Business managerial

Self-serving bias

"it's not my fault", refers to our tendency to take personal credit for successes while blaming outside sources for our failures.

The management process includes

- planning, leading, controlling, and organizing

servant leadership

A leader who serves others by working to fulfill followers' needs and goals, as well as to achieve the organization's larger mission.

Project managers

A manager who is responsible for a specific work project that involves people from various functions and levels of the organization

chief ethics officer

A manager who oversees all aspects of ethics and legal compliance

Exporting

A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries

Synergy

A concept that says that the whole is greater than the sum of its parts.

job description

A concise summary of the specific tasks and responsibilities of a position.

high-context culture-

A culture in which people are sensitive to circumstances surrounding social exchanges, derive meaning from context, and use communication to build personal relationships.

goal

A desired future state that the organization wants to realize. Managers set goals

exit interview

A discussion is conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization.

strategic business units (SBUs)

A division of the organization that has a unique business, mission, product or service line, competitors, and markets relative to other units of the same organization.

business plan-

A document specifying the details of the business.

pragmatic survivor

A follower who has qualities of all four follower styles, depending on which fits the prevalent situation.

code of ethics

A formal statement of the organization's values regarding ethics and social responsibility.

permanent teams

A group of employees from all functional areas permanently assigned to focus on a specific task or activity.

cross-functional teams

A group of employees from various functional departments that meet as a team to resolve mutual problems.

ethics committee

A group of executives (and sometimes lower-level employees as well) charged with overseeing company ethics by ruling on questionable issues and disciplining violators.

matching model

A human resources (HR) approach in which the organization and the individual attempt to match each other's needs, interests, and values.

Collaboration

A joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose

Attributions

A judgment about what caused a person's behavior—characteristics of either the person or the situation.

Middle managers

A manager who works at the middle level of the organization and is responsible for a major division or department.

utilitarian approach

A method of ethical decision making saying that the ethical choice is the one that produces the greatest good for the greatest number.

Vertical integration

A strategy of expanding into businesses that either provide the supplies needed to make products or distribute and sell the company's products.

team-based structure

A structure in which an entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

multinational corporation (MNC)

An organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country and has a number of distinctive managerial characteristics.

mission

An organization's purpose or reason for existence.

flat structure

An organizational structure characterized by an overall broad span of management and relatively few hierarchical levels.

Humility

Being unpretentious and modest rather than arrogant and prideful.

cultural leader-

Defines and articulates important values that are tied to a clear and compelling mission.

Equity financing

Funds that are invested in exchange for ownership in the company.

self-confidence

General assurance in one's own ideas, judgment, and capabilities.

E → P expectancy

The assumption is that putting effort into a given task will lead to high performance.

Authoritarianism

The belief is that power and status differences should exist within an organization.

Organizing

The deployment of organizational resources to achieve strategic goals; involves assigning tasks, grouping tasks into departments, and allocating resources.

human resource management (HRM)

The design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals.

Authority

The formal and legitimate right of a manager to make decisions, issue orders and allocate resources to achieve outcomes desired by the organization.

Reengineering

The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Staff authority

The right to advise, counsel, and recommend in the manager's area of expertise.

forming

The stage of team development involving a period of orientation and getting acquainted.

360-degree feedback

Uses multiple raters, including self-rating, to appraise employee performance and guide development.

Valence

The value of outcomes (rewards) to the individual.

Centralization

This means that decision authority is located near top organization levels

decentralization

This means that decision authority is pushed down to lower organization levels.

Accountability

This means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

decodes

To read symbols to interpret the meaning of a message.

encodes

To select symbols with which to compose a message.

3 sections to effective manager-

basic knowledge and information, skills and attributes, meta qualities

postmortem

a disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better; also called after-action review

Ceremony

A planned activity at a special event that is conducted for the benefit of an audience. Managers hold ceremonies to provide dramatic examples of company values. Ceremonies are special occasions that reinforce valued accomplishments, create a bond among people by allowing them to share an important event, and anoint and celebrate heroes.

extrinsic rewards

A reward given by another person, such as a manager, including pay increases, promotions, and praise

stereotypes

A rigid, exaggerated, irrational belief associated with a particular group of people.

application form

A selection device that collects information about the applicant's education, previous work experience, and other background characteristics.

skunkworks

A separate informal, highly autonomous, and often secretive group that focuses on breakthrough ideas

Process Theories

A set of theories, including goal-setting theory, equity theory, and expectancy theory, which explains how people select behaviors with which to meet their needs and determine whether their choices were successful.

Cultural intelligence includes three components that work together

cognitive, emotional, and physical.

Nudge management

applies insights from the behavioral sciences to design elements of the organization in a way that guides people toward behaviors that support organizational goals and values

formal leader

are assigned to be leaders as part of their role in a group or organization and have leadership authority based on their position, such as the governor of New York or the CEO of Apple.

The social dimension

concerns the ability to behave in ways that build trusting relationships with people who are different from yourself.

Executive perks-

country club membership

Certainty

A situation in which all the information the decision maker needs is fully available.

Performance orientation

A society with a high performance orientation places great emphasis on performance and rewards people for performance improvements and excellence. A low performance orientation means that people pay less attention to performance and more attention to loyalty, belonging, and background.

operational goals

A specific, measurable result that is expected from departments, work groups, and individuals. These goals are precise and measurable: "Process 150 sales applications each week," "Achieve 90 percent of deliveries on time," "Reduce overtime by 10 percent next month," and "Develop two new online courses in accounting."

joint venture

A strategic alliance or program by two or more organizations

Scenario building-

An approach where managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.

Franchising

An arrangement by which the owner of a product or service allows others to purchase the right to distribute a product or service with help from the owner.

vision

An attractive, ideal future that is credible yet not readily attainable.

blind spots

An attribute about a person that he or she is not aware of or doesn't recognize as a problem; limits effectiveness and hinders career success.

coalition

An informal alliance among managers who support a specific goal or solution.

Team norms

An informal standard of conduct that is shared by team members and guides their behavior

glass ceiling

An invisible barrier that separates women and minorities from senior management positions.

Vicarious learning

Learning occurs when an individual sees others perform certain behaviors and get rewarded for them

Boundary spanning

Links to and coordinates the organization with key elements in the external environment. Practice of relating to people outside of the environment

Two early advocates of a more humanistic approach were

Mary Parker Follett and Chester I. Barnard

angel financing

Occurs when a wealthy individual who believes in the idea of a start-up provides personal funds and advice to help the business get started.

Uncertainty

Occurs when managers know which goals they want to achieve, but information about alternatives and future events is incomplete.

Sources of Conflict

Personnel actions being attributed to diversity status. ➢ Misunderstood, misinterpreted, or inappropriate actions between people or groups. ➢ Cultural differences in work hours, personal styles, interpersonal relations, and conflict. ➢ Fear, distrust, or individual prejudices.

Portfolio strategy

Pertains to the mix of strategic business unit (SBUs) and product lines that fit together in a logical way to provide synergy and competitive advantage.

6 steps in making a decision

Recognition of a decision requirement Diagnosis and analysis of causes Development of alternatives Selection of desired alternative Implementation of chosen alternative Evaluation and feedback

Job design

Refers to applying motivational theories to the structure of work to improve motivation, productivity, and satisfaction.

Determinants of organizations culture

organization's founder, organization's success, shared experiences, and symbols, stories, heroes, slogans, and ceremonies

Codes of ethics tend to exist in two types:

principle-based statements and policy-based statements.

Transformational change

results in major and comprehensive redirection of an organization

Categories of culture are based on two dimensions

the extent to which the external environment requires flexibility or stability, and the extent to which a company's strategic focus is internal or external.

Manager feedback

the use of evaluation and communication to help individuals learn about themselves and improve

Globalization

the worldwide interdependence of resource flows, products, markets, and business competition

Managers should never use email in these scenarios-

they are angry, when your message may be misunderstood when you are canceling or apologizing when you are rebuking or criticizing

Self-regulation-

thoughtfulness, comfort with ambiguity, integrity

Merit pay -

ties compensation to performance. High performing employees receive larger pay increases.

Frank B. and Lillian M. Gilbreth. Frank B. Gilbreth (1868-1924) pioneered

time and motion study

crisis planning

to prepare the organization, its managers, and its employees to cope with sudden catastrophic events that could destroy the firm if a crisis-response plan were not in place

Environment change can occur in two ways-

uncertainty and environmental turbulence

Overcoming the barriers

understanding the purposes of goals and planning, communication and participation, consistency, revision, and updating, and an effective reward system

Virtual recruiting

using social media's video and chat features, virtual job fairs, and recruitment software to identify desired candidates

Do ethics and social responsibility affect financial profitability positively?

yes

Relationship management-

you know how to develop and maintain good relationships, communicate clearly, inspire and influence others, work well in a team, and manage conflict

external locus of control

In contrast, people who believe that outside forces determine what happens to them have a high external locus of control.

technological dimension

In the general environment, includes scientific and technological advances in society.

natural dimension-

Includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

Hiring

for creativity passion, and culture fit

business growth rate

how rapidly the entire industry is increasing

Faultlines

hypothetical dividing lines that are based on one or more demographic characteristics of team members, such as age, race, or ethnicity, or on nondemographic characteristics, such as personal values or attitudes

Accountability-

is the cornerstone of managerial performance, the requirement of one person to answer to a higher authority for performance achieved in his or her area of work responsibility

Team cohesiveness

The extent to which team members are attracted to the team and motivated to remain a part of it.

Prejudice

The tendency to view people who are different as being deficient.

A social entity

means being made up of two or more people.

Content theories

Theories that emphasize the needs that motivate people

Perception

process of receiving and interpreting information from the environment.

Four major directive style:

directive, analytical, conceptual, behavorial

Charismatic leaders must

envision the future, energize others, and enable others

5 stages of team development

forming, storming, norming, performing, adjourning

Agreeableness-

gets along with others, trustworthy

SMART goals-

goals that are specific, measurable, attainable, relevant, and time bound

Regulators-

government agencies and interest groups (NOW, AARP, MADD)

Socialization

helps new members learn the culture

Type-A personality

high achievement orientation, creates own stress, impatient, perfectioness

Referent power

is personal accrued power based on identification, imitation, loyalty or charisma

Expert power

is personal accrued power based on information or expertise possessed

Effectively

making the right decisions and successfully implementing them, doing things right

Equal pay act of 1963-

requires that men and women be paid in the same amount for doing the same job

Board of directors

responsible for what happens in the company

Strategic partners-

spreads risk, open new markets,

Resilience

the capacity to persevere and to bounce back from adversity, conflict, and failure

Job migration

the shifting of jobs from one country to another

Human resource planning

The forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies.

