunity’s downside loss.

Entrepreneurship

refers to the identification, evaluation, and exploitation of opportunities.

Environmental analysis

is the study of the organizational environment to pinpoint environmental factors that can significantly influence organizational operations.

Environmental footprint

is a measure of the usage of environmental resources. The greater the amount of resources consumed by an organization, the greater the organization’s footprint.

Equal Employment Opportunity Commission (EEOC)

is an agency established to enforce federal laws prohibiting discrimination on the basis of race, color, religion, gender, disability, sexual orientation, national origin, and genetic information in recruitment, hiring, firing, layoffs, and all other employment practices.

Equity theory

is an explanation of motivation that emphasizes the individual’s perceived fairness of an employment situation and how perceived inequities can cause certain behaviors.

Establishment stage

is the second stage in career evolution; individuals of about 25 to 45 years of age typically start to become more productive, or higher performers.

Esteem need

is Maslow’s fourth set of human needs, which includes the desires for self-respect and respect from others.

Ethics

is the capacity to reflect on values in the corporate decisionmaking process, to determine how these values and decisions affect various stakeholder groups, and to establish how managers can use these observations in day-to-day company management.

Ethics dimension of organization culture

is a facet of organization culture that focuses on making sure that an organization emphasizes not only what is good for the organization but also what is good for other human beings.

Ethnocentric attitude

reflects the belief that multinational corporations should regard home-country management practices as superior to foreign-country management practices.

Ethnocentrism

is the belief that one’s own group, culture, country, or customs are superior to those of others.

European Union (EU)

is an international market agreement established in 1994 dedicated to facilitating trade among member nations.

Event

is a completion of major project tasks.

Exclusion

occurs when individuals exclude the least desirable alternatives from a larger set of alternatives.

Existence need

is the need for physical well-being.

Expatriate

is an organization member who lives and works in a country where he or she does not have citizenship.

Expected value (EV)

is the measurement of the anticipated value of some event, determined by multiplying the income an event would produce by its probability of producing that income (EV = I × P).

Exploitation

refers to the activities and investments that are committed to gain returns from the new product or service arising from an opportunity.

Exploration stage

is the first stage in career evolution; it occurs at the beginning of a career, when the individual is typically 15 to 25 years of age, and it is characterized by self-analysis and the exploration of different types of available jobs.

Exporting

is selling goods or services to another country.

Extrinsic reward

is a reward that is extraneous to the task accomplished.

Feasibility analysis

is analysis that helps entrepreneurs understand whether an idea is practical.

Feedback

is, in the interpersonal communication situation, the destination’s reaction to a message.

Five Forces Model

outlines the primary forces that determine competitiveness within an industry and illustrates how those forces are related; perhaps the best-known tool for industry analysis, it was developed by internationally acclaimed strategic management expert Michael E. Porter.

Fixed cost

is an expense incurred by the organization regardless of the number of products produced.

Fixed-position layout

is a layout plan in which the product is stationary while resources flow. It is appropriate for organizations involved in a large number of different tasks that require low volumes, multipurpose equipment, and broad employee skills.

Flextime

is a program that allows workers to complete their jobs within a workweek of a normal number of hours that they schedule themselves.

Focus

is a strategy that emphasizes making an organization more competitive by targeting a particular customer.

Forcing

is a technique for managing conflict in which managers use their authority to declare that conflict is ended.

Forecasting

is a planning tool used to predict future environmental happenings that will influence the operation of the organization.

Formal group

is a group that exists within an organization by virtue of management decree to perform tasks that enhance the attainment of organizational objectives.

Formal organizational communication

is organizational communication that follows the lines of the organization chart.

Formal structure

is defined as the relationships among organizational resources as outlined by management.

Forming

is the first stage of the team development process, during which members of the newly formed team become oriented to the team and acquainted with one another as they explore issues related to their new job situation.

Friendship group

is an informal group that forms in organizations because of the personal affiliation members have with one another.

Functional authority

consists of the right to give orders within a segment of the management system in which this right is normally nonexistent.

Functional similarity method

is a method for dividing job activities in an organization.

Gantt chart

is a scheduling tool composed of a bar chart with time on the horizontal axis and the resource to be scheduled on the vertical axis. It is used for scheduling resources.

Gender-role stereotypes

are perceptions about people based on what our society believes are appropriate behaviors for men and women.

General environment

is the level of an organization’s external environment that contains components normally having broad, long-term implications for managing the organization; its components are economic, social, political, legal, and technological.

Geocentric attitude

reflects the belief that the overall quality of management recommendations, rather than the location of managers, should determine the acceptability of management practices used to guide multinational corporations.

Good corporate citizen

is a manager who is committed to building an organization’s local community and environment as a vital part of managing.

