MGMT 371 Test 2

ERG Theory

ALDERFER's content theory that is a modification of maslows hierarchy of need theory. Includes 3 categories of needs: 1.Existence Needs-need for physical well being 2.Relatedness Needs- need for satisfactory relationships with others 3. Growth needs-needs that focus on development of human potential and desire for personal growth/competence.

Exception Principle

Managers should concentrate their efforts on substantial deviation from a standard when measuring feedback during comparison of performance to standards. (set standards at each location. Don't worry about those that meet standards only focus on major deviations)

Performing Stage

Major emphasis is on problem solving and accomplishing the assigned task. members are committed to the team's mission and are coordinated with one another and handle disagreements in a mature way. They confront and resolve conflict, they interact frequently and direct their discussions and influence toward achieving team goals. Leader should facilitate task accomplishment and high task performance

Reduced Cycle Time

TQM technique that refers to the steps taken to complete a company process, such as making airline reservation, processing an online order, or opening a retirement fund

Distributive Negotiation

assumes the size of the pie is fixed and each party attempts to get as much of it as they can. One side wants to win which means the other must lose. This negotiation is competitive an adversarial rather than collaborative and doesn't typically lead to positive long term realationships

Open-Book Management

allows employees to see for themselves--through charts, computer printouts, meetings and so forth--the financial condition of the company and encourages them to think and act like business owners. It shows employee how their job fits into the big picture and affects the financial future of the firm and ties the employee rewards to the company's overall success

Work Re-Design

altering jobs to increase both work experience and productivity of an employee

Total Quality Management

an organization wide effort to infuse quality into every activity in the company through continuous improvement. It is based on a decentralized control philosophy and focuses on teamwork, increasing customer satisfaction, and lowering costs.

Reinforcement

anything that causes a certain behavior to be repeated or inhibited

Job Design

application of motivational theories to the structure of work for improving productivity and satisfaction. Managers should try to make work interesting and intrinsically motivating. Should try to satisfy the needs of autonomy, mastery, and purpose

Integrative Negotiation

based on a win-win assumption, in that all parties want to come up with a creative solution that can benefit both sides. Rather than viewing the conflict as a win-lose situation, people look at the issues from multiple angels, consider tradeoffs and try to expand the pie rather then divide it

Extinction

behavior followed by no consequences. Behavior is therefore less likely to be repeated. behavior is ignored and gradually disappears.

Service Technology

characterized by intangible outputs and direct contact b/w employees and customers. Example: banks, hotels, fast food. Service firms tend to be organic, flexible, informal, decentralized. Horizontal communication is high because employees must share info and resources to serve customers and solve problems

Mass Production

characterized by long production runs to manufacture a large volume of products with the same specifications (standardized). This technology makes greater use of machines which do most of the physical work, and employees compliment the machinery.

Digital Technology

characterized by use of the internet and other digital processes to conduct or support business operations

Matrix structure

combines aspects of both functional and divisional structures (ex. Proctor and Gamble b/c they have 1000s of products). This violates the unit of command because people have multiple bosses. Under head would be functional departments and under those each would have its own box under the functional departments Head Marketing Research Manufacturing product A product a product a product b product b product b

Two-Factor Theory

content theory that says center of the scale is neutral, meaning that workers are neither satisfied or dissatisfied. HERZBERG two dimensions contribute. One is his HYGIENE FACTORS that involves the presence or absence of job DISSATISFIERS(working conditions, pay, company policies, interpersonal relationships) that when removed, these dissatisfiers just remove dissatisfaction, they don't cause people to become highly satisfied or motivated. The other is MOTIVATORS. these focus on high level needs and include achievement, recognition, responsibility, and opportunity for growth. The absence of these creates a neutral feeling towards your job.