Organization structure

The framework in which an organization defines how tasks are divided, resources are deployed, and departments are coordinated.

span of management

The number of employees reporting to a supervisor; is sometimes called the span of control.

efficiency

The number of resources—raw materials, money, and people—used to produce a desired volume of output.

Strategic goals

A broad statement of where an organization wants to be in the future; pertains to the organization as a whole rather than to specific divisions or departments. Set by and for top-level management. Focuses on broad and general issues.

People change

A change in the attitudes and behaviors of a few employees.

decision

A choice made from available alternatives.

Nonprogrammed decisions

A choice made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization

Integrative negotiation

A collaborative approach is based on a win-win assumption, whereby the parties want to come up with a creative solution that benefits both sides of the conflict.

Political risk

A company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments. This type of risk includes internal conflicts such as social unrest, ethnic violence, social activism, and politically motivated terrorism and cyber threats as well as government actions such as changes in laws, taxes, and other regulations

effective follower

A critical, independent thinker who actively participates in the organization.

Masculinity

A cultural preference for achievement, heroism, assertiveness, work centrality, and material success

practical approach-

A decision-making approach that sidesteps debates about what is right, good, or just, and bases decisions on the prevailing standards of the profession and the larger society.

classical model

A decision-making model based on the assumption that managers should make logical decisions that are economically sensible and in the organization's best economic interest.

administrative model

A decision-making model that includes the concepts of bounded rationality and satisficing and describes how managers make decisions in situations that are characterized by uncertainty and ambiguity.

need for change

A disparity between actual and desired performance.

Uncertainty

A driving force that influences organizational decisions

labor market-

The people available for hire by the organization.

Five level of leadership

The positional level- people follow you but not well Permission level- people follow you because they want to Production level- you become effective as a leader because you produce People development- recruit good people Pinnacle- people follow your because of respect and because what you have done

Power

The potential ability to influence the behavior of others.

Culture-

The set of key values, beliefs, understandings, and norms shared by members of an organization

Behavior modification

The set of techniques by which reinforcement theory is used to modify human behavior.

adjourning

The stage during which members of temporary teams prepare for the team's disbanding.

unfreezing

The stage of organization development (OD) in which people are made aware of problems and the need for change

refreezing

The stage of organization development (OD) where people have incorporated new values, attitudes, and behaviors into their everyday work and the changes become institutionalized in the culture.

strategy execution

The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes

norming

The stage of team development in which conflicts are resolved and team harmony and unity emerge

diversification

The strategy of moving into new lines of business. Other examples of diversification include Facebook's move into text messaging technologies with the purchase of WhatsApp, Nestlé's entry into the pet food business with the purchase of Ralston Foods, and Uber's acquisition of Cornershop, a grocery delivery start-up

Job analysis

The systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.

conformist

A follower who participates actively in the organization but does not use critical thinking skills

benefit corporation

A for-profit organization that has a stated purpose of creating a positive impact on society; is required to consider the impact of decisions on all stakeholders; and voluntarily holds itself to high standards of accountability and transparency.

global team

A group made up of employees who come from different countries and whose activities span multiple countries.

venture capital firm

A group of companies or individuals that invests money in new or expanding businesses for ownership and potential profits.

Charismatic leadership

A leader who has the ability to inspire and motivate people to transcend their expected performance, even to the point of personal sacrifice.

embeddedness

A situation in which there is a deep understanding and acceptance of organizational direction and purpose throughout the organization.

neutralizer

A situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors.

innovation by acquisition

A strategy to obtain innovation by buying other companies, recognizing that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms.

focus strategy

A strategy where managers use either a differentiation or a cost leadership approach, but they concentrate on a specific regional market or buyer group.

globalization strategy

A strategy where product design and advertising are standardized throughout the world

matrix approach

A structural approach that uses both functional and divisional chains of command simultaneously, in the same part of the organization.

centralized network

A structure in which team members must communicate through one individual to solve problems or make decisions.

Scientific management

A subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity

grapevine

A system that carries workplace gossip, a dominant force in organization communication when formal channels are not functioning effectively.

Self-managed teams

A team consists of multiskilled employees who rotate jobs to produce an entire product or service, often led by an elected team member.

special-purpose team

A team created outside the formal structure to undertake a project of special importance, such as developing a new product.

virtual team

A team made up of members who are geographically or organizationally dispersed, rarely meet face to face, and interact to accomplish their work primarily using advanced information and telecommunications technologies

task specialist role

A team role in which an individual devotes personal time and energy to helping the team accomplish its activities and reach its goal.

Reinforcement theory

A theory based on the relationship between a given behavior and its consequences.

Social learning theory

A theory proposes that an individual's motivation can result not just from direct experience of rewards and punishments but also from thoughts, beliefs, and observations of other people's behavior.

Equity theory

A theory that focuses on individuals' perceptions of how fairly they are treated relative to others.

Goal-setting theory

A theory that proposes that specific, challenging goals increase motivation and performance when they are accepted by subordinates and these subordinates receive feedback to indicate their progress toward goal achievement.

Small-batch production

A type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specifications. Examples of items produced through small-batch manufacturing include custom clothing, special-order machine tools, space capsules, satellites, and submarines.

team

A unit of two or more people who interact and coordinate their work to accomplish a goal to which they are committed and hold themselves mutually accountable.

strategy map-

A visual representation of the key drivers of an organization's success, showing the cause-and-effect relationship among goals and plans.

Crowdfunding-

A way of raising capital that involves getting small amounts of money from a large number of investors, usually using social media or the Internet.

Recruiting

Activities or practices that define the desired characteristics of applicants for specific jobs; sometimes called talent acquisition.

Pluralism

An environment in which the organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored.

perceptual distortions

An error in perceptual judgment that results from inaccuracies in any part of the perception process.

Need to achieve

An individual characteristic meaning that a person is motivated to excel and will pick situations in which success is likely

communication apprehension

An individual's level of fear or anxiety is associated with either real or anticipated communication.

self-efficacy

An individual's strong belief that he or she can successfully accomplish a specific task or outcome.

Structured interviews

An interview that uses a set of standardized questions that are asked of every applicant so comparisons can be made easily.

large-group intervention

An organization development (OD) approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change.

idea incubator

An organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics.

Disruptive innovation

Innovations in products, services, or processes radically change competition in an industry, such as the advent of streaming video or e-books.

functional structure

An organizational structure in which activities are grouped together by common function from the bottom to the top of the organization. In a functional structure, people within a department communicate primarily with others in the same department to coordinate work and accomplish tasks or implement decisions that are passed down the hierarchy. Info travels vertically.

virtual network structure

An organizational structure in which the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

chain of command

An unbroken line of authority that links all individuals in the organization and specifies who reports to whom.

sole proprietorship

An unincorporated for-profit business owned by an individual

Entrepreneurial sacrifice-

Another common trait among entrepreneurs is the ability to persevere and stay positive after long periods of sacrifice or struggle.

continuous process production

Involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.

implementation

Involves using managerial, administrative, and persuasive abilities to translate a chosen decision alternative into action.

halo effect

Occurs when a manager gives an employee the same rating on all dimensions of the job, even though performance may be good on some dimensions and poor on others.

Unconscious bias

Occurs when a person is not aware of the bias in his or her favorable and unfavorable assessments, actions, and decisions toward members of specific groups.

Steps required to start an online business

Find a niche market, create a professional online website, choose a domain name, and know when to pivot (to change the strategic direction of business), use social media

Mergers, Acquisitioning, alliances-

Firms combine (merge), purchase (acquisition), or form new venture partnerships or alliances.

Social entrepreneurship

Focuses primarily on creating social value by providing solutions to social problems, with a secondary purpose of generating profit and returns.

the father of scientific management

Frederick Winslow Taylor

business incubator

Helps start-up companies by connecting them with a range of experts and mentors who nurture them, thus increasing their likelihood of success.

moral-rights approach-

Holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them.

Procedural justice-

Holds that rules should be clearly stated and consistently and impartially enforced.

The political model begins with four basic assumptions:

Organizations are made up of groups with diverse interests, goals, and values, Information is ambiguous and incomplete, Managers do not have the time, resources, or mental capacity to identify all dimensions of the problem and process all relevant information., Managers engage in the push and pull of debate to decide goals and discuss alternatives.

job specification

Outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately.

Emotional stability.

The degree to which a person is calm, enthusiastic, and self-confident, rather than tense, depressed, moody, or insecure.

triple bottom line-

Refers to measuring the organization's financial performance, social performance, and environmental performance.

Strategic management

Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between an organization and its environment so as to achieve organizational goals.

Competitive advantage

Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace.

short-term orientation

Reflects a concern with the past and present and a high value on meeting current obligations.

long-term orientation

Reflects a greater concern for the future and a high value on thrift and perseverance.

Avoidance learning

Removing an unpleasant consequence once a behavior is improved. Also called negative reinforcement.

economic dimension

Represents the general economic health of the country or region in which the organization operates. Consumer purchasing power, the unemployment rate, and interest rates are part of an organization's economic environment.

classical perspective

Takes a rational, scientific approach to management and seeks to turn organizations into efficient operating machines.

Big data analytics

Technologies, skills, and processes for searching and examining massive, complex sets of data that traditional data processing applications cannot handle to uncover hidden patterns and correlations.

contingency view

Tells managers that what works in one organizational situation might not work in another.

changing

The "intervention" stage of organization development (OD), when change agents teach people new behaviors and skills and guide them in using them in the workplace.

global mindset-

The ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.

leadership

The ability to influence people toward the attainment of organizational goals.

Social awareness.

The ability to understand others and practice empathy, which means being able to put yourself in someone else's shoes, to recognize what others are feeling without them needing to tell you. Bank of America created a national training program to help employees practice empathy. People with social awareness are capable of understanding divergent points of view and interacting effectively with many different types of people.

cultural intelligence (CQ)

The ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses

Personal networking

The acquisition and cultivation of personal relationships that cross departmental, hierarchical, and even organizational boundaries.

Positive reinforcement

The administration of a pleasant and rewarding consequence following the desired behavior.

Ethnorelativism

The belief that groups and cultures are inherently equal.

Perception

The cognitive process that people use to make sense out of the environment by selecting, organizing, and interpreting information.

Negative personal consequences to stress

behavioral (smoking), psychological (sleep, depression), Medical (heart disease).

Dysfunctional behaviors-

behaviors that detract from, rather than contribute to, organize performance. Ex. turnover, theft and sabotage, sexual and racial harassment, politized behavior and work place violence

Financial resources-

capital investments to support ongoing and long term operations

Stereotyping-

categorizing on the basis of a single attribute

The following methods are most commonly used to reduce perceived inequity:

change work effort, outcomes, perceptions, and leave the job

So, a team has four components in its definition:

Two or more people required 2. People have regular interaction 3. Members share a performance goal 4. People on a team share that goal & hold themselves mutually accountable for performance

equity

When the ratio of one person's outcomes to inputs equals that of another's.

