CLEP Exam - Principles of Management

three perspectives on organizational conflict

Each view belonged to a specific era, which was evolved and challenged with further studies in the fields of organizational behavior and management. The three views are traditional, human relations and interactionist .

expectancy theory beliefs

Effort will lead to a good performance appraisal, a good appraisal will lead to organizational rewards and the organizational rewards will satisfy hi personal goals. When an employee has a high level of expectancy and the reward is attractive, motivation is usually high.

top level managers

Ensure that major performance objectives are established and accomplished.

decision-making process- 7th step

Establish a control and evaluational system.

leading

Establishing and influencing other to follow a specific direction. One of the five basic functions of managers.

criteria used to evaluate decision-making alternatives

Ethicality, economic feasibility, legality, practicality.

group

Exists almost anywise two or more people interact or coexist. It does not have a unified purpose nor is it a team.

task-motivated style leaders

Expedience pride and satisfaction in task accomplishments for his organization. Are at their best when their team perform successfully such as achieving a new sales records. (Fiedler's Contingency Theory)

decentralized organizations

Firms that conscientiously attempt to spread authority to the lowest possible levels.

re-engineering approach

Focuses on creating big change fast. (quality school of management)

behavioral school

Focuses on the human-based elements of work, believing that increased understanding of such behaviors as group interaction, motivation, and conflict resolution will lead to increased productivity.

confrontation

For verbalization of disagreements. (one of several conflict resolution strategies.)

Ohio State Leadership Studies

Found that consideration and initiating structure are two essential behaviors for leaders.

five approaches to organizational design

Functional, divisional, matrix, team and networking. Approaches to help managers determine departmental groupings or grouping of positions into departments.

compromise

Giving up something to gain something. (one of several conflict resolution strategies.)

identification with the group by its members

Group or team cohesiveness is usually based on this.

cross-functional team

Groups of experts in various specialties (or functions) who work together on solutions to organizational problems. (a.k.a. horizontal team)

transactional leaders

Guide followers in the direction of established goals by clarifying goals and task requirements.

systems management theory

Has had a significant effect on management science. A system is an interrelated set of elements functioning as a whole. An organization as a system is compose of four elements; inputs, transformation processes, outputs and feedback. The systems theory encourages managers to look at the organization from a broader perspective.

appeal to team objectives

Highlighting the mutual need to reach a higher goal. (one of several conflict resolution strategies.)

Blake-Mouton Managerial Grid

Identifies five leadership styles with varying concerns for people and production. The five styles are impoverished, country club, authoritarian, middle-of-the-road and team.

content theory (of motivation)

Identifies physical or psychological conditions that act as stimuli for human behaviors. Also referred to as the basic needs model.

Herzberg's TWO FACTOR Theory

Identifies two sets of factors that impact motivation in the workplace; hygiene factors and satisfiers or motivators. Hygiene factors. (motivation theory that focuses on needs)

decision-making process - 2nd Step

Identify limiting factors.

decision-making process- 6th step

Implement the decision.

social loafing

In the social psychology of groups, social loafing is the phenomenon of people exerting less effort to achieve a goal when they work in a group than when they work alone. Results if individual contributions in a group project are not evaluated .

conflict resolution strategies or practices

Include avoidance, smoothing, compromise, collaboration, confrontations, appeal to team objectives or third-party intervention.

satisfiers or motivators

Include responsibility, achievement, growth opportunities and feelings of recognition and are the key to job satisfaction and motivation per Herzberg's Two Factor Theory.

hygiene factors

Include salary, job security , working conditions, organizational policies and technical quality of supervision. improvement in hygiene factors do not necessarily increase employee satisfaction per Herzberg's Two Factor Theory.

motivation theories that focus on behavior

Include: Adam's Equity Theory, Vroom's Expectancy Theory, Thorndike's Reinforcement Theory and Locke's Goal-Setting Theory.

motivation theories that focus on needs

Include: Maslow's Hierarch of Needs Theory, Herzber's Two Factor Theory, Aldefer's ERG Theory and McClelland's Acquired Needs Theory.

Mintzberg's Set of Ten Roles

Informational category consists of monitor (1), disseminator (2) and spokesperson (3). Interpersonal category consists of figurehead (4), leader (5) and liaison (6). Decisional category consists of entrepreneur (7), disturbance handler (8) , resource allocator (9) and negotiator (10).

Locke's GOAL-SETTING Theory

Intentions to work toward a goal are a major source of work motivation. Goals tell employees what needs to be done and how much effort should be expended. (motivation theory that focuses on behavior)

large span of control

Invariably results in a flat (horizontal) organizational structure.

small span of control

Invariably results in a tall (vertical organizational structure).

control process

Involves carefully collecting information about a system, precess, person or group of people in order to make necessary decisions about each. Control systems consist of four key steps: Establish standards to measure performance, measure actual performance, compare performance with the standards and take corrective actions.

Boston Consulting Group Matrix

Is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their product lines. It classified products as stars, question marks, cash cows or dogs.

goal

Is a desired future state that the organization attempts to realize. Goals specify future ends; plans specify today's means.

locus of control

Is a person's belief about how much power one has over the events in one's life. According to psychologist Julian Rotter, who formulated the concept in the 1950s, the locus of control is a dimension of personality; it helps explain one's traits and behavior.

