Management

human skills

consist of the ability to work well in cooperation with other people to get things done

performance appraisal

consists of (1) assessing an employee's performance and (2) providing him or her with feedback.

Kurt Lewin

developed a model with three stages--unfreezing, changing, and refreezing--to explain how to initiate, manage, and stabilize planned change.

Why companies expand internationally

1. availability of supplies 2. new markets 3. lower labor costs 4. access to financial capital 5. avoidance of tariffs and import quotas

5 steps of the strategic management process

1. establish the mission & vision 2. establish the grand strategy 3. formulate strategic plans 4. carry out strategic plans 5. maintain strategic control

licensing

a company allows a foreign company to pay it a fee to make or distribute the first company's product or service

embargo

a complete ban on the import or export of certain products

trait approaches to leadership

approaches which attempt to identify distinctive characteristics that account for the effectiveness of leaders

Big Five Personality dimensions

are 1) extroversion, 2) agreeableness, 3) conscientiousness, 4) emotional stability, and 5) openness to experience.

subjective appraisals

are based on a manager's perceptions of an employee's (1) traits or (2) behaviors

negative conflict

conflict that hinders the organization's performance or threatens its interests. Bad for organizations.

programmed conflict

conflict that is designed to elicit different opinions without inciting people's personal feelings.

internal stakeholders

consist of employees, owners, and the board of directors, if any.

quality circles

consist of small groups of volunteers or workers and supervisors who meet intermittently to discuss workplace and quality-related problems.

top managers

make long-term decisions about the overall direction of the organization and establish the objectives, policies, and strategies for it

historical perspective

perspective which includes three viewpoints--classical, behavioral, and quantitative

contemporary perspective

perspective which includes three viewpoints--systems, contingency, and quality-management.

needs

physiological or psychological deficiencies that arouse behavior.

Edward L. Thorndike and B.F. Skinner

pioneered the reinforcement perspective of motivation

job posting

placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization's intranet.

proactive change

planned change involves making carefully though-out changes in anticipation of possible or expected problems or opportunities.

management process, also called the four management functions

planning, organizing, leading, and controlling

single-use plans

plans developed for activities that are not likely to be repeated in the future.

standing plans

plans developed for activities that occur repeatedly over a period of time.

adaptive cycle

portrays businesses as continuously cycling through decisions about three kinds of business problems: entrepreneurial, engineering, and administrative. Proposed by Miles and Snow.

reward power

power all managers have, is power that results from manager's authority to reward their subordinates

legitimate power

power all managers have, is power that results from manager's formal position within the organization.

coercive power

power all managers have, results from managers' authority to punish their subordinates.

referent power

power deriving from one's personal attraction. This kind of power characterizes strong, visionary leaders who are able to persuade their followers thanks to their personality, attitudes, or background. This power may be associated with managers, but it is more likely to be characteristic of leaders.

personalized power

power directed at helping oneself

socialized power

power directed at helping others

expert power

power resulting from one's specialized information or expertise.

global village

refers to the shrinking of time and space as air travel and the electronic media have made it easier for the people of the globe to communicate with one another

escalation of commitment bias

the bias when decision makers increase their commitment to a project despite negative information about it.

anchoring or adjustment bias

the bias when people have the tendency to make decisions based on an initial figure.

e-commerce, or electronic commerce

the buying and selling of products and services through computer networks

outputs

the products, services, profits, losses, employee satisfaction or discontent, and the like that are produced by an organization.

exchange rate

the rate at which one country's currency can be exchanged for another country's currency

pay for knowledge

ties employee pay to the number of job-relevant skills or academic degrees they earn.

job analysis

to determine, by observation and analysis, the basic elements of a job.

transactional leadership

leadership that focuses on clarifying employees' roles and task requirements and providing rewards and punishment contingent on performance.

transformational leadership

leadership that transforms employees to pursue organizational goals over self-interests. These types of leaders are influenced by two factors: individual characteristics and organizational culture.

University of Michigan Leadership Model

led by Rensis Likert, this model identified two forms of leadership styles: Job-centered and employee-centered.

employment tests

legally considered to consist of any procedure used in the employment selection decision process.

vision

long-term goal describing "what" an organization wants to become. It is a clear sense of the future and the actions needed to get there.

directive (decision-making style)

low tolerance for ambiguity and are oriented toward task and technical concerns. They are efficient, logical, practical, and systematic in their approach to solving problems. They are action-oriented and decisive, although they tend to be autocratic, to exercise power and control, and to focus on the short-run.

Elton Mayo

A pioneer of behaviorism. Hypothesized the Hawthorne effect from a plant in Chicago--that employees worked harder if they received added attention, if they thought that managers cared about their welfare and that supervisors paid special attention to them. Drew attention to the idea that managers using good human relations could improve productivity.

Hugo Munsterberg

A pioneer of behaviorism. The father of industrial psychology, suggested that psychologists could contribute to the management industry. His ideas led to the field of industrial psychology, the study of human behavior in workplaces.

owners

consist of all those who can claim an organization as their legal property

conceptual skills

consist of the ability to think analytically, to visualize an organization as a whole and understand how the parts work together.

technical skills

consist of the job-specific knowledge needed to perform well in a specialized field

strategic allies

describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone.

Douglas McGregor

developed Theories X and Y concerning workers, which can help managers from falling into the trap of the self-fulfilling prophecy.

scientific management

emphasized the scientific study of work methods to improve the productivity of individual workers. proposed Frederick W. Taylor and Frank and Lillian Gilbreth

general environment, or macroenvironment

environment which includes six forces: economic, technological, socio-cultural, demographic, political-legal, and international

quality assurance

focuses on the performance of workers, urging employees to strive for "zero defects."

Henry Mintzberg

followed five chief execs around for a week in the 60s, found the following three important things: 1. a manager relies more on verbal than written communication 2. a manager works long hours at an intense pace 3. a manager's work is characterized by fragmentation, brevity, and variety.

middle managers

implement the policies and plans of the top managers above them and supervise and coordinate the activities of the first-line managers below them

first-line managers

make short-term operating decisions, directing the daily tasks of non-managerial personnel.

virtual organization

organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections.

mutual-benefit organizations

organizations made up of voluntary collections of members whose purpose is to advance member's interests. i.e., political parties, farm cooperatives, labor unions, trade associations, and clubs.

external stakeholders

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

competitors

people or organizations that compete for customers or resources

quality

refers to the total ability of a product or service to meet customer needs

decisional roles

roles managers have--entrepreneur, disturbance handler, resource allocator, and negotiator--in which information is used to make decisions to solve problems or take advantage of opportunities

management science

science which focuses on using mathematics to aid in problem solving and decision making.

planning

setting goals and deciding how to achieve them

entrepreneur

someone who sees a new opportunity for a product or service and launches a business to try to realize it

intrapraneur

someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it.

knowledge worker

someone whose occupation is principally concerned with generating or interpreting information, as opposed to manual labor.

internal locus of control

the belief that you control your own destiny

inputs

the people, money, information, equipment, and materials required to produce an organization's goods or services

informational roles

three roles managers have--monitor, disseminator, and spokesperson--managers receive and communicate.

effective

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

videoconferencing

using videos and audio links along with computers to let people in different locations see, hear, and talk with one another

classical viewpoint

viewpoint which emphasized finding ways to manage work more efficiently, and had two branches--scientific and administrative. Problem: tends to view humans as cogs within a machine, does not take into account the importance of human needs.

behavioral viewpoint

viewpoint which emphasized the importance of understanding human behavior and of motivating employees toward achievement

contingency viewpoint

viewpoint which emphasizes that a manager's approach should vary according to--that is, be contingent on--the individual and the environmental sitation

quality-management viewpoint

viewpoint which includes quality control, quality assurance, and total quality management

systems viewpoint

viewpoint which regards the organization as a system of interrelated parts

quality control

defined as the strategy for minimizing errors by managing each stage of production

operating plan

defines how you will you conduct your business based on the action plan; it identifies clear targets such as revenues, cash flow, and market share. typically designed for a 1-year period.

action plan

defines the course of action needed to achieve a stated goal

external forces

demographic characteristics, market changes, technological advancements, and social and political pressures

job specification

describes the minimum qualifications a person must have to perform the job successfully.