Planned change

a change that is designed in an orderly fashion in anticipation of future events

Reactive change-

a change that is piecemeal response to events and circumstances as they develop

Personality

a combination of characteristics that make us unique individuals; psychological and behavioral attributes

The goal of the EU is to

create a powerful single-market system for Europe's millions of consumers, allowing people, goods, and services to move freely. The increased competition and economies of scale within Europe enable companies to grow large, increase their efficiency, and become more competitive

External forces

are the organizations general and task environments (politics/ economy) that force the organization to alter the way in which it competes

Projection

assign our personal attributes to another individual

Employee resource groups

groups based on social identity, such as gender or race, that are organized to focus on the concerns of employees from that group

Negotiation

is a more formal means of achieving cooperation. Negotiation uses formal bargaining to win acceptance and approval of a desired change

A digital organization

is an organization in which digital technology, such as computers and the Internet, is a primary competitive weapon in both internal and external operations

Legitimate power-

is granted through the organizational hierarchy

The cognitive dimension means

knowing about the global environment and global business, mentally understanding how cultures differ and having the ability to interpret complex global changes.

constraints -

legal, government, and resources

Human resources-

managerial talent and labor

The behavioral style is often the style adopted by

managers having a deep concern for others as individuals. People with a behavioral style usually are concerned with the personal development of others and may make decisions that help others achieve their goals. Managers using this style like to talk to people one on one, understand their feelings about the problem, and consider the effect of a given decision on them.

Deliberately structured

means that tasks are divided and responsibility for their performance is assigned to organization members.

Organizational resources

physical resources, human resources, financial resources, and information resources

ethnocentric companies

place emphasis on their home countries

Negative work-related consequences-

poor quality work output, lower productivity, job dissatisfaction, withdrawal

Mood-

positive or negative feelings or state of mind

Porter's five forces affect industry competition.

potential new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute products, and rivalry among competitors

These stimuli, called stressors

produce some combination of frustration (the inability to achieve a goal, such as an inability to meet a deadline because of inadequate resources) and anxiety (such as the fear of being disciplined for not meeting a deadline). Stress occurs because a person believes that he or she has insufficient time, information, physical ability, knowledge, or other resources to cope with the demands of a particular task or situation

Global outsourcing-

purchasing products or subcontracting labor to foreign countries

premortem

purposefully imagining that a decision has been implemented and has failed, then identifying reasons for the failure so that problematic issues can be addressed in advance

Weber democracy

rationality in organizations meant employee selection and advancement based not on whom you know, but rather on competence and technical qualifications, which are assessed by examination or according to specific training and experience. The organization relies on rules and written records for continuity. In addition, rules and procedures are impersonal and applied uniformly to all employees.

Physical resources

raw materials, office, and production facilities, and equipment

Self-awareness-

realistic self-assessment, self-deprecating sense of humor, confidence

The comprehensive approach-

recognition of the need for change, the establishment of goals for the change, diagnosis of relevant variables, and selection of appropriate change techniques, planning for implementation of the change, actual implementation, and evaluation/ follow up

The scalar principle

refers to a clearly defined line of authority in the organization that includes all employees.

Social media analytics-

refers to gathering data from social media platforms such as Instagram, Facebook, Weibo, and Twitter and analyzing the data to help managers address corporate impact or popularity

big data analytics

refers to searching and examining massive, complex sets of data to uncover hidden patterns and correlations and make better decisions.

Capacity to adapt and learn

refers to the ability of teams to bring greater knowledge and skills to job tasks and enhance the organization's ability to respond to new threats or opportunities in the environment.

The capacity of an information channel is influenced by three characteristics:

the ability to handle multiple cues simultaneously; the ability to facilitate rapid, two-way feedback; and the ability to establish a personal focus for the communication

Intellectual capital-

the collective brainpower or shared knowledge of an organization's workforce

first rung

the first promotion onto the management career ladder

Stock options

the right to purchase shares of company stock at a fixed price in the future. They're a good deal if the stock price goes up.

business intelligence

which means managers scan the environment using various sources to gather information and spot patterns or trends that might be important.

Relatedness needs

Needs for satisfactory relationships with others

11 qualities of the effective manager

- command of basic facts, professional knowledge, tuning in to what's going on, analytical, problem-solving, judgment making, social skill, emotional resilience, proactivity, imagination, and creativity, mental agility, balanced learning habits, self-knowledge

Job specialization alternatives

- job rotation, job enlargement, and job enrichment

Limitations to planning

-Goals and plans can create too much pressure -Goals and plans can create a false sense of certainty -Goals and plans may cause rigidity in a turbulent environment -Goals and plans can get in the way of intuition and creativity

plan

A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.

Limitations of Job Specialization

Boredom and dissatisfaction with mundane tasks. - Anticipated benefits do not always occur.

reverse innovation

Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.

What business are we in?

Corporate-level strategy Pertains to the organization as a whole and the combination of business units and products that make it up.

Four elements of empowerment are described here

Employees receive information about company performance. Employees have the knowledge and skills to contribute to company goals. Employees are rewarded based on company performance Employees have the power to make substantive decisions.

ESG scores can range from 0 to 100 on items such as the following:

Environment (e.g., water use, fuel management) Social capital (e.g., customer privacy, community development) Human capital (e.g., diversity opportunities, compensation and benefits) Business innovation (e.g., product societal value, quality and safety) Leadership and governance (e.g., business ethics, executive compensation)

Motivators

Factors that influence job satisfaction based on fulfilling higher-level needs such as achievement, recognition, responsibility, and opportunities for personal growth.

uncritical thinking

Failing to consider the possibilities beyond what one is told, accepting others' ideas without thinking.

blind hiring

Focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience.

Competitors-

Organizations within the same industry or type of business that vie for the same set of customers.

justice approach-

Says that ethical decisions must be based on standards of equity, fairness, and impartiality.

Open communication

Sharing all types of information throughout the organization and across functional and hierarchical boundaries.

core competence

Something that the organization does particularly well in comparison to others.

Contingency workers

Sometimes called permatemps - Work regular or part-time hours on long term basis - Not permanent employees - Usually no benefits offered

human relations movement-

Stresses the satisfaction of employees' basic needs as the key to increased productivity.

frustration-regression principle

Suggests that failure to meet a high-order need may cause a regression to an already satisfied lower-order need; thus, people may move down as well as up the needs hierarchy.

The human resources perspective

Suggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potential. Two of the best-known contributors to the human resources perspective were Abraham Maslow and Douglas McGregor.

Motivation

The arousal of enthusiasm and persistence to pursue a certain course of action.

VUCA

Volatile - the accelerating rate of change Uncertain - the lack of predictability Complex - the interconnectedness of cause-and-effect Ambiguous - the strong potential for misreads

Anchoring bias

When a manager allows initial impressions, statistics, or estimates to act as anchors to subsequent thoughts and decisions

Delegation

When managers transfer authority and responsibility to positions below them in the hierarchy.

merger

When two or more organizations combine to become one.

Gantt chart

a bar graph that measures planned and completed work along each stage of production by time elapsed.

process innovation

a change in production processes—how the organization does its work

product innovation

a change in the organization's products or services

Benefits of diversity-

better use of employee talent, increased understanding of the marketplace, and enhanced understanding in leadership positions, increased quality of team problem-solving, reduced cost for employee turnover

Rational persuasion-

bring about change with persuasion backed by knowledge, information, facts etc..

work sample

can be a real example of work that a job applicant has produced or a live simulation of the job

Radical decentralization-

decentralization of authority is radical rather than incremental; instead of delegating some authority to employees, the hierarchical reporting relationship is almost completely eliminated, and employees have full authority to make key decisions about their work

four assumptions of classical model

decision maker operates to accomplish goals that are known and agreed on, maker strives for conditions of certainty, decision maker selects the alternative that will maximize the economic return of organization, decision maker is rational

Conscientiousness-

dependable, organized

Discrimination

(1) Making hiring and promotion decisions based on criteria that are not job-relevant. (2) When someone acts out their negative attitudes toward people who are the targets of their prejudice

Strategic plans

(deciding what to do) (upper management)(long-range plans of 5 years or more) Action steps by which an organization intends to attain strategic goals. The strategic plan is the blueprint that defines the organizational activities and resource allocations—in the form of cash, personnel, space, and facilities—required for meeting these targets. Strategic planning tends to be long-term in nature; it may define organizational action steps from two to five years in the future. The purpose of strategic plans is to turn organizational goals into realities within that time period. Decisions of resource allocation, priorities, action steps necessary to reach strategic goals.

Benefits to planning

-provide a source of motivation and commitment -guide resource allocation -a guide to action -set a standard of performance

self awareness

. Being aware of what you are feeling. Self-awareness is the basis for all the other components. People who are in touch with their feelings are better able to guide their own lives and actions. A high degree of self-awareness means you can accurately assess your own strengths and limitations and have a healthy sense of self-confidence.

How Diversity and Multiculturalism Promote Competitive Advantage

1. The cost argument suggests that firms that learn to cope with diversity will generally have higher levels of productivity and lower levels of turnover and absenteeism. 2. The resource acquisition argument suggests that organizations that manage diversity effectively will become known among women and minorities as good places to work. 3. The marketing argument suggests that firms with diverse workforces will be better able to understand differentmarket segments than those with less diverse ones 4. The creativity argument suggests that organizationswith diverse workforces will generally be more creative and innovative than those with less diversity. 5. The problem-solving argument suggests that diverse organizations have a better pool of information from which to draw in making decisions. 6. The systems flexibility argument suggests that firms must become flexible as a way of managing a diverse workforce, causing the overall organization to be more flexible.

Benefits of Job Specialization

1. Workers can become proficient at a task. 2. Transfer time between tasks is decreased. 3. Specialized equipment can be more easily developed. 4. Employee replacement becomes easier.

mission statement

A broadly stated definition of an organization's basic business scope and operations distinguishes it from similar types of organizations. Describes values, aspirations, and reason for being.

Scalar chain

A chain of authority extends from the top to the bottom of the organization and should include every employee.

Formal communication channels

A channel that flows within the chain of command or task responsibility defined by the organization.

negotiation

A conflict management strategy whereby people engage in give-and-take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties

Femininity-

A cultural preference for relationships, cooperation, group decision-making, and quality of life.

monoculture

A culture that accepts only one way of doing things and one set of values and beliefs.

low-context culture

A culture where people use communication primarily to exchange facts and information and derive meaning primarily from words rather than context.