Graicunas’s formula

is a formula that makes the spanof-management point that as the number of a manager’s subordinates increases arithmetically, the number of possible relationships between the manager and the subordinates increases geometrically.

Grapevine

is the network of informal organizational communication.

Grid organization development (grid OD)

is a commonly used organization development technique based on a theoretical model called the managerial grid.

Group

is “any number of people who (1) interact with one another, (2) are psychologically aware of one another, and (3) perceive themselves to be a group.”

Groupthink

is the mode of thinking that group members engage in when the desire for agreement so dominates the group that it overrides the need to realistically appraise alternative solutions.

Growth

is a strategy adopted by management to increase the amount of business that a strategic business unit is currently generating.

Growth need

is the need for continuing personal growth and development.

Healthy organization culture

is an organization culture that facilitates the achievement of the organization’s mission and objectives.

Heuristics

are simple rules of thumb used to make decisions.

Hierarchy culture

is an organization culture characterized by an internal focus along with an emphasis on stability and control.

Horizontal dimensioning

of an organization refers to the extent to which firms use lateral subdivisions or specialties within the organization.

Host country

is the country in which an investment is made by a foreign company.

Host-country national

is an organization member who is a citizen of the country in which the facility of a foreign-based organization is located.

Human relations movement

is a people-oriented approach to management in which the interaction of people in organizations is studied to judge its impact on organizational success.

Human relations skill

is the ability to work with people in a way that enhances organizational success.

Human resource inventory

is information about the characteristics of organization members; the focus is on past performance and future potential, and the objective is to keep management up to date about the possibilities for filling a position from within.

Human resources strategy

is an operational plan to use an organization’s human resources effectively and efficiently while maintaining or improving the quality of work life.

Human skills

are skills involving the ability to build cooperation within the team being led.

Hygiene, or maintenance, factors

are items that influence the degree of job dissatisfaction.

Illusion of control

exists when entrepreneurs overestimate the extent to which they can control the outcome of an opportunity.

Importing

is buying goods or services from another country.

Inclusion

occurs when individuals choose a smaller set of the most desirable alternatives from a larger set of alternatives.

Industry environment

is the level of an organization’s external environment that contains components normally having relatively specific and immediate implications for managing the organization.

Influencing

is the process of guiding the activities of organization members in appropriate directions.

Informal group

is a collection of individuals whose common work experiences result in the development of a system of interpersonal relations that extend beyond those established by management.

Informal organizational communication

is organizational communication that does not follow the lines of the organization chart.

Informal structure

is defined as the patterns of relationships that develop because of the informal activities of organization members.

Information

is the set of conclusions derived from data analysis.

Information appropriateness

is the degree to which information is relevant to the decision-making situation the manager faces.

Information asymmetry

refers to the fact that individuals vary in terms of the information to which they have access.

Information quality

is the degree to which information represents reality.

Information quantity

is the amount of decision-related information a manager possesses.

Information system (IS)

is a network of applications established within an organization to provide managers with the information that will assist them in decision making. An IS gets information to where it is needed.

Information technology (IT)

is technology that focuses on the use of information in the performance of work.

Information timeliness

is the extent to which the receipt of information allows decisions to be made and action to be taken so that the organization can gain some benefit from possessing the information.

Innovation

is the process of applying a new idea to the improvement of organizational processes, products, or services.

Innovation dimension of organization culture

is an aspect of organization culture that encourages the application of new ideas to improve organization processes, products, or services.

Innovation process

is defined as the steps managers take to implement creative ideas.

Integrating

is that step of the innovation process that establishes an invention as a permanent part of the organization.

Intensity of rivalry

refers to the intensity of competition among the organizations in an industry; as the intensity of rivalry increases, the attractiveness of the industry decreases.

Interacting skill

is the ability to manage people during implementation.

Interest group

is an informal group that gains and maintains membership primarily because of a common concern members have about a specific issue.

Internal environment

is the level of an organization’s environment that exists inside the organization and normally has immediate and specific implications for managing the organization.

International joint venture

is a partnership formed between a company in one country and a company in another country for the purpose of pursuing some mutually desirable business undertaking.

International management

is the performance of management activities across national borders.

International market agreement

is an arrangement among a cluster of countries that facilitates a high level of trade among these countries.

International organization

is an organization based primarily within a single country but having continuing, meaningful transactions in other countries.

Intrinsic reward

is a reward that comes directly from performing a task.

Intuition

refers to an individual’s inborn ability to synthesize information quickly and effectively.

Inventing

is that step of the innovation process that establishes a new idea that could help the organization be more successful.

Job analysis

is a technique commonly used to gain an understanding of what a task entails and the type of individual who should be hired to perform that task.

Job-centered behavior

is leader behavior that focuses primarily on the work a subordinate is doing.

Job description

is a list of specific activities that must be performed to accomplish some task or job.

