Management 2050: Midterm Terms to Know
Objective
(goal), specific commitment to achieve a measurable result within a states period of time
Supplier
A business which sells (or supplies) products to another business.
Wholly-Owned Subsidiaries
A foreign subsidiary, or subordinate section of an organization, that is totally owned and controlled by an organization
Common Purpose
A goal that unifies employees or members and gives everyone an understanding of the organization's reason for being
Board of Directors
A group of people elected by the stockholders of a corporation to set the policies for the corporation.
Organization
A group of people who work together to achieve some specific purpose
Tariff
A tax on imported goods
General Environment
Also called macroenvironment; in contrast to the task environment, it includes six forces: economic, technological, sociocultural, demographic, political-legal, and international
Defensive Strategy
Also known as a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.
Hierarchy of Authority
Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time
Product Structure
An organizational structure in which each product line or business is handled by a self-contained division.
Licensing
Company X allows a foreign company to pay it a fee to make or distribute X's product or service (Example: Funko has a license with Disney to create Black Panther Pops)
Person-Organization Fit
Compatibility between employees and their organizations
Accountability
Describes expectation that managers must report and justify work results to the managers above them
Geographic Divisions
Divisional structures in which activities are grouped around defined regional locations
Sustainable Economic Development
Economic development that does not harm society or the environment. It ensures that human and natural resources are maintained for future generations
Task Environment
Eleven groups that present you with daily tasks to handle: customers, competitors, suppliers, distributors, strategic allies, employee organizations, local communities, financial institutions, government regulators, special-interest groups, and mass media
Matrix Structure
Fourth type of organizational structure, which combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal
Decision Trees
Graph of decisions and their possible consequences, used to create a plan to reach a goal
Nonprofit Organization
Institution that functions much like a business, but does not operate for the purpose of generating profits
Bounded Rationality
One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints
Competitor
One who competes or is a rival of another business enterprise.
Mechanistic Organization
Organization in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
Organic Organization
Organization in which authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
Unity of Command
Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands
Organizational Culture
Sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members
Vision Statement
Statement that expresses what the organization should become and where it wants to go strategically
Strategic Positioning
Strategy that attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company
Multiplier Effect
The direct, indirect, and induced consequences of change in an activity.
Simple Structure
The first type of organizational structure, whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization
Responsibility
The obligation one has to perform the assigned tasks
Organizational Socialization
The process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization
Functional Structure
The second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups
Divisional Structure
The third type of organizational structure, whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions
Clan Culture
Type of organizational culture that has an internal focus and values flexibility rather than stability and control
Hierarchy Culture
Type of organizational culture that has an internal focus and values stability and control over flexibility
Total Quality Management
a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction
Adhorcracy (Culture)
a corporate culture based on the ability to adapt quickly to changing conditions
Predictive Modeling
a data-mining technique used to predict future behavior and anticipate the consequences of change
Rational Decision-Making Model
a decision-making model that describes how individuals should behave in order to maximize some outcome
Boundryless Organization
a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks; the collaborators may include competitors, suppliers and customers
Franchasing
a form of licensing in which a company allows a foreign company to pay a fee and share the profit in return for using the first company's brand name and a package of materials and services
Code of Ethics
a formal statement of ethical principles and rules of conduct
Organizational Structure
a formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve organizational goals
Management by Objective
a four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee's performance, and (4) the manager makes a performance appraisal and rewards the employee according to results
Expropriation
a government's seizure of a domestic or foreign company's assets
Organizations
a group who work together to achieve a specific purpose
Scientific Management
a management theory using efficiency experts to examine each work operations and find ways to minimize the time needed to complete it
Maslow's Hierarchy of Needs
a motivational theory in psychology comprising a five-tier model of human needs, ( 1) Physiological Needs, (2) Safety and Security, (3) Relationships, Love and Affection, (4) Self Esteem, (5) Self Actualization
Customer
a person or business to whom merchandise or services are sold
Distributor
a person or organization that helps another organization sell its goods and services to customers
Mission Statement
a statement of the organization's purpose - what it wants to accomplish in the larger environment
Bureaucracy
a system of management that uses rules, regulations and formal authority to guide performance.
Anchoring Bias
a tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information
Confirmation Bias
a tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence
Import Quota
a trade barrier in the form of a limit on the numbers of a product that can be imported
Forecast
a vision or projection of the future
Benchmarking
a way to measure something against a standard, the benchmark
Soft Skills
ability to motivate, inspire trust, and communicate
Values
abstract ideals that guide one's thinking and behavior across all situations
Geocentric Manager
accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective
Rites and Rituals
activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life
Joint Ventures
also known as a strategic alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country
Whistleblower
an employee who reports organizational misconduct to the government or the public (Example: Snowden v. National Surveillance Agency)
Mentor
an experienced person who provided guidance to someone new to the work world
Symbol
an object, act, quality, or event that conveys meaning to others
Embargo
an official ban on trade or other commercial activity with a particular country.
Centralized Authority
an organization structure in which decision-making authority is maintained at the top level of management
Division of Labor
arrangement of having discrete parts of a task done by different people (also known as work specialization)
Theory X
assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.
Theory Y
assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.
