Management Chapters 7-12
Restructuring
Redesigning an organization so that it can more effectively and efficiently serve its customers
Extrinsic reward
Something given to you by someone else as recognition for good work; these include pay increases, praise, and promotions
Problem solving
The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action
Hawthorne effect
The tendency for people to behave differently when they know they are being studied
Reinforcement theory
Theory that positive and negative reinforcers motivate a person to behave in certain ways
360-degree evaluation
When a worker is evaluated by his/her superior, peers, and customers
Top management
highest level of management
Salary
A fixed regular payment, typically paid on a monthly or bi-weekly basis, but often expressed as an annual sum, made by an employer to an employee
Open shop agreement
Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace
Negotiated labor management agreement
Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time
Job rotation
A job enrichment strategy that involves moving employees from one job to another
SWOT analysis
A planning tool used to analyze an organizations strengths, weaknesses, opportunities and threats
Just in time inventory control
A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line
Continuous process
A production process in which long production runs turn out finished goods over time
Intermittent process
A production process in which the production run is short and the machines are changed frequently to make different products
Six sigma quality
A quality measure that allows only 3.4 defects per million opportunities
Operations management
A specialized area in management that converts or transforms resources (including human resources) into goods and services
Job analysis
A study of what employees do who hold various job titles
Job description
A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to the other functions
Hierarchy
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.
Management by objectives
A system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees
Virtual corporation
A temporary networked organization made up of replaceable firms that join and leave as needed
Strike
A union strategy in which workers refuse to go to work; the purpose is to further worker's objectives after an impasse in collective bargaining
Gantt chart
Bar graph showing production managers what projects are being worked on and what stage they are in at any given time
Stock options
Benefits in the form of an option given by a company to an employee to buy stock in the company at a discount or at a stated fixed price
Fringe benefits
Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages
Decision making
Choosing among two or more alternatives
Agency shop agreement
Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee
Flexible manufacturing
Designing machines to do multiple tasks so that they can produce a variety of products
Contingent workers
Employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
Staff personnel
Employees who advise and assist line personnel in meeting their goals
Line personnel
Employees who are a part of the chain of command that is responsible for achieving organizational goals
Certification
Formal process whereby a union is recognized by the National Labor Relations Board as the bargaining agent for a group of employees
Right to work laws
Legislation that gives workers the right, under an open shop agreement, to join or not join a union if its present
Commission
The amount of profit received from doing work
Goals
The broad, long-term accomplishments an organization wishes to attain
ISO 9000
The common name given to quality management and assurance standards
Span of control
The optimal number of subordinates a manager supervises or should supervise
Intrinsic reward
The personal satisfaction you feel when you perform well and complete goals
Facility layout
The physical arrangement of resources (including people) in the production process
Service sector
The portion of the economy that produces intangible goods; consists of truck transportation, messenger services, and warehousing
Selection
The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization
Bargaining zone
The range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse
Recruitment
The set of activities used to obtain a sufficient number of the right employees at the right time
Mediation
The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and ofter makes suggestions for resolving the dispute
Computer-aided manufacturing
The use of computers in the manufacturing process
Job simulation
The use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
Form utility
The value producers add to materials in the creation of finished goods and services
Maslows hierarchy of needs
Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs
Core competencies
Those functions that the organization can do as well as or better than any other organization in the world
On the job training
Training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them
Apprentice programs
Training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft
Flextime plan
Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks
Strikebreakers
Workers hired to do the jobs of striking workers until the labor dispute is dissolved
Participative (democratic) leadership
leadership style that consists of managers and employees working together
Autocratic leadership
leadership style that involves making managerial decisions without consulting others
Objectives
Specific, short-term statements detailing how to achieve the organization's goals
Leading
creating a vision and guiding, training, coaching, motivating
Grievance
A charge by employees that management is not abiding by the terms if the negotiated labor-management agreement
Materials requirement planning
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place
Injunction
A court order directing someone to do something or to refrain from doing something
Program evaluation and review technique
A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project
Job enrichment
A motivational strategy that emphasizes motivating the worker through the job itself
Job specifications
A written summary of the minimum qualifications required of workers to do a particular job
Training and development
All attempts to improve productivity by increasing an employees ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities
Bonus
An amount of money added to wages on a seasonal basis, especially as a reward for good performance
Job sharing
An arrangement whereby two part-time employees share one full-time job
Lockout
An attempt by management to put pressure on unions by temporarily closing the business
Union
An employee organization whose main goal is representing its members in employee-management negotiation of job-related issues
Vision
An encompassing explanation of why the organization exists and where its trying to head
Performance appraisal
An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination
Mentor
An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor
Matrix organization
An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure
American Federation of Labor
An organization of craft unions that championed fundamental labor issues; founded in 1886
Decentralized authority
An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.