Job design

is an operational plan that determines who will do a specific job and how and where the job will be done.

Job enlargement

is the process of increasing the number of operations an individual performs in order to enhance the individual’s satisfaction with work.

Job enrichment

is the process of incorporating motivators into a job situation.

Job rotation

is the process of moving workers from one job to another rather than requiring them to perform only one simple and specialized job over the long term.

Job specification

is the characteristics of the individual who should be hired to perform a specific task or job.

Jury of executive opinion method

is a method of predicting future sales levels primarily by asking appropriate managers to give their opinions on what will happen to sales in the future.

Just-in-time (JIT) inventory control

is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility “just in time” for them to be used.

Labor force planning

is an operational plan for hiring the right employees for a job and training them to be productive.

Law of small numbers

refers to individuals relying on small samples of information to guide their decisions.

Layout

is the overall arrangement of equipment, work areas, service areas, and storage areas within a facility that produces goods or provides services.

Layout strategy

is an operational plan that determines the location and flow of organizational resources around, into, and within production and service facilities.

Leader flexibility

is the idea that successful leaders must change their leadership styles as they encounter different situations.

Leader–member relations

is the degree to which the leader feels accepted by the followers.

Leadership

is the process of directing the behavior of others toward the accomplishment of objectives.

Leadership style

is the behavior a leader exhibits while guiding organization members in appropriate directions.

Learning organization

is an organization that does well in creating, acquiring, and transferring knowledge and in modifying its behavior to reflect new knowledge.

Lecture

is primarily a one-way communication situation in which an instructor trains an individual or group by orally presenting information.

LEED (Leadership in Energy and Environmental Design)

is an ecology-oriented certification program that rates the ecology impact of buildings of all types.

Level 5 leadership

is an approach to leadership that blends personal humility with an intense will to build long-range organizational success.

License agreement

is a right granted by one company to another to use its brand name, technology, product specifications, and so on, in the manufacture or sale of goods and services.

Life cycle theory of leadership

is a leadership concept that hypothesizes that leadership styles should reflect primarily the maturity level of the followers.

Line authority

consists of the right to make decisions and to give orders concerning the production-, sales-, or finance-related behavior of subordinates.

Location strategy

is an operational plan of action that provides an organization with a competitive location for its headquarters, manufacturing, services, and distribution activities.

Loss

is the amount of the total costs of producing a product that exceeds the total revenue gained from selling the product.

Maintenance stage

is the third stage in career evolution; individuals of about 45 to 65 years of age show either increased performance (career growth), stabilized performance (career maintenance), or decreased performance (career stagnation).

Majority group

refers to that group of people in the organization who hold most of the positions that command decision-making power, control of resources and information, and access to system rewards.

Management

is the process of reaching organizational goals by working with and through people and other organizational resources.

Management by exception

is a control tool that allows only significant deviations between planned and actual performance to be brought to a manager’s attention.

Management functions

are activities that make up the management process. The four basic management activities are planning, organizing, influencing, and controlling.

Management inventory card

is a form used in compiling a human resource inventory. It contains the organizational history of an individual and indicates how that individual might be used in the organization in the future.

Management manpower replacement chart

is a form used in compiling a human resource inventory. It is people oriented and presents a composite view of the individuals management considers significant to human resource planning.

Management responsibility guide

is a tool that is used to clarify the responsibilities of various managers in the organization.

Management science approach

is a management approach that emphasizes the use of the scientific method and mathematical techniques to solve operational problems.

Management skill

is the ability to carry out the process of reaching organizational goals by working with and through people and other organizational resources.

Management system

is composed of a number of parts that function interdependently to achieve a purpose; its main parts are organizational input, organizational process, and organizational output.

Managerial effectiveness

refers to management’s use of organizational resources in meeting organizational goals.

Managerial efficiency

is the proportion of total organizational resources used during the production process.

Managerial grid

is a theoretical model based on the premise that concern for people and concern for production are the two primary attitudes that influence management style.

Market culture

is an organization culture that reflects values that emphasize stability and control along with an external focus.

Materials control

is an operational activity that determines the flow of materials from vendors through an operations system to customers.

McClelland’s acquired needs theory

is an explanation of human needs that focuses on the desires for achievement, power, and affiliation that people develop as a result of their life experiences.

Mechanistic structure

is a formal organizational structure.

Message

is encoded information that the source intends to share with others.

Message interference

refers to stimuli that compete with the communication message for the attention of the destination.

Minority group

refers to that group of people in the organization who are fewer in number than the majority group or who lack critical power, resources, acceptance, or social status.

Mission statement

is a written document developed by management, normally based on input by managers as well as nonmanagers, that describes and explains what the mission of an organization actually is.

