Management 2050: Midterm Terms to Know

Objective

(goal), specific commitment to achieve a measurable result within a states period of time

Supplier

A business which sells (or supplies) products to another business.

Wholly-Owned Subsidiaries

A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by an organization

Common Purpose

A goal that unifies employees or members and gives everyone an understanding of the organization's reason for being

Board of Directors

A group of people elected by the stockholders of a corporation to set the policies for the corporation.

Organization

A group of people who work together to achieve some specific purpose

Tariff

A tax on imported goods

General Environment

Also called macroenvironment; in contrast to the task environment, it includes six forces: economic, technological, sociocultural, demographic, political-legal, and international

Defensive Strategy

Also known as a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.

Hierarchy of Authority

Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time

Product Structure

An organizational structure in which each product line or business is handled by a self-contained division.

Licensing

Company X allows a foreign company to pay it a fee to make or distribute X's product or service (Example: Funko has a license with Disney to create Black Panther Pops)

Person-Organization Fit

Compatibility between employees and their organizations

Accountability

Describes expectation that managers must report and justify work results to the managers above them

Geographic Divisions

Divisional structures in which activities are grouped around defined regional locations

Sustainable Economic Development

Economic development that does not harm society or the environment. It ensures that human and natural resources are maintained for future generations

Task Environment

Eleven groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media

Matrix Structure

Fourth type of organizational structure, which combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal

Decision Trees

Graph of decisions and their possible consequences, used to create a plan to reach a goal

Nonprofit Organization

Institution that functions much like a business, but does not operate for the purpose of generating profits

Bounded Rationality

One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints

Competitor

One who competes or is a rival of another business enterprise.

Mechanistic Organization

Organization in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised

Organic Organization

Organization in which authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks

Unity of Command

Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands

Organizational Culture

Sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members

Vision Statement

Statement that expresses what the organization should become and where it wants to go strategically

Strategic Positioning

Strategy that attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company

Multiplier Effect

The direct, indirect, and induced consequences of change in an activity.

Simple Structure

The first type of organizational structure, whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization

Responsibility

The obligation one has to perform the assigned tasks

Organizational Socialization

The process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization

Functional Structure

The second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups

Divisional Structure

The third type of organizational structure, whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions

Clan Culture

Type of organizational culture that has an internal focus and values flexibility rather than stability and control

Hierarchy Culture

Type of organizational culture that has an internal focus and values stability and control over flexibility

Total Quality Management

a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction

Adhorcracy (Culture)

a corporate culture based on the ability to adapt quickly to changing conditions

Predictive Modeling

a data-mining technique used to predict future behavior and anticipate the consequences of change

Rational Decision-Making Model

a decision-making model that describes how individuals should behave in order to maximize some outcome

Boundryless Organization

a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers and customers

Franchasing

a form of licensing in which a company allows a foreign company to pay a fee and share the profit in return for using the first company's brand name and a package of materials and services

Code of Ethics

a formal statement of ethical principles and rules of conduct

Organizational Structure

a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals

Management by Objective

a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results

Expropriation

a government's seizure of a domestic or foreign company's assets

Organizations

a group who work together to achieve a specific purpose

Scientific Management

a management theory using efficiency experts to examine each work operations and find ways to minimize the time needed to complete it

Maslow's Hierarchy of Needs

a motivational theory in psychology comprising a five-tier model of human needs, ( 1) Physiological Needs, (2) Safety and Security, (3) Relationships, Love and Affection, (4) Self Esteem, (5) Self Actualization

Customer

a person or business to whom merchandise or services are sold

Distributor

a person or organization that helps another organization sell its goods and services to customers

Mission Statement

a statement of the organization's purpose - what it wants to accomplish in the larger environment

Bureaucracy

a system of management that uses rules, regulations and formal authority to guide performance.

Anchoring Bias

a tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information

Confirmation Bias

a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence

Import Quota

a trade barrier in the form of a limit on the numbers of a product that can be imported

Forecast

a vision or projection of the future

Benchmarking

a way to measure something against a standard, the benchmark

Soft Skills

ability to motivate, inspire trust, and communicate

Values

abstract ideals that guide one's thinking and behavior across all situations

Geocentric Manager

accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective

Rites and Rituals

activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life

Joint Ventures

also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

Whistleblower

an employee who reports organizational misconduct to the government or the public (Example: Snowden v. National Surveillance Agency)

Mentor

an experienced person who provided guidance to someone new to the work world

Symbol

an object, act, quality, or event that conveys meaning to others

Embargo

an official ban on trade or other commercial activity with a particular country.

Centralized Authority

an organization structure in which decision-making authority is maintained at the top level of management

Division of Labor

arrangement of having discrete parts of a task done by different people (also known as work specialization)

Theory X

assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.

Theory Y

assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.

