Introduction to Management Midterm 1

Environmental Scanning

Searching the environment for important events or issues that might affect and organization

Exporting

Selling domestically produced products to customers in foreign countries

Proximal Goals

Short-term goals or subgoals

Latham & Baldes Study

Showed that a goal, well conceived and executed, can have a huge impact on performance

Barling Study

Showed that everyone can learn to be to be transformational. Workers who were trained worked harder and sold more.

Greenburg Study

Showed that people would steal to get back at a company when their pay was cut. When treated well, stealing was less likely to occur (Procedural & Interactive Justice). Mangers must consider both rewards and treatment when making decisions that effect people

Interpersonal Skills

Skills, such as listening, communicating, questioning, and providing feedback, that enable people to have effective working relationships with other

Expatriate

Someone who lives and works outside his or her native country

Rules and Regulations

Standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event

Policies

Standing plans that indicate the general course of action that should be taken in response to a particular event or situation

Procedures

Standing plans that indicate the specific steps that should be taken in response to a particular event

Organizational Stories

Stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions

The Hawthorne Studies

Study results showed that productivity was strongly related to worker attitude and social relationships

Employee Involvement Team

Team that provides advice or makes suggestions to management concerning specific issues

Groupthink

A barrier to good decision making caused by pressure within the group for members to agree with each other

Social Responsibility

A business's obligation to pursue policies, make decisions, and take actions that benefit society

Customs Classification

A classification assigned to imported products by government officials that affects the imposition of import quotas

Franchise

A collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

Consistent Organizational Culture

A company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes

Cash Cow

A company with a large share of a slow-growing market

Question Mark

A company with a small share of a fast-growing market

Dog

A company with a small share of a slow-growing market

Company Mission

A company's purpose or reason for existing

Ethical Responsibility

A company's social responsibility not to violate accepted principles of right and wrong when conducting its business

Economic Responsibility

A company's social responsibility to make a profit by producing a valued product or service

Legal Responsibility

A company's social responsibility to obey society's laws and regulations

Social Responsiveness

A company's strategy to respond to stakeholders' economic, legal, ethical, or discretionary expectations concerning social responsibility

Gainsharing

A compensation system in which companies share the financial value of performance gains, such as increased productivity, cost savings, or quality, with their workers

sustainable Competitive Advantage

A competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate

Multinational Corporation

A corporation that owns businesses in two or more countries

Slack Resources

A cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities

Devil's Advocacy

A decision-making method in which an individual or a subgroup is assigned the role of critic

Dialectical Inquiry

A decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of the solution

Brainstorming

A decision-making method in which group members build on each others' ideas to generate as many alternative solutions as possible

Electric Brainstorming

A decision-making method in which group members use computers to build on each others' ideas and generate as many alternative solutions as possible

Delphi Technique

A decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue

Nominal Group Technique

A decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

Tariff

A direct tax on imported goods

Production Blocking

A disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea

Strategic dissonance

A discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy

Management By Objectives

A four-step process in which managers discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment

Problem

A gap between a desired state and an existing state

Protectionism

A government's use of trade barriers to shield domestic companies and their workers from foreign competition

Traditional Work Group

A group composed of two or more people who work together to achieve a shared goal

Strategic Groups

A group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities

Semi-Autonomous Work Group

A group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service

Quota

A limit on the number or volume of imported products

Direct Foreign Investment

A method of investment in which a company builds a new business or buys an existing business in a foreign country

Strategic Objective

A more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame

Action Plan

A plan that lists the specific steps, people, resources, and time period needed to attain a goal

Competitive Analysis

A process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

Relative Comparisons

A process in which each decision criterion is compared directly with every other criterion

Absolute Comparisons

A process in which each decision criterion is compared to a standard or ranked on its own merits

Work Team

A small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes

Accommodative Strategy

A social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem

Defensive Strategy

A social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations

Positive Strategy

A social responsiveness strategy in which a company anticipates a problem before it occurs and does more than society expects to take responsibility and address the problem

Reactive Strategy

A social responsiveness strategy in which a company does less than society expects

Government Import Standard

A standard ostensibly established to protect the health and safety of citizens but, in reality, is often used to restrict imports

Purpose Statement

A statement of a company's purpose or reason for existing

Joint Venture

A strategic alliance in which two existing companies collaborate to form a third, independent company

Retrenchment Strategy

A strategy that focuses on turning aounrd very poor company performance by shrinking the size or scope of the business

Rational Decision Making

A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

Cross-Functional Team

A team composed of employees from different functional areas of organization

Virtual Team

A team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task

Project Team

A team created to complete specific, one-time projects or tasks within a limited time

Self-Designing Team

A team that has the characteristics of self-managing teams but also controls team design, work tasks, and team membership

