Sociology

Debt or Equity

A choice for financial systems to be primarily funded through banks (debt); or stock markets (equity).

Bureaucracy

A form of organization characterized by specialization, hierarchy, formal rules, impersonality, lifelong careers, and a specialized administrative staff.

Outgroup

A group that a person does not belong to or identify with.

Social movement

A large number of people acting together on behalf of a shared objective or idea.

Postindustrial economy

A modern economy dominated by services, technical knowledge, and information, rather than industry.

Iron law of oligarchy

A principle stated by Robert Michels that argues that in any organization, power will become concentrated in the hands of the leaders, who may then use that power to protect their own interests.

Ingroup

A social group that a person belongs to or identifies with.

Political-process theory

A theory arguing that social movements arise in response to opportunities created by political and social processes, such as modernization, democratization, and economic growth.

Resource-mobilization theory

A theory arguing that social movements grow when they are able to obtain and use available resources successfully.

Relative-deprivation theory

A theory holding that social movements emerge when people feel deprived or mistreated relative to others, or relative to what they feel they should be receiving.

Invisible Hand

Adam Smith's theoretical proposition that through the process of supply, demand and competition free markets create the best economic outcome for everyone

Legal-rational authority

Authority that is tied to a position rather than to an individual, and which is based on principles of law or on an individual's proper appointment to a position.

Embeddedness

Society and the economy are one and the same—the economy is a subsector of society and is governed by the social rules of that society

Tertiary sector

That part of an economy consisting of producing and processing information and providing services.

Primary Sector

That part of an economy consisting of the direct extraction of natural resources from the environment.

Rational Maximization

The idea that humans make conscious, deliberate decisions based on weighing alternatives and the choices we have, maximizing the things we want while minimizing the things we do not.

Self-Regulating Market

The idea that markets regulate themselves through the invisible hand and should be left alone from governmental interference.

Exit or Voice

When economic performance is lacking investors can leave an investment (exit); or try to use their influence to change policy (voice).

Speculation

When investors invest in something purely to make money from the sale of the investment, not to produce a good or service with that investment.

Group Think

tendency for members of a group to think alike and suppress dissent

Expressive leaders

People who exercise leadership by taking care of the social and emotional needs of people in their group.

Instrumental leaders

People who exercise leadership in a group by focusing attention on the task to be done and by suggesting effective ways of completing that task.

Legitimate power

Power that others accept as proper.

Rationalization

In Weberian sociology, the process by which tradition, faith, and personal relationships are set aside in the conduct of business, with decisions being made on the basis of what is expected to work best.