Frank and Lillian Gilbreth

expanded on scientific management and Taylor's motion studies. They raised 12 children. Lillian received her PhD in psychology, and was the first woman to be a major contributor to management science.

non-rational models of decision making

explain how managers make decisions: they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions. The non-rational models are descriptive rather than prescriptive. Three models are satisfying, incremental, and intuition.

mission statement

expresses the purpose of the organization

vision statement

expresses what the organization should become, where it wants to go strategically.

hygiene factors

factors associated with job dissatisfaction—such as salary, working conditions, interpersonal relationships, and company policy—all of which affect the job context in which people work. "Why are my people dissatisfied?"

innovation

finding ways to deliver new or better goods or services

affirmative action

focuses on achieving equality of opportunity within an organization.

equity theory

focuses on employees' perceptions as to how fairly they think they are being treated compared to others, and was developed by J. Stacy Adams. There are three elements to the theory: inputs outputs or rewards comparison

operations management

focuses on managing the production and delivery of an organization's products or services more effectively.

lean six sigma

focuses on problem solving and performance improvement—speed with excellence—of a well-defined project.

holistic wellness program

focuses on self-responsibility, nutritional awareness, relaxation techniques, physical fitness, and environmental awareness.

sociocultural forces

forces such as influences and trends originating in a country's, a society's, or a culture's human relationships and values that may affect an organization

demographic forces

forces such as influences on an organization arising from changes in the characteristics of a population, such as age, gender, or ethnic origin.

technological forces

forces that are new developments in methods for transforming resources into goods or services

Porter's four competitive strategies

(also called four generic strategies) are 1) cost-leadership 2) differentiation 3) cost-focus 4) focused-differentiation

control process steps

1) establish standards, 2) measure performance, 3) compare performance to standards; and 4) take corrective action, if necessary.

The 3 core processes of business

1) people 2) strategy 3) operations

two core principles of TQM

1) people orientation—everyone involved with the organization should focus on delivering value to customers—and 2) improvement orientation—everyone should work on continuously improving the work processes.

management

1) the pursuit of organizational goals efficiently and effectively by 2) integrating the work of people through 3) planning, organizing, leading, and controlling the organization's resources.

11 ways cultures become embedded in organizations

1. Formal statements 2. Slogans & sayings 3. Stories, legends, & myths 4. Leader reactions to crises 5. Role modeling, training, & coaching 6. Physical design 7. Rewards, titles, promotions, & bonuses 8. Organizational goals & performance criteria 9. Measurable & controllable activities 10. Organizational structure 11. Organizational systems & procedures

process innovation

a change in the way a product or service is conceived, manufactured, or disseminated.

When confronted with any proposed action for which a decision is required, a manager should ask the following questions.

1. Is the proposal action legal? If it's not legal, don't do it. 2. Does the proposed action maximize shareholder value? 3. If yes, is the proposed action ethical? 4. If no, would it be ethical not to take the proposed action?

decision

a choice made from among available alternatives.

the four functions of an organization's culture

1. gives members an organizational identity 2. facilitates collective commitment 3. promotes social-system stability 4. shapes behavior by helping employees make sense of their surroundings

advantages of group decision making

1. greater pool of knowledge 2. Different perspectives 3. Intellectual stimulation 4. Better understanding of decision rationale. 5. Deeper commitment to the decision.

four benefits of planning

1. helps you check your progress 2. helps coordinate activities 3. helps you think ahead 4. above all, helps you cope with uncertainty

six challenges to being a star manager

1. managing for competitive advantage 2. managing for diversity 3. managing for globalization 4. managing for information technology 5. managing your own happiness and life goals

The three levels of organizational culture

1. observable artifacts 2. espoused values 3. basic assumptions

Five core job characteristics

1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback

How organizations can promote ethics

1. support by top managers of a strong ethical climate 2. ethics codes & training programs 3. rewarding ethical behavior & protecting whistleblowers

why strategic management and strategic planning are important

1. they provide direction and momentum 2. they encourage new ideas 3. they develop a sustainable competitive advantage

Seven implementation principles of evidence-based decision-making

1. treat the organization as an unfinished prototype 2. no brag, just facts 3. see yourself and organization as others do. 4. evidence-based management is not just for senior executives. 5. like everything else, you need to sell it. 6. if all else fails, slow the spread of bad practice. 7. the best diagnostic question: what happens when people fail?

The rewards of practicing management

1. you and your employees can experience a sense of accomplishment 2. you can stretch your abilities and magnify your range. 3. You can build a catalog of successful products or services.

The rewards of studying management

1. you will understand how to deal with organizations from the outside 2. you will understand how to relate to your supervisors. 3. you will understand how to interact with your co-workers 4. You will understand how to manage yourself in the workplace

fair labor standards act

1938 established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage.

360-degree assessment

360 degree feedback appraisal is when employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients.

Michael Porter

A Harvard business school professor who is considered by some to be the single most important strategist working today. developed the idea of strategic positioning.

satisficing model

a model wherein managers seek alternatives until they find one that is satisfactory, not optimal.

Mary Parker Follett

A pioneer of behaviorism. A social worker and philosopher, she thought that organizations should become more democratic, with managers and employees working cooperatively.

Defender approach

An approach to uncertainty in the environment in which organizations are expert at producing and selling narrowly defined products or services. "Let's stick with what we do best, avoid other involvements"

Prospector approach

An approach to uncertainty in the environment in which organizations focus on developing new products or services and in seeking out new markets, rather than waiting for things to happen. "let's create our own opportunities, not wait for them to happen."

Analyzer approach

An approach to uncertainty in the environment in which organizations let other organizations take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best. "Let others take the risks of innovating, & we'll imitate what works best."

Reactor approach

An approach to uncertainty in the environment in which organizations make adjustments only when finally forced to by environmental pressures. "Let's wait until there's a crisis, then we'll react."

Tom Burns and G.M. Stalker

British behavioral scientists who proposed the ideas of mechanistic and organic organizations.

Peter Senge

Coined the term "Learning Organizations"

Herbert Simon

Economist in the 50s who went on to receive the Nobel Prize. proposed the idea of bounded rationality. Also, the satisficing model.

Max Weber

Felt that a better-performing organization should have five positive bureaucratic features. Had an important influence on the structure of large corporations, such as the coca-cola company.

Paul Lawrence & Jay Lorsch

Harvard University researchers who proposed the idea of differentiation-integration dimensions of organizations.

What's wrong with the rational model?

It is prescriptive, describing how managers ought to make decisions. 1. assumes complete information with no uncertainty 2. uses logical and unemotional analysis 3. assumes managers will be able to make the best decision.

behavioral (decision-making style)

Most people oriented of all styles, with a low tolerance for ambiguity. Behavioral types are supportive, receptive to suggestions, show warmth, and prefer verbal to written information. They tend to avoid conflict, which can lead them to a wishy-washy approach to decision making and having a hard time saying no.

Henry Fayol

Pioneer theorist of administrative management. The first person to identify the major functions of management--planning, organizing, leading, controlling, and coordinating.

Raymond E. Miles and Charles C. Snow

Suggest that organizations adopt one of four approaches when responding to uncertainty: defenders, prospectors, analyzers, or reactors. Also introduced the idea of the adaptive cycle.

International Monetary Fund (IMF)

Supports the international financial community, is designed to assist in smoothing the flow of money between nations. consists of 185 member nations.

W. Edwards Deming

TQM pioneer; 85-15 rule, that when things go wrong, there is an 85% chance that the system is at fault, and only a 15% chance that the individual worker is at fault.

Joseph M. Juran

TQM pioneer; defined quality as fitness for use of the customers: a company should focus its efforts on the real needs of customers.

Peter Drucker

The creator and inventor of modern management. Proposed that management should be treated as a profession. Austrian trained in economics and international law, came to the US in 1937. Famous text, "The Practice of Management."