Self-Managing Team

A team that manages and controls all of the major tasks of producing a product or service

Stakeholder Model

A theory of corporate responsibility that holds that management's most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders

Opportunistic Behavior

A transaction in which one party in the relationship benefits at the expense of the other

Shareholder Model

A view of social responsibility that holds that an organization's overriding goal should be profit maximization for the benefit of shareholders

General Agreement on Tariffs and Trade (GATT)

A worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property

Overt Integrity Test

A written test that estimates job applicants' honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors

Personality-Based Integrity Test

A written test that indirectly estimates job applicants' honesty by measuring psychological traits, such as dependability and conscientiousness

McClelland Learned Needs Theory (Motivation Varies From Person to Person)

Affiliation, Achievement, and power

Social Concensus

Agreement on whether behavior is bad or good

External Environments

All events outside a company that have the potential to influence or affect it

Media Advocacy

An advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and by forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage

Product Boycott

An advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

Public Communications

An advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out

Licensing

An agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service, or use its brand name in a specified foreign market

Cooperative Contract

An agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country

Strategic Alliance

An agreement in which companies combine key resources, costs, risks, technology, and people

Motivation to Manage

An assessment of how enthusiastic employees are about managing the work of others

Dynamic Environment

An environment in which the rate of change is fast

Stable Environment

An environment in which the rate of change is slow

Simple Environment

An environment with few environmental factors

Complex Environment

An environment with many environmental factors

Principle of Personal Virtue

An ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV

Principle of Utilitarian Benefits

An ethical principle that holds that you should never take any action that does not result in a greater good for society

Principle of Distributive Justice

An ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, the unemployed

Principle of Individual Rights

An ethical principle that holds that you should never take any action that infringes on others' agreed-upon rights

Principle of Long-Term Self-Interest

An ethical principle that holds that you should never take any action that is not in your or your organization's long-term self-interest

Principle of Religious Injunctions

An ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community

Principle of Government Requirements

An ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard

Primary Stakeholder

Any group on which an organization relies for its long-term survival

Secondary Stakeholder

Any group that can influence or be influenced by a company and can affect public perceptions about the company's socially responsible behavior

Regional Trading Zones

Areas in which tariff and non-tariff barriers on trade between countries are reduced or eliminated

Luong & Rogelberg Study of 37 U.S. Administrators

Average meeting per day - 3. Average time in meetings - 158 Minutes. More meetings per day - More Tired

Social Loafing

Behavior in which team members withhold their efforts and fail to perform their share of the work

Ethical Behavior

Behavior that conforms to a society's accepted principles of right and wrong

Max Weber

Believed in exercising control through knowledge

Fredrick W. Taylor

Believed that studying and testing was the right way to identify the best, most efficient way to do a job

Satisficing

Choosing a "good enough" alternative

Planning (Chapter 5)

Choosing a goal and developing a strategy to achieve that goal

Maximize

Choosing the best alternative

Competitors

Companies in the same industry that sell similar products or services to customers

Suppliers

Companies that provide material, human, financial, and informational resources to other companies

Skill-Based Pay

Compensation system that pays employees for learning additional skills or knowledge

Advocacy Groups

Concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions

Related Diversification

Creating of acquiring companies that share similar products, manufacturing, marketing, technology, or cultures

Operational Plans

Day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a thirty-day to six-month period

Organizing

Deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom

Planning (Chapter 1)

Determining organizational goals and a means for achieving them

A-type Conflict (Affective Conflict)

Disagreement that focuses on individuals or personal issues

C-type Conflict (Cognitive Conflict)

Disagreement that focuses on problem- and issue-related differences of opinion

Employee Shrinkage

Employee theft of company merchandise

Top Managers

Executives responsible for the overall direction of the orgainization

Alderfer ERG Theory (People Motivation Moves Down Hierarchy)

Existence, Relatedness, and Growth

Uncertainty

Extent to which managers can understand or predict which environmental changes and trends will affect their businesses

Evaluation Apprehension

Fear of what others will think of your ideas

Personal Aggression

Hostile or aggressive behavior toward others

Business Confidence Indices

Indices that show managers' level of confidence about future business growth

Norms

Informally agreed-on standards that regulate team behavior

Leading

Inspiring and motivating workers to work hard to achieve organizational goals

Distal Goals

Long-term or primary goals

Options-Based Planning

Maintaining planning flexibility by making small, simultaneous investments in many alternative plans

Team Leaders

Managers responsible for facilitating team activities toward goal accomplishment

Local Adaptation

Modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies

Controlling

Monitoring progress toward goal achievement and taking corrective action when needed

Global New Ventures

New companies that are founded with an active global strategy and have sales, employees, and financing in different countries

Fast Company Weil (Article)

No matter how badly other people treat you, no matter how confident you are in your future, never burn your bridges. In the new world of business, story telling is the ultimate leadership tool. Leading is about change. It is about taking people from where they are to where they need to be. The best way to get people to venture into unknown terrain is to make it desirable by taking them there in their imaginations.