Monitoring

is that step of the innovation process in which a newly implemented idea is tracked to determine if and when the idea should be improved or terminated.

Monitoring skill

is the ability to use information to determine whether a problem has arisen that is blocking strategy implementation.

Moral courage

is the strength to take actions that are consistent with moral beliefs despite pressures, either inside or outside of the organization, to do otherwise.

Motion study

finds the best way to accomplish a task by reducing each job to the most basic movements possible.

Motion-study techniques

are operational tools that are used to improve productivity.

Motivating factors (or motivators)

are items that influence the degree of job satisfaction.

Motivation

is the inner state that causes an individual to behave in a way that ensures the accomplishment of some goal.

Motivation strength

is an individual’s degree of desire to perform a behavior.

Moving average method

utilizes historical data to predict future sales levels.

Multinational corporation

is a company that has significant operations in more than one country.

Need for achievement (nAch)

is the desire to do something better or more efficiently than it has ever been done before.

Need for affiliation (nAff)

is the desire to maintain close, friendly, personal relationships.

Need for power (nPower)

is the desire to control, influence, or be responsible for others.

Needs-goal theory

is a motivation model that hypothesizes that felt needs cause human behavior.

Negative reinforcement

is a reward that consists of the elimination of an undesirable consequence of behavior.

Nominal group technique

is a group decision-making process in which every group member is assured of equal participation in making the group decision. After each member writes down individual ideas and presents them orally to the group, the entire group discusses all the ideas and then votes for the best idea in a secret ballot.

Nonprogrammed decision

is typically a one-shot decision that is usually less structured than programmed decisions.

Nonverbal communication

is the sharing of information without using words.

Norming,

the third stage of the team development process, is characterized by agreement among team members on roles, rules, and acceptable behavior while working on the team.

North American Free Trade Agreement (NAFTA)

is an international market agreement aimed at facilitating trade among member nations.

On-the-job training

is a training technique that blends job-related knowledge with experience in using that knowledge on the job.

Open system

is one that is influenced by, and is continually interacting with, its environment.

Operations control

is making sure that operations activities are carried out as planned.

Operations management

is performance of managerial activities entailed in selecting, designing, operating, controlling, and updating production systems.

Organic structure

is a less formal organizational structure and represents loosely coupled networks of workers.

Organization chart

is a graphic illustration of organizational structure.

Organization culture

is a set of values that organization members share regarding the functioning and existence of their organization.

Organization development (OD)

is the process that emphasizes changing an organization by changing organization members and bases these changes on an overview of structure, technology, and all other organizational components.

Organization subculture

is a mini-culture within an organization that can reflect the values and beliefs of a specific segment of the organization that is formed along lines such as established departments or geographic regions.

Organizational ceremony

is a formal activity conducted on important organizational occasions.

Organizational commitment

can be defined as the dedication of organization members to uphold the values of the organization and to make worthwhile contributions to fulfilling the organizational purpose.

Organizational communication

is interpersonal communication within organizations that directly relates to the goals, functions, and structure of human organizations.

Organizational mission

is the purpose for which, or the reason why, an organization exists.

Organizational myth

is a popular belief or story that has become associated with a person or institution and is considered to illustrate an organization culture ideal.

Organizational objective

is the target toward which the open management system is directed. It flows from the organization’s mission.

Organizational purpose

is what the organization exists to do, given a particular group of customers and customer needs.

Organizational rejuvenation

involves improving a firm’s ability to execute strategies and focuses on new processes instead of new products.

Organizational resources

are all assets available for activation during the production process; they include human resources, monetary resources, raw materials resources, and capital resources.

Organizational saga

is a narrative describing the adventures of a heroic individual or family significantly linked to an organization’s past or present.

Organizational socialization

is the process by which management can appropriately integrate new employees into the organization’s culture.

Organizational storytelling

is the act of passing along organizational myths and sagas to other organization members.

Organizational symbol

is an object that has meaning beyond its intrinsic content.

Organizing

is the process of establishing orderly uses for resources within the management system.

Organizing skill

is the ability to create throughout the organization a network of people who can help solve implementation problems as they occur.

Overlapping responsibility

refers to a situation in which more than one individual is responsible for the same activity.

Paradox of choice

is having too many alternatives, which may actually demotivate decision makers, which harms decision making.

Parent company

is the company investing in international operations.

Participative behavior

is aimed at seeking suggestions from followers regarding business operations to the extent that followers are involved in making important organizational decisions.

Path–goal theory of leadership

is a theory of leadership that suggests that the primary activities of a leader are to make desirable and achievable rewards available to organization members who attain organizational goals and to clarify the kinds of behavior that must be performed to earn those rewards.

People change

increasing organizational effectiveness by changing certain characteristics of organization members such as their attitudes and leadership skills.

People factors

are attitudes, leadership skills, communication skills, and all other characteristics of the organization’s employees.