Kanban

Is a scheduling system for lean and just-in-time (JIT) production. Is a system to control the logistical chain from a production point of view, and is an inventory control system

PERT (Program Evaluation and Review Tool)

Is a system for scheduling and find the critical path for production. Is a statistical tool, used in project management, which was designed to analyze and represent the tasks involved in completing a given project. First developed by the United States Navy in the 1950s, it is commonly used in conjunction with the critical path method (CPM).

Pygmalion effect

Is a type of self-fulfilling prophecy where if you think something will happen, you may unconsciously make it happen through your actions or inaction.

Porter's five forces model

Is an analysis tool that uses five forces to determine the profitability of an industry and shape a firm's competitive strategy. It is a framework that classifies and analyzes the most important forces affecting the intensity of competition in an industry and its profitability level.

avoidance mode of behavior modification

Is an attempt to show an employee what the consequence of improper behavior will be. If an employee does not engage in improper behavior, he will not experience the consequence. One of the four reinforcement theory techniques.

work sampling

Is an effort to create a miniature replica of a job, giving applicants the chance to demonstrate at they possess the necessary talents by actually doing the tasks.

strategic goal

Is an organization-wide, long-term goal devised by a top-level manager.

Leavitt's Diamond (effect)

Is an organizational model that states that each organization is made up of four basic component: technology, structure, people and tasks. The way in which each of these main components interacts with the others can help determine the success or downfall of an organization. For this reason, any changes to any one of the components will also have a significant impact on all of the other aspects of the organization. The model was developed by American sociologist and psychologist Harold J. Leavitt.

subsystem

Is any system that is part of a larger one. (systems management term)

Hersey-Blanchard's Situational Leadership Model

Is based on the amount of direction (task behavior) and amount of socio-emotional support (relationship behavior) a leader must provide given the situation and the level of maturity of the followers. Once maturity levels are identified a manager can determine the appropriate leadership style: telling, selling, participating or delegating.

choice of organizational structure

Is based on the objectives of each individual business.

Aldefers' ERG (Existence, Relatedness, Growth) Theory

Is built upon Maslow's hierarchy of needs theory. He collapsed Maslow's five needs into three categories, existence needs, relatedness needs and growth needs. This approach proposes that unsatisfied needs motivate behavior, and that as lower level needs are satisfied, the become less important.

team leadership style

Is characterized by high concern for people and production: its primary objective is to establish cohesion and foster a feeling of commitment amount workers. (9,9) on the Blake-Mouton grid.

country club leadership style

Is distinguished by high concern for people and low concern for production; It primary objective is to create a secure and comfortable atmosphere where manger trust that subordinates will respond positive. (1,9) on the Blake-Mouton grid.

best tangible measurement of leadership effectiveness

Is employee morale.

authoritarian leadership style

Is identified by high concern for production and low concern for people; its primary objective is to achieve the organization's goals, and employees needs are not relevant in this process. (9,1) on the Blake-Mouton grid.

Taylor (Frederick)

Is known as the "father of scientific management". Taylor believed that organizations should analyze the tasks that they need to have performed, then develop a set of procedures for the best way of performing them.

social learning

Is learning that takes place at a wider scale than individual or group learning, up to a societal scale, through social interaction between peers. It may or may not lead to a change in attitudes and behavior. An example is when young athletes imitate the way the see professional athletes celebrate on television.

coaching as a leadership technique

Is most likely to work when performance -development needs are known.

synergy

Is the ability of the whole system to equal more than the sum of its parts. (systems management term)

Kaizen approach

Is the commitment to work toward steady, continual improvement. In this process, everyone in the organization participates by identifying opportunities for improvement, testing new approaches, recording the results, and recommending changes.

need for affiliation

Is the desire for friendly, close interpersonal relationship and conflict avoidance. One of McClelland's Acquired Needs.

need for power

Is the desire to cause others to behave in a way that they would not have behaved otherwise. One of McClelland's Acquired Needs.

need for achievement

Is the drive to excel. One of McClelland's Acquired Needs.

cognitive learning

Is the function based on how a person processes and reasons information. It revolves around many factors, including problem-solving skills, memory retention, thinking skills and the perception of learned material.

critical path in PERT

Is the most time-consuming sequence of events and activities. In a PERT, lines connecting the events are called paths, and the longest path resulting from connecting all events is called the critical path. The length (duration) of the critical path is the duration of the project, and any delay occurring along it delays the whole project. PERT is a scheduling tool, and does not help in finding the best or the shortest way.

determining how to peruse long-term goals with violable resources

Is the primary concern of employees responsible for strategic planning in a company.

entropy

Is the tendency of systems to deteriorate or break down over time. (systems management term)

valance

Is the value that the individual associates with the outcome (reward). A positive valance indicates that the individual has a preference for getting the reward as opposed to, vice-versa, a negative valance that is indicative that the individual, based on his perception evaluated that the reward doesn't fill a need or personal goal, thus he or she doesn't place any value towards its attainment. (expectancy theory of motiviation)

operations management

It focuses on managing the process of transforming material, labor and capital into useful goods and/or services.

managerial ethics

It is the standard of conduct that guides a person's decisions and behavior.