Non-tariff Barriers

Non-tax methods of increasing the cost or reducing the volume of imported goods

Strategic Plans

Overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years

Organizational Heroes

People celebrated for their qualities and achievements within an organization

Stakeholders

Persons or groups with a stake, or legitimate interest, in a company's actions

Management gurus and best sellers

Peter Drucker, Michael Porter, Bill Gates, CK Prahalad, Tom Peters, Jack Welch, Jim Collins, Henry Mintzberg, and etc...

Maslow's Hierarchy of Needs (People Motivated by Lowest Need)

Physiological, Safety, Belongingness, Esteem, Self Actualization

Tactical Plans

Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission

Single-Use Plans

Plans that cover unique, one-time-only events

Standing Plans

Plans used repeatedly to handle frequently recurring events

Budgeting

Quantitative planning through which managers decide how to allocate available money to best accomplish company goals

Structural Accommodation

The ability to change organizational structures, policies, and practices in order to meet stretch goals

Bureaucratic Immunity

The ability to make changes without first getting approval from managers or other parts of an organization

Conceptual Skills

The ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment

Human Skills

The ability to work well with others

Resource Scarcity

The abundance or shortage of critical organizational resources in an organization's external enviornment

Team Level

The average level of ability, experience, personality, or any other factor on a team

Global Business

The buying and selling of goods and services by people from different countries

Probability of Effect

The chance that something will happen that results in harm to others

Specific Environment

The customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business

Entrepreneur Role

The decisional role managers play when they adapt themselves, their subordinates, and their units to change

Resource Allocator Role

The decisional role managers play when they decide who gets what resources and in what amounts

Negotiator Role

The decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises

Disturbance Handler Role

The decisional role managers play when they respond to severe pressures and problems that demand immediate action

Ethical Intensity

The degree of concern people have about an ethical issue

Supplier Dependence

The degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product

Individualism-Collectivism

The degree to which a person believes that people should be self-sufficient and that loyalty to one's self is more important than loyalty to team or company

Buyer Dependence

The degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its product

Goal Commitment

The determination to achieve a goal

General Environment

The economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations

Relationship Behavior

The establishment of mutually beneficial, long-term exchanges between buyers and suppliers

Internal Environment

The events and trends inside an organization that affect management, employees, and organizational culture

Cohesiveness

The extent to which team members are attracted to a team and motivated to remain in it

Pre-conventional Level of Moral Development

The first level of moral development, in which people make decisions based on selfish reasons

Forming

The first stage of team development, in which team members meet each other, form initial impressions, and begin to establish team norms

Performing

The fourth and final stage of team development, in which performance improves because the team has matured into an effective, fully functioning team

Monitor Role

The informational role managers play when they scan their environment for information

Disseminator Role

The informational role managers play when they share information with others in their departments or companies

Spokesperson Role

The informational role managers play when they share information with people outside their departments or companies

Liaison Role

The interpersonal role managers play when they deal with people outside their units

Leader Role

The interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives

Figurehead Role

The interpersonal role managers play when they perform ceremonial duties

Technology

The knowledge, tools, and techniques used to transform inputs into outputs

Environmental Complexity

The number and the intensity of external factors in the environment that affect organizations

Decision Making

The process of choosing a solution from available alternatives

Behavioral Substitution

The process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture

Behavioral Addition

The process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create

Environmental Change

The rate at which a company's general and specific environments change

Purchasing Power

The relative cost of a standard set of goods and services in different countries

Policy Uncertainty

The risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business

Political Uncertainty

The risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events

Conventional Level of Moral Development

The second level of moral development, in which people make decisions that conform to societal expectation

Storming

The second stage of development, characterized by conflict and disagreement, in which team members disagree over what the team should do and how it should do it

Ethics

The set of moral principles or values that defines right and wrong for a person or group

National Culture

The set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country

Discretionary Responsibilities

The social roles that a company fulfills beyond its economic, legal, and ethical responsibilities

Proximity of Effect

The social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decision

Technical Skills

The specialized procedures, techniques, and knowledge required to get the job done

Decision Criteria

The standards used to guide judgments and decisions

World Trade Organization (WTO)

The successor to GATT; the only international organization dealing with the global rules of trade between nations; its main function is to ensure that trade flows as smoothly, predictably, and freely as possible

Punctuated Equilibrium Theory

The theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium

Post Conventional Level of Moral Development

The third level of moral development, in which people make decisions based on internalized principles

Norming

The third stage of team development, in which team members begin to settle into their roles, group cohesion grows, and positive team norms develop