Frederick Taylor

The father of scientific management, believed that managers could eliminate soldiering (deliberately working at less than full capacity) by applying principles of science. His system used motion studies, in which he broke down each worker's basic physical motions to find the best possible method. He also suggested a differential rate system in which more efficient workers earned higher wages.

product innovation

a change in the appearance or the performance of a product or a service or the creation of a new product.

group cohesiveness

a "we" feeling binding group members together

self-efficacy

a belief in one's personal ability to do a task.

fundamental attribute bias

a bias in which people attribute another person's behavior to his or her personal characteristics rather than to situational factors.

self-serving bias

a bias in which people tend to take more personal responsibility for success than for failure.

organization chart

a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations. reveal two kinds of information about organizational structure--the vertical hierarchy of authority and the horizontal specialization.

variable budget

a budget that allows the allocation of resources to vary in proportion with various levels of activity

multinational corporation

a business firm with operations in several countries

assessment center

a center in which management candidates participate in activities for a few days while being assessed by evaluators

Total Quality Management

a comprehensive approach--led by top management and supported throughout the organization--dedicated to continuous quality improvement, training, and customer satisfaction. Proposed by W. Edwards Deming and Joseph M. Juran. Had four components: 1. make continuous improvement a priority 2. get every employee involved 3. listen and learn from customers and employees. 4. Use accurate standards to identify and eliminate problems.

Total Quality Management

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

change agent

a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways.

management by exception

a control principle that states that managers should be informed of a situation only if data show a significant deviation from standards.

predictive modeling

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

learned helplessness

a debilitating lack of faith in one's ability to control one's environment.

business plan

a document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success.

wholly-owned subsidiary

a foreign subsidiary that is totally owned and controlled by an organization

greenfield venture

a foreign subsidiary that the owning organization has built from scratch

charisma

a form of interpersonal attraction that inspires acceptance and support.

franchising

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

budget

a formal financial projection

external audit

a formal verification of an organization's financial accounts and statements by outside experts

Management by objectives (MBO)

a four-step process developed by Peter Drucker 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. The purpose is to motivate rather than control subordinates.

defensive strategy

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

growth strategy

a grand strategy that involves expansion--as in sales revenues, market share, number of employees, or number of customers or clients served.

stability strategy

a grand strategy that involves little or no significant change.

decision tree

a graph of decisions and their possible consequences; it is used to create a plan to reach a goal.

formal group

a group established to do something productive for the organization and is headed by a leader. It is created to do productive work.

informal group

a group formed by people seeking friendship and has no officially appointed leader, although a leader may emerge from the membership.

APEC (Asia-Pacific Economic Cooperation)

a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties

organization

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

employee engagement

a heightened emotional connection that an employee feels for their organization, which influences them to exert greater discretionary effort in their work.

trend analysis

a hypothetical extension of a past series of events into the future

strategy

a large-scale action plan that sets the direction for an organization.

attitude

a learned predisposition toward a given object. There are three components: affective, cognitive, and behavioral

deciding to decide

a manager agrees that they must decide what to do about a problem or opportunity and take effective decision-making steps. Three ways to determine how to decide: importance, credibility, and urgency

social-responsibility

a manager's duty to take actions that will benefit the interests of society as well as of the organization

incremental model

a model in which managers take small, short-term steps to alleviate a problem.

product life cycle

a model that graphs the four stages that a product or a service goes through during the life of its marketability, which are: 1) introduction 2) growth 3) maturity 4) decline

Porter's model for industry analysis

a model which suggests that business-level strategies originate in five primary competitive forces in the firm's environment, which follow: 1. Threats of new entrants 2. Bargaining power of suppliers 3. Bargaining power of buyers 4. Threats of substitute products or services 5. Rivalry among competitors

parochialism

a narrow view in which people see things solely through their own perspective

CAFTA (Central America Free Trade Agreement)

a newer trade agreement which involves the US and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua and which is aimed at reducing tariffs and other barriers to free trade.

multinational organization

a nonprofit organization with operations in several countries

distributor

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

supplier

a person or organization that provides supplies--that is, raw materials, services, equipment, labor, or energy--to other organization

behavior

a person's actions and judgements, which are influenced by values and attitudes.

mission

a person's purpose of reason for being

PDCA cycle

a plan-do-check-act cycle using observed data for continuous improvement of operations.

polychronic time

a preference for doing more than one thing at a time

monochronic time

a preference for doing one thing at a time.

unity of command

a principle in which an employee should report to no more than one manager.

benchmarking

a process by which a company compares its performance with that of high-performing organizations.

conflict

a process in which one party perceives that its interests are being opposed or negatively affected by another party.

decision making

a process of identifying and choosing alternative courses of action

strategic management

a process that involves managers from all parts of the organization in the formulation and the implementation of strategies and strategic goals.

human resources inventory

a report listing your organization's employees by name, education, training, languages, and other important information.

six sigma

a rigorous statistical analysis process that reduces defects in manufacturing and service-related processes.

interpersonal roles

a role in which managers interact with people inside and outside their work units. They include figurehead, leader, and liaison activities

task role

a role which consists of behavior that concentrates on getting the team's task done.

maintenance role

a role which consists of behavior that fosters constructive relationships among team members.

system

a set of interrelated parts that operate together to achieve a common purpose

organization development (OD)

a set of techniques for implementing planned change to make people and organizations more effective. A process that includes the following steps: 1. diagnosis of the problem 2. intervention of the problem 3. evaluation of how well the intervention worked

shared leadership

a simultaneous, ongoing, mutual influence process in which people share responsibility for leading.

program

a single-use plan encompassing a range of projects or activities. i.e., the US government space one has several projects.

project

a single-use plan of less scope and complexity than a program. i.e., the space shuttle Discovery is one in the government's space program.

ethical dilemma

a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal.

team

a small group of people with complimentary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable.

role

a socially determined expectation of how an individual should behave in a specific position.

goal (also: objective)

a specific commitment to achieve a measurable result within a stated period of time.

rule

a standing plan that designates specific required action

policy

a standing plan that outlines the general response to a designated problem or situation.

procedure (or standard operating procedure)

a standing plan that outlines the response to particular problems or circumstances

burnout

a state of emotional, mental, and even physical exhaustion.

statistical process control

a statistical technique that uses periodic random samples from production runs to see if quality is being maintained within a standard range of acceptability.

cost-focus strategy

a strategy to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

cost-leadership strategy

a strategy to keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market.

focus-differentiation strategy

a strategy to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market.

differentiation strategy

a strategy to offer products or services that are of unique and superior value compared to those of competitors but to target a wide market.

single-product strategy

a strategy wherein company makes and sells only one product within its market. Has a benefit of product focus but a risk of vulnerability.

financial statement

a summary of some aspect of an organization's financial status.

organization

a system of consciously coordinated activities or forces of two or more people. classic definition by Chester I. Bernard.

organizational culture

a system of shared beliefs and values that develops within an organization and guides the behavior of its members, according to Edgar Schein, and sometimes called corporate culture. There are four types.

open system

a system which continually interacts with its environment

closed system

a system which has little interaction with its environment

brainstorming

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

tariff

a trade barrier in the form of a customs duty, or tax, levied mainly on imports

import quota

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

most favored nation

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

adhocracy culture

a type of organizational culture that has an external focus and values flexibility. Attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done.

clan culture

a type of organizational culture that has an internal focus and values flexibility rather than stability and control. Family-type organization that encourages collaboration. They devote considerable resources to hiring and developing their employees and view customers as partners.

hierarchy culture

a type of organizational culture that has an internal focus and values stability and control over flexibility. Apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation of delivery of products.

market culture

a type of organizational culture that has an internal focus and values stability and control over flexibility. Driven by competition and a strong desire to deliver results. Customers, productivity, and profits take precedence over employee development and satisfaction.

devil's advocacy

a type of programmed conflict which is the process of assigning someone to play the role of a critic in order to test whether a proposal is workable.

dialectic method

a type of programmed conflict which is the process of having two people or groups play opposing roles in a debate in order to better understand a proposal to see if it is workable.

downward communication

a type of vertical communication that flows from a high level to a lower level(s)

upward communication

a type of vertical communication that flows from a low level to a higher level(s)

internal audit

a verification of an organization's financial accounts and statements by the organization's own professional staff.

forecast

a vision of projection of the future

strategy map

a visual representation of the four perspectives of the balanced scorecard that enables managers to communicate their goals so that everyone in the company can understand how their jobs are linked to the overall objectives of the organization.

contingency approach

approach to leadership which believes that effective leadership behavior depends on the situation at hand. There are three different approaches: oThe contingency leadership model oThe path-goal leadership model oThe situational leadership model

behavioral leadership approaches

approaches which attempt to determine the distinctive styles used by effective leaders.