Ethnocentric Manager
believe that their native country, culture, language, and behavior are superior to all others
Multinational Corporation
business firm with operations in several countries
Importing
buying goods outside the country and reselling them domestically
Satisficing
choosing a "good enough" alternative (buying shoes that look like converse for $10 because they look close enough)
Strategic Planning
determines what the organization's long term goals should be for the next one to five years with the resources they have available
Classical View of Management
emphasized finding ways to manage work more efficiently, assumed that people are rational. Had two branches: scientific and administrative.
Internal Stakeholders
employees, owners, board of directors
Espoused Value
explicitly stated values and norms preferred by an organization
Values Statement
expresses what the company stands for, its core priorities, the values its employees embody, and what its products contribute to the world
For-Profit Organization
formed to make money, or profits, by offering products or services
Operational Plan/Goal
goals that are set by and for first line managers that are concerned with short term matters associated with realizing tactical goals, planning determines how to accomplish specific tasks with available resources within the next 1 week to 1 year period (done by first line managers)
Tactical Plan/Goal
goals that are set by and for the middle managers and focus on the actions needed to achieve strategic goals, planning determines what contributions departments or similar work units can make their given resources during the next 6 months to 2 years (done by middle management)
Strategic Plan/Goal
goals that are set by top management and focus on objectives for the organization as a whole, planning determines what the organization's long term goals should be for the next one to five years with the resources they expect to have available
Trend Analysis
hypothetical extension of a past series of events into the future
Free Trade
international trade left to its natural course without tariffs, quotas, or other restrictions.
Intuition
making a choice without the use of conscious thought or logical inference
Operations Management
management that wants to create the highest level of efficiency possible
Parochial Manager
managers are put in charge of different areas and given responsibility for their specific area's success.
Polycentric Manager
managers who take the view a that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
Strategic Control
monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed
Multinational Organization
nonprofit organization with operations in several countries (Example: NATO)
Cascading Goal
objectives ate structured in a unifies hierarchy becoming more specific at lower levels of the organization
Cost-Leader Strategy
one of Porter's four competitive strategies; keeping the cost and hence the prices, of a product or a service below the competitors and to target a wide market
Differentiated Strategy
one of Porter's four competitive strategies; offering products or services that are of unique and superior value compared with those of competitors but to target a wide market.
Decentalized Authority
organizational structure in which important decisions are made by middle level and supervisory level managers, power is delegated throughout the organization
Expatriates
people living or working in a foreign country (like diplomats)
External Stakeholders
people or groups in the organization's external environment that are affected by it
Culture Shock
personal disorientation when experiencing an unfamiliar way of life
Crowdfunding
raising money for a project or venture by obtaining many small amounts of money from many people
Strategic Alliances
relationship between two organization who join forces to achieve advantages neither can perform well alone
Triple Bottom Line
representing people, planet, and profit- measures an organization's social, environmental, and financial performance
Exporting
selling domestically produced products to buyers in other countries
Planning
set goals and decide how to achieve them
Opportunities
situations that present possibilities for exceeding existing goals
Devil's Advocate
taking the side of an unpopular point of view for the sake of argument
Brainstorming
technique used to help groups generate multiple ideas and alternatives for solving problems
Competitive Advantage
the ability of an organization to produce goods or services more effectively than competitors do, thereby outperforming them
Government Regulations
the act of controlling business behavior through a set of rules or laws
Hawthorne Effect
the alteration of behavior by the subjects of a study due to their awareness of being observed.
Contingency Viewpoint
the belief that a manager's approach should vary according to the individual and environmental situation.
Overconfidence Bias
the bias in which people's subjective confidence in their decision making is greater than their objective accuracy
Group Thinking
the mode of thinking that persons engage in when concurrence-seeking becomes so dominant in a cohesive in-group that it tends to override realistic appraisal of alternative courses of action
Corporate Social Responsibility
the notion that corporations are expected to go above and beyond following the law and making a profit
Span of Control
the number of people reporting directly to a given manager
Ethics
the principles of right and wrong that guide an individual in making decisions
Delegation
the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
Strategy Formulation
the process of choosing among different strategies and altering them to best fit the organization's needs
Management
the pursuit of organizational goals efficiently and effectively by integrating the work of people through planning, organizing, leading, and controlling the organization's resources
Exchange Rate
the rate at which one currency is converted into another
Authority
the right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources
National Culture
the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society
Corporate Governance
the system of governing a company so that the interests of corporate owners and other stakeholders are protected
Availability Bias
the tendency for people to base their judgments on information that is readily available to them
Framing Bias
the tendency of decision makers to be influenced by the way a situation or problem is presented to them
Most Favored Nation (Trading Status)
the trading status describes a condition in which a country grants other countries favorable trading treatment such as the reduction of import duties
Globalization
the trend of the world economy toward becoming a more interdependent system
Trade Protectionism
the use of government regulations to limit the import of goods and services
Chain of Command
the vertical line of authority that clarifies who reports to whom throughout the organization
Effectiveness
to achieve results, to make the right decisions, and to successfully carry them out so that they achieve the organization's goals
Efficiency
to use resources (people, money, raw material etc) wisely and cost effectively.
Evidence Based Decision-Making
translating principles based on best evidence into organizational practice
Evidence Based Management
translation based on best evidence into organizational practice, bringing rationality to the decision making process.
Market Culture
type of org culture that has a strong external focus and values stability and control
Outsourcing
using suppliers outside the company to provide goods and services
Enacted Values
values and norms actually exhibited in the organization
Mutual-Benefit Organization
voluntary collective formed to advance members' interests
Escalation of Commitment
when a decision maker stays with a decision even when it appears to be wrong