Temporal Immediacy

The time between an act and the consequences the act produces

Magnitude of Consequences

The total harm or benefit derived from an ethical decision

Concentration of Effect

The total harm or benefit that an act produces on the average person

Organizational Culture

The values, beliefs, and attitudes shared by organizational members

Team Diversity

The variances or differences in ability, experience, personality, or any other factor on a team

First-Line Managers

Train and supervise the performance of non-managerial employees who are directly responsible for producing the company's products or services

Cross-Training

Training team members to do all or most of the jobs performed by the other team members

Property Deviance

Unethical behavior aimed at the organization's property or products

Production Deviance

Unethical behavior that hurts the quality and quantity of work produced

Workplace Deviance

Unethical behavior that violates organizational norms about right and wrong

Stage 6 of moral development

Universal principle

Political Deviance

Using one's influence to harm others in the company

Visible Artifacts

Visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room

Voluntary Export Restraints

Voluntarily imposed limits on the number or volume of products exported to a particular country

Distinctive Competence

What a company can make, do, or perform better than it's competitors.

Global Consistency

When a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures

standards

a basis of comparison for measuring the extent to which various kinds of organizational performance are satisfactory or unsatisfactory

Grand strategy

a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use

s-corporation

a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. It does not pay any federal income taxes but instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.

interorganizational process

a collection of activities that take place among companies to transform inputs into outputs that customers value

Shadow-Strategy Task force

a committee within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage

Star

a company with a large market share of a fast-growing market

Profit sharing

a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation.

Piecework

a compensation system in which employees are paid a set rate for each item they produce

Commission

a compensation system in which employees earn a percentage of each sale they make.

Employee stock ownership plan (ESOP)

a compensation system that awards employees shares of company stock in addition to their regular compensation.

Stock options

a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price.

Response

a competitive countermove, prompted by a rival's attack, to defend or improve a company's market share or profits

Attack

a competitive move designed to reduce a rival's market share or profits

Human resource information system (HRIS)

a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process.

self-control (self-management)

a control system in which managers and workers control their own behavior by setting their own goals, monitoring their own progress, and rewarding themselves for goal achievement

Firm-level strategy

a corporate strategy that addresses the question "how should we compare against a particular firm?"

Industry-level strategy

a corporate strategy that addresses the question, "how should we compete in this industry?"

Portfolio strategy

a corporate-level strategy that minimizes risk by diversifying among various businesses or product lines

design iteration

a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype

Technology cycle

a cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replace by a newer, substantially better technology

Executive information systems (EIS)

a data processing system that uses internal and external data sources to provide the information need to monitor and analyze organizational performance

Data warehouse

a database that stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy

Sexual Harassment

a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job.

simple matrix

a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources

complex matrix

a form of matrix departmentalization in which mangers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems

Quid pro quo sexual harassment

a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment.

Hostile work environment

a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment.

product prototype

a full-scare, working model that is being tested for design, function, and reliability

Gantt chart

a graphical chart that shows which tasks must be completed at which times in order to complete a project or task.

Rate buster

a group member whose work pace is significantly faster than the normal pace in his or her group.

Corporate portal

a hybrid of executive information systems and intranets that allows managers and employees to use a web browser to gain access to customized company information and to complete specialized transactions

matrix departmentalized

a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together

Limited liability corporation

a hybrid type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

job specialization

a job composed of a small part of a larger task or process

Organizational decline

a large decrease in organizational performance that occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal external pressures that threaten their survival

Wrongful discharge

a legal doctrine that requires employers to ave a job related reason to terminate employees.

unity of command

a management principle that workers should report to just one boss

Threat of new entrants

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

Threat of substitute products or services

a measure of the ease with which customers can find substitutes for an industry's products or services

Bargaining power of buyers

a measure of the influence that customers have on a firm's prices

Bargaining power of suppliers

a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs

Character of the rivalry

a measure of the intensity of competitive behavior between companies in an industry

Feedback control

a mechanism for gathering information about performance deficiencies after they occur

Concurrent control

a mechanism for gathering information about performance deficiencies as they occur, thereby eliminating or shortening the delay between performance and feedback

Feedforward control

a mechanism for monitoring performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur

dominant design

a new technological design or process that becomes the accepted market standard

s-curve pattern of innovation

a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves.

customer defections

a performance assessment in which companies identify which customers are leaving and measure the rate at which they are leaving

organizational development

a philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance

BCG matrix

a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds

Job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it.

Virus

a program or piece of code that, without your knowledge, attaches itself to other programs on your computer and can trigger anything from a harmless flashing message to the reformatting of your hard drive to a system-wide network shutdown

Firewall

a protective hardware or software device that sits between the computers in an internal organizational network and outside networks, such as the internet

Flow

a psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly

Job analysis

a purposeful, systematic process for collecting information on the important work-related aspects of a job.