Values

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

project management

achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project.

objective appraisals

also called results appraisals, are based on facts and are often numerical.

rational model of decision making

also called the classical model, explains how managers should make decisions; it assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests. The rational model of decision making is prescriptive There are four stages associated: 1. identifying problem or opportunity 2. think up alternative solutions 3. evaluate alternatives and select a solution 4. implement & evaluate chosen solution

control standard

also known as a performance standard or simply standard, is the desired performance level for a given goal.

SWOT analysis

also known as a situational analysis—is a search for the strengths, weaknesses, opportunities, and threats affecting an organization.

buffers

also known as administrative changes, that managers can make to reduce the stressors that lead to employee burnout.

trading bloc

also known as an economic community, is a group of nations within a geographical region that have agreed to remove trade barriers with one another

content perspectives

also known as need-based perspectives, are theories that emphasize the needs that motivate people.

contingency planning

also known as scenario planning and scenario analysis is the creation of alternative hypothetical but equally likely future conditions.

utilitarian approach

an approach guided by what will result in the greatest good for the greatest number of people

decentralized control

an approach to organizational control that is characterized by informal and organic structural arrangements

bureaucratic control

an approach to organizational control that is characterized by use of rules, regulations, and formal authority to guide performance

justice approach

an approach which is guided by respect for impartial standards of fairness and equity

moral-rights approach

an approach which is guided by respect for the fundamental rights of human beings

individual approach

an approach which is guided by what will result in the individual's best long-term interests, which ultimately are in everyone's self-interest

whistleblower

an employee who reports organizational misconduct to the public

extranet

an extended intranet in that it connects internal employees with selected customers, suppliers, and other strategic partners.

Organizational behavior (OB)

an interdisciplinary field which is dedicated to understanding and management of people at work. It looks at two areas: Individual behavior Group Behavior

blog

an online journal in which people write whatever they want about any topic

learning organization

an organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge

intranet

an organization's private internet.

groupthink

an undesirable by-product of groups, and is a cohesive group's unwillingness to consider alternatives, as defined by Irvin Janis.

diagnosis

analyzing the underlying causes.

noise

any disturbance that interferes with the transmission of a message.

process perspectives

are concerned with the thought processes by which people decide how to act. In this section there are three process perspectives on motivation: oEquity theory oExpectancy theory oGoal-setting theory

motivating factors (or just motivators)

are factors associated with job satisfaction—such as achievement, recognition, responsibility, and advancement—all of which affect the job content or the rewards of work performance. "What will make my people satisfied?"

organizing

arranging tasks, people, and other resources to accomplish the work

strategic positioning

attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. it means performing different activities from rivals, or performing similar activities in different ways, and there are three key principles. 1. it is the creation of a unique and valuable position 2. it requires trade-offs in competing 3. it involves creating a "fit" among activities

reinforcement theory

attempts to explain behavior change by suggesting that behavior with positive consequences tends to be repeated, whereas behavior with negative consequences tends not to be repeated.

external recruiting

attracting job applicants from outside the organization.

Daniel Golman

author of the 1995 book Emotional Intelligence, he is the co-chairman of the Consortium for Research on Emotional Intelligence in Organizations at Rutgers University.

Larry Bossidy and Ram Charan

authors of "Execution: The Discipline of Getting Things Done."

informal appraisals

conducted on an unscheduled basis and consist of less rigorous indications of employee performance.

countertrading

bartering for goods

pay for performance

bases pay on one's results

type A behavior pattern

behavior pattern in which people are involved in a chronic, determined struggle to accomplish more in less time.

ethical behavior

behavior that is accepted as "right" as opposed to "wrong" according to those standards

Archie B. Carroll

believes that CSR rests at the top of a pyramid of a corporation's obligations, right up there with economic, legal, and ethical obligations. Suggested the responsibilities of organizations should take the following priorities in order: 1. be a good global corporate citizen 2. be ethical 3. obey the law 4. be profitable

representative bias

bias in which people have the tendency to generalize from a small sample or a single event.

availability bias

bias when managers use information readily available from memory to make judgments

confirmation bias

bias when people seek information to support their point of view and discount data that do not.

fixed budget

budget that allocates resources on the basis of a single estimate of costs

incremental budgeting

budgeting that allocates increased or decreased funds to a department by using the last budget period as a reference point; only incremental changes in the budget request are reviewed.

zero-based budgeting (ZBB)

budgeting that forces each department to start from zero in projecting its funding needs for the coming budget period.

constructive conflict

conflict that benefits the main purposes of the organization and serves its interests. good for organizations.

Chester I. Bernard

came up with the classic definition of organization, which is "a system of consciously coordinated activities or forces of two or more people."

E-Leadership

can involve one-to-one, one-to-many, within-group and between-group and collective interactions via information technology.

environmental scanning

careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans.

bonuses

cash rewards given to employees who achieve specific performance objectives.

radically innovative change

change involves introducing a practice that is new to the industry. This form of change is the most complex, costly, and uncertain.

informal communication channels

channels which develop outside the formal structure and do not follow the chain of command

formal communication channels

channels which follow the chain of command and are recognized as official. There are three types: vertical communication, horizontal communication, and external communication.

situational leadership theory

claims that leadership behavior reflects how leaders should adjust their leadership style according to the readiness of their followers. Developed by Paul Hersey and Kenneth Blanchard

external communication

communication that flows between people inside and outside the organization

horizontal communication

communication that flows within and between work units; its main purpose is coordination

vertical communication

communication that goes up and down the chain of command

nonverbal communication

communication which consists of messages sent outside of the written or spoken word.

cognitive component

component of an attitude which consists of the beliefs and knowledge one has about a situation.

affective component

component of an attitude which consists of the feelings or emotions one has about a situation.

behavioral component

component of an attitude which refers to how one intends or expects to behave toward a situation. also known as the intentional component.

databases

computerized collections of interrelated files

Ralph Stogdill

concluded that the following five traits were typical of successful leaders: 1) dominance, 2) intelligence, 3) self-confidence, 4) high energy, and 5) task-relevant knowledge. Also proposed the Ohio State Leadership model, which identified two major dimensions of leader behavior, which are initiating structure and consideration. initiating structure is leadership behavior that organizes and defines what group members should be doing. consideration is leadership behavior that expresses concern for employees by establishing a warm, friendly, supportive climate.

formal appraisals

conducted at specific times throughout the year and are based on performance measures that have been established in advance.

Job characteristics model

consists of (a) five core job characteristics that affect (b) three critical psychological states of an employee that in turn affect (c) work outcomes—the employee's motivation, performance, and satisfaction. o Developed by J. Richard Hackman and Greg Oldham.

task environment

consists of 11 groups that present managers 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.

EU (European Union)

consists of 27 trading partners in Europe

code of ethics

consists of a formal written set of ethical standards guiding an organization's actions

technology

consists of all the tools and ideas for transforming materials, data, or labor (inputs) into goods or services (outputs)

job enrichment

consists of building into a job such motivating factors as responsibility, achievement, recognition, stimulating work, and advancement.

strategic human resources planning

consists of developing a systematic, comprehensive strategy for a) understanding current employee needs and b) predicting future employee needs.

job enlargement

consists of increasing the number of tasks in a job to increase variety and motivation.

strategic control

consists of monitoring the execution of strategy and making adjustments, if necessary.

collective bargaining

consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security.

stereotype

consists of oversimplified beliefs about a certain group of people.