Formal Team

created by the organization as part of the formal organization structure. two common types of formal teams are vertical teams and horizontal teams

Global Teams

cross border work teams made up of members of different nationalities whos activities span multiple countries. (typically also virtual teams)

Acquire Needs Theory

content theory by McCLELLAND that says that certain types of needs are acquired through an individual's lifetime (people aren't born with needs but may learn them). Three needs are: need for achievement, need for affiliation, need for power

Process Theories

deals with mental process individuals engage in when contemplating a behavior. Explain how people select behavioral actions to meet heir needs and determine whether their choices were successful. Includes Goal-setting theory, Equity Theory, and Expectancy Theory

Organizational Structure

defined as: 1. the set of formal tasks assigned to the individuals and departments. 2. Formal reporting relationships, including lines of authority, decision responsibility, number of hierarchal levels, and span of managers control 3. the design of systems to ensure effective coordination of employees across departments

Task Significance

degree to which a job is perceived as being important and having and impact on the company and the lives of other people. Importance

Task Identity

degree to which an employee performs a total job with a recognizable beginning and ending. Degree a job requires completion of an entire piece of work from beginning to end.

Autonomy

degree to which the worker has freedom, discretion, self determination, and independence in planning and carrying out tasks

Organizing

deployment of organizational resources to achieve strategic goals. It defines how to do the activities necessary to follow the strategy of the organization

Goal-Setting Theory

described by EDWIN LOCKE and GARY LATHAM and says managers can increase motivation and enhance performance by setting specific, challenging goals, then helping people keep track of their progress toward goal achievement by providing timely feedback. Key components of goal setting theory: Gal Specificity,Goal Difficulty (hard more motivating than easy), Goal Acceptance (employees must buy in), and Feedback (info on how well they're doing)

Task Conflict

disagreements among people about the goals to be achieved or the content of the task to be performed. can be beneficial because it leads to better decision making and problem solving

Punishment

imposition of negative consequences on an employee following undesirable behavior. Behavior is far less likely to be repeated. Use of punishments (verbal reprimands to suspensions or firings) in organizations is often criticized because it fails to indicate the correct behavior. Far more effective at eliminating undesired behavior than extinction but has more negatives associated with it.

Top Leader

in a matrix structure, its the overseer of both the product and the functional chains of command and is responsible for the entire matrix. Responsible for maintaining power balance and solving disputes

Two-Boss Employees

in matrix structure, employees who report to two supervisors simultaneously (dual authority). Violates unity of command concept. Must resolve conflicting demands from matrix bosses

Job Enrichment

incorporating high-level motivators into the work, including responsibility, recognition, and opportunities for growth, learning and achievement

Liquidity Ratio

indicates an organization's ability to meet its current debt obligations. Current ratio=current assets/current liabilities. Tells whether or not a firm has enough assets to convert to cash to pay off debts if needed.

Storming Stage

individual personalities emerge. People become more assertive in clarifying their roles and what is expected of them, there is conflict and disagreement. Leader should encourage participation and members should propose ideas, disagree with one another, and work through uncertainties and conflicting perceptions about team tasks and goals

Performance-Outcome Expectancy (P>0)

probability that high performance will lead to desired outcomes (rewards). Deals with the credibility of MGMT. if expectancy is high individual will be highly motivated. if they don't expect high performance to lead to rewards then they don't trust management and motivation will be low

Accountability

the mechanism through which authority and responsibility are brought into alignment. It means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Income Statement

summarizes the firms financial performance for a given time interval, usually one year. Profit and Loss statement (P&L). Shows the firms revenue minus it's expenses and gives net income for a specific time.

Socioemotional Role

support team members emotional needs and help strengthen the social entity by encouraging, harmonizing, reducing tension, following, and compromising

Job Enlargement

technique to increase job enrichment that involves combining a series of tasks into one broader job

Job Rotation

technique to increase job enrichment where employees systematically move from one job to another to provide variety and stimulation

Task Force

temporary team or committee designed to solve a short-term problem involving several departments. Task force members represent their departments and share info that enables coordination

Budgetary Control

the most commonly used method of managerial control. Sets targets for an organization's expenditures, monitoring results and comparing them to the budget, and making changes as needed

Span of Management

the number of employees reporting to a supervisor (7-10 recommended)... also called span of control. Determines how closely a supervisor can monitor subordinates.

Small-batch production

type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification. Also includes making large, one of a kind, products.

Modular Approach

type of vertical network structure in which a manufacturing company uses outside suppliers to provide large chunks of a product such as an automobile, which are then assembled into a final product by a few employees.