Gilbreth (Frank and Lillian)

Known for studying job motions. They performed the first motion study to determine the best possible method for doing a job. They observed both efficient and inefficient bricklayers at work, and then reduced the motions needed to do the job down to a few basic ones. Eliminating the unnecessary motions improved efficiency and productivity tremendously.

path-goal theory of leadership

Leadership concept that the subordinates accept a leader's behavior only so far as they view it as resulting in immediate or future benefit. Thus, a leader's main function is to 'clear a path' to the realization of the subordinates' goals; he or she must choose the behavior patterns that are most applicable in helping the subordinates get what they want. Developed by Robert House based on the expectancy theory of motivation. (a contingency or situational approach to leadership)

telling, selling, participating and delegating

Leadership styles used in Hersey-Blanchard SITUATIONAL leadership model.

management skills encouraged by business educators

Leadership, self-objectivity, analytic thinking, behavioral flexibility, oral communication, written communication, personal impact, resistance to stress, and tolerance for uncertainty.

punishment mode of behavior modification

(threats, docking pay, suspension) Is an attempt to decrease the likelihood of a behavior recurring by applying negative consequences. One of the four reinforcement theory techniques.

four key steps of control process

1. establish standards to measure performance 2. measure actual performance 3. compare performance with the standards 4. take corrective actions.

self-fulling prophecies

A belief that a manager can, through is behavior, create a situation where subordinates act in ways that confirm the manager's original expections.

plan

A blueprint for goal impeachment that specifies the necessary resource allocations, schedules, tasks, and other actions. Goals specify future ends; plans specify today's means.

classical scientific branch school of management thought

A branch of the school of classical management theory, whose emphasis is on increasing productivity and efficiency. Emphasis on work methods rather than managerial principals.

simulation

A broad term indicating any type of activity that attempts to imitate an existing system or situation in a simplified manner.

Abilene paradox

A circumstance where a group of individuals agree to a course of action based on the theory it is best for the group, despite going against the preferences of members of the group. This occurs when individuals feel their objections are not strong enough to support changing the minds of others in their group. Commonly referred to as "rocking the boat".

stipulation

A condition or requirement that is specified or demanded as part of an agreement.

need theory

A construct of motivation based upon physical or psychological conditions that act a stimuli for human behavior. Maslow's idea.

decision tree

A diagram that analyzes hiring, marketing investment, equipment purchases, pricing, and similar decisions. Decision trees assign probabilities to each possible outcome and calculate payoffs fore each decision path.

conciliation

A form of alternate dispute resolution (ADR) in which a neutral third-party hears both sides and then issues a non-binding suggested resolution.

operant conditioning

A form of learning. In it, an individual changes its behavior because of the consequences (results) of the behavior. The person or animal learns its behavior has a consequence. That consequence may be. Reinforcement: a positive or rewarding event.

bureaucracy

A form of organization based on logic, orders and legitimate use of authority. A non-personal, objective form of organization. Max Weber believed in management by bureaucracy.

appraisal

A formal review that measures an employee's performance against designated standards.

grievance

A formal statement of complaint about a situation, usually made by an employee or group of employees to management.

organization

A group of individual who work together to accomplish common goal.

network organization

A group of legally independent companies or subsidiary business units that use various methods of coordinating and controlling their interaction in order to appear like a larger entity. In a business context, three main types of network organization are typically seen: (1) internal where a large company has separate units acting as profit centers, (2) stable where a central company outsources some work to others, and (3) dynamic where a network integrator outsources heavily to other companies.

expert power

A leaders special knowledge or skills regarding the tasks performed by followers.

classical conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

control management

A management function aimed at achieving defined goals within an established timetable, and usually understood to have three components: (1) setting standards, (2) measuring actual performance, and (3) taking corrective action. A typical process for management control includes the following steps: (1) actual performance is compared with planned performance, (2) the difference between the two is measured, (3) causes contributing to the difference are identified, and (4) corrective action is taken to eliminate or minimize the difference.

controlling

A manager needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track. One of the five basic functions of managers.

line authority

A manager's right to direct the work of his employees and make decisions without consulting others.

open system

A method in which an individual or organization must interact with various and constantly changing components in both the external and internal environments. (systems management term)

human relations movement

A method that focuses on people as individuals with needs (also know as the behavioral management theory).

behavioral management theory

A method that focuses on people as individuals with needs (also know as the human relations movement).

manager

A person responsible for the work performance of one or more other persons. Are tasked to make decisions, solve difficult problems, set goals, plan strategies and rally individuals.

groupthink

A phenomenon developed in groups and marked by the consensus of opinion without critical reasoning or evaluation of consequences or alternatives.

organizational chart

A pictorial display of the official lines of authority and communication with in an organization.