ISO 9000 series

consists of quality-control procedures companies must install—from purchasing to manufacturing to inventory to shipping—that can be audited by independent quality-control experts, or "registars."

Human Resource (HR) Management

consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce.

base pay

consists of the basic wage or salary paid employees in exchange for doing their jobs.

sexual harassment

consists of unwanted sexual attention that creates an adverse work environment. There are two types of sexual harassment: quid pro quo and hostile environment

fit perspective

cultural perspective which assumes that an organization's culture must align, or fit, with its business or strategic context.

adaptive perspective

cultural perspective which assumes that the most effective cultures help organizations anticipate and adapt to environmental changes

strength perspective

cultural perspective which assumes that the strength of a corporate culture is related to a firm's long-term financial performance.

high-context culture

culture in which people rely heavily on situational cues for meaning when communicating with others

low-context culture

culture in which shared meanings are primarily derived from written and spoken words

planning/control cycle

cycle which has two planning steps (1 and 2) and two control steps (3 and 4) and are as follows: 1. make the plan 2. carry out the plan 3. control the direction by comparing results with the plan. 4. control the direction by taking corrective action in two ways--namely, a) by corrective deviations in the plan being carried out, or b) by improving future plans.

full-range leadership

developed by Bernard Bass and Bruce Avolio, suggests that leadership behavior varies along a full range of leadership styles, from take-no-responsibility (laissez faire) "leadership" at one extreme, through transactional leadership, to transformational leadership at the other extreme.

contingency leadership model

developed by Fred Fiedler in 1951, determines if a leader's style is 1) task-oriented or 2) relationship-oriented and if that style is effective for the situation at hand.

Servant leadership

developed by Robert Greenleaf, means that leaders focus on providing increased service to others—meeting the goals of both followers and the organization—rather than themselves.

John Kotter

developed eight steps to properly bring about organizational change that correspond to Lewin's freezing/refreezing model. 1. establish a sense of urgency 2. create the guiding coalition 3. develop a vision and strategy 4. communicate the change vision 5. empower broad-based action 6. generate short-term wins, 7. consolidate gains and produce more change 8. anchor the new approaches into the organization's culture.

Walter Shewart

developed quality control techniques in the 30s, used statistical sampling to locate errors by testing just some (as opposed to all) of the items in a particular production run.

Robert J. House

developed the GLOBE project

J. Richard Hackman and Greg Oldham

developed the job characteristics model

problems

difficulties that inhibit the achievement of goals.

individualism/collectivism

dimension which shows how loosely or tightly people are socially bonded

power distance

dimension which shows how much people accept inequality in power high=people accept inequality low=people expect equality

masculinity/femininity

dimension which shows how much people embrace stereotypical male or female traits

uncertainty avoidance

dimension which shows how strongly people desire certainty high=people feel uncomfortable with uncertainty low=people have a high tolerance for uncertainty

external dimensions of diversity

dimensions which include an element of choice; they consist of the personal characteristics that people acquire, discard, or modify throughout their lives

special-purpose team

eams that meet to solve a special or one-time problem.

sustainability

economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs

e-commerce

electronic commerce, the buying and selling of goods or services over computer networks

Hierarchy of authority

element of organization proposed by Schein which is a control mechanism for making sure the right people do the rights things at the right time. also called chain of command.

division of labor

element of organization proposed by Schein which is the arrangement of having discrete parts of a task done by different people. Also known as work specialization.

coordinated effort

element of organization proposed by Schein which is when the coordination of individual efforts into a group or organization-wide effort.

Common purpose

element of organization proposed by Schein which unifies employees or members and gives everyone an understanding of the organization's reason for being.

Organizational citizenship behaviors

employee behaviors that are not directly part of employee's job descriptions; that exceed their work-role environments

internal forces

employee problems and managers' behavior

RATER scale

enables customers to rate the quality of a service along five dimensions—reliability, assurance, tangibles, empathy, and responsiveness—each on a scale from 1 (for very poor) to 10 (for very good).

Equal employment opportunity (EEO) commission

enforces anti-discrimination and other employment-related laws.

National Labor relations board

enforces procedures whereby employees may vote to have a union and for collective bargaining.

group support systems (GSSs)

entail using state of the art computer software and hardware to help people work better together.

(organizational) threats

environmental factors that hinder an organization's achieving a competitive advantage.

(organizational) opportunities

environmental factors that the organization may exploit for competitive advantage

economic forces

forces that consist of the general economic conditions and trends--unemployment, inflation, interest rates, economic growth, that may affect an organization's performance

international forces

forces wherein changes in the economic, political, legal, and technological global system that may affect an organization

political-legal forces

forces wherein changes in the way politics shape laws and laws shape the opportunities for and threats to an organization

audits

formal verification of an organization's financial and operational systems

the five stages in which groups may evolve into teams

forming, storming, norming, performing, and adjourning.

Robert Katz

found through research in the 70s that managers acquire three principle skills--technical, conceptual, and human.

benefits

fringe benefits, are additional non-monetary forms of compensation signed to enrich the lives of all employees in the organization.

Jeb Emerson

gained attention by asking, what if we did not judge businesses based on profits alone? claims that we tend to categorize value as economic or social. "You either work for an organization that creates economic value or social value--but not both"

competitive intelligence

gaining information about one's competitors activities so that you can anticipate their moves and react appropriately. There are several avenues to gain this: 1) public prints and advertising 2) investor information 3) informal sources

norms

general guidelines or rules of behavior that most group or team members follow.

realistic job preview

gives a candidate a picture of both positive and negative features of the job and the organization before they are hired.

balanced scorecard

gives top managers a fast, but comprehensive view of organization via four indicators: 1) custom satisfaction, 2) internal processes, 3) innovation and improvement activities and 4) financial measures.

SMART goal

goal that is Specific, Measurable, Attainable, Results-oriented, and has Target dates.

operational goals

goals set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.

tactical goals

goals set by and for middle managers and focus on the actions needed to achieve strategic goals.

strategic goals

goals set by and for top management and focus on objectives for the organization as a whole

geographic divisions

group activities around defined regional locations

product divisions

group activities around similar products or services

self-managed teams

groups of workers who are given administrative oversight for their task domains. Administrative oversight involves delegated activities such as planning, scheduling, monitoring, and staffing.

special-interest groups

groups whose members try to influence specific issues

project life cycle

has four stages from start to finish: definition, planning, execution, and closing.

compensation

has three parts: (1) wages or salaries, (2) incentives, and (3) benefits

staff personnel

have authority functions; they provide advice, recommendations, and research line managers.

line managers

have authority to make decisions and usually have people reporting to them

orientation

helps newcomers fit smoothly into the job and the organization.

telepresence technology

high definition video-conference systems that stimulate face to face meetings between users.

analytical (decision-making style)

high tolerance for ambiguity and oriented toward task and technical concerns. They like to consider more information and alternatives, and are careful decision makers who take longer to make decisions but also respond well to new or uncertain situations.

conceptual (decision-making style)

high tolerance for ambiguity, oriented toward people & social aspects. They take a broad perspective to problem-solving and consider many possibilities. They adapt a long-term perspective and rely on intuition and communication. They are willing to take risks and find creative solutions, but they can foster an indecisive approach.

Hofstede model of four cultural dimensions

identified four dimensions along which national cultures can be placed: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

frustration-regression component

if our higher-level needs are frustrated, we will then seek more intensely to fulfill our lower-level needs

Employee assistance programs (EAPs)

include a host of programs aimed at helping employees to cope with stress, burnout, substance abuse, health-related problems, family and marital issues, and any general problem that negatively influences job performance.

locus of control

indicates how much people believe they control their fate through their own efforts.

stories

narratives based on true events, which are repeated—and sometimes embellished upon—to emphasize a particular value.

media richness

indicates how well a particular medium conveys information and promotes learning. rich medium: best for nonroutine situations and to avoid oversimplification lean medium: best for routine situations and to avoid overloading

feedback

information about the reaction of the environment to the outputs that affects the inputs

message

information sent by the sender to the receiver

decoding

interpreting and trying to make sense of the message.

structured interview

involves asking each applicant the same questions and comparing their responses to a standardized set of answers.

unstructured interview

involves asking probing questions to find out what the applicant is like.

job design

is (1) the division of an organization's work among its employees and (2) the application of motivational theories to jobs to increase satisfaction and performance.