Self-Directed Teams

typically consist of 5-20 multi-skilled workers who rotate jobs to produce an entire product or service or at least one complete aspect or portion of a product or service. Central idea is that the teams themselves, rather than managers, take responsibility for their work, make decisions, monitor their own performance, and alter their work behavior as needed to solve problems, meet goals, and adapt to the changing conditions

Chain of Command

unbroken line of authority that links all employees in an organization and shows who reports to whom. Associated with unity of command (each employee accountable to only one supervisor) and the scalar principle (clearly defined lines of authority in the firm that includes all employees)

Mediation

using a third party to settle a dispute, such as a supervisor, higher level manager, outside consultant, or someone from the HR department. Mediator discusses conflict with each party and works towards a solution, if no solution can be found, mediator would make a binding one.

Positive Reinforcement

when behavior is followed by positive consequences, makes behavior more likely to occur (applys to Behavior modification and Reinforcement Theory)

Locus of Decision Making

where in the organization the decisions are actually made. You can't tell from this form of an organization chart the president could maintain tight control and make all the decisions or they could push decision making to the vice president or department heads

Formalization

written documentation used to direct and control employees

Work Specialization

(division of labor). the degree to which organizational tasks are subdivided into separate, individual jobs so work can be performed more efficiently

Departmentalization

(fundamental characteristic of organizational structure) basis for grouping individual positions into departments and departments into the total organization

Team

2 or more people who interact and coordinate their work to accomplish a formal organization goal for which they are committed and hold themselves mutually accountable (responsibility and shared mission) can beGroups in an organization that arent considered a team

Benchmarking

TQM technique that is continuous process of measuring products, services, and practices against the toughest competitors or the companies recognized as the industry leaders to identify areas for improvement.

Continuous Improvement aka Kaizen

TQM technique that is the implementation of large number of small, incremental improvements in all areas of the organization on an ongoing basis.

Criterion Problem

Excellent behavior isn't always obvious. Excellent behavior is often ignored and unrecognized. It is easy to improperly reward someone who looks productive but isn't and miss someone who is actually being productive. Managers focus on mistakes because mistakes are easier to spot and use punishment to change behavior

Activity-Based Costing (ABC)

Financial control system that identifies various activities needed to provide a product and allocates cost accordingly. It enables managers to evaluate whether more costs go to activities that add value or to activities that don't add value

Economic Value-Added (EVA)

Financial control system that is a measurement system for gauging financial performance in terms of after-tax profits minus the cost of capital invested in tangible assets. Measuring performance in terms of EVA is intended to capture all of the things a company can do to add value from its activities, such as run a business more effectively, and rewards shareholders. Each job, dept, process, or project in the organization is measured by the value added. EVA can help managers make more cost effective decisions

Market Value Added (MVA)

Financial control system that measures the stock market's estimate of value of a company's past and projected capital investment projects. When a company's market value is greater than all the capital invested in it, the company has a positive MVA (indicating increased value in capital invested in it creating shareholder weatlh). Positive MVA is correlated with high overall EVA measurement.

Corporate Governance

Financial control system that refers to the framework of systems, rules, and practices by which a firm ensures accountability, fairness, and transparency in the firm's relationship with stakeholders. How an organization safeguards the interests of shareholders.

Continuous Process Production

Involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries. Process has no start or stop point, machines do all the work, human operators simply read dials, fix machines that break down, and manage the production process.

Self Efficacy

SLT element that deals with an individuals beliefs about his or her ability to successfully accomplish a specific task or outcome. Beliefs can shape motivation.

Quality Circles

TQM (Total Quality Management) technique that consists of a group of 6-12 volunteer employees who meet on a regular basis to discuss and solve problems affecting the quality of their work.

Six Sigma

TQM quality control technique that emphasizes a relentless pursuit of a higher quality and lower costs. Based on a 5 step method DMAIC: Define, Measure, Analyze, Improve, and Control.