Maslow (Abraham)

A practicing psychologist, developed one of the most widely recognized need theories, a theory of motivation based upon a consideration of three human needs.

queuing theory

A rational that helps allocate services or workstations to minimize customer waiting and service costs.

income statement

A report that presents the difference between an organization's income and expense to determine whether the firm operated in at a profit or loss over a specified. time.

funds flow statement

A statement showing money coming into and going out of a business in a particular period of time, where this money came from, and what it was used for. Two types of this statement are the source and application of funds statement and the cash flow statement.

supportive leadership style

A supportive leader attempts to reduce employee stress and frustration in the workplace. This type leader shows concern for the followers' psychological well-being. One of the four leadership styles identified in path-goal theory.

scalar principle

A system that demonstrates a clearly defined line of authority in the organization that includes all employees. One of the two underlying principles of chain of command.

integrated preparedness (IP)

A system that requires sub-assemblies and components to be manufactured in small lots and delivered as needed to the next stage of production.

classical management theory

A theory developed during the Industrial Revolution, that proposes "one best way" to perform tasks. Classical manger theory developed into two separate branches: the "classical scientific school" and the "classical administrative school".

job enlargment

A type of job redesign that increased the variety of tasks a positions includes. (a.k.a. horizontal job loading)

job enrichment

A type of job redesign that not only includes an increased variety of task, bu also provides the employee with more responsibility and authority. (a.k.a. vertical job loading)

divisional structure

A type of organizational configuration that groups together those employees who are responsible for a particular product type or market service according to workflow. The divisional structure of a business tends to increase flexibility, and it can also be broken down further into product, market and geographic structures. Large companies are likely to be structured this way.

chain of command

A unbroken line of authority that links all persons in an organization and defines who report to whom. It has two underlying principals: unity of command and scalar principal.

cause and effect diagram

A visual deception of a process to help identify problem areas. One of the seven tools of quality, it shows the relationship of all factors (causes) that lead to the given situation (effect). It identifies major causes and breaks them down into sub-causes and further sub-divisions (if any). It is usually preceded by cause-and-effect analysis. Also called fishbone diagram (because of its resemblance to a fish skeleton) or Ishikawa diagram, after its inventor Dr. Kaoru Ishikawa (1915-89) of Tokyo's Mushasi Institute.

conceptual skill

Ability to think analytically. The higher the management level, the more important conceptual skills become.

technical skill

Ability to use a special proficiency or expertise to perform particular tasks. Are the most important at lower levels of management.

vertical job loading

Adding meaningful tasks that will lead to growth -- additional tasks that permit growth and provide motivating factors. (a.k.a. job enrichment)

horizontal job loading

Adding tasks to a job but not adding any responsibility or challenge -- the meaningless of the job is simply increased. Horizontal loading ought to be avoided! (a.k.a. job enlargement)

compensatin

All work-related payments, including wages, commissions, insurance and other benefits.

Management by objectives (MBO)

Also known as management by results (MBR), is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization in order to achieve them.

Gantt (Henry)

An associate of Frederick Taylor,developed the Gantt chart, a bar graph that measures planned and completed work along each stage of production.

utilitarianism (utilitarian view of ethics)

An ethical philosophy in which the happiness of the greatest number of people in the society is considered the greatest good. According to this philosophy, an action is morally right if its consequences lead to happiness (absence of pain), and wrong if it ends in unhappiness (pain). Since the link between actions and their happy or unhappy outcomes depends on the circumstances, no moral principle is absolute or necessary in itself under utilitarianism. Proposed by the English philosopher-reformer Jeremy Bentham (1748-1832) in his 1789 book Principles Of Morals And Legislation it was developed by the English philosopher-economist John Stuart Mill (1806-73) in his 1863 book Utilitarianism.

brainstorming

An idea-generating process that encourages the development of alternative s while withholding criticism of these alternatives.

directive leadership style

An instructional type of managerial style characterized by a leader who tells subordinate staff what they are expected to do and how to perform the expected tasks. A directive leadership style might be helpful for a manager within a business where their subordinate staff members have jobs that are not particularly specialized and so they need more guidance to avoid uncertainty. One of the four leadership styles identified in path-goal theory.

network structure

An operating process that relies on other organizations to perform critical functions on a contractual basis.

closed system

An organization that interacts little with its external or outside environment and therefore receives little feedback from it. (systems management term)

functional structure

An organizational design that groups positions into department on the basis of the specialized activities of the business.

strategic plan

An outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments.

decision-making process- 4th step

Analyze the alternatives.

Maslows' Hierarchy of Needs

Are based on two principles, the deficit and progression principles. Ranked from higher to lower needs: Self-actualization needs, esteem needs, social needs, safety needs and physiological needs. (motivation theory that focuses on needs)

transformational leaders

Are charismatic and missionary, can inspire followers to transcend their own self-fingers for the good of heir organizations. Are more strongly correlated with lower turnover rates, higher productivity and higher employee satisfaction.

extrinsic rewards

Are externally administered. Praise, a promotion, office décor, and desirable assignments are all examples of extrinsic rewards.

performance simulation tests

Are made up of actual job behaviors. Best know performance simulation test is known as work sampling.

standing or continuing or ongoing plans

Are made usually once and retain their value over a period of years while undergoing periodic revisions and updates. A policy, procedure or rule is an example of an ongoing plan.

decision making

Are ongoing processes of evaluating situations or problems, considering alternatives, making choice and following them up with the necessary actions.

pro forma financial statements

Are prepared in advance of a planned transaction, such as a merger, an acquisition, a new capital investment, or a change in capital structure like an incurrence of new debt or issuance of equity.

intrinsic rewards

Are self-administered. Are rewards that provide a sense of achievement and accomplishment. They are internally administered, meaning that they are not reliant on the behaviors of other people.

tactical goals

Are specific work goals that middle-level managers derive from the broader strategic goals.

planning and controlling

Are the pairs of functions of management that are most close interdependent.

flowcharts

Are visual sequencing of activities when used in planning.

need

As defined by Maslow, a physiological or psychological deficiency that a person feels the compulsion to satisfy.