Organization size

is usually measured by the number of full-time employees.

Planning (another definition)

it is coping with uncertainty by formulating future courses of action to achieve specified results.

intuition

making a choice without the use of conscious thought or logical inference. It stems from expertise—a person's explicit and tacit knowledge about a person, situation, object, or decision opportunity—it is known as a holistic hunch.

reactive change

making changes in response to problems or opportunities as they arise

philanthropy

making charitable donations to benefit humankind

internal recruiting

making people already employed by the organization aware of job openings.

administrative management

management concerned with managing the total organization, proposed by Henri Fayol and Max Weber.

functional manager

manager who is responsible for just one organizational activity

general manager

manager who is responsible for several organizational activities

geocentric managers

managers who accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are more effective.

ethnocentric managers

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

polycentric managers

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

maquiladoras

manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens

large-batch technology

mass-production, assembly-line technology.

Motivation

may be defined as the psychological processes that arouse and direct goal-directed behavior.

personality tests

measure personality traits such as adjustment, energy, sociability, independence, and need for achievement.

ability test

measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities.

performance test

measures performance on actual job tasks.

validity

measures what a test purports to measure and is free of bias.

path-goal leadership model

model advanced by Robert House, holds that the effective leader makes available to followers desirable rewards in the workplace and increases their motivation by clarifying the paths, or behavior, that will help them achieve those goals and provide them with support.

Leader-member exchange (LMX) model of leadership

model of leadership proposed by George Graen and Fred Dansereau emphasizes that leaders have different sorts of relationships with different subordinates. It assumes every manager-subordinate relationship is unique, and that there are two types of interactions: 1. in-group exchange--good 2. out-group exchange--bad

operational control

monitoring performance to ensure that operational plans—day-to-day goals—are being implemented and taking corrective action as needed. Done by first-level managers

strategic control

monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed, done by top managers

tactical control

monitoring performance to ensure that tactical plans—those at the divisional or department level—are being implemented and taking corrective action as needed. Done by middle managers.

controlling

monitoring performance, comparing it with goals, and taking corrective action as needed.

controlling

monitoring, performance, comparing it with goals, and take corrective action as needed

leading

motivating, directing, and otherwise influencing people to work hard to achieve the organization's goals

human relations movement

movement which proposed that better human relations could increase worker productivity

technology

not just computer technology; it is any machine or process that enables an organization to gain a competitive advantage in changing materials used to produce a finished product.

Execution

not simply tactics, it is a central part of any company's strategy: it consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.

disadvantages of group decision making

o A few people dominate or intimidate. o Groupthink. o Satisficing o Goal displacement.

What makes it hard to be evidence-based

o There's too much evidence o There's not enough good evidence. o The evidence doesn't quite apply. o People are trying to mislead you. o You are trying to mislead you. o The side effects outweigh the cure. o Stories are more persuasive, anyway.

symbols

objects, acts, qualities, or events that convey meaning to others.

groupthink

occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation.

consensus

occurs when members are able to express their opinions and reach agreement to support the final decision.

discrimination

occurs when people are hired or promoted—or denied hiring or promotion—for reasons not relevant to the job, such as skin color or eye shape, gender, religion, national origin, and etc...

information overload

occurs when the amount of information received exceeds a person's ability to handle or process it.

goal displacement

occurs when the primary goal is subsumed by a secondary goal.

OSHA (occupational health and safety act)

of 1970 was the first to provide employees with nonhazardous working conditions

hostile environment

offensive work environment

small-batch technology

often the least complex technology, goods are custom-made to customer specifications in small quantities

continuous improvement

ongoing small, incremental improvements in all parts of an organization

unrelated diversification

operating several businesses under one ownership that are not related to one another.

self-fulfilling prophecy

or Pygmalion effect, describes the phenomenon in which people's expectations of themselves or others lead them to behave in ways that make those expectations true.

sunk cost bias

or fallacy, is the bias when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it.

World Bank

organization formed to provide low-interest loans to developing nations for improving transportation, education, health, and communications.

World Trade Organization (WTO)

organization that is designed to monitor and enforce trade agreements, consisting of 151 member countries

subsystem

parts which make up a whole system

Simple model of motivation

people have certain needs that motivate them to perform specific behaviors for which they receive rewards that feed back and satisfy the original need.

expatriates

people living or working in a foreign country

heroes

people whose accomplishments embody the values of the organization.

project management software

programs for planning and scheduling the people, costs, and resources to complete a project on time

GLOBE Project

project conducted by Robert J. House, which is a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes, also found universally liked and disliked aspects of managers

mechanistic organization

proposed by Burns and Stalker, a type of organization in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

organic organization

proposed by Burns and Stalker, a type of 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.

ERG Theory

proposed by Clayton Alderfer, the theory assumes that three basic needs influence behavior—existence, relatedness, and growth.

goal-setting theory

proposed by Edwin Locke, suggests that employees can be motivated by goals that are specific and challenging, but achievable. There are three elements of goal-setting theory: 1. goals should be specific 2. goals should be challenging 3. goals should be achievable

cognitive dissonance

proposed by Leon Festinger in 1957, describes the psychological discomfort a person experiences between his or her cognitive attitude and incompatible behavior. How people deal with that discomfort, depends on three factors: importance control and rewards

Deming management

proposed by W. Edwards Deming, ideas for making organizations more responsive, more democratic, and less wasteful. These included the following principles 1. Quality should be aimed at the needs of the consumer 2. Companies should aim at improving the system, not blaming workers 3. Improved quality leads to increased market share, increased company prospects, and increased employment. 4. Quality can be improved on the basis of hard data, using the PDCA cycle

J. Stacy Adams

proposed equity theory

Victor Vroom

proposed expectancy theory

Hierarchy of needs theory

proposed that people are motivated by five levels of needs 1. physiological 2. safety 3. love 4. esteem 5. self-actualization created by Abraham Maslow

two-factor theory

proposed that work satisfaction and dissatisfaction arise from two different factors—work satisfaction from motivating factors and work dissatisfaction from hygiene factors.

Clayton Alderfer

proposed the ERG theory in the late 60s

David McClelland

proposed the acquired needs theory

Edgar Schein

proposed the idea of organizational culture, which is the social glue that binds members of an organization together. Also proposed the four common elements of organizations.

Edward L. Thorndike

proposed the law of effect, which states that behavior that results in a pleasant outcome is likely to be repeated and behavior that results in unpleasant outcomes is not likely to be repeated.

Leon Festinger

proposed the term cognitive dissonance

Frederick Herzberg

proposed the two-factor theory

Irvin Janis

psychologist who proposed the idea of groupthink

Laurence Kohlberg

psychologist who proposed three levels of personal moral development 1. pre-conventional--follows rules 2. conventional--follows expectations of others 3. post-conventional--guided by internal values

strategy implementation

putting strategic plans into effect.