Programmed decisions

A decision made in response to a situation that has occurred often enough to enable managers to develop decision rules that can be applied in the future.

individualism approach-

A decision-making approach suggesting that actions are ethical when they promote the individual's best long-term interests, because with everyone pursuing self-interest, the greater good is ultimately served.

Hero-

A figure who exemplifies the deeds, character, and attributes of a strong culture.

matrix boss

A functional or product supervisor responsible for one side of the matrix.

INFORMAL OR INTEREST GROUP

A group created by its members for purposes that may or may not be relevant to organizational goals.

TASK GROUP •

A group created by the organization to accomplish a narrow range of purposes within a stated time

Social media

A group of Internet-based applications that allows the creation and exchange of user-generated content.

Transformational leaders

A leader is distinguished by a special ability to bring about innovation and change by creating an inspiring vision, shaping values, building relationships, and providing meaning for followers.

situational model

A leadership model that links the leader's behavioral style with the readiness level of followers.

Interactive leadership

A leadership style characterized by values such as inclusion, collaboration, relationship building, and caring.

Culture change

A major shift in the norms, values, and mindset of an entire organization.

Functional managers

A manager responsible for a department that performs a single functional task, such as finance or marketing.

General managers

A manager responsible for several departments that perform different functions.

Top managers

A manager who is at the top of the organizational hierarchy and is responsible for the entire organization

emotion

A mental state that arises spontaneously rather than through conscious effort and is often accompanied by physiological changes.

Management by objectives (MBO)

A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. Method for defining goals and evaluating performance.

job characteristics model

A model of job design that considers core job dimensions, individuals' critical psychological states, and employee growth-need strength.

contingency approaches

A model of leadership that describes the relationship between leadership styles and specific situations.

ERG theory

A modification of the needs hierarchy that proposes three categories of needs: existence, relatedness, and growth.

Story

A narrative based on true events that is repeated frequently and shared among organizational employees. Stories paint pictures that help symbolize the firm's vision and values and help employees personalize and absorb them

decentralized network

A network in which individuals can communicate freely with other team members.

supply chain-

A network of multiple businesses and individuals that are connected through the flow of products or services.

stereotyping

A performance evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics.

free rider

A person who benefits from team membership but does not make a proportionate contribution to the team's work

passive follower

A person who exhibits neither critical independent thinking nor active participation.

alienated follower

A person who is an independent, critical thinker but is passive in the organization.

devil's advocate

A person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensus.

Entrepreneurship-

A person who recognizes a viable idea for a business product or service and carries it out by finding and assembling the necessary resources

idea champion

A person who sees the need for change and is passionately committed to making it happen.

Slogan

A phrase, such as Disney's "The happiest place on earth," that succinctly expresses a key corporate value.

Stress

A physiological and emotional response to stimuli that place physical or psychological demands on an individual and create uncertainty and lack of personal control when important outcomes are at stake.

strategy

A plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goals.

Single-use plans

A plan that is developed to achieve a set of goals that is unlikely to be repeated in the future.

Organization development (OD)

A planned, systematic process of change that uses behavioral science techniques to improve an organization's health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities.

Job satisfaction

A positive attitude toward one's job

Individualism-

A preference for a loosely knit social framework in which individuals are expected to take care of themselves.

Collectivism

A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.

Evidence-based decision making

A process founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence.

on-the-job training (OJT)

A process in which an experienced employee is asked to teach a new employee how to perform job duties.

Open innovation

A process where people search for and commercialize innovative ideas beyond the boundaries of the organization

5 Whys

A question-asking method used to explore the root cause underlying a particular problem. The first "why" generally produces a superficial explanation for the problem, and each subsequent "why" probes deeper into the causes of the problem and potential solutions.

wage and salary surveys

A questionnaire that shows what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization.

Stretch goals-

A reasonable yet highly ambitious and compelling goal that energizes people and inspires excellence. Ex. Asking a group of engineers to create the first Kindle e-reader

Hawthorne studies

A series of research efforts that were important in shaping ideas concerning how managers should treat workers. Employees increased output when managers treated them in a positive manner

system

A set of interrelated parts that function as a whole to achieve a common purpose.

Euro-

A single European currency that has replaced the currencies of 19 member nations of the European Union (EU).

ethical dilemma-

A situation in which all alternative choices or behaviors have potentially negative consequences. In such a case, right and wrong cannot be clearly identified. Ethical issues can be exceedingly complex, and people may hold widely divergent views about the most ethically appropriate or inappropriate actions related to a situation

opportunity

A situation in which managers see potential organizational accomplishments that exceed current goals.

substitute for leadership

A situational variable that makes a leadership style redundant or unnecessary.

cost leadership strategy

A strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.

differentiation strategy

A strategy with which managers seek to distinguish the organization's products and services from those of others in the industry.

administrative principles approach

A subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling.

stakeholder mapping

A systematic way to identify the expectations, needs, importance, and relative power of various stakeholders

functional team

A team composed of a manager and his or her subordinates in the formal chain of command.

fundamental attribution error

A tendency to underestimate the influence of external factors on another person's accomplishments and to overestimate the influence of internal factors.

Employment tests

A test given to employees to evaluate their abilities; can include cognitive ability tests, physical ability tests, personality inventories, and other assessments.

hierarchy of needs theory

A theory proposed by Abraham Maslow says that people are motivated by five categories of needs—physiological, safety, belongingness, esteem, and self-actualization—that exist in a hierarchical order.

new-venture team

A unit separate from the mainstream organization that is responsible for initiating and developing innovations.

compensation

All monetary payments and all nonmonetary goods or benefits used to reward employees.

Diversity

All the ways in which employees differ

work redesign

Altering jobs to increase both the quality of employees' work experience and their productivity.

Conflict

An antagonistic interaction in which one party attempts to block the intentions or goals of another.

Crowdsourcing

An approach in which many people (sometimes hundreds of thousands of people) contribute to the innovation process via the Internet.

descriptive

An approach that describes how managers actually make decisions in complex situations rather than dictating how they should make decisions according to a theoretical ideal.

management by means (MBM)

An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves. When managers pursue their activities in the right way positive outcomes will result. Focuses on people rather than just reaching the goals.

internship

An arrangement whereby an intern, usually a high school or college student, exchanges his or her services for the opportunity to gain work experience and see whether a particular career is appealing.

corporation

An artificial entity created by the state and existing apart from its owners.

Intuition

An aspect of administrative decision making that refers to a quick comprehension of a decision situation based on past experience but without conscious thought.

Myers-Briggs Type Indicator (MBTI™)

An assessment that measures a person's preferences for introversion versus extroversion, sensation versus intuition, thinking versus feeling, and judging versus perceiving

SWOT analysis

An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance.

engagement

An emotional and mental state in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization

Strategic issues-

An event or force that alters an organization's ability to achieve its goals. Managers use several strategies to adapt to these strategic issues, including business intelligence applications and various attempts to influence the environment.

corporate university

An in-house training and development facility that offers broad-based learning opportunities for employees.

Symbol-

An object, act, or event that conveys meaning to others. Symbols can be considered a rich, nonverbal language that vibrantly conveys the organization's important values concerning how people relate to one another and interact with the environment

standing plans

An ongoing plan used to provide guidance for tasks that occur repeatedly in the organization.

Tall structure

An organizational structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

divisional structure

An organizational structure that groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks

partnership

An unincorporated business owned by two or more people

law of effect

Asserts that positively reinforced behavior tends to be repeated, and unreinforced or negatively reinforced behavior tends to be inhibited.

Electronic brainstorming

Brainstorming that takes place in an interactive group over a computer network, rather than meeting face to face.

6 biases

Building influenced by initial impressions Fearing failure or loss Seeing what you want to see Perpetuating the status quo Being influenced by emotions Being over confident

How do we compete?

Business-level strategy Pertains to each business unit or product line within the organization

Mass production

Characterized by long production runs to manufacture a large volume of products with the same specifications. Examples of mass production are automobile assembly lines and the large-batch techniques used to produce tobacco products and textiles.

uncertainty avoidance-

Characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity. High uncertainty avoidance means that members of a society feel uncomfortable with uncertainty and ambiguity and, therefore, support beliefs and structures that promise certainty and conformity. Low uncertainty avoidance means that people have great tolerance for the unstructured, the unclear, and the unpredictable.

adaptability culture-

Characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses. emerges in an environment that requires fast responses and high-risk decision-making.

Graphic rating scale

Checklist or score card for rating employee traits or performance characteristics • Quality of work • Quantity of work • Attendance • Punctuality

Three basic principles define how to manage your many big and small commitments effectively so that you can accomplish them in a timely manner:

Clarity of mind. First, if you're carrying too much around in your head, your mind can't be clear. If your mind isn't clear, you can't focus. If you can't focus, you can't get anything done. Thus, anything you consider unfinished needs to be placed in some kind of trusted system outside your head. Clarity of objectives. Next, you have to be clear about exactly what you need to do and decide the steps to take toward accomplishing it. An organized system. Finally, once you've decided the actions that you need to take, you need to keep reminders in a well-organized system.

Coercion

Coercion means that managers use their formal power to force employees to change. Resisters are told to accept the change or lose rewards (or even their jobs). In most cases, this approach should not be used because employees feel like victims, are angry at change managers, and may even sabotage the changes

glocalization strategy

Combines global coordination and standardization to attain efficiency with local flexibility to meet needs in different countries.

quasirationality

Combining intuitive and analytical thought

Nonverbal communication

Communicating through actions, gestures, facial expressions, and behavior rather than through words.

Communication and Education

Communication and education are used when solid information about the change is needed by users and others who may resist implementation.

Task conflict

Conflict that results from disagreements about the goals to be achieved or the content of the tasks to be performed.

Internal locus of control

Defines whether an individual places the primary responsibility for his successes and failures within himself or on outside forces. Most successful entrepreneurs believe that their actions determine what happens to them, which means they have a high internal locus of control.

Deliver value-

Delivering value to the customer is at the heart of strategy. Value can be defined as the combination of benefits received and costs paid. Managers help their companies create value by devising strategies that exploit core competencies and attain synergy.

Consideration

Describes the extent to which a leader is sensitive to subordinates, respects their ideas and feelings, and establishes mutual trust.

Initiating structure

Describes the extent to which a leader is task oriented and directs subordinates' work activities toward goal accomplishment.

Tactical plans (how to do it)(middle management)(plans of 1-5 years)-

Designed to help execute major strategic plans and to accomplish a specific part of a company's strategy.

decision styles

Differences among people with respect to how they perceive problems and make choices.

Big Five personality factors

Dimensions that describe an individual's extroversion, agreeableness, conscientiousness, emotional stability, and openness to experience.