McGregor (Douglas)

Ascribed to the behavioral management theory. He is most famous for his concepts of the Theory X manager and the Theory Y manager. According to McGregor, the Theory X manager sees employees as being essentially irresponsible, untrustworthy, and lazy, whereas the Theory Y manager sees them as being responsible, trustworthy, and motivated. Influence by the Hawthorne studies and Maslow.

third-party intervention

Asking an objective third party to mediate. (one of several conflict resolution strategies.)

Mintzberg (Henry)

Author of "The Nature of Managerial Work", describes a set of ten roles that a manager fills. Managerial roles fall into the following three categories: informational, interpersonal, and decisional.

centralized organizations

Authority is concentrated at the top of the organization.

functional authority

Authority to make decisions about specific activities undertaken by personnel in other departments.

coercive power

Authority to punish or recommend punishment.

REINFORCEMENT Theory

Based on Thorndikes' law of effect, looks a the relationship between behaviour and its consequences. Employee behavior is modified through the use of four techniques: positive reinforcement, avoidance, extinction and punishment. (motivation theory that focuses on behavior)

Gantt chart

Based on time,instead of quantity, volume or weight, this visual display chart has been a widely used planning and control tool since its development in 1910.

extinction mode of behavior modification

Basically ignoring the behavior of a subordinate and not provide either positive or negative reinforcement. This technique should only be used when the supervisor perceive the behavior as temporary, not typical and not serious. One of the four reinforcement theory techniques.

Weber (Max)

Best known for being proponent of an objective, non-personal form of organization known as a bureaucracy.

Fiedler's Contingency Theory

Centers on the belief that there is not best way for managers to lead. Three elements dictate a leader's situational control. They are: task structure, leader/member relations and positioning power. He divided leaders into two categories: relationship oriented or task oriented.

achievement-oriented leadership style

Challenging goals are set, high performance is expected and management has a high level of confidence in the employee's ability to achieve the goals. One of the four leadership styles identified in path-goal theory.

impoverished leadership style

Character is by low concern for both people and production; its primary objective is for managers to stay out of trouble. (1,1) on the Blake-Mouton grid.

management information systems (MIS)

Collects, organizes and distributes data in sucha a way that the information meets managers' needs.

rights (moral rights) view of ethics

Concept of ethics that all actions that do not interfere with others' rights, and do not coerce, are moral and ethical.

product development

Creation of new products, improvement of existing products and alteration of old products.

Deming (Edwards)

Credited with launching the Total Quality Management movement.

Machiavellian

Cunning, scheming, and unscrupulous, especially in politics or in advancing one's career.

decision-making process - 1st step

Define the problem

Hawthorne studies

Demonstrated that an increase in productivity is a direct result of a worker-friendly supervisory system. The general conclusion for the studies were that human relations and the social needs of workers are crucial aspects of business management. The studies actually refuted the theories of the classical management school of which Fayol was a part.

human skill

Demonstrates the ability to work well in cooperation with others. Critical for all managers because of the highly interpersonal nature of managerial work.

just-in-time (JIT) inventory

Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory costs.

budget

Depicts how much an organization expects to spend (expenses) and earn (revenues) over a period of time.

Hawthorne effect

Describes the special attention researches give to a study's subjects and the impact that the attention has on the study's findings.

growth needs

Desires for continued psychological growth and development (In term so Maslow's model, growth needs include esteem and self-realization needs.) One of Aldefer's ERG Theory needs.

existence needs

Desires for physiological and material well-being. (In terms of Maslow's model, existence needs include physiological and safety needs.) One of Aldefer's ERG Theory needs.

relatedness needs

Desires for satisfying interpersonal relationships. (In terms of Maslow's model, relatedness correspondence to social needs.) One of Aldefer's ERG Theory needs.

planning process steps

Determine the organization's missing, establish goals and objectives, formulate strategies, and implement strategies.

decision-making process - 3rd Step

Develop and potential alternatives.

operational plan

Developed by a first level supervisor as a means to achieve operational objectives in support of tactical plans.