People-related activities

are management efforts aimed at managing people in organizations.

Perception

is an individual’s interpretation of a message.

Performance appraisal

is the process of reviewing individuals’ past productive activities to evaluate the contributions they have made toward attaining management system objectives.

Performing,

the fourth stage of the team development process, is characterized by a focus on solving organizational problems and meeting assigned challenges.

Personal humility

means being modest or unassuming when it comes to citing personal accomplishments.

Personal power

is power derived from a manager’s relationships with others.

Philanthropy

promotes the welfare of others through generous monetary donations to social causes.

Physiological need

is Maslow’s first set of human needs for the normal functioning of the body, including the desires for water, food, rest, sex, and air.

Planning

is the process of determining how the organization can get where it wants to go and what it will do to accomplish its objectives.

Planning tools

are techniques managers can use to help develop plans.

Pluralism

refers to an environment in which differences are acknowledged, accepted, and viewed as significant contributors to the entirety.

Policy

is a standing plan that furnishes broad guidelines for taking action consistent with reaching organizational objectives.

Polycentric attitude

reflects the belief that because foreign managers are closer to foreign organizational units, they probably understand them better, and therefore foreign management practices should generally be viewed as more insightful than home-country management practices.

Porter–Lawler theory

is a motivation theory that hypothesizes that felt needs cause human behavior and that motivation strength is determined primarily by the perceived value of the result of performing the behavior and the perceived probability that the behavior performed will cause the result to materialize.

Position power

is determined by the extent to which the leader has control over the rewards and punishments followers receive; is power derived from the organizational position a manager holds.

Position replacement form

is used in compiling a human resource inventory. It summarizes information about organization members who could fill a position should it open up.

Positive reinforcement

is a reward that consists of a desirable consequence of behavior.

Power

is the extent to which an individual is able to influence others so that they respond to orders.

Prejudice

is a preconceived judgment, opinion, or assumption about an issue, behavior, or group of people.

Probability theory

is a decision-making tool used in risk situations—situations in which decision makers are not completely sure of the outcome of an implemented alternative.

Problem

is any factor within an organization that is a barrier to organizational goal attainment.

Problem-solving team

is an organizational team set up to help eliminate a specified problem within the organization.

Procedure

is a standing plan that outlines a series of related actions that must be taken to accomplish a particular task.

Process control

is a technique that assists in monitoring production processes.

Process (functional) layout

is a layout pattern based primarily on grouping together similar types of equipment.

Process strategy

is an operational plan of action outlining the means and methods an organization will use to transform resources into goods and services.

Process theory of motivation

is an explanation of motivation that emphasizes how individuals are motivated.

Product layout

is a layout designed to accommodate a limited number of different products that require high volumes, highly specialized equipment, and narrow employee skills.

Product life cycle

is made up of the five stages through which most products and services pass: introduction, growth, maturity, saturation, and decline.

Product stages method

predicts future sales by using the product life cycle to better understand the history and future of a product.

Product strategy

is an operational plan of action outlining which goods and services an organization will produce and market.

Production

is the transformation of organizational resources into products.

Productivity

is the relationship between the total amount of goods or services being produced (output) and the organizational resources needed to produce them (input).

Professional will

is a strong and unwavering commitment to do whatever is necessary to build long-term company success.

Profit

is the amount of total revenue that exceeds the total costs of producing the products sold.

Program

is a single-use plan that is designed to carry out a special project within an organization that, if accomplished, will contribute to the organization’s long-term success.

Program evaluation and review technique (PERT)

is a scheduling tool that is essentially a network of project activities showing estimates of time necessary to complete each activity and the sequence of activities that must be followed to complete the project.

Programmed decision

is a decision that is routine and repetitive and that typically requires specific handling methods.

Programmed learning

is a technique for instructing without the presence or intervention of a human instructor. Small amounts of information requiring responses are presented to individual trainees, and the trainees determine from comparing their responses to provided answers whether their understanding of the information is accurate.

Punishment

is the presentation of an undesirable behavior consequence or the removal of a desirable behavior consequence that decreases the likelihood that the behavior will continue.

Pure-breakdown (repair) policy

is a maintenance control policy that decrees that machine adjustments, lubrication, cleaning, parts replacement, painting, and needed repairs and overhaul will be performed only after facilities or machines malfunction.

Pure-preventive maintenance policy

is a maintenance control policy that tries to ensure that machine adjustments, lubrication, cleaning, parts replacement, painting, and needed repairs and overhauls will be performed before facilities or machines malfunction.

Quality

is the extent to which a product reliably does what it is intended to do.

Quality assurance

is an operations process involving a broad group of activities aimed at achieving an organization’s quality objectives.