Authority

The formal and legitimate right of a manager to make decisions, issue orders, and allocated resources to achieve organizationally desired outcomes. Authority is distinguished by 3 characteristics: 1. authority vested in organizational principles, not people 2. authority flows down the vertical hierarchy 3. authority is accepted by subordinates- subordinates comply because they believe managers have legitimate right to issue orders. Acceptance theory of authority argues that manager has authority only if subordinates choose to accept his/her commands

Empowerment

power sharing, the delegation of power or authority to subordinates in an organization

Balanced Scorecard

a comprehensive management control system that balances traditional financial measures with operational measures relating to a company's success factors. Judged on: 1. Customer Service 2. Financial Performance 3. Internal Business Process 4. Capacity to Learn and Grow

Hierarchy of Needs Theory

a content theory developed by ABRAHAM MASLOW that states that needs can be classified in five categories and are satisfied in hierarchal order starting at bottom: 1. Physiological 2. Safety 3. Belongingness 4. Esteem 5. Self-actualization

Physiological Needs

human physical needs (food, water) Bottom of pyramid

Bottom-Up Budgeting

a process in which lower level managers anticipate their departments' resource needs and pass them up to top management for approval. The movement toward employee empowerment, participation, and learning is making this process more frequently used.

Self-Actualization Needs (fulfillment)

competence, developing one's potential. Psychologists challenge the notion of self actualization because all other four needs conform to the deprivation theory (the more you have, the less you want) but with self actualization, the more you have, the more you want. Psychologists say if this is the case, it can't be a need.

Vertical Team

composed of a manager and his subordinates in the formal chain of command. (functional team/command team). May include 3 or 4 levels of hierarchy within a functional department, created to attain specific goals through members' joint activities and interactions

Horizontal Team

composed of employees from about the same hierarchal level but from different areas of expertise. It is drawn from several departments, given a specific task, and may be disbanded after the task is completed. They include cross functional teams (task force, temporary for specific cause), committees (long lived, deals with tasks that recur regularly, official representation), and special-purpose teams (project teams, created outside the formal organization, has its own reporting structure and is a separate entity from the organization

Norming Stage

conflict is resolved and team harmony and unity emerge. consensus develops on who has power, who the leaders are, and members' roles. Team leader should emphasize unity within the team and help to clarify team roles, norms, and values.

Job Characteristics Design Model

consists of 3 major parts: 5 Core diminsions (skill variety, task identity, task significance, autonomy, feedback). that you can change to make job more interesting. critical psychological states, employee growth-need strength. (picture on vocab sheet)

Cross-Functional Teams

employees from various functional departments who are responsible for meeting as a team and resolving mutual problems. They provide horizontal coordination to compliment the existing divisional or functional structure

Cash Budget

estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations. It shows the level of funds flowing through the org, the nature of the cash disbursements, and if the org needs to invest extra cash or withdraw cash to meet payments.

Feedback

extent to which doing the job provides clear info about the effectiveness of the performance back to the employee

Flat/Wide Structure

fewer hierarchal levels with more # on average reporting to each person. IT is faster to get decision from upper management and creates more flexible organizations. tend to be more creative since people have more discretion. Usually decentralized.

Equity Theory

focuses on individuals' perceptions of how fairly they are treated compared with others. Developed by J STACY ADAMS. says people are motivated to seek social equity in the rewards they receive for performance. Most commons methods of reducing inequity: change work effort, change outcomes, change perceptions, leave the job

Belongingness Needs (Social)

friendship, acceptance by others

Permanent Teams

group of employees from all functional areas permanently assigned to focus on a specific task or activity. Emphasis on horizontal communication and info sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task. Authority is pushed down to lower levels and front line employees are often given the freedom to make decisions and take action on their own.

Functional Structure

grouping of employees into departments based on similar skills, tasks, expertise, and use of resources. There would be a head with manufacturing, engineering, sales, and accounting departments under it. Has strong vertical design with info flowing up and down the hierarchy and people in dept communicate primarily with others in the same dept to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy. Rules and procedures govern the duties and responsibilities of each employee. Lower level employees accept the right of those in higher levels to make decisions and give orders.

Divisional Structure

groups employees into departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks. Diverse departments are brought together to produce a single organizational output such as products (Product A, Product B, Product C,). Reduces communication across the board so its good for large companies. Often done by geography (north, south, east, west for multinational firms). Departments duplicated across product lines.

ISO 9000 Standards

international consensus or universal benchmark of what constitutes quality management outlined by the International Organization for Standardization

Relationship Conflict

interpersonal incompatibility that creates tension and personal animosity among people. negative consequences to team effectiveness

Hierarchal Control

involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority, written documentation, reward systems, and other formal mechanisms. Can improve a company's bottom line by reducing employee misconduct, such as employee theft.