Bernard (Chester)

Developed the acceptance theory of management, which focuses on an employee's willingness to accept those who possess legitimate authority to act. Introduced the idea of of the informal organization. Bridge to the behavioral management theory.

basic ideas of scientific management

Developing standard methods for each job, training workers instead of allowing them to use their own methods, developing spirit of cooperation between workers and management to ensure devised procedures carried out, and dividing work almost evenly between workers and management so it is done by group it best fits.

seven tools of quality

Devices used in understanding and improving production processes. Tool 1: Cause and effect diagram or fishbone diagram (after its shape) or Ishikawa diagram (after its inventor). Tool 2: Check sheet data recording table (matrix) Tool 3: Control chart also called C chart. Tool 4: Flowchart Tool 5: Histogram graph it is substituted or supplemented with a Gantt chart. Tool 6: Pareto chart Tool 7: Scatter chart graph

Fayol's 14 Principles of Management

Division of work. Authority and responsibility. Discipline. Unity of command. Unity of direction. Subornation of individual interest to general interests. Remuneration of personnel. Centralization. Scalar chain. Order. Equity. Stability of tenure of personnel. Initiative. Eprit de corps.

contingency school of management

Doesn't believe that there is one best way or group of ways to manage; it takes a flexible approach to management that depends on a given situation. Summed up in "it all depends approach".

middle-of-the-road leadership style

Maintains a balance between workers' needs and organization's production goals; primary objective is to maintain employee morale at a level sufficient to get the organization's work done. (5,5) on the Blake-Mouton grid.

certainty, risk and uncertainty

Managers make problem solving decisions under these three conditions.

Theory X managers and Theory Y managers

McGregor believed two basic kinds of managers existed. If managers hold either set of beliefs, managers can create self-fulling prophecies for their subordinates behaviors.

integrity tests

Measure factors such as dependability, carefulness, responsibility and honest.

personality tests

Measure personality or temperament. These test are among the least reliable.

profitability ratios

Measurements of an organization's ability to generate profits.

knowledge tests

More reliable than personality test because they measure an applicant's comprehension or knowledge of a subject.

matrix structure

Multiple command-and-control structure in which some employees have dual responsibilities and dual bosses. These employee report to one boss (a project manager, for example) for day to day operations, and to another boss (the departmental head, for example) for functional responsibilities. This approach is most suited to situations with fluctuating workloads, such as managing large projects or product development processes.

effective goal criteria

Must be specific and measurable; cover key areas of results; challenging but not too difficult; specify the time period over which they will be achieved; linked to rewards.

collaboration

Mutual problem solving. (one of several conflict resolution strategies.)

Vroom's EXPECTANCY Theory

One of the most widely accepted explanations of motivation. A motivational theory stating that the tree factors that influence behavior are the value of the reward, the relationship of the reward to performance and the effort required for performance. (motivation theory that focuses on behavior)

Pareto chart

One of the seven tools of quality control, it is a bar graph that displays variances by the number of their occurrences. Variances are shown in their descending order to identify the largest opportunities for improvement, and to separate 'critical few' from the 'trivial many.' Also called Pareto diagram.

self-directed work team (SDWT)

Operate without managers and are responsible for complete work processes or segments that deliver products or services to external or internal customers. Designed to give employees a feeling of ownership of the whole job. (a.k.a. or self-managed work team)

single-use plans

Operational plans that apply to activities that do not recur or repeat. A budget is an example because i predicts sources and amounts of income and how much they are use for a specific purpose.

team structure

Organizational design that places separate functions into a group according to one overall objective.

employee inputs

Per Adams' equity theory: hard work, skill level, tolerance, enthusiasm, and so on.

employee outputs

Per Adams' equity theory: salary, benefits, intangibles such as recognition,and so on.

five basic functions of managers

Planning, organizing, staffing, leading and controlling.

smoothing

Playing down differences to ease conflict. (one of several conflict resolution strategies.)

acceptance theory of management

Principle that emphasizes the willingness of subordinates to accept those with authority to act. Chester Barnard credited with development of this theory.

unity of command

Principle that states that an employee should have one and onl one supervisor to who he is directly responsible. One of the two underlying principles of chain of command.

twinning

Process in which one full-time job is split between two or more persons. (a.k.a. job sharing)

business trend that encourage an organization to be decentralized

Product diversification, telecommuting, and geographical expansion of operations.

Civil Rights Act of 1964

Prohibits discrimination on he basis of race, color, religion national origin or sex.

Vocational Rehabilitation Act

Prohibits discrimination on the basis of physical or metal disabilities and requires hat employees be informed about affirmative action plans.

Equal Pay Act of 1978

Prohibits pay differences based on sex fore equal work.

control techniques or devices

Provide managers with the type and amount of information they need to measure and monitor performance. These control devices or techniques include financial, budget, marketing, human resource, and computer and information

job orientation

Provides new employees with basic information about the organization for which they are working.

process theories

Rationales that attempt to explain how workers select behavioral actions to meet their needs and determine their choices.

Civil Rights Act of 1991

Reaffirms and tightens prohibition of discrimination. Permits individuals to sue for punitive damages in cases o intentional discrimination has shifts the burden of proof to the employer.