Control

a regulatory process of establishing standards to achieve organizational goals, comparing actual performance against the standards, and taking corrective action when necessary

Four-fifths (or 80 percent) rule

a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact. A violation of this rule occurs when the selection rate for a protected group is less than 80 percent, or four-fifths, of the selection rate for a non protected group.

Interview

a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job.

Assessment centers

a series of managerial simulations, graded by trained observers, that are used to determine applicants capability for managerial work.

System

a set of interrelated elements or parts that function as a whole.

partnership

a single business where two or more people share ownership. Each partner contributes to all aspects of the business, including money, property, labor or skill. In return, each partner shares in the profits and losses of the business.

Diversification

a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio

Stability strategy

a strategy that focuses on improving the way in which the company sells the same products or services to the same customers

Growth Strategy

a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business

Organization

a system of consciously coordinated activities or forces created by two or more people.

General Electric workout

a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems

Cash flow analysis

a type of analysis that predicts how changes in a business will affect its ability to take in more cash than it pays out

bar code

a visual pattern that represents numerical data by varying the thickness and pattern of vertical bars

Job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job.

Job specifications

a written summary of the qualifications needed to successfully perform a particular job.

Balance sheets

accounting statements that provide a snapshot of a company's financial position at a particular time

Income statements

accounting statements, also called "profit and loss statements" that show what has happened to an organization's income, expenses, and net profit over a period of time

line function

an activity that does not contribute directly to creating or selling the company's products

staff function

an activity that does not contribute directly to creating or selling the company's products but instead supports line activities

Compromise

an approach to dealing with conflict in which both parties give up some of what they want in order to reach agreement on a plan to reduce or settle the conflict.

Integrative conflict resolution

an approach to dealing with conflict in which both parties indicate their preferences and then work together to find an alternative that meets the needs of both.

Domination

an approach to dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party's desires and objectives.

Experiential approach to innovation

an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and acerbate learning and understanding

compression approach to innovation

an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation

job characteristics model (JCM)

an approach to job redesign that seeks to formulate hobs in ways that motivate workers and lead to positive work outcomes

Situational Analysis (SWOT)

an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment

Electronic scanner

an electronic device that converts printed text into digital images

Bona fide occupational qualification (BFOQ)

an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only they are " reasonably necessary to the normal operation of that particular business." BFOQs are strictly monitored by the Equal Employment Opportunity Commission.

Expert system

an information system that contains the specialized knowledge and decision makers so that non experts can draw on this knowledge base to make decisions

Decision support system (DSS)

an information system that yeps manages understand specific kinds of problems and potential solutions

organic organization

an organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge

mechanistic organization

an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication

virtual organization

an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services

modular organization

an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

sole proprietorship

an unincorporated business owned and run by one individual with no distinction between the business and the owner. The owner is entitled to all profits and is responsible for all of the business's debts, losses and liabilities

Two-factor authentication

authentication based on what users know, such as a password and what they have in their possession, such as a secure ID card or key

Motion Study

breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive.

Financial ratios

calculations typically used to track a business's liquidity (cash), efficiency, and profitability over time compared to other businesses in its industry

Generational change

change based on incremental improvements to a dominant technological design such that that improved technology is fully backward compatible with the older technology

results-drive change

change created quickly by focusing on the measurement and improvement of results

Reactors

companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur

Defenders

companies using an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers

Prospectors

companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to a market

Analyzers

companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven success of prospectors

Design competition

competition between old and new technologies to establish a new technological standard or dominate design

Unrelated diversification

creating or acquiring companies in completely unrelated businesses

Value

customer perception that the product quality is excellent for the price

Training

developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance.

Phased retirement

employees transition to retirement by working reduced hours over a period of time before completely retiring.

Outplacement services

employment-counseling services offered to employees who are losing their jobs because of downsizing.

Biographical data (bio-data)

extensive surveys that ask applicants questions about their personal backgrounds and life experiences.

Raw data

facts and figures

empowerment

feeling of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination

Change Forces

forces that produce differences in the form, quality, or condition of an organization over time

resistance forces

forces that support the existing conditions in organization

Milestones

formal project review points used to assess progress and performance

reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed

unfreezing

getting the people affected by change to believe that change is needed

Authorization

granting authenticated users approves access to data, software, and systems

Contingency approach

holds that there are no universal management theories and hat the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place.

job enlargement

increasing the number of different tasks that a worker performs within one particular job

job enrichment

increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decision about their work

Stage 2 of moral development

instrumental change

Disparate treatment

intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs.

Secure sockets layer (SSL) encryption

internet browser-based encryption that provides secure off-site web access to some data and programs

Structured interviews

interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background and job-knowledge questions.