Revenue Budget

lists forecasts and actual revenues of an organization

Capital Budget

lists planned investments in major assets such as buildings, heavy machinery, or complex technology systems, often involving expenditures over more than a year . The expenditures impact cash flow and profitability so controlling capital budget includes monitoring the amount of capital expenditures and whether or not ROI assumptions are holding true.

Reinforcement Theory

looks at the relationship between behavior and consequences. focuses on changing or modifying employees on the job behavior through appropriate use of immediate rewards and punishments (behavior modification)

Virtual Teams

made up of geographically and organizationally dispersed members who are linked primarily through advanced information and telecommunications technologies. Effective virtual team leaders use technology to build relationships, shape culture through technology, and monitor progress and reward members

Engagement

means that people enjoy their jobs and are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization

Profitability Ratio

measures firm's profits relative to a source of profits such as sales or assets. Example: profit margin on sales (net income/sales). Ex: Gross Margin (before tax profit/total sales)

Activity Ratio

measures internal performance with respect to key activities defined by management. Example: Inventory Turnover= Total Sales/Average Inventory and tells how may times inventory is used up to meet the total sales figure. Conversion Ratio=purchase orders/customer inquiries and indicates company's effectiveness in turning inquiries to sales

Tall/Narrow Structure

more hierarchal levels with fewer # on average reporting to each person. Greater control, closer supervision, so potential to be more efficient. Usually centralized.

Behavior Modification

name given to the set of techniques by which reinforcement theory is used to modify human behavior. Basic assumption underlying BM is that behavior not reinforced is repeated. Behavior is influenced by its consequences

Staff Authority

narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise, it is a communication relationship (staff departments include all those that provide specialized skills in support of line departments)

Skill Variety

number of diverse activities that compose a job and the number of skills used to perform it. Extent a person is required to use many skills on the job

Adjourning Stage

occurs in teams that have a limited task to perform and are disbanded afterwards. Emphasis on wrapping up and gearing down. task performance is no longer a high priority. members may feel heightened emotionally, strong cohesiveness, and depression or regret over teams disbandment. Leaders should bring closure to team by giving out awards or having a ritual or ceremony to signify completion

Decentralized Control

organization fosters compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedure. Relies on cultural values, traditions, shared beliefs, and trust to foster compliance with organizational goals. Managers assume employees are trustworthy and willing to perform effectively without extensive rules and close supervision. Has extrinsic rewards such as wages but also intrinsic benefits such as opportunity to learn and grow. Technology empowers employees not monitor them. Culture is crucial to this method

Vertical Network Structure

organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization

Expense Budget

outlines the anticipated and actual expenses for a responsibility center. It may show all types of expenses or may focus on a particular category such as material or R&D expenses.

Effort-Performance Expectancy (E>P)

probability that effort will lead to high performance. Determining whether putting in effort will lead to high performance. for this to be high individuals must have tools, self-confidence, the ability, previous experience, necessary equipment, and opportunity to perform

Frustration-Regression Principle

part of the ERG theory that says failure to meet a high order need may trigger a regression to an already fulfilled lower order need

Negotiation

people engage in give and take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties. Is used when conflict is formalized, such as between union and management. Types of negotiation are integrative and distributive

Line Authority

people in management positions have formal authority to direct and control immediate subordinates (line departments perform tasks that reflect the organization's primary goal and mission)

Project Manager

person responsible for coordinating the activities of several departments for the completion of a specific project. They might work on several different projects at one time, with the manager not being a member of one of the depts being coordinated. Located outside depts and have responsibility for coordinating several depts to achieve desired project outcomes. Must have excellent people skills

Content Theories

persons are motivated to satisfy certain needs (certain levels of needs). Include the hierarchy of needs, ERG Theory, Two-Factor approach to motivation, and Acquired Needs Theory

Matrix Boss

product or functional supervisor responsible for one side of the matrix

Esteem Needs (Ego)

recognition and appreciation from others and a positive self image (very much related-need a positive self image for people to recognize and appreciate you)

Leverage Ratio

refers to funding activities with borrowed money. It can be used to make assets produce more than they could on their own but borrowing too much can put firm at risk of not being able to repay it's debt. Ex: Debt Ratio (total debt/total assets) makes sure firm doesn't exceed acceptable debt level