Greenwashing

Efforts to portray a company as being more environmentally minded that it actually is.

Global outsourcing

Engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies, regardless of country. Sometimes called offshoring. . Millions of low-level jobs, such as textile manufacturing, call center operations, and credit card processing, have been outsourced to low-wage countries in recent years. The Internet and plunging telecommunications costs have enabled companies to outsource more and higher-level work as well, such as software development, accounting, and medical services.

Quantitative Analysis and Operations Research apply mathematical techniques to solve management problems such as:

Forecasting sales or expenses ▪ Establishing optimal levels of inventory ▪ Reducing labor costs without sacrificing customer service

How do we support the business-level strategy?

Functional-level strategy Pertains to the major functional departments within each business unit, such as manufacturing, marketing, and research and development (R&D).

Four primary ways of expressing conflict

High directness-high intensity. A person using this approach expresses a conflict unambiguously by using aggressive or antagonistic verbal and nonverbal communication, such as shouting, scowling, or eye-rolling. High directness-low intensity. With this approach, communication is also unambiguous, but the person uses a low-voltage style, such as asking questions, listening, debating, and deliberating. Low directness-high intensity. A person using this approach expresses a conflict ambiguously but uses aggressive tactics. This may include behaviors such as ignoring another's viewpoint, mean-spirited teasing or bullying, back-stabbing, or undermining the opponent to third parties. Low directness-low intensity. With this approach, a person expresses conflict in an ambiguous, low-key way. Behaviors might include withholding information an opponent needs or deliberately missing a deadline.

Independent contractors

Hired with temporary contracts - Not permanent employees

Some current strategic issues of particular concern to managers include the following:

Hiring the right people to become more competitive on a global basis Hiring the right people for improving quality, innovation, and customer service Knowing the right people to retain after mergers, acquisitions, or downsizing Hiring the right people to apply new information technology (IT) to HRM processes

Contingency plans

Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditions.

Two-boss employees

In a matrix structure, a person who reports to two supervisors simultaneously.

organizational/ external environment-

Includes all elements existing outside the boundary of an organization that has the potential to affect it—Including competitors, technology, resources, and, economic conditions

internal environment

Includes elements within the organization's boundaries, such as employees, management, corporate culture, conditions, stakeholders, owners, board of directors, and physical work environment

legal-political dimension-

Includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior

organizational ecosystem-

Includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive. For example, Apple's ecosystem comprises hundreds of suppliers and millions of customers for the products that it produces across several industries, including smartphones, consumer electronics, Internet services, personal computers, and entertainment

task environment

Includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. Includes competitors, suppliers, customers, and labor market.

role conflict

Incompatible demands of different roles, such as the demands of a manager's superiors conflicting with those of the manager's subordinates.

job enrichment

Incorporating high-level motivators, such as achievement, recognition, and opportunities for growth, into work.

ambidextrous approach

Incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations.

General Environment

Indirectly influences all organizations within an industry; includes five dimensions. It includes social, economic, legal-political, international, natural, and technological factors that influence all organizations equally. For example, changes in federal regulations and economic recessions are part of the organization's general environment, as are shifting social attitudes toward matters such as how and where the products we use are made.

debt financing

Involves borrowing money, such as from friends, family, or a bank, that has to be repaid at a later date in order to start a business.

bottom-up approach

Involves encouraging the flow of ideas from lower levels and making sure that they get heard and acted upon by top executives.

Behaviorally-Anchored Rating Scale (BARS)

Is a rating scale where each point on the scale is associated with behavioral anchors.

Controlling

Is concerned with monitoring employees' activities, keeping the organization on track toward meeting its goals, and making corrections as necessary.

Internal recruiting has two major advantages:

It is less costly than an external search, and it generates higher employee commitment, development, and satisfaction because it offers opportunities for career advancement to employees rather than to outsiders

Authentic leadership

Leadership by individuals who know and understand themselves, who espouse and act consistent with higher-order ethical values, and who empower and inspire others with their openness and authenticity.

Organizational commitment

Loyalty to and engagement with one's work organization

Division of work.

Managerial work and technical work are amenable to specialization to produce more and better work with the same amount of effort.

International management-

Managing business operations in more than one country.

Maslow's hierarchy

Maslow noticed patients' problems stemmed from an inability to satisfy their needs, he suggested a hierarchy of needs. Maslow's hierarchy started with physiological needs and progressed to safety, belongingness, esteem, and, finally, self-actualization needs.

Risk

Means that a decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.

multidomestic strategy

Means that competition in each country is handled independently, and product design and advertising are modified to suit the specific needs of individual countries.

normative

Means that it defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome

Bounded rationality

Means that people have the time and cognitive ability to process only a limited amount of information on which to base decisions

Fringe benefits

Non-monetary compensation • Health insurance, retirement plans, paid time off - Family-friendly benefits • Help employees balance work, personal and family life - Flexible benefits-Cafeteria Plans • Employees personalize benefits within a set allowance or dollar amount - Employee assistance programs • Help employees cope with personal stress and problems

Feedback

Occurs when the receiver responds to the sender's communication with a return message.

Participation

Participation involves users and potential resisters in designing the change. This approach is time consuming, but it pays off because users understand and become committed to the change.

Grit

Perseverance and passion in pursuit of long-term goals

expert power

Power that results from a leader's special knowledge or skill in the tasks performed by subordinates.

reward power

Power that results from the authority to bestow rewards.

Operations Management

Producing goods and services efficiently and effectively, including: • Improving processes and operations • Effective workflow designs • Project management • Inventory management • Quality control

bottom of the pyramid (BOP) concept

Proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poor.

Expectancy theory

Proposes that motivation depends on individuals' assumptions about their ability to perform tasks and receive desired rewards

Suppliers

Provide the raw materials the organization uses to produce its output. Trend from many suppliers to fewer suppliers.

Distributive justice

Requires that different treatment of individuals not be based on arbitrary characteristics. For example, men and women should not receive different salaries if they have the same qualifications and are performing the same job.

Affirmative action

Requires that employers take positive steps to guarantee equal employment opportunities for people within protected groups

Implicit communication

Sending and receiving unspoken cues such as tone of voice or body language as well as spoken words. For example, you might know from her facial expression and body language that a colleague who says "Yes" when asked if she can meet a deadline really means "I doubt it."

Gainsharing

Sharing cost savings that result from productivity improvements

Relationship management.

The ability to connect to others, build positive relationships, respond to the emotions of others, and influence others. People with relationship management skills know how to listen and communicate clearly, and they treat others with compassion and respect.

self- management

The ability to control disruptive or harmful emotions and balance your moods so that worry, anxiety, fear, and anger do not cloud your thinking and get in the way of what needs to be done. People who are skilled at self-management remain optimistic and hopeful despite setbacks and obstacles. This ability is crucial for pursuing long-term goals.

Channel richness

The amount of information that can be transmitted during a communication episode.

P → O expectancy

The assumption is that high performance of a task will lead to the desired outcome.

Management

The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources. Directed at an organization's resources such as human, physical, financial, and information. With the aim of achieving organizational goals in an efficient and effective manner.

Virtual network advantages and disadvantages

The biggest advantages of the virtual network approach are flexibility and competitiveness on a global scale. The network structure provides extreme flexibility, enabling organizations to shift resources and respond quickly to changes in the environment and customer needs. A network organization can draw on resources and expertise worldwide to achieve the best quality and price and can sell its products and services worldwide

Crisis preparation

The crisis preparation stage includes all the detailed planning to handle a crisis when it occurs.

Crisis prevention.

The crisis prevention stage involves activities that managers undertake to try to prevent crises and to detect warning signs of potential crises. A critical part of the prevention stage is building open, trusting relationships with key stakeholders such as employees, customers, suppliers, governments, unions, and the community. By developing favorable relationships, managers can often prevent crises and respond more effectively to those that cannot be avoided. For example, organizations that have open, trusting relationships with employees and unions may avoid crippling labor strikes.

Openness to experience

The degree to which a person has a broad range of interests and is imaginative, creative, artistically sensitive, and willing to consider new ideas.

Agreeableness.

The degree to which a person is able to get along with others by being good-natured, likable, cooperative, forgiving, understanding, and trusting

Conscientiousness

The degree to which a person is focused on a few goals, thus behaving in ways that are responsible, dependable, persistent, and achievement-oriented.

Extroversion

The degree to which a person is outgoing, sociable, assertive, and comfortable with interpersonal relationships.

Inclusion

The degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated.

technical complexity

The degree to which complex machinery is involved in the production process to the exclusion of people.

Division of labor

The degree to which organizational tasks are subdivided into separate jobs. Also called work specialization

Power distance

The degree to which people accept inequality in power among institutions, organizations, and people. High power distance means that people accept inequality in power among institutions, organizations, and people. Low power distance means that people expect equality in power

effectiveness

The degree to which the organization achieves a stated goal.

Empowerment

The delegation of power and authority to subordinates in an organization.

Directive

The directive style is used by people who prefer simple, clear-cut solutions to problems. Managers who use this style often make decisions quickly because they do not like to deal with a lot of information and may consider only one or two alternatives. People who prefer the directive style generally are efficient and rational and prefer to rely on existing rules or procedures for making decisions.

whistle-blowing

The disclosure by employees of unethical, illegitimate, or illegal practices by an organization.

Different ways to approach conflict-

The dominating style (my way) reflects assertiveness to get one's own way and should be used when quick, decisive action is vital on important issues or unpopular actions, such as during emergencies or in the face of urgent cost-cutting requirements. The compromising style (halfway) reflects a moderate amount of both assertiveness and cooperativeness. It is appropriate when the goals on both sides are equally important, when opponents have equal power and both sides want to split the difference, or when people need to arrive at temporary or expedient solutions under time pressure. The accommodating style (your way) reflects a high degree of cooperativeness. It works best when people realize that they are wrong, when an issue is more important to others than to oneself, when people want to build social credits for use in later discussions, and when maintaining harmony is especially important. The collaborating style (our way) reflects a high degree of both assertiveness and cooperativeness. It enables both parties to win, although it may require substantial bargaining and negotiation. The collaborating style is important when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when the commitment of both sides is needed for a consensus. The avoiding style (no way) reflects neither assertiveness nor cooperativeness. It is appropriate when an issue is trivial, when there is no chance of winning, when a delay to gather more information is needed, or when a disruption would be costly.

Responsibility

The duty to perform the task or activity that one has been assigned.

Influence

The effect a person's actions have on the attitudes, values, beliefs, or behavior of others

Humane orientation.

The final dimension refers to the degree to which a society encourages and rewards people for being fair, altruistic, generous, and caring. A country with a high humane orientation places great value on helping others and being kind. A country low on this orientation expects people to take care of themselves; self-enhancement and gratification have high importance in these societies.