Ethnocentric Manager

believe that their native country, culture, language, and behavior are superior to all others

Multinational Corporation

business firm with operations in several countries

Importing

buying goods outside the country and reselling them domestically

Satisficing

choosing a "good enough" alternative (buying shoes that look like converse for $10 because they look close enough)

Strategic Planning

determines what the organization's long term goals should be for the next one to five years with the resources they have available

Classical View of Management

emphasized finding ways to manage work more efficiently, assumed that people are rational. Had two branches: scientific and administrative.

Internal Stakeholders

employees, owners, board of directors

Espoused Value

explicitly stated values and norms preferred by an organization

Values Statement

expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world

For-Profit Organization

formed to make money, or profits, by offering products or services

Operational Plan/Goal

goals that are set by and for first line managers that are concerned with short term matters associated with realizing tactical goals, planning determines how to accomplish specific tasks with available resources within the next 1 week to 1 year period (done by first line managers)

Tactical Plan/Goal

goals that are set by and for the middle managers and focus on the actions needed to achieve strategic goals, planning determines what contributions departments or similar work units can make their given resources during the next 6 months to 2 years (done by middle management)

Strategic Plan/Goal

goals that are set by top management and focus on objectives for the organization as a whole, planning determines what the organization's long term goals should be for the next one to five years with the resources they expect to have available

Trend Analysis

hypothetical extension of a past series of events into the future

Free Trade

international trade left to its natural course without tariffs, quotas, or other restrictions.

Intuition

making a choice without the use of conscious thought or logical inference

Operations Management

management that wants to create the highest level of efficiency possible

Parochial Manager

managers are put in charge of different areas and given responsibility for their specific area's success.

Polycentric Manager

managers who take the view a that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone

Strategic Control

monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed

Multinational Organization

nonprofit organization with operations in several countries (Example: NATO)

Cascading Goal

objectives ate structured in a unifies hierarchy becoming more specific at lower levels of the organization

Cost-Leader Strategy

one of Porter's four competitive strategies; keeping the cost and hence the prices, of a product or a service below the competitors and to target a wide market

Differentiated Strategy

one of Porter's four competitive strategies; offering products or services that are of unique and superior value compared with those of competitors but to target a wide market.

Decentalized Authority

organizational structure in which important decisions are made by middle level and supervisory level managers, power is delegated throughout the organization

Expatriates

people living or working in a foreign country (like diplomats)

External Stakeholders

people or groups in the organization's external environment that are affected by it

Culture Shock

personal disorientation when experiencing an unfamiliar way of life

Crowdfunding

raising money for a project or venture by obtaining many small amounts of money from many people

Strategic Alliances

relationship between two organization who join forces to achieve advantages neither can perform well alone

Triple Bottom Line

representing people, planet, and profit- measures an organization's social, environmental, and financial performance

Exporting

selling domestically produced products to buyers in other countries

Planning

set goals and decide how to achieve them

Opportunities

situations that present possibilities for exceeding existing goals

Devil's Advocate

taking the side of an unpopular point of view for the sake of argument

Brainstorming

technique used to help groups generate multiple ideas and alternatives for solving problems

Competitive Advantage

the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them

Government Regulations

the act of controlling business behavior through a set of rules or laws

Hawthorne Effect

the alteration of behavior by the subjects of a study due to their awareness of being observed.

Contingency Viewpoint

the belief that a manager's approach should vary according to the individual and environmental situation.

Overconfidence Bias

the bias in which people's subjective confidence in their decision making is greater than their objective accuracy

Group Thinking

the mode of thinking that persons engage in when concurrence-seeking becomes so dominant in a cohesive in-group that it tends to override realistic appraisal of alternative courses of action

Corporate Social Responsibility

the notion that corporations are expected to go above and beyond following the law and making a profit

Span of Control

the number of people reporting directly to a given manager

Ethics

the principles of right and wrong that guide an individual in making decisions

Delegation

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

Strategy Formulation

the process of choosing among different strategies and altering them to best fit the organization's needs

Management

the pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources

Exchange Rate

the rate at which one currency is converted into another

Authority

the right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources

National Culture

the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society

Corporate Governance

the system of governing a company so that the interests of corporate owners and other stakeholders are protected

Availability Bias

the tendency for people to base their judgments on information that is readily available to them

Framing Bias

the tendency of decision makers to be influenced by the way a situation or problem is presented to them

Most Favored Nation (Trading Status)

the trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties

Globalization

the trend of the world economy toward becoming a more interdependent system

Trade Protectionism

the use of government regulations to limit the import of goods and services

Chain of Command

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

Effectiveness

to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals

Efficiency

to use resources (people, money, raw material etc) wisely and cost effectively.

Evidence Based Decision-Making

translating principles based on best evidence into organizational practice

Evidence Based Management

translation based on best evidence into organizational practice, bringing rationality to the decision making process.

Market Culture

type of org culture that has a strong external focus and values stability and control

Outsourcing

using suppliers outside the company to provide goods and services

Enacted Values

values and norms actually exhibited in the organization

Mutual-Benefit Organization

voluntary collective formed to advance members' interests

Escalation of Commitment

when a decision maker stays with a decision even when it appears to be wrong