BARS (behaviorally anchored rating scale)

rates employee gradations in performance according to scales of specific behaviors.

reduced cycle time

reduction in steps in a work process

development

refers to educating professionals and managers in the skills they need to do their jobs in the future.

training

refers to educating technical and operational employees in how to better do their current jobs

global economy

refers to the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets

span of control (span of management)

refers to the number of people reporting directly to a given manager. Can be narrow or wide.

authority

refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

decision-making style

reflects the combination of how an individual perceives and responds to information. Styles vary along two different dimensions: tolerance for ambiguity and value orientation

organizational commitment

reflects the extent to which an employee identifies with an organization and is committed to its goals.

government regulators

regulatory agencies that establish ground rules under which organizations may operate

behavioral science

relies on scientific research for developing theories about human behavior that can be used to provide practical tools for managers.

enacted values

represent the values and norms actually exhibited in an organization.

multicommunicating

represents "the use of technology to participate in several interactions at the same time."

diversity

represents all the ways people are unlike and alike--the differences and similarities in age, gender, race, religion, ethnicity, sexual orientation, capabilities, and socio-economic background

roles

sets of behaviors that people expect of occupants of a position. Stress may come about because of the following: •Role overload •Role conflict •Role ambiguity

opportunities

situations that present possibilities for exceeding existing goals.

ethics officer

someone trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.

proactive personality

someone who is more apt to take initiative and persevere to influence the environment.

electronic brainstorming

sometimes called brainwriting, in which members of a group come together over a computer network to generate ideas and alternatives.

closing stage

stage of the project life cycle wherein the client accepts the project.

planning stage

stage of the project life cycle wherein you consider the details. Identify the facilities and equipment, the people and their duties, and the schedule and coordination efforts needed.

execution stage

stage of the project life cycle wherein you define the management style and establish the control tools. Monitor progress, review the project schedule, issue change orders, and prepare status reports.

definition stage

stage of the project life cycle wherein you look at the big picture. State the problem, look at assumptions and risks, identify the project's goals and objectives, and determine the budget and schedule.

acquired needs theory

states that three needs—achievement, affiliation, and power—are major motives determining people's behavior in the workplace.

heuristics

strategies that simplify the process of making decisions.

grand strategy

strategy developed from the mission and vision statements that explains how the organization's mission is to be accomplished. there are three main strategies, which are growth, stability, and defensive.

modular structure

structure in which a firm assembles product chunks, or modules, provided by outside contractors.

matrix structure

structure in which an organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal.

simple structure

structure in which an organization has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

divisional structure

structure in which people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.

functional structure

structure in which people with similar occupational specialties are put together in formal groups.

team-based structure

structure in which teams or workgroups, either temporary or permanent, are used to improve horizontal relations and solve problems throughout the organization.

network structure

structure in which the organization has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization.

John Kotter

suggests that management and leadership are complementary systems of action, with the difference being that management is about coping with complexity, and leadership is about coping with change.

income statement

summarizes an organization's financial results—revenues and expenses—over a specified period of time.

balance sheet

summarizes an organization's overall financial worth—that is, assets and liabilities—at a specific point in time.

job description

summarizes what the holder of the job does and how and why they do it.

James Kouzes and Barry Posner

surveyed more than 7,500 managers throughout the 1980s to see what personal traits they admired in their superiors. The respondents suggested that a credibly leader should have five traits: 1. Honesty 2. Competency 3. Forward-looking 4. Inspiring 5. Intelligence

forced ranking performance review systems

systems in which all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve.

quid pro quo

tangible economic injury: someone is forced to do something they do not want to do in order to gain something they want professionally.

advice teams

teams that are created to broaden the information base for managerial decisions

production teams

teams that are responsible for performing day-to-day operations

project teams

teams that work to do creative problem solving, often by applying the specialized knowledge of members of a cross-functional team.

cross-functional teams

teams which are staffed with specialists pursuing a common objective.

action teams

teams which work together to accomplish tasks that require people with specialized training and a high degree of coordination.

customer divisions

tend to group activities around common customers/clients

jargon

terminology specific to a particular profession or group

e-mail

text messages and documents transmitted over a computer network

competitive advantage

the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them. An organization must stay ahead in four areas: 1. being responsive to customers 2. innovation 3. quality 4. efficiency

emotional intelligence

the ability to cope, empathize with others, and be self-motivated.

leadership

the ability to influence employees to voluntarily pursue organizational goals.

Sarbanes-Oxley Act of 2002, also known as SarbOx or just SOX.

the act which established requirements for proper financial record-keeping for public companies and penalties for noncompliance.

Americans with Disabilities Act

the act which prohibits discrimination against the disabled

rites & rituals

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

Causal attribution

the activity of inferring causes for observed behavior.

punishment

the application of negative consequences to stop or change undesirable behavior.

quantitative management

the application to management of quantitative techniques, such as statistics and computer simulations. It has two branches, which are management science and operations management

intervention

the attempt to correct the diagnosed problems.

expectancy

the belief that a particular level of effort will lead to a particular level of performance. "Will I be able to perform at the desired level on a task?"

ethnocentrism

the belief that one's native country, culture, language, abilities, or behavior is superior to those of another culture

bounded rationality

the concept that suggests that the ability of decision makers be rational is limited by numerous constraints, such as complexity, time and money, and their cognitive capacity, values, skills, habits, and unconscious reflexes. Proposed by Herbert Simon.

performance management

the continuous cycle of improving job performance through goal setting, feedback and coaching, and rewards and positive reinforcement.

incremental innovations

the creation of products, services, or technologies that modify existing ones.

radical innovations

the creation of products, services, or technologies that replace existing ones.

reliability

the degree to which a test measures the same thing consistently.

gainsharing

the distribution of savings or "gains" to groups of employees who reduced costs and increased measurable productivity.

profit sharing

the distribution to employees of a percentage of the company's profits.

(organizational) weaknesses

the drawbacks that hinder an organization in executing strategies in pursuit of its mission.

human capital

the economic or productive potential of employee knowledge, experience, and actions

social capital

the economic or productive potential of strong, trusting, and cooperative relationships

instrumentality

the expectation that successful performance of the task will lead to the outcome desired. "What outcome will I receive if I perform at this level?"

espoused values

the explicitly stated values and norms preferred by an organization, as put forth by founders and top managers.

readiness

the extent to which a follower possesses the ability and willingness to complete a task

job satisfaction

the extent to which one feels positively or negatively about various aspects of their work.

job involvement

the extent to which one identifies or is personally involved with their job.

self-monitoring

the extent to which people are able to observe their own behavior and adapt it to external situations.

self-esteem

the extent to which people like or dislike themselves, their overall self-evaluation.

B.F. Skinner

the father of operant conditioning

adjourning

the fifth stage in the group development theory, it is when members prepare for disbandment.

forming

the first stage in the group theory of development, it is the process of getting oriented and acquainted.

organization life cycle

the four-stage cycle which has a natural sequence of stages: birth, youth, midlife, and maturity.

performing

the fourth stage in the group development theory, it is when members concentrate on solving problems and completing the assigned task.

the Internet

the global network of independently operating but interconnected computers, linking hundreds of thousands of smaller networks around the world.

means-end chain

the hierarchy in which goals are arranged, because in the chain of management the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends.

continuous-process technology

the highly routinized technology in which machines do all the work.

behavior-description interview

the interviewer explores what applicants have actually done in the past.

innovative change

the introduction of a practice that is new to the organization. This form of change involves moderate complexity, cost, and uncertainty.

Mercosur

the largest trade bloc in latin america and has four core members--Argentina, Brazil, Paraguay, and Uruguay, with Venezuela scheduled to become a full member upon ratification by other countries--and five associate members: Bolivia, Chile, Colombia, Ecuador, and Peru.

participative management (PM)

the management process of involving employees in a) setting goals, b) making decisions, c) solving problems, and d) making changes in the organization.

glass ceiling

the metaphor for an invisible barrier preventing women and minorities from being promoted to top executive jobs

growth (stage)

the most profitable stage, is the period in which customer demand increases, the product's sales grow, and competitors may enter the market.

free trade

the movement of goods and services among nations without political or economic obstruction

birth (stage)

the non-bureaucratic stage, the stage in which the organization is created.

blended value

the notion that all investments are understood to operate simultaneously in both economic and social realms

corporate social responsibility (CSR)

the notion that corporations are expected to go above and beyond following the law and making a profit. According to Archie B. Carroll, it rests at the top of a pyramid of a corporation's obligations.

responsibility

the obligation one has to perform the tasks assigned to them

midlife (stage)

the organization becomes bureaucratic, a period of growth evolving into stability.

maturity (stage)

the organization becomes very bureaucratic, large, and mechanistic.

youth (stage)

the organization is in a pre-bureaucratic stage, a stage of growth and expansion.

transforming processes

the organization's capabilities in management and technology that are applied to converting inputs into outputs

medium

the pathway by which a message travels.

value system

the pattern of values within an organization

extrinsic reward

the payoff, such as money, a person receives from others for performing a particular task.

staheholders

the people whose interests are affected by an organization's activities

decline (stage)

the period in which the product falls out of favor completely and the organization withdraws from the marketplace.

maturity (stage)

the period in which the product starts to fall out of favor and sales and profits begin to fall off.

receiver

the person for whom the message is intended

sender

the person wanting to share the information

dumping

the practice of a foreign company's exporting products abroad at a lower price than the price in the home market--or even below the costs of production--in order to drive down the price of the domestic product

ratio analysis

the practice of evaluating financial ratios to determine an organization's financial health.

project planning

the preparation of single-use plans, or projects.