Line authority

The formal power to direct and control immediate subordinates.

Creativity

The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization

Punishment

The imposition of an unpleasant outcome following an undesirable behavior.

Horizontal communication

The lateral or diagonal exchange of messages among peers or coworkers and includes team communication

planning-

The management function is concerned with defining goals for future performance and how to attain them.

Coordination

The managerial task of adjusting and synchronizing the diverse activities among different individuals and departments

Ethnocentrism

The natural tendency among people to regard their own culture as superior to others

corporate social responsibility (CSR)

The obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization.

tactical goals

The outcome that major divisions and departments must achieve for an organization to reach its overall goals. Apply to middle management. Focuses on how to operationalize actions necessary to achieve the strategic goals.

Communication

The process by which information is exchanged and understood by two or more people.

selection

The process of assessing the skills, abilities, and other attributes of applicants in an attempt to determine the fit between the job and each applicant's characteristics.

Job evaluation

The process of determining the value of jobs within an organization through an examination of job content.

Decision making

The process of identifying problems and opportunities and then resolving them.

performance appraisal

The process of observing and evaluating an employee's performance, recording the assessment, and providing feedback.

Intrinsic rewards

The satisfaction that a person receives in the process of performing a particular action.

personality

The set of characteristics that underlie a relatively stable pattern of behavior in response to ideas, objects, or people in the environment

Listening

The skill of grasping both facts and feelings to interpret a message's genuine meaning.

Strategy formulation

The stage of strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan.

storming

The stage of team development in which individual personalities emerge and people become more assertive in clarifying their roles and what is expected of them.

performing

The stage of team development in which members focus on problem solving and accomplishing the team's assigned task.

Diagnosis

The step in which managers analyze underlying causal factors associated with the decision situation.

Contingency: Fiedler's Contingency Theory

The suitability of a person's leadership style is determined by whether the situation is favorable or unfavorable to the leader. The favorability of a leadership situation can be analyzed in terms of three elements: the quality of relationships between leader and followers, the degree of task structure, and the extent to which the leader has formal authority over followers

message

The tangible formulation of an idea to be sent to an employee

Emotional contagion

The tendency of people to absorb and express the emotions, moods, and attitudes of those around them.

Confirmation bias

The tendency to put too much value on evidence that is consistent with a favored belief or viewpoint and too little on evidence that contradicts it

Risk propensity

The willingness to undertake risk with the opportunity of gaining an increased payoff

McGregor's Theory X and Theory Y

Theory X - the assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to perform. Theory Y - the assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction.

critical thinking

Thinking independently and being mindful of the effect that one's behavior has on achieving goals.

Gender differentiation.

This dimension refers to the extent to which a society maximizes gender role differences. In countries with low gender differentiation, such as Denmark, women typically have a higher status and play a larger role in decision making. Countries with high gender differentiation accord men higher social, political, and economic status.

Michael Porter's five competitive forces

Threat of new entrants- ease of entering market Competitive Rivalry- Rivalry between firms in the same industry Threat of substitute products- can other products work just as well Power of buyers- extent buyers influence suppliers Power of suppliers- extent of suppliers influence buyers

Algorithm-Based Hiring

Today's managers are also applying artificial intelligence (AI) algorithms to reduce bias in hiring decisions. Other companies are using AI tools to assess applicants' personality characteristics that reflect soft skills important to the company, such as curiosity, the ability to learn, risk tolerance, and emotional intelligence.

Pay-for-performance

Tying at least a portion of compensation to employee effort and performance. Also called incentive pay.

role ambiguity

Uncertainty about what behaviors are expected of a person in a particular role.

Environmental turbulence-

Unexpected changes and upheavals in the environment of an organization. Political issues/events.

Management science

Uses mathematics, statistical techniques, and computer technology to facilitate management decision-making, particularly for complex problems. Also called the quantitative perspective

Leading

Using influence to motivate employees to achieve the organization's goals.

Social learning

Using social media tools to network and learn informally.

Time management

Using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life.

Build synergy

When organizational parts interact to produce a joint effect that is greater than the sum of the parts acting alone, synergy occurs. The organization may attain a special advantage with respect to cost, market power, technology, or management skill. When properly managed, synergy can create additional value with existing resources and provide a big boost to the bottom line

Survey feedback

Where organization development (OD) change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results.

Extinction

Withholding positive rewards and essentially ignoring undesirable behavior.

toxic culture

a culture in which persistent negative sentiments and infighting cause stress, unhappiness, and lowered productivity among subgroups of employees

Labor contracts

a formal agreement between a union and an employer

Organization:

a group of people working together in a structured and coordinated fashion to achieve a set of goals

Base salary

a guaranteed payment Incentive pay: includes annual bonuses, based on performance. Usually specified in advance in employment contracts

sponsor

a higher-ranking senior member of the organization who is committed to providing upward mobility and support to a protégé's professional career

Functional group

a permanent group created to accomplish a number of organizational purposes within an indefinite time horizon

Collective bargaining-

a process that brings management and union representatives together for negotiating, administering, and interpreting labor contracts

Employee engagement

a situation in which employees are satisfied with their work conditions, contribute enthusiastically to meeting team and organizational goals, and feel a sense of belonging and commitment to the organization and its mission

Incremental change

a smaller change that aligns systems and practices with a strategy

in-house venture

a start-up launched within the company rather than as a separate entity, in an effort to both nurture promising new businesses and stimulate entrepreneurship throughout the organization

organization chart

a visual representation of an organization's structure. Describes the formal structure, and how an organization should ideally work.

agile team

a work team that is small, is focused on one piece of a larger project and has complete responsibility along with all needed member expertise to produce a product or service

Cognitive diversity/ diversity of thought

achieved when a manager creates a heterogeneous team made up of individuals with diverse characteristics who bring different ideas, viewpoints, and ways of thinking and reasoning; also called diversity of thought

Volunteerism-

actively giving time and skills to a volunteer or charitable organization

4 categories of culture

adaptability, achievement, involvement, and consistency.

The big five personality traits

agreeableness, conscientiousness, emotional stability, extroversion, and openness

A toll-free confidential ethics hotline

allows employees to report questionable behavior as well as seek guidance concerning ethical dilemmas.

Another alternative performance evaluation method is the performance review ranking system

also referred to as a forced ranking system, stack ranking, or "rank and yank." This method is increasingly controversial because it essentially evaluates employees by pitting them against one another

Opportunities

are characteristics of the external environment that have the potential to help the organization achieve or exceed its strategic goals.

Threats

are characteristics of the external environment that may prevent the organization from achieving its strategic goals.

Type a individuals

are competitive, devoted to work, and have a stong sense of time urgency

Type b individuals

are less competitive, less devoted to work, and have a weaker sense of time urgency

Informal leaders

are people who do not have formal authority to direct the group but whom people choose to follow because of their personal qualities. Informal leaders get their authority based on qualities such as having a mission, being able to inspire others, and demonstrating passion.

Task demands

are stressors arising from the tasks required of a person holding a particular job.

Interpersonal demands

are stressors associated with relationships in the organization. .

geocentric companies

are truly world-oriented and favor no specific country.

Core values

are underlying assumptions and beliefs that shape and guide people's behavior

Barriers to goal setting and planning

as a part of managing the goal setting and planning process, managers must understand the barriers that can disrupt them managers must also know how to overcome them

implicit bias

attitudes or stereotypes that affect our understandings and actions without our conscious knowledge; also called unconscious bias

3 major responsibilities of HRM

attracting a quality workforce, developing a quality workforce, and maintaining a quality workforce

Spaulding outlined eight "fundamental necessities," many of which were later addressed by Fayol. For example:

authority and responsibility, division of labor, adequate manpower, and cooperation and teamwork

Three categories of human behavior:

codified law (legal standard), free choice (personal standard), and ethics (social standard)

Personal communication networks

communication networks that exist outside formally authorized workplace channels and include personal networks, the grapevine, and written communication

A manager's job requires a range of skills, which can be placed in three categories:

conceptual, human, and technical

People who tend toward a conceptual style also like to

consider a broad amount of information. However, they are more socially oriented than those with an analytical style and like to talk to others about the problem and possible alternatives for solving it. Managers using a conceptual style consider many broad alternatives, rely on information from both people and systems, and like to solve problems creatively.

Managers with an analytical style like to

consider complex solutions based on as much data as they can gather. These individuals carefully consider alternatives and often base their decisions on objective, rational data from management control systems and other sources. They search for the best possible decision based on the information available.

Profit Sharing Plans

creates a pool of money for annual employee bonuses, based on corporate profits. Rewards may be given at the end of a time period or kept in an account until retirement.

Managing diversity and inclusion

creating a climate in which the potential advantages of diversity for organizational or group performance are maximized, while the potential disadvantages are minimized

Contribution of teams

creativity and innovation, improved quality, speed of response, higher productivity and lower costs, enhanced motivation and satisfaction

goals are socially constructed—that is, they are

defined by an individual or group.

Market share

defines whether a business unit has a larger or smaller share than its competitors.

Planning

determining the organization's goals and defining the means for achieving them. Improves focus, action orientation, coordination, control, and time management

- Profit sharing

distributes a portion of profits to employees as a reward and incentive

Gain sharing

distributes a portion of savings when costs are reduced

Motivational methods:

don't hide information, rely on intrinsic rewards, let people own the goal, reward the team, hire attitude over aptitude, reinvent management,

Destructive stress

dysfunctional

Artificial intelligence

encompasses techniques used to teach computer systems to learn, reason, perceive, infer, communicate, and make decisions similar to or better than human beings can

Shared power-

encourages people in a collaborative process of identifying values, assumptions, and goals from which support change will naturally emerge

Social skill

expertise with teams, persuasiveness, gift for collaboration

Extroversion-

extrovert

Policy-based statements

generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities.

The dual lines of authority make the matrix unique. The two lines of authority are

geographic and product. The geographic boss in Germany coordinates all subsidiaries in Germany, and the plastics products boss coordinates the manufacturing and sale of plastics products around the world

Transformation leadership-

goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences and inspiring new ways of thinking

Purposes of goals-

guidance and unified decisions, promotion of good planning, source of motivation, and to provide a mechanism for evaluation and control

goal difficulty

hard goals are more motivating than easy ones. Easy goals provide little challenge for employees and don't require them to increase their output.