Quality circle

is a small group of workers that meets to discuss quality-related problems in a particular project and to communicate their solutions to these problems to management at a formal presentation session.

Quality dimension of organization culture

is an element of organization culture that focuses on making sure that a product, in the opinion of the customer, does what it is supposed to do.

Question Mark

is an SBU that has a small share of a high-growth market.

Ratio analysis

is a control tool that summarizes the financial position of an organization by calculating ratios based on various financial measures that appear on the organization’s balance sheet and income statements.

Rational decision-making process

comprises the steps the decision maker takes to arrive at a choice.

Recruitment

is the initial attraction and screening of the supply of prospective human resources available to fill a position.

Regression method

predicts future sales by analyzing the historical relationship between sales and time.

Relatedness need

is the need for satisfying interpersonal relationships.

Relevant alternative

is an alternative that is considered feasible for solving an existing problem and for implementation.

Repatriation

is the process of bringing individuals who have been working abroad back to their home country and reintegrating them into the organization’s home-country operations.

Resolving

is a technique for managing conflict by working out the differences between managers and employees.

Responsibility

is the obligation to perform assigned activities.

Responsibility gap

exists when certain organizational tasks are not included in the responsibility area of any individual organization member.

Retrenchment

is a strategy adopted by management to strengthen or protect the amount of business a strategic business unit is currently generating.

Reverse discrimination

is the term used to describe inequities affecting members of the majority group as an outcome of programs designed to help underrepresented groups.

Reverse mentoring

is a process that pairs a senior employee with a junior employee for the purpose of transferring work skills, such as Internet skills, from the junior employee to the more senior employee.

The Rights Standard

is a guideline that says that behavior is generally considered ethical if it respects and promotes the rights of others.

Risk

refers to situations in which statistical probabilities can be attributed to alternative potential outcomes.

Robotics

is the study of the development and use of robots.

Role conflict

is the conflict that results when a person has to fill competing roles because of membership in two cultures.

Role overload

refers to having too many expectations to comfortably fulfill.

Rule

is a standing plan that designates specific required actions.

Salesforce estimation method

predicts future sales levels primarily by asking appropriate salespeople for their opinions of what will happen to sales in the future.

Satisfice

occurs when an individual makes a decision that is not optimal but is “good enough.”

Scalar relationship

refers to the chain-of-command positioning of individuals on an organization chart.

Scheduling

is the process of formulating a detailed listing of activities that must be accomplished to attain an objective, allocating the resources necessary to attain the objective, and setting up and following time tables for completing the objective.

Scientific management

emphasizes the “one best way” to perform a task.

Scope of the decision

is the proportion of the total management system that a particular decision will affect. The broader the scope of a decision, the higher the level of the manager responsible for making that decision.

Security or safety need

is Maslow’s second set of human needs, which reflects the human desire to be free from physical harm.

Selection

is choosing an individual to hire from all those who have been recruited.

Self-actualization need

is Maslow’s fifth, and final, set of human needs, which reflects the human desire to maximize personal potential.

Self-managed team

is an organizational team that plans, organizes, influences, and controls its own work situation with only minimal intervention and direction from management.

Serial transmission

involves passing information from one individual to another in a series.

Servant leadership

is an approach to leading in which leaders view their primary role as helping followers in their quests to satisfy personal needs, aspirations, and interests.

Signal

is a message that has been transmitted from one person to another.

Single-use plan

is a plan used only once—or, at most, several times—because it focuses on unique or rare situations within the organization.

Situational approach to leadership

is a relatively modern view of leadership that suggests that successful leadership requires a unique combination of leaders, followers, and leadership situations.

Social audit

is the process of measuring the present social responsibility activities of an organization. It monitors, measures, and appraises all aspects of an organization’s social responsibility performance.

Social entrepreneurship

involves the recognition, evaluation, and exploitation of opportunities that create social value as opposed to personal or shareholder wealth.

Social need

is Maslow’s third set of human needs, which reflects the human desire to belong, including longings for friendship, companionship, and love.

Social networks

represent individuals’ patterns of social relationships.

Social responsibility

is an approach to meeting social obligations that considers business as having both economic and societal goals.

Social responsiveness

is the degree of effectiveness and efficiency an organization displays in pursuing its social responsibilities.

Social value

refers to the basic, long-standing needs of society and has little to do with profits.

Social values

are the relative degrees of worth a society places on the manner in which it exists and functions.

Sociogram

is a sociometric diagram that summarizes the personal feelings of organization members about the people in the organization with whom they like to spend free time.

Sociometry

is an analytical tool that can be used to determine what informal groups exist in an organization and who the leaders and members of those groups are.

Source/encoder

is the person in the interpersonal communication situation who originates and encodes information to be shared with others.

Span of management

is the number of individuals a manager supervises.