McClelland's ACQUIRED NEEDS Theory

Recognizes that everyone prioritize needs differently. He also believes these needs are not inborn, but learned from life experiences. Three needs are achievement, power and affiliation. These needs are associated with work preferences. (motivation theory that focuses on needs)

staffing

Recruiting, selecting, training and developing employees. One of the five basic functions of managers.

re-engineering

Redesigning processes requiring input from every employee in the company to achieve dramatic improvement in cost, quality, service and speed. (quality school of management)

vertical job loading

Redesigns a job such that the position not only includes a greater variety of tasks, but also invests the job with greater responsibility and authority. (a.k.a. job enrichment)

span of management

Refers to the number of works who report o one manager. (a.k.a. span of control)

span of control

Refers to the number of works who report o one manager. (a.k.a. span of management)

quality

Reflects the degree to which a goods or services meets the demands and requirements of the marketplace.

linear regression analysis

Regression analysis in which the dependent variable is assumed to be linearly related to the independent variable or variables.

middle level managers

Report to top managers and are in charge of relatively larger departments or division consisting of several smaller units.

Fayol (Henri)

Responsible for developing 14 principles of management, which were based on his own management experiences. They include such principles as work specialization, unity of command, centralization, and team work. He was affiliated with the classical administrative school of management.

positive reinforcement mode of behavior modification

Rewards desirable behavior. On of the four techniques used in the reinforcement theory.

job sharing

Rhe process by which one full-time position is split among two or more employees. (a.k.a. twinning)

relationships-motivated style leaders

Seek to build interpersonal relation and extend extra help for team development in his organization. Are at their best when greater customer satisfaction is gained and positive company images are established. (Fiedler's Contingency Theory)

decision-making process- 5th step

Select the best alternative.

team

Share a common goal. Is composed of two or more people who interact regularly and coordinate their work to accomplish a mutual objective. (different than a group)

heterogeneous or homogeneous group membership

Should be determined by the nature of the task.

operational goals

Specific, measurable results expected from first-level managers, work groups, and individuals.

tactical plan

Steps detailing the actions needed to achieve the organization's larger strategic plan.

Follett (Mary Parker)

Stressed the importance of an organization establishing common goals for its employees. Thought differently than theorist of her day who thought of people as robots. She thought about ethics, power and leadership. She stressed people rather than techniques. Dismissed in her day but managers today model her ideas.

quality school of management

Strives to continuously improve performance to deliver high-quality goods or services to the marketplace. Considers the following in it theory: organization makeup, quality of goods and services, continuous improvements in goods and services, employees working in teams and developing openness and truss.

participative leadership style

Style of leadership in which the leader involves subordinates in goal setting, problem solving, team building etc., but retains the final decision making authority. One of the four leadership styles identified in path-goal theory.

interactionist view on organizational conflict

Suggests that a minimum level of conflict is actually beneficial for the organization and its groups. It makes the individuals more effective and self-critical, and it makes the group more adaptable, responsive and flexible to change.

human relations view on organizational conflict

Suggests that conflict is an inevitable part, which should be accepted. It further says that some types of conflict may improve a group's performance.

traditional view on organizational conflict

Suggests that every type of conflict - functional and dysfunctional - is negative, harmful and destructive, and must be avoided.

three essential skills for managers

Technical, human and conceptual.

escalation of commitment

Tendency to invest additional resources in an apparently losing proposition, influenced by effort, money, and time already invested.

leadership

The ability to garner the respect and cooperation of employees to achieve an organization's goals.

planning

The act of determining the organization's goals and defining the means for achieving them. One of the five basic functions of managers.

behavior modification

The alteration of behavioral patterns through the use of such learning techniques as biofeedback and positive or negative reinforcement.

project management

The application of processes, methods, knowledge, skills and experience to achieve the project objectives. A project is a unique, transient endeavour, undertaken to achieve planned objectives, which could be defined in terms of outputs, outcomes or benefits.

reward power

The authority to reward others. Drawn from the authority to reward subordinates with promotions, raises, recognition, and interesting opportunities and assignments.

ethics

The basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the natural environment. See also morality.

"classical administrative" school of management thought

The branch of classical management theory that emphasizes he flow of information in organizations. Emphasis on managerial principals rather that work methods. Concentrates on the total organization. Contributors to this school of thought include Max Weber, Henri Fayol, Mary Parker Follett, and Chester I. Barnard.

factors effecting centralization or decentralization of organizations

The external environment of the operations, riskiness of the decision to be centralized or decentralized, abilities of low level mangers and the organization's tradition of management.

motivation

The force that causes an individual to behave in a specific way. It is an internal process. It is not something a manager can "do" to a person.

referent power

The kind of power that is invested by employees in a leader whom they admire and wish to emulate. Is derived from personal leadership characteristics of an individual that command respect from subordinates. Influence that results from leadership characteristics that command identification, respect and administration from subordinates. (a.k.a. charismatic power)

charismatic power

The kind of power that is invested by employees in a leader whom they admire and wish to emulate. Is derived from personal leadership characteristics of an individual that command respect from subordinates. Influence that results from leadership characteristics that command identification, respect and administration from subordinates. (a.k.a. referent power)

planning function

The managerial function that provides direction, a common sense of purpose for the organization through the development of goals and objectives.

management myths

The managers is a reflective, methodical planner. The effective manager has no regular duties to perform. The manager's job is a science. Managers are self-starters, self-directed and autonomous. Good managers seek out the information they require. Competition among managers is good for business.

informal organization

The pattern, behavior and interaction that stems from personal rather than official relationships. Chester Barnard's idea.

decentralization of authority

The practice in large companies of establishing autonomous divisions whose heads are entirely responsible for what happens in the division.