Centralized authority
An organization structure in which decision-making authority is maintained at the top level of management
Flat organization structure
An organization structure that has few layers of management and a broad span of control
Line organization
An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor
Bureaucracy
An organization with many layers of managers who set rules and regulations and oversee all decisions
Tall organization structure
An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management
Union shop agreement
Clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period
Enterprise resource planning
Combines the computerized functions of all of the divisions and subsidiaries of the firm - such as finance, human resources, and order fulfillment - into a single integrated software program that uses a single database
Brainstorming
Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
Benchmarking
Comparing an organizations practices, processes, and products against the world's best
Givebacks
Concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs
Quality
Consistently producing what the customer wants while reducing errors before and after delivery to the customer
Cross functional self managed teams
Groups of employees from different departments who work together on a long-term basis
Critical path
In a PERT network, the sequence of tasks that takes the longest time to complete
Hygiene factors
Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased
Motivators
Job factors that cause employees to be productive and that give them satisfaction; Part of Herzberg's theory of motivating factors
Hourly wage
Payment for labor or services to a worker on an hourly basis
Scientific management
Studying workers to find the most efficient ways of doing things and then teaching people this techniques
Mass customization
Tailoring products to meet the needs of individual customers
Process manufacturing
That part of the production process that physically or chemically changes materials
Assembly process
That part of the production process that puts together components
Orientation
The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm
Arbitration
The agreement to bring in an impartial third party to render a binding decision in a labor dispute
Departmentalization
The dividing of organizational functions into separate units
Purchasing
The function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services
Goal setting theory
The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions
Chain of command
The line of authority that moves from the top of the hierarchy to the lowest level
Human resource management
The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
Networking (individual)
The process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems
Facility location
The process of selecting a geographic location for a company's operations
Management development
The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time
Collective bargaining
The process whereby union and management representatives form a labor-management agreement, or contract for workers
Lean manufacturing
The production of goods using less of everything compared to mass production
Economies of scale
The situation in which companies can reduce their production costs id they purchase raw materials in bulk; the average cost of goods goes down as production levels increase
Productivity
The state or quality of producing something; the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.
Formal organization
The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts
Informal organization
The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization
Production management
The term used to describe all the activities managers do to help their firms create goals
Discrimination
The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex
Shop stewards
Union officials who work permanently in an organization and represent employee interests on a daily basis
Sexual harassment
Unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment
Networking (business)
Using communications technology and other means to line organizations and allow them to work together on common objectives
Organizational structure
Widely shared values within an organization that provide unity and cooperation to achieve common goals
Piecework
Work paid for according to the amount produced
Compressed workweek
Work schedule that allows am employee to work a full number of hours per week but in fewer days
Middle management
includes general managers, division mangers, tactical planners
Controlling
management function that creates standards to determine progression
Organizing
management function that designs structure and creates conditions and systems
Planning
management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
Staffing
management function that includes hiring, motivation, retaining the best people available to accomplish the company's objectives
Supervisory management
managers who are responsible for supervising workers
Mission statement
outline of the fundamental purposes of an organization
Strategic planning
process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
Tactical planning
process of developing short term statements about what is to be done, who is to do it, and how it is to be done
Contingency planning
process of preparing alternate courses of action
Operational planning
process of setting work standards and schedules necessary to implement the company's tactical objectives
Management
process to accomplish goals through planning, organizing, leading
Technical skills
skills that involve ability to perform tasks in a specific discipline or department.
Conceptual skills
skills that involve ability to picture organization as a whole
Human relations skills
skills that involve communication
Organization chart
visual device that shows relationships among people