Reengineering

refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. B/c the focus is on process rather than function, reengineering generally leads to a shift away from a strong vertical structure to one emphasizing stronger horizontal coordination

Social Learning Theory

related to the reinforcement perspective but it proposes that individuals' motivation can result not from direct experience of rewards and punishments but also from the person's thoughts and beliefs and his or her observations of other people's behavior. 3 elements: Vicarious learning, self-reinforcement, and self-efficacy

Avoidance Learning (Negative Reinforcement)

removal of an unpleasant consequence once a behavior is improved, thereby encouraging and strengthening the desired behavior. Behavior is more likely to be repeated once negative consequence has been removed. (Ex: take advil for headaches and it removes pain, more likely to take advil next time)

Safety Needs (Security)

safe, physical, and emotional environment, performance, and stability. People tend to not like change, even if change is to improve life.

Balance Sheet

shows the firm's financial position with respect to assets and liabilities at a specific point in time. Provides 3 pieces of info: 1. Assets (current and fixed) 2. Liabilities (current and long-term), and owners' equity (difference between assets and liabilities; company's net worth in stock and retained earnings).

Self-Reinforcement (self control)

social learning theory element (self control) managers can encourage self control by giving people more flexibility and autonomy to set goals and decide how to achieve them

Task Specialist Role

spend time and energy to help team reach its goal. They initiate ideas, give opinions, seek information, summarize, and energize

Competing Style

style for handling conflict that reflects assertiveness to get one's own way and should be used when quick, decisive action is vital on important issues or unpopular actions such as emergencies.

Collaborating Style

style for handling conflict that reflects both a high degree of assertiveness and cooperation. Enable both parties to win, although it may require substantial bargaining and negotiation. Important when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when commitment of both sides is needed for consensus

Accommodating Style

style for handling conflict that reflects in high degree of cooperativeness which works best when people realize their wrong, when an issue is more important to others then oneself, when building social credits for use in later discussions, and when maintaining harmony is important

Avoiding Style

style for handling conflict that reflects neither assertiveness nor cooperativeness. Is appropriate when an issue is trivial, when there is no chance of winning, when a delay to gather more info is needed, or when a disruption would be costly

Compromising Style

style for handling conflicts that reflects a moderate amount of both assertiveness and cooperativeness. It is appropriate for when goals on both sides are equally important, when opponents have equal power and both sides want to split the difference, or when people need to arrive at temporary or expedient solutions under time pressure

Expectancy Theory

suggest that motivation depends on one's expectations about their ability to perform tasks and receive desired rewards. Process theory that deals with mental process individuals engage in when contemplating a behavior. Based on individuals: Effort, Performance, and Outcome associated with high performance

Conflict

the antagonistic interaction in which one party (individual or entire team) attempts to block the intentions or goals of another. Resolving conflicts are one of the leaders most important jobs especially since conflict is inevitable. two basic types are 1. task conflicts 2. relationship conflicts

Motivation

the arousal, direction, and persistence of behavior. Refers to the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action

Top-Down Budget

the budgeted amounts for the coming year are literally imposed on middle and lower level managers. Departmental budget targets in accordance with overall company revenue and expenditures specified by top executives.

Responsibility

the duty to perform the task or activity assigned

Team-Based structure

the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

Team Cohesiveness

the extent to which members are attached to the team and motivated to remain in it, committed to team activities, attend meetings, and are happy when the team succeeds

Responsibility Center

the fundamental unit of analysis for a budget control system. It is any organizational department or unit under the supervision of a single person who is responsible for its activity.

Subordinate Goals

the larger objective that cannot be attained by a single party is called a subordinate goal. Focus on subordinate goals will cause the conflict to decrease because they see the big picture and realize they must work together to achieve it.

Delegation

the process managers use to transfer authority and responsibility to positions below them in the hierarchy

Organizational Control

the systematic process of regulating organizational activities to make them consistent with the expectations established in plans, targets, and standards of performance

Valence

the value of rewards (outcomes). if good performance outcomes are not valued by employees motivation will be low

Organizational Chart

the visual representation of the organization's structure where the set of formal tasks and formal reporting relationships provides a framework for vertical control of the organization