Unstructured interviews

interviews in which interviewers are free to ask the applicants anything they want.

Authentication

making sure potential users are who they claim to be

balanced scorecard

measurement of organizational performance in four equally important areas: finances, customers, internal operations, and innovation and learning

Objective performance measures

measures of job performance that are easily and directly counted or quantified.

Subjective performance measures

measures of job performance that require someone to judge or asses a worker's performance.

internal motivation

motivation that comes from the job itself rather than from outside rewards

Extranets

networks that allow companies to exchange information and conduct transactions with outsiders by providing them direct, web-based access to authorize parts of a company's intranet or information system

Initial Expectations in management

o Be the Boss o Formal Authority o Job is Not Managing People but Tasks

Process losses

o Group Maintenance o Social Loafing (Slacking) o Production Blocking (Unwilling to Compromise)

Process gains

o Information Exchange o Load Balancing o Social Facilitation

After 6 months into management:

o Initial Expectations Wrong o Fast Paced o Heavy Workload o Job is to problem solve and troubleshoot for subordinates

After 1 year into management

o No longer a "doer" o Communicates and Listens o Reinforces o Adapts to Control Stress o Job is People Development

resistance to change

opposition to change resulting from self-interest, misunderstanding and distrust, and a general tolerance for change

geographic departmentalization

organizing work and workers into separate units responsible for doing business particular geographic areas

functional departmentalization

organizing work and workers into separate units responsible for particular business functions or areas of expertise

customer departmentalization

organizing work and workers into separate units responsible for particular kinds of customers

product departmentalization

organizing work and workers into separate units responsible for producing particular products or services

innovation streams

patterns innovation over time that can create sustainable competitive advantage

Predictive patterns

patterns that help identify database elements that are different

Suboptimization

performance improvement in one part of an organization but only at the expense of decreased performance in another part

job rotation

periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills

empowering workers

permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions

Intranets

private company networks that allow employees to easily access, share, and publish information using Internet software

Background checks

procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants.

Early retirement incentive programs (ERIPs)

programs that offer financial benefits to employees to encourage them to retire early.

Stage 1 of moral development

punishment and obedience

Budgets

quantitative plans through which managers decide how to allocate available money to best accomplish company goals

Behavior observation scales (BOSs)

rating scales that indicate the frequency with which workers perform specific behaviors that are representatives of the job dimensions critical to successful job performance.

Subsystems

smaller systems that operate within the context of a larger system.

Stage 5 of moral development

social contract

Virtual private network (VPN)

software that securely encrypts data sent by employees outside the company network, decrypts the data when they arrive within the company computer network, and does the same when data are sent back to employees outside the network

Web services

software that uses standardized protocols to describe data form one company in such a way that those data can automatically be read, understood, transcribed, and processed by different computer systems in another company

standardization

solving problems by consistently applying the same rules, procedures, and processes

Employment references

sources such as previous employers or coworkers who can provide job-related information about job candidates.

departmentalization

subdividing work and workers into separate organization units responsible for completing particular tasks

refreezing

supporting and reinforcing new changes so that they stick

Open systems

systems that can sustain themselves only be interacting with their environments , on which they depend for their survival.

Closed systems

systems that can sustain themselves without interacting with their environment.

radio frequency identification (RFID) tags

tags containing minuscule microchips that transmit information via radio waves and can be used to track the number and location of the objects into which the tags have been inserted

Cognitive ability tests

tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude.

Specific ability tests ( aptitude tests)

tests that measure the extent to which applicants possesses the particular kind of ability needed to do a job well.

Work Sample tests

tests that require applicants to perform tasks that are actually done on the job.

optical character recognition

the ability of software to convert digitalized documents into ASCII (American Standard Code for Information Interchange) text that can be searched, read, and edited by word processing and other kinds of software

Economic value added (EVA)

the amount by which company profits (revenues minus expenses minus taxes) exceed the cost of capital in a given year

feedback

the amount of information the job provides to workers about their work performance

Resources

the assets, capabilities, processes, employee time, information, and knowledge that an organization controls

delegation of authority

the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

Core Firms

the central companies in a strategic group

intraorganizational process

the collection of activities that take place within an organization to transform inputs into outputs that customers value

organizational process

the collection of activities that transform inputs into outputs that customers value

retrieval cost

the cost of accessing already-stored and processed information

Acquisition cost

the cost of obtaining data that you don't have

storage cost

the cost of physically or electronically archiving information for ayer retrieval and use

communication cost

the cost of transmitting information from one place to another

processing cost

the cost of turning raw data into usable information

regulation costs

the costs associated with implementing or maintaining control

autonomy

the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job

task significance

the degree to which a job is perceived to have a substantial impact on others inside or outside the organization

task identity

the degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work

Market commonality

the degree to which two companies have overlapping products, services, or customers in multiple markets

Bureaucracy

the exercise of control on the basis of knowledge, expertise, or experience.