Managers can enhance employees' motivation to perform desired behaviors by ensuring that each individual

has a chance to observe the desirable behaviors, accurately perceives the behaviors, remembers the behaviors, has the necessary skills to perform the behaviors, and sees that the behaviors are rewarded by the organization

According to equity theory

if people perceive their compensation as being equal to what others receive for similar contributions, they will believe that their treatment is fair and equitable. People evaluate equity by determining the ratio of inputs to outcomes. Inputs to a job include education, experience, effort, and ability. Outcomes from a job include pay, recognition, benefits, and promotions. The inputs-to-outcomes ratio may be compared to that of another person in the workgroup or to a perceived group average

Exploitation

implementing new ideas with established capabilities and routines

international dimension

in the external environment, represents events originating in foreign countries, as well as opportunities for companies in other countries. The international environment provides new competitors, customers, and suppliers, as well as shapes social, technological, and economic trends.

Codified law-

in which values and standards are written into the legal system and enforceable in the courts. In this area, lawmakers set rules that people and corporations must follow in a certain way, such as obtaining licenses for driving, paying corporate taxes, and following other local, state, and national laws.

Major barriers to goal setting and planning

inappropriate goals, improper reward system, dynamic and complex environment, reluctance to establish goals, resistance to change, constraints

Staff departments

include all those that provide specialized skills in support of line departments. Staff departments have an advisory relationship with line departments and typically include marketing, labor relations, research, accounting, and HR.

Leadership

includes the following elements- be emphatic, give small groups autonomy to innovate, speak the truth, talk about goals often

advantage of bossless work environment

increased flexibility, greater employee initiative and commitment, and better and faster decision-making

Mood contagion

influence of one's mood on another

These roles are divided into three conceptual categories:

informational (managing by information)/ how managers exchange and process information, interpersonal (managing through people), and decisional (managing through action)

Internal forces

inside the organization cause it to change its structure and strategy; some internal forces are responsible to external pressures

failures in business ethics and corporate governance, such as

insider trading, securities fraud, excessive executive compensation, executive bonuses, exploitation of foreign labor, hiring of undocumented workers.

behavioral questions

interview questions that ask people to describe how they have performed a certain task or handled a specific problem

Coalitional management-

involves building an alliance of people who support a manager's goals and influencing other people to accept and work toward those goals

Free choice/ personal standard law

is at the opposite end of the scale from codified law; it pertains to behavior about which the law has no say and for which an individual or organization enjoys complete freedom. Examples include a manager's choice of where to buy a new suit and an organization's choice of which of two well-qualified suppliers to use

Scanlon Plan

is similar to gainsharing programs, but the percentage of award is very high, typically two-thirds or more of the savings, and the award is given to all workers, not just those who made the improvements.

achievement culture

is suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. This results-oriented culture values competitiveness, aggressiveness, personal initiative, cost-cutting, and willingness to work long and hard to achieve results. An emphasis on winning and achieving specific ambitious goals is the glue that holds the organization together.

The psychological dimension

is the emotional and affective aspects. It includes a liking for diverse ways of thinking and acting, a willingness to take risks, and the energy and self-confidence to deal with the unpredictable and uncertain.

Coercive power

is the power to force compliance by psychological, emotional, and physical threat means

Reward power

is the power to give or withhold results

Coalition building

is the process of forming alliances among managers. In other words, a manager who supports a specific alternative, such as increasing the corporation's growth by acquiring another company, talks informally to other executives and tries to persuade them to support the decision

Organizational culture-

is the set of values, beliefs, behaviors, customs, and attitudes that determines the feel of the company

job rotation,

is to move employees systematically from one job to another to provide variety and stimulation. Another approach is to combine a series of small tasks into one new, broader job so that people perform a variety of activities, which is referred to as job enlargement.

Strategic response-

maintaining a status quo, altering the current strategy, or adopting a new strategy

Staff managers

managers in charge of departments that support the organization's line departments with specialized advisory or support functions, such as legal, accounting, and HR

Line managers

managers in charge of the functions that directly advance the core work of an organization, such as manufacturing or sales

First-level managers/ supervisory managers

managers who are at the first or second level of the hierarchy and are directly responsible for overseeing groups of production employees; sometimes called supervisory managers

Autonomy

meaning the freedom to work the way they want to work, under the conditions they choose for themselves—or by a need to achieve specific goals. But for an entrepreneur to be successful, he or she needs to have a number of other important personal traits, such as unflagging enthusiasm, commitment, and self-confidence. Entrepreneurs are also typically comfortable with risk and ambiguity.

Unity of command

means that each employee is held accountable to only one supervisor.

Ethical leadership-

means that managers are honest and trustworthy, are fair in their dealings with employees and customers, and behave ethically in both their personal and professional lives

loss aversion

means that people typically respond more strongly to a potential loss than to an expected gain

Self-confidence

must be confident in their abilities

Platform-based organizations

organizations that connect producers and consumers via digital technology, enabling users to both create and consume something of value. The owners of the platform-based business provide the software and the central processing computers that connect other people to a self-sustaining system. The users both create and consume any product or service. The owners of the platform can earn money by charging a fee for the transaction or by exposing users to advertising. Ex. social media.

Motivation

passion for the work, desire to raise the bar, commitment, and optimism

Groupthink-

people are so committed to a cohesive team that they are reluctant to express contrary opinions. When people in work teams go along with ideas or decisions simply for the sake of harmony, problems typically result

Areas of organizational change-

people, organizational structure and design, and technology and operations

Line departments

perform tasks that reflect the organization's primary goal and mission. In a software company, line departments make and sell the product. In an Internet-based company, line departments would be those that develop and manage online offerings and sales

Productive output

pertains to performance and the quality and quantity of task outputs as defined by team goals.

Satisfaction

pertains to the team's ability to meet the personal needs of its members and hence maintain their membership and commitment

Fayol felt that these principles could be applied in any organizational setting. He also identified five basic functions or elements of management:

planning, organizing, commanding, coordinating, and controlling. These functions underlie much of the general approach to today's management theory.

Why start-up fails-

poor management, sloppy accounting, inadequate marketing, operational mediocrity, fear of firing,

Constructive stress

positive effect, "I work better under pressure

external recruiting

recruiting newcomers from outside the organization—is advantageous. Applicants are obtained by a variety of outside sources, including advertising, state employment services, online job boards and social media, private employment agencies (headhunters), job fairs, and employee referrals.

Goal specificity

refers to the degree to which goals are concrete and unambiguous. Specific goals

Globalization

refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries

Variable ratio

reinforcement applied after variable number of behaviors, regardless of time

Fixed ratio

reinforcement applied at fixed numbers of behaviors, regardless of time

Fixed interval-

reinforcement applied at fixed time intervals, regardless of behavior

Variable interval

reinforcement applied at variable time intervals

Selective perception-

screening out information that causes discomfort or contradicts our beliefs.

Emotional intelligence includes four basic components:

self awareness, self management, social awareness, and relationship management

5 components of emotional intelligence

self-awareness, self-regulation, motivation, empathy, social skill

Emotional stability

self-confident, stable

Reasons for resistance to change-

self-interest, lack of understanding and trust, uncertainty, and different assessment and goals

Psychological contract-

set of expectations of the worker and what the worker expects from the employer. Worker gives time and effort and the employer gives pay and benefits.

Fair labor standards act

sets minimum wage and requires overtime pay for work in excess of 40 hours per week

Hackman and Oldham identified five dimensions that determine a job's motivational potential:

skill variety, task identity, task significance, autonomy, and feedback

The individual who must make an ethical choice in an organization is the

social agent

the impact of charismatic leaders normally comes from

stating a lofty vision of an imagined future that employees identify with, displaying an ability to understand and empathize with followers, and empowering and trusting subordinates to accomplish results

HRM environment-

strategic importance, legal environment, and social environment

Emotions-

strong feelings directed at something or someone

Fundamental management skills-

technical, diagnostic, interpersonal, decision making, time management, communication, and conceptual

Fundamental attribution error-

tendency to blame someone else when things go wrong

Corporate governance-

the active oversight of management decisions, corporate strategy, and financial reporting by the board of directors

Workplace Diversity

the composition of a workforce in terms of differences among the members, such as gender, race, age, ethnicity, religion, sexual orientation, and ableness

Organizational innovation

the creation and implementation of a new idea, solution, or behavior by an organization

Job design-

the determination of an individual's work-related responsibilities

Broad labor market forces affecting today's organizations include

the growing need for computer-literate knowledge workers; the necessity for continuous investment in human resources through recruitment, education, and training to meet the competitive demands of the borderless world; and the effects of international trading blocs, automation, outsourcing, and shifting facility locations on labor dislocations, all of which create unused labor pools in some areas and labor shortages in others.

Discrimination

the holding of negative, irrational attitudes regarding people who are different from us. The key word is irrational.

Workflow technology

the knowledge, tools, techniques, and activities used to transform organizational inputs into outputs

Coaching

the process of engaging in regular conversations with an employee that facilitate learning and development by supporting strengths and overcoming weaknesses to improve behavior and performance

Organization structure is defined as

the set of formal tasks assigned to individuals and departments; formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and the design of systems to ensure effective coordination of employees across departments.

Negativity bias

the term used to describe how the human mind reacts more quickly and strongly to perceived bad things than it does to good things

Steps in the change process (kurt lewins model)-

unfreezing, implementing change, and refreezing

Halo effect-

using one characteristic of a person to form an overall impression

Efficiency-

using resources wisely and in a cost-effective way, is about doing things right

Another aspect of management communication concerns the organization as a whole. Three elements of workplace communication for managers to master are

using social media to improve internal and external communication; using informal, personal communication networks; and using formal communication channels.

Tools for putting strategy into action

visible leadership, clear roles and accommodation, human resources, and candid communication

The genetic information nondiscrimination act-

was passed to respond to new technology that led to employers discriminating against people with genetic illnesses

just-in-time (JIT),

which ensures that companies keep a minimum supply of inventory on hand, receiving resources just as they are needed in the manufacturing process

Outsourcing

which means farming out certain activities, such as manufacturing or credit processing, has become a significant trend.

Value-based management

works hard to make sure the core values show; it supports a strong organizational culture

Social awareness-

you can understand the emotions, needs, and concerns of other people, pick up on emotional cues, feel comfortable socially, and recognize power dynamics in a group or organization.

Self-awareness

you recognize your own emotions and how they affect your thoughts and behavior, know your strengths and weaknesses, and have self-confidence

Self-management

you're able to control impulsive feelings and behaviors, manage your emotions in healthy ways, take initiative, follow through on commitments, and adapt to changing circumstances

Openness-

open to new ideas

Transactional leaders

A leader who clarifies subordinates' roles and task requirements, initiates structure, provides rewards, and displays consideration for followers.

Human capital

The economic value of the combined knowledge, experience, skills, and capabilities of employees

upward communication

Messages that flow from the lower to the higher levels in the organization's hierarchy.