Spirituality dimension of organization culture

is an aspect of organization culture that encourages organization members to integrate spiritual life and work life.

Stability

is a strategy adopted by management to maintain or slightly improve the amount of business that a strategic business unit is generating.

Staff authority

consists of the right to advise or assist those who possess line authority as well as other staff personnel.

Stakeholder

is an individual or group that is directly or indirectly affected by an organization’s decisions.

Standard

is the level of activity established to serve as a model for evaluating organizational performance.

Standing plans

are plans that are used over and over because they focus on organizational situations that occur repeatedly.

Star

is an SBU that has a large share of a high-growth market and typically needs large amounts of cash to support rapid and significant growth.

Statistical quality control

is the process used to determine how many products should be inspected to calculate a probability that the total number of products will meet organizational quality standards.

Stereotype

is a positive or negative assessment of members of a group or their perceived attributes.

Storming,

the second stage of the team development process, is characterized by conflict and disagreement as team members try to clarify their individual roles and challenge the way the team functions.

Strategic business unit (SBU)

is, in business portfolio analysis, a significant organizational segment that is analyzed to develop organizational strategy aimed at generating future business or revenue. SBUs vary in form, but all are a single business (or collection of businesses), have their own competitors and a manager accountable for operations, and can be independently planned for.

Strategic control

is the last step of the strategy management process and consists of monitoring and evaluating the strategy management process as a whole to ensure that it is operating properly.

Strategic management

is the process of ensuring that an organization possesses and benefits from the use of an appropriate organizational strategy.

Strategic planning

is long-range planning that focuses on the organization as a whole.

Strategic renewal

occurs when a firm attempts to alter its own competitive strategy.

Strategy

is a broad and general plan developed to reach long-term objectives; it is the end result of strategic planning.

Strategy formulation

is the process of determining appropriate courses of action for achieving organizational objectives and thereby accomplishing the organizational purpose. Strategy development tools include critical question analysis, SWOT analysis, business portfolio analysis, and Porter’s Model for Industry Analysis.

Strategy implementation

is the fourth step of the strategy management process and involves putting formulated strategy into action.

Stress

is the bodily strain that an individual experiences as a result of coping with some environmental factor.

Stressor

is an environmental demand that causes people to feel stress.

Structural change

is a change aimed at increasing organizational effectiveness through modifications to the existing organizational structure.

Structural factors

are organizational controls, such as policies and procedures.

Structure

refers to the designated relationships among resources of the management system.

Structure behavior

is leadership activity that (1) delineates the relationship between the leader and the leader’s followers or (2) establishes well-defined procedures that the followers should adhere to in performing their jobs.

Successful communication

refers to an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are the same.

Succession planning

is the process of determining who will follow whom in various organizational positions.

Supplier power

denotes the power that suppliers have over the firms operating in an industry; as supplier power increases, industry attractiveness decreases.

Supportive behavior

is aimed at being friendly with followers and showing interest in them as human beings.

Sustainability

is the degree to which a person or entity can meet its present needs without compromising the ability of other people or entities to meet their needs in the future.

Sustainable organization

is an organization that has the ability to meet its present needs without compromising the ability of future generations to meet their needs.

Sustained regeneration

occurs when firms develop new cultures, processes, or structures to support new product innovations in current markets as well as introduce existing products into new markets.

SWOT analysis

is a strategic development tool that matches internal organizational strengths and weaknesses with external opportunities and threats.

Symptom

is a sign that a problem exists.

System

is a number of interdependent parts functioning as a whole for some purpose.

System approach to management

is a management approach based on general system theory—the theory that to understand fully the operation of an entity, the entity must be viewed as a system.

Tactical planning

is short-range planning that emphasizes the current operations of various parts of an organization.

Task group

is a formal group of organization members who interact with one another to accomplish nonroutine organizational tasks. Members of any one task group can come from various levels in the organizational hierarchy.

Task-related activities

are management efforts aimed at carrying out critical management-related duties in organizations.

Task structure

is the degree to which the goals—the work to be done—and other situational factors are outlined clearly.

Team

is a group whose members influence one another toward the accomplishment of an organizational objective(s).

Technical skills

are skills involving the ability to apply specialized knowledge and expertise to work-related techniques and procedures.

Technological change

is a type of organizational change that emphasizes modifying the level of technology in the management system.

Technological factors

are any types of equipment or processes that assist organization members in the performance of their jobs.

Technology

consists of any type of equipment or process that organization members use in the performance of their work.

Testing

is examining human resources for qualities relevant to performing available jobs.

Theory X

is a set of essentially negative assumptions about human nature.

Theory Y

is a set of essentially positive assumptions about human nature.

Theory Z

is an effectiveness dimension that implies that managers who use either Theory X or Theory Y assumptions when dealing with people can be successful, depending on their situation.