Resource similarity

the extent to which a competitor has similar amounts and kinds of resources

task interdependence

the extent to which collective action is required to complete an entire place of work

Cybernetic feasibility

the extent to which it is possible to implement each step in the control process

Compensation

the financial and non-financial rewards that organizations give employees in exchange for their work.

secondary firms

the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms

technological lockout

the inability of a company to competitively sell its products because it relies on old technology or a non dominant design

Core capabilities

the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

decentralization

the location of a significant amount of authority in the lower levels of the organization

centralization of authority

the location of most authority at the upper levels of the organization

skill variety

the number of different activities performed in a job

job design

the number, kind, and variety of tasks that individual workers perform in doing their jobs

Corporate-level strategy

the overall organizational strategy that addresses the question "What businesses are we in or should we be in?"

change agent

the person formally in charge of guiding a change effort

Discontinuous change

the phase of a technology cycle characterized by technological substitution and design competition

incremental change

the phase of a technology in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design

technological discontinuity

the phase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function

Downsizing

the planned elimination of jobs in a company.

Cost leadership

the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry

Differentiation

the positioning strategy of producing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it

Focus Strategy

the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment

Moore's laws

the prediction that about every two years, computer processing power would double and its costs would drop by 50 percent

Performance appraisal

the process of assessing how well employees are doing their jobs.

Validation

the process of determining how well a selection test or procedure predicts future job performance, the more valid a test is said to be.

External recruiting

the process of developing a pool of qualified job applicants from outside the company.

Internal recruiting

the process of developing a pool of qualified job applicants from people who already work in the company.

Recruiting

the process of developing a pool of qualified job applicants.

Data mining

the process of discovering unknown patterns and relationships in large amounts of date

protecting information

the process of ensuring that data are reliably and consistently retrievable in a usable format for authorized users but no one else

Human resource management (HRM)

the process of finding, developing, and keeping the right people to form a qualified work force.

Selection

the process of gathering information about job applicants to decide who should be offered a job

Needs assessment

the process of identifying and prioritizing the learning needs of employees.

Benchmarking

the process of identifying outstanding practices, processes, and standards in other companies and adapting them to your company

cybernetic

the process of steering or keeping on course

change intervention

the process used to get workers and managers to change their behaviors and work practices

unsupervised data mining

the process when the user simply tells the data mining software to uncover whatever patterns and relationships it can find in a data set

supervised data mining

the process when the user tells the dat mining software to look and test for specific patterns and relationships in a data set

Acquisition

the purchase of a company by another company

technological substitution

the purchase of new technologies to replace older ones

normative control

the regulation of workers behavior and decisions through widely shared organizational values and beliefs

output control

the regulation of workers results or outputs through rewards and incentives

concertive control

the regulation of workers' behavior and decisions through work group values and beliefs

staff authority

the right to advise, but not command, others who are not subordinates in the chain of command

line of authority

the right to command immediate subordinates in the chain of command

authority

the right to give commands, take action, and make decisions to achieve organizational objectives

direct competition

the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions

control loss

the situation in which behavior and work procedures do not conform to standards

Recovery

the strategic actions taken after retrenchment to return to a growth strategy

First-mover advantage

the strategic advantage that companies earn by being the first to use new information technology to substantially lower costs or to make a product or service different from that of competitors

Strategic reference points

the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage

Organizational innovation

the successful implementation of creative ideas in organizations

Testing

the systematic comparison of different product designs or design iterations

Data encryption

the transformation of data into complex, scrambled digital codes that can be decrypted only by authorized users who possess unique decryption keys

Knowledge

the understanding that one gains from information

coercion

the use of formal power and authority to force others to change

bureaucratic control

the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or non compliance with organizational policies rules, and procedures

Objective control

the use of observable measures of worker behavior or outputs to assess performance and influence behavior

organizational structure

the vertical and horizontal configuration of departments, authority, and jobs within a company

chain of command

the vertical line of authority that clarifies who reports to whom throughout the organization

Employee Separation

the voluntary or involuntary loss of an employee.

Scientific Management

thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job.

Time study

timing how long it takes good workers to complete each part of their jobs.

Rater training

training performance appraisal raters in how to avoid rating errors and increase rating accuracy.

Processing information

transforming raw data into meaningful information

Adverse impact

unintentional discrimination that occurs when members of a particular race,sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others.

Information

useful data that can influence people's choices and behavior

data clusters

when three or more database elements occur together (i.e. cluster) in a significant way

Electronic data interchange (EDI)

when two companies convert their purchase and ordering information to a standardized format to enable the direct electronic transmission of that information from one company's computer system to the other company's computer system

Sequence patterns

when two or more database elements occur together in a significant pattern in which one of the elements precedes the other

Association or affinity patterns

when two or more database elements tend to occur together in a significant way

Synergy

when two or more subsystems working together can produce more than they can working apart.