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.

contingency design

the process of fitting the organization to its environment.

perception

the process of interpreting and understanding one's environment, has four steps. 1. selective attention 2. interpretation & evaluation 3. Storing in memory 4. Retrieving from memory to make judgements & decisions

recruiting

the process of locating and attracting qualified applicants for jobs open in the organization. There are two types: internal and external.

job simplification

the process of reducing the number of tasks a worker performs.

entrepreneurship

the process of taking risks to try to create a new enterprise

adaptive change

the reintroduction of a familiar practice--the implementation of a kind of change that has already been experienced within the same organization. This form of change is the lowest in complexity, cost, and uncertainty.

values

the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior

negative reinforcement

the removal of unpleasant consequences following a desired behavior.

intrinsic reward

the satisfaction, such as the feeling of accomplishment, a person receives from performing the particular task itself.

selection process

the screening of job applicants to hire the best candidate.

storming

the second stage in the group development theory, it is characterized by the emergence of individual personalities and roles and conflicts within the group.

culture

the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people

(organizational) strengths

the skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

stressor

the source of stress

personality

the stable physical and mental characteristics responsible for a person's identity

introduction (stage)

the stage in a product life cycle in which a new product is introduced into the marketplace.

ethics

the standards of rights and wrong that influence behavior

semantics

the study of the meaning of words

synergy

the sum is greater than the parts

cohesiveness

the tendency of a group or team to stick together.

social loafing

the tendency of people to exert less effort when working in groups than when working alone.

differentiation

the tendency of the parts of an organization to disperse and fragment

integration

the tendency of the parts of an organization to draw together to achieve a common purpose.

stereotyping

the tendency to attribute to an individual the characteristics one believes are typical of a group to which the person belongs. There are three types: 1. sex-role 2. age 3. race/ethnicity

selective perception

the tendency to filter out information that is discomforting, that seems irrelevant, or that contradicts one's beliefs

stress

the tension people feel when they are facing or enduring extraordinary demands, constraints, or opportunities, and are uncertain about their ability to handle them effectively.

skunkworks

the term given to a project team whose members are separated from the normal operation of an organization and asked to produce a new, innovative product.

analytics

the term used for sophistication forms of business data analysis.

Management by wandering around (MBWA)

the term used to describe a manager's literally wandering around their organization and talking with people across all lines of authority.

norming

the third stage in the group development theory, it is when conflicts are resolved, close relationships develop, and unity and harmony emerge.

communication

the transfer of information and understanding from one person to another

globalization

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

Jeffrey Pfeffer and Robert Sutton

the two principle proponents of evidence-based management

grapevine

the unofficial communication system of the informal organization

trade protectionism

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

positive reinforcement

the use of positive consequences to encourage desirable behavior.

feedback

the way the receiver expresses their reaction to the sender's message.

risk propensity

the willingness to gamble or undertake risk for the possibility of gaining an increased payoff.

extinction

the withholding or withdrawal of positive rewards for desirable behavior, so that the behavior is less likely to occur in the future.

division of labor

the work is divided into particular tasks that are assigned to particular workers.

expectancy theory

theory proposed by Victor Vroom which suggests that people are motivated by two things: 1. How much they want something, and 2. How likely they think they are to get it.

internal dimensions of diversity

those human differences that exert a powerful, sustained effect throughout every stage of our lives

customers

those who pay to use an organization's goods or services

diversification

to operate several businesses in order to spread the risk.

efficient

to use resources--people, money, raw materials, and the like--wisely and cost-effectively

telecommute

to work from home or remote locations using a variety of information technologies

NAFTA (North American Free Trade Agreement)

trading bloc consisting of the US, Canada, and Mexico

encoding

translating a message into understandable symbols or language

Evidence-based management

translating principles based on best evidence into organizational practice, bringing rationality to the decision-making process. Proposed by Jeffrey Pfeffer and Robert Sutton.

group

two or more freely interacting individuals who share collective norms, share collective goals, and have a common identity.

group-driven system

type of computer-aided decision making for anonymous networking. Involves a meeting within a room of participants who express their ideas anonymously on a computer network.

chauffeur-driven system

type of computer-aided decision making for push-button consensus. They ask participants to answer predetermined questions on electronic keypads or dials.

counterproductive work behaviors (CWB)

types of behavior that harm employees and the organization as a whole.

spam

unsolicited jokes and junk mail

incentives

used to induce employees to be more productive or to attract and retain top performers, and involve offers such as commissions, bonuses, profit-sharing plans, and stock options.

collaborative computing

using state-of-the-art computer software and hardware, will help people work better together

global outsourcing

using suppliers outside the US to provide labor, goods, or services

outsourcing

using suppliers outside the company to provide goods and services

e-business

using the internet to facilitate every aspect of running a business

valence

value, the importance a worker assigns to the possible outcome or reward. "How much do I want the outcome?"

joint venture

when a US firm may make a strategic alliance with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country

importing

when a company buys goods outside the country and resells them domestically

exporting

when a company produces goods domestically and sells them outside the country

conglomerate

when a large company does business in different, quite unrelated areas.

defensive avoidance

when a manager can't find a good solution and follows by a) procrastinating, b) passing the buck, c) denying the risk of any negative consequences. "there's no reason for me to explore other solution alternatives"

relaxed avoidance

when a manager decides to take no action in the belief that there will be no great negative consequences. "there's no point in doing anything; nothing bad is going to happen"

panic

when a manager is so frantic to get rid of the problem that he or she can't deal with the situation realistically. "this is so stressful, I've got to do something—anything—to get rid of the problem"

relaxed change

when a manager realizes that complete inaction will have negative consequences but opts for the fist available alternative that involves low risk. "why not just take the easiest way out?"

absenteeism

when an employee doesn't show up for work.

related diversification

when an organization under one ownership operates separate businesses that are related to one another. Related diversification has three advantages: reduced risk, management efficiency, and synergy.

stock options

when certain employees are given the right to buy stock at a future date for a discounted price

computer-assisted instruction (CAI)

when computers are used to provide additional help or to reduce instructional time.

piece rate

when employees are paid according to how much output they produce.

turnover

when employees leave jobs.

centralized authority

when important decisions are made by higher-level managers.

decentralized authority

when important decisions are made by middle-level and supervisory-level managers.

operational planning

when managers determine how to accomplish specific tasks with available resources within the next 1-52 weeks. Done by first-line management.

tactical planning

when managers determine what contributions their departments or similar work units can make their given resources during the next 6-24 months. Done by middle management.

strategic planning

when managers determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available. Done by top management.

accountability

when managers must report and justify work results to the managers above them.

cascading

when objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization. Objectives do this down through an organization.

The Halo Effect

when one forms an impression of an individual based on a single trait. These can be positively or negatively skewed.

underemployed

when people work jobs that require less education than they have.

sales commission

when sales representatives are paid a percentage of the earnings the company made from their sales

situational interview

when the interviewer focuses on hypothetical situations.

vertical hierarchy of authority

who reports to whom

horizontal specialization

who specializes in what work