Third-country national

is an organization member who is a citizen of one country and who works in another country for an organization headquartered in still another country.

Threat of new entrants

refers to the ability of new firms to enter an industry; as the threat of new entrants increases, the attractiveness of the industry decreases.

Threat of substitute products

refers to the extent to which customers use products or services from another industry instead of the focal industry. As the threat of substitutes increases, which implies that customers have more choices, the attractiveness of the industry decreases.

Tokenism

refers to being one of the few members of your group in the organization.

Total cost

is the sum of fixed costs and variable costs.

Total power

is the entire amount of power an individual in an organization possesses. It is made up of position power and personal power.

Total quality management (TQM)

is the continuous process of involving all organization members in ensuring that every activity related to the production of goods or services has an appropriate role in establishing product quality.

Total revenue

is all sales dollars accumulated from selling manufactured products or services.

Training

is the process of developing qualities in human resources that will enable them to be more productive and thus to contribute more to organizational goal attainment.

Training needs

are the information or skill areas of an individual or group that require further development to increase the productivity of that individual or group.

Trait approach to leadership

is an outdated view of leadership that sees the personal characteristics of an individual as the main determinants of how successful that individual could be as a leader.

Transformational leadership

is leadership that inspires organizational success by profoundly affecting followers’ beliefs in what an organization should be as well as their values, such as justice and integrity.

Transnational organization,

also called a global organization, views the entire world as its business arena.

Triangular management

is a management approach that emphasizes using information from the classical, behavioral, and management science schools of thought to manage the open management system.

Triple bottom-line

emphasizes that managers should focus on building organizations that are sustainable in economic, environmental, and societal activities.

Uncertainty

refers to situations where the probability that a particular outcome will occur is not known in advance.

Unhealthy organization culture

is an organization culture that does not facilitate the achievement of the organization’s mission and objectives.

Unity of command

is the management principle that recommends that an individual have only one boss.

Unsuccessful communication

refers to an interpersonal communication situation in which the information the source intends to share with the destination and the meaning the destination derives from the transmitted message are different.

The Utilitarian Standard

is a guideline that indicates that behavior can generally be considered ethical if it provides the most good for or does the least harm to the greatest number of people.

Value

is a person’s or social group’s in which they have an emotional investment.

Value analysis

is a cost control and cost reduction technique that examines all the parts, materials, and functions of an operation to help managers control operations.

Values statement

is a formally drafted document that summarizes the primary values within the culture of a specific organization.

Variable budget

(also known as a flexible budget) is one that outlines the levels of resources to be allocated for each organizational activity according to the level of production within the organization.

Variable cost

is an expense that fluctuates with the number of products produced.

Venture capitalists

are firms that raise money from investors and then use this money to make investments in new firms.

Verbal communication

is the sharing of information through words, either written or spoken.

Vertical dimensioning

refers to the extent to which an organization uses vertical levels to separate job responsibilities.

Virtual corporation

is an organization that extends significantly beyond the boundaries and structure of a traditional organization by comprehensively “tying together” its stakeholders—employees, suppliers, and customers—via an elaborate system of e-mail and other Internet-related vehicles such as videoconferencing.

Virtual office

is a work arrangement that extends beyond the structure and boundaries of the traditional office arrangement.

Virtual organization

is an organization having the essence of a traditional organization but lacks some aspect of traditional boundaries and structure.

Virtual teams

are groups of employees formed by managers that extend beyond the boundaries and structure of traditional teams in that members in geographically dispersed locations “meet” via realtime messaging on an intranet or the Internet to discuss special or unanticipated organizational problems.

Virtual training

is a training process that extends beyond the boundaries and structure of traditional training.

The Virtue Standard

is a guideline that determines behavior to be ethical if it reflects high moral values.

Vroom expectancy theory

is a motivation theory that hypothesizes that felt needs cause human behavior and that motivation strength depends on an individual’s degree of desire to perform a behavior.

Vroom–Yetton–Jago (VYJ) model of leadership

is a modern view of leadership that suggests that successful leadership requires determining, through a decision tree, what style of leadership will produce decisions that are beneficial to the organization and will be accepted and committed to by subordinates.

Whistle-blower

is the employee who reports the alleged activities of suspected misconduct or corruption within an organization.

Whistle-blowing

is the act of an employee reporting suspected misconduct or corruption believed to exist within an organization.

Work measurement methods

are operational tools that are used to establish labor standards.

Work methods analysis

is an operational tool used to improve productivity and ensure the safety of workers.

Work team

is a task group used in organizations to achieve greater organizational flexibility or to cope with rapid growth.

Workplace bullying

refers to individuals being isolated or excluded socially and having their work efforts devalued.

Zero-base budgeting

requires managers to justify their entire budget request in detail rather than simply refer to budget amounts established in previous years.

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