Soldiering

when workers deliberately slow their pace or restrict their work output.

pooled interdependence

work complete by having each job or department independently contribute to the whole

reciprocal interdependence

work completed by different jobs or groups working together in a back and forth manner

sequential interdependence

work completed in succession, with on group's or job's outputs becoming the inputs for the next group or job

multifunctional teams

work teams composed of people from different departments

creative work environments

workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged

Managers as teachers:

• (TELL) Explain Basic Concepts • (SHOW) Demonstrate Performance • (WATCH) Solicit Practice • (ENCOURAGE) Provide Constructive Feedback

3 mistakes managers make

• Insensitive to others, Bullying Style • Cold and Arrogant • Betray Trust of Workers

Marshmallow principle

• It demands that we bring all of our best senses and thinking to complete a task • Allow for the Inputs of Others • Trial and Error

Hofstede's cultural dimensions

• Long-Term vs. Short-Term Orientation • Uncertainty Avoidance • Masculinity vs. Femininity • Individualism vs. Collectivism • Power Distance

Performance equation

• Performance = Ability (Can Do) x Motivation (Will Do)

Stages of moral development

• Stage 1 - Punishment and Obedience • Stage 2 - Instrumental Change • Stage 3 - Good Boy Nice Girl • Stage 4 - Law and Order • Stage 5 - Social Contract • Stage 6 - Universal Principle

Taylor's Four Principles of Scientific Management

1st - Develop a science for element of a man's work (Determine the "one best way" to do the job) 2nd - Scientifically select, train, and teach workers 3rd - Manager and Workers must get along and cooperate 4th - Equally divide the work between Management and the Workers

Weber's Seven Elements of Bureaucratic Organizations

1st - Qualification Based Hiring 2nd - Merit Based Promotion 3rd - Chain of Command 4th - Division of Labor 5th - Rules Apply to everyone regardless of stature 6th - Rules and Procedures are recorded in writing 7th - Owners should not run the organization

Employee turnover

loss of employees who voluntarily choose to leave the company.

Dysfunctional turnover

loss of high-performing employees who voluntarily chose to leave a company.

Functional turnover

loss of poor-performing employment who voluntarily choose to leave a company.

Trade Barriers

Government-imposed regulations that increase the cost and restrict the number of imported goods

Union of South American Nations (UNASUR)

A regional trade agreement between Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Columbia, Ecuador, Peru, Guyana, Suriname, and Chile

Asia-Pacific Economic Cooperation (APEC)

A regional trade agreement between Australia, Canada, Chile, the People's Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the United States, and all the members of ASEAN except Cambodia, Laos, and Myanmar

Association of Southeast Asian Nations (ASEAN)

A regional trade agreement between Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam

Dominican Republic- Central America Free Trade Agreement (CAFTA-DR)

A regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States

Maastricht Treaty of Europe

A regional trade agreement between most European countries

North American Free Trade Agreement (NAFTA)

A regional trade agreement between the United States, Canada, and Mexico

Competitive inertia

A reluctance to change strategies or competitive practices that have been successful in the past

valuable resources

A resource that allows companies to improve efficiency and effectiveness

Imperfectly Imitable Resource

A resource that is impossible or extremely costly for other firms to duplicate

Rare Resource

A resource that is not controlled or possessed by many competing firms

Nonsubstitutable Resource

A resource that produces value or competitive advantage and has no equivalent substitutes or replacements

De-forming

A reversal of the forming stage, in which team members position themselves to control pieces of the team, avoid each other, and isolate themselves from team leaders

De-norming

A reversal of the norming stage, in which team performance begins to decline as the size, scope, goal, or members of the team change

De-storming

A reversal of the storming phase, in which the team's comfort level decreases, team cohesion weakens, and angry emotions and conflict may flare

Effectiveness

Accomplishing tasks that help fulfill organizational objectives

Team productivity equation

Actual Productivity = Potential Productivity + Process Gains - Process Losses

Cognitive Maps

Graphic depictions of how managers believe environmental factors relate to possible organizational actions

Wholly Owned Affiliates

Foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

Management

Getting work done through others

Efficiency

Getting work done with a minimum of effort, expense, or waste

S.M.A.R.T. Goals

Goals that are specific, measurable, attainable, realistic, and timely

Stage 3 of moral development

Good boy nice girl

Subsidies

Government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

Industry Regulation

Regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions

Whistleblowing

Reporting others' ethics violations to management or legal authorities

Middle Managers

Responsible for setting objectives consistent with top management's goals and for planning and implementing subunit strategies for achieving these objectives

Stage 4 of moral development

law and order