organizing

The process of establishing the orderly use of resources by assigning and coordinating tasks. One of the five basic functions of managers.

human resources management

The process of hiring and developing employees so that they become more valuable to the organization. It includes conducting job analyses, planning personnel needs, recruiting the right people for the job, orienting and training, managing wages and salaries, providing benefits and incentives, evaluating performance, resolving disputes, and communicating with all employees at all levels. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills. Formerly called personnel management.

teamwork

The process of working collaboratively with a group of people in order to achieve a goal. Is often a crucial part of a business, as it is often necessary for colleagues to work well together, trying their best in any circumstance. Teamwork means that people will try to cooperate, using their individual skills and providing constructive feedback, despite any personal conflict between individuals.

productivity

The relationship between an amount of input and the amount of output that it creates.

arbitration

The settling of disputes (especially labor disputes) between two parties by an impartial third party, whose decision the contending parties agree to accept.

cognitive dissonance

The state of having inconsistent thoughts, beliefs, or attitudes, especially as relating to behavioral decisions and attitude change.

using rewards and coercive power

The sues of transactional leaderships based on this concept.

strategic management

The systematic analysis of the factors associated with customers and competitors (the external environment) and the organization itself (the internal environment) to provide the basis for maintaining optimum management practices. The objective of strategic management is to achieve better alignment of corporate policies and strategic priorities.

control

The systematic process of regulating organization activities to make them consistent with the expectations establishes in plans, targets, and standards of performance. It must be closely related to planning in order to work efficiently.

job rotation

The temporary assignment of different employees to different jobs, or different tasks to different employees on a temporary basis.

contingency theory approach to leadership

This principle examines the fit between the leader and the situation and provides guidelines for mangers to achieve an effective fit. (a.k.a. situational theory)

decisional role

This role involves decision making; entrepreneur, disturbance handler, resource allocator and negotiator.

interpersonal role

This role involves human interactions; figurehead, leader and liaison.

informational role

This role involves the sharing and analyzing of information; monitor, disseminator and spokesperson.

scientific school of managment

This school of thought was pioneered by Frederick Taylor who believed that organizations should study tasks and develope precise procedures.

self-actualization needs

To satisfy or offer creative and challenging work, participation in decision making and job flexibility and autonomy. Higher level need per Maslow.

social needs

To satisfy or offer friendly co-workers, interaction with customers and pleasant supervisor. Lower level need per Maslow.

esteem needs

To satisfy or offer responsibility of an important job, promotion to higher status job and praise and recognition from boss. Higher level need per Maslow.

physiological needs

To satisfy or offer rest and refreshments, physical comfort on the job and reasonable work hours. Lower level need per Maslow.

safety needs

To satisfy or offer safe working conditions, job security and base compensation and benefits. Lower level need per Maslow.

levels of management

Top level managers, middle level managers and low level managers.

low level managers

Typically a first-line management position, such as team leader or supervisor, a person in charge of smaller work units composed of hands-on workers.

quantitative approach school of management

Using quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making. Was born from research conducted during World War II.

legitimate power

Vested authority stemming from a formal management position in an organization.

contributors to the classical administrative school

Weber, Fayol, Parker-Follett and Barnard.

bureaucracy characteristics per Max Weber

Well-defined hierarchy. Division of labor and specialization. Rules and regulations. Impersonal relationships between managers and employees. Competence. Records.

motions studies

Were promoted by Frank and Lillian Gilbreth. These studies are important in the scientific management field.

mediation

When a third party is invited into a negotiation to facilitate a resolution, it is known as?

negotiation

When two parties agree to work in a cooperative manner to resolve a labor dispute.

avoidance

Withdrawing from or ignoring conflict. (one of several conflict resolution strategies.)

flexttime

Work an employment alternative that allows employees to decide, within a certain rage, when to begin and end each work day.

job design

Work arrangement (or rearrangement) aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through job design, organizations try to raise productivity levels by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement in meeting the increased challenge and responsibility of one's work. Job enlargement, job enrichment, job rotation, and job simplification are the various techniques used in a job design exercise.

functional team

Work groups that perform specific organizational functions with members form several vertical levels of hierarchy. For example a manager and his subordinates for a functional areas such as accounting. (a.k.a. vertical team)

Adams' EQUITY Theory

Workers compare the reward potential to the effort they must expend. Workers also consider rewards of others. Equity exists when workers perceive that the reward equals the efforts. (motivation theory that focuses on behavior) Adams' Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, tolerance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition,and so on).

informal groups

Workers may create an informal group to go bowling, form a union, discuss work challenges or have lunch. The group may last for several years or only a few hours.

most evident change in organizational design caused by management information technology

is the decentralization of organizations.

mediation

the attempt to settle a legal dispute through active participation of a third party (mediator) who works to find points of agreement and make those in conflict agree on a fair result. Mediation differs from arbitration, in which the third party (arbitrator) acts much like a judge in an out-of-court, less formal setting but does not actively participate in the discussion.

organizational design

the creation or change of an organization's structure, the configuration and inter-relationships of positions and departments.

work cooperatively

to resolve conflict through collaboration parties must do this.