Distributive negotiation

A competitive and adversarial approach in which each party strives to get as much as it can, usually at the expense of the other party

BCG matrix

A concept developed by the Boston Consulting Group (BCG) that evaluates strategic business units with respect to two dimensions—business growth rate and market share—and classifies them as cash cows, stars, question marks, or dogs.

Ambiguity

A condition in which the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable

socioemotional role

A team role in which an individual provides support for team members' emotional needs and helps strengthen social unity. They display the following behaviors: Encourage. Are warm and receptive to others' ideas; praise and encourage others to draw forth their contributions Harmonize. Reconcile group conflicts; help disagreeing parties reach agreement Reduce tension. Tell jokes or diffuse emotions in other ways when the group atmosphere is tense Follow. Go along with the team; agree to other team members' ideas Compromise. Shift their own opinions to maintain team harmony

Brainstorming

A technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for making a decision

task force

A temporary team or committee designed to solve a problem involving several departments.

Machiavellianism

A tendency to direct one's behavior toward the acquisition of power and the manipulation of other people for personal gain; based on the ideas of Niccolò Machiavelli, a sixteenth-century Italian political philosopher.

Team building

An organization development (OD) intervention enhances cohesiveness by helping groups of people learn to work together as a team.

performance

An organization's ability to attain its goals by using resources in an efficient and effective manner.

Self-awareness

Being conscious of the internal aspects of one's nature, such as personality traits, beliefs, emotions, attitudes, and perceptions, and appreciating how your patterns affect other people.

Unity of command

Each subordinate receives orders from one—and only one—superior.

Sustainability

Economic development that generates wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving society and the environment for the needs of future generations.

hygiene factors

Elements that focus on lower-level needs and consider the presence or absence of job dissatisfiers, including working conditions, pay, and company policies.

bureaucratic organizations approach

Emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal recordkeeping, and separation of management and ownership.

humanistic perspective-

Emphasizes understanding human behavior, needs, and attitudes in the workplace. Here are three primary subfields based on the humanistic perspective: the human relations movement, the human resources perspective, and the behavioral sciences approach.

political instability

Events such as riots, revolutions, or government upheavals that can affect the operations of an international company.

realistic job previews (RJPs)

Gives applicants all pertinent and realistic information, both positive and negative, about a job and the organization.

Assertiveness

Placing a high value on assertiveness means that a society encourages toughness, assertiveness, and competitiveness. Low assertiveness means that people value tenderness and concern for others over being competitive.

Satisficing

Refers to choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist.

escalating commitment

Refers to continuing to invest time and money in a decision despite evidence that it is failing.

Unrelated diversification

Refers to expanding into totally new lines of business.

Self-management

The ability to engage in self-regulating thoughts and behavior to accomplish all your tasks and handle difficult or challenging situations.

ethics

The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong

Matrix advantages-

The matrix can be highly effective in a complex, rapidly changing environment in which the organization needs to be flexible, innovative, and adaptable. The conflict and frequent meetings generated by the matrix allow new issues to be raised and resolved. This structure makes efficient use of HR because specialists can be transferred from one division to another.

Corporate intrapreneurship

an internal entrepreneurial spirit, philosophy, and structure that encourages all employees to act like entrepreneurs

Principle-based statements

are designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees.

polycentric companies

are oriented toward the markets of individual foreign host countries

Advantages of outsourcing-

cost reduction and savings, financial and operational flexibility, need to focus on a few things, access to quality, expertise, and better management skills, and staffing flexibility

The sociocultural dimension- Includes

demographic characteristics, norms, customs, and values of a population within which the organization operates. Important sociocultural characteristics are geographic distribution and population density, age, and education levels. Today's demographic profiles are the foundation of tomorrow's workforce and consumers.

three steps in crisis preparation stage

designating a crisis management team and spokesperson, creating a detailed crisis management plan, and setting up an effective communications system.

Attribution-

developing explanations for events and their perceived causes

EQ=

emotional intelligence- helps you keep a cool head in difficult situations, helps you build stronger relationships, succeed at work, and achieve your career and personal goals

Internal crowdsourcing

employees can pitch their ideas to managers and colleagues and collectively decide which projects the company should pursue

Exploration

encouraging creativity, risk-taking, experimentation, and the development of new ideas

Internet of Things

impersonal "things" are connected via the Internet and can themselves generate and receive data by communicating with each other

Divisional advantages-

more flexible and responsive to change because each unit is small and keenly attuned to its environment. Because employees work on a single product line or focus on a specific geographic or customer group, their concern for customers' needs is high.

Individual performance is determined by

motivation, ability, and work environment

High energy

must have high energy and be obsessed to be a successful entrepreneur

Labor unions

organizations to which employees belong and that deal with employers on the worker's behalf

The pregnancy discrimination act of 1978-

protects female workers from discrimination because of pregnancy.

Bonus pay

provides one-time payments to employees in recognition of contribution or performance

Stress-

tension faced with demands, constraints, and opportunities

problem

A situation in which organizational accomplishments have failed to meet established goals.

Relationship conflict

Conflict that results from interpersonal incompatibility creates tension and personal animosity among people.

Disadvantages of outsourcing-

- need greater coordination, reduces organizational learning by depleting its skill base, loss of control, adverse effects on morale and motivation, and job security

stakeholder

Any group or person within or outside the organization that has some type of investment or interest in the organization's performance.

Reinforcement

Anything that causes a certain behavior to be repeated or inhibited.

Compensatory justice

Argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no control

Authority is distinguished by three characteristics

Authority is vested in organizational positions, not people, Authority flows down the vertical hierarchy, and Authority is accepted by subordinates

Benefits are things of value other than the compensation that the organization provides to its workers.

Benefits typically include sick leave, life insurance, vacation, holidays, and unemployment compensation. 2. Benefits cost organizations an amount equal to about one-third of their cash compensation. 3. Cafeteria benefits plans allow workers to choose additional benefits, on top of some basic benefits provided to all. Thus, a working parent can add daycare benefits, while a childless worker may choose more vacation time instead.

The details of the business plan may vary, but successful business plans generally share several characteristics:

Demonstrate a well-defined, compelling vision that creates an air of excitement. Provide clear and realistic financial projections. Profile potential customers and the target market. Include detailed information about the industry and competitors. Provide evidence of an effective entrepreneurial management team. Highlight critical risks that may threaten business success. Spell out the sources and uses of start-up funds and operating funds. Capture the reader's interest with a killer summary.

Traits

Distinguishing personal characteristics, such as intelligence, self-confidence, energy, and independence.

behavioral sciences approach-

Draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational setting.

top leader

In a matrix structure, the person who oversees both the product and the functional chains of command and is responsible for the entire matrix.

Assessing Performance Accurately

Jobs are multidimensional, so performance may be multidimensional as well. Two popular approaches used to assess performance in recent years are 360-degree feedback and the performance review ranking system

The three needs most frequently studied are these:

Need for achievement. The desire to accomplish something difficult, attain a high standard of success, master complex tasks, and surpass others Need for affiliation. The desire to form close personal relationships, avoid conflict, and establish warm friendships Need for power. The desire to influence or control others, be responsible for others, and have authority over others

Target customers

Managers can define a target market geographically, such as serving people in a certain part of the country; demographically, such as aiming products and services toward people in a certain income bracket or targeting a certain gender or age, such as preteen girls; or by a variety of other means.

horizontal linkage model

Means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products.

Growth needs

Needs focusing on the development of human potential and the desire for personal growth and increased competence

Existence needs

Needs for physical well-being

downward communication

Messages sent from top management down to subordinates.

related diversification

Moving into a new business that is related to the corporation's existing business activities

Strengths

Natural talents and abilities that have been supported and reinforced with learned knowledge and skills.

Subsystems

Parts of a system that depend on one another for their functioning.

Customers-

People and organizations that acquire goods or services from a company.

four sources of business intelligence

Personal internal. Managers gather information by talking with colleagues and subordinates within the organization about what is going on in departments and about issues they see with customers, suppliers, or competitors. Personal external. Managers develop positive relationships with individuals working at competing firms, suppliers, and customer organizations in an effort to gain information from these sources. Organizational internal. Although many managers prefer to get their information from personal sources, they also scan internal reports and documents for useful data. Organizational external. With this approach, managers keep up with news reports, industry reports, and research databases.

Referent power

Power that results from characteristics that command subordinates' identification with, respect and admiration for, and desire to emulate the leader. Other sources of power: personal effort, network of relationships, information,

legitimate power

Power that stems from a manager's formal position in an organization and the authority granted by that position.

coercive power

Power that stems from the authority to punish or recommend punishment

Why do people resist change?

Self-interest, lack of understanding, and trust, uncertainty, and different assessments/ goals.

Four major activities make MBO successful

Set goals- goals that are concrete and realistic, provide a specific time frame and assign responsibility Develop action plans- defines course of action needed to achieve the stated goals Review progress- allows managers and employees to see if they are on target Appraise overall performance- evaluate whether annual goals have been achieved for both individuals and departments

Unity of direction

Similar activities in an organization should be grouped together under one manager.

Future orientation

Similar to Hofstede's time orientation, this dimension refers to the extent to which a society encourages and rewards planning for the future over short-term results and quick gratification.

employer brand

Similar to a product brand, except that rather than promoting a specific product, its aim is to make an organization seem like a highly desirable place to work.

6 ways organizations adapt to their organizations

Social responsibility Direct influence Organization design and flexibility Information management Strategic response Mergers, acquisitions, and alliances

operational plans (developed by middle and lower level mangers, do it and make it happen, 1 year or less)

Specifies the action steps toward achieving operational goals and supports tactical activities. Has short term focus.

Team advantages and disadvantages

The team approach breaks down barriers across departments and improves coordination and cooperation. Team members know one another's problems, so they are more willing to compromise rather than blindly pursuing their own goals. The team concept also enables the organization to adapt more quickly to customer requests and environmental changes, and it speeds decision making because decisions need not go to the top of the hierarchy for approval. Another big advantage is the morale boost. Employees are typically enthusiastic about their involvement in bigger projects rather than in narrow departmental tasks.'

Social facilitation

The tendency for the presence of others to enhance one's performance.

Groupthink

The tendency of people in groups to suppress contrary opinions in a desire for harmony.

self-serving bias

The tendency to overestimate the contribution of internal factors to one's successes and the contribution of external factors to one's failures.

Empathy-

ability to read between the lines, skills with group dynamics

Emotional intelligence

ability to understand and manage emotions

Frederick Winslow Taylor (1856-1915), proposed

that workers "could be retooled like machines, their physical and mental gears recalibrated for better productivity."

Absenteeism

occurs when a worker does not show up in time for work

Turnover-

occurs when individuals quit their job for work-related or personal reasons

Owners

owner/manager, stockholders, and investors