Management Chapters 7-12

Restructuring

Redesigning an organization so that it can more effectively and efficiently serve its customers

Extrinsic reward

Something given to you by someone else as recognition for good work; these include pay increases, praise, and promotions

Problem solving

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action

Hawthorne effect

The tendency for people to behave differently when they know they are being studied

Reinforcement theory

Theory that positive and negative reinforcers motivate a person to behave in certain ways

360-degree evaluation

When a worker is evaluated by his/her superior, peers, and customers

Top management

highest level of management

Salary

A fixed regular payment, typically paid on a monthly or bi-weekly basis, but often expressed as an annual sum, made by an employer to an employee

Open shop agreement

Agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace

Negotiated labor management agreement

Agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time

Job rotation

A job enrichment strategy that involves moving employees from one job to another

SWOT analysis

A planning tool used to analyze an organizations strengths, weaknesses, opportunities and threats

Just in time inventory control

A production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered just in time to go on the assembly line

Continuous process

A production process in which long production runs turn out finished goods over time

Intermittent process

A production process in which the production run is short and the machines are changed frequently to make different products

Six sigma quality

A quality measure that allows only 3.4 defects per million opportunities

Operations management

A specialized area in management that converts or transforms resources (including human resources) into goods and services

Job analysis

A study of what employees do who hold various job titles

Job description

A summary of the objectives of a job, the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to the other functions

Hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Management by objectives

A system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees

Virtual corporation

A temporary networked organization made up of replaceable firms that join and leave as needed

Strike

A union strategy in which workers refuse to go to work; the purpose is to further worker's objectives after an impasse in collective bargaining

Gantt chart

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time

Stock options

Benefits in the form of an option given by a company to an employee to buy stock in the company at a discount or at a stated fixed price

Fringe benefits

Benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages

Decision making

Choosing among two or more alternatives

Agency shop agreement

Clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee

Flexible manufacturing

Designing machines to do multiple tasks so that they can produce a variety of products

Contingent workers

Employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students

Staff personnel

Employees who advise and assist line personnel in meeting their goals

Line personnel

Employees who are a part of the chain of command that is responsible for achieving organizational goals

Certification

Formal process whereby a union is recognized by the National Labor Relations Board as the bargaining agent for a group of employees

Right to work laws

Legislation that gives workers the right, under an open shop agreement, to join or not join a union if its present

Commission

The amount of profit received from doing work

Goals

The broad, long-term accomplishments an organization wishes to attain

ISO 9000

The common name given to quality management and assurance standards

Span of control

The optimal number of subordinates a manager supervises or should supervise

Intrinsic reward

The personal satisfaction you feel when you perform well and complete goals

Facility layout

The physical arrangement of resources (including people) in the production process

Service sector

The portion of the economy that produces intangible goods; consists of truck transportation, messenger services, and warehousing

Selection

The process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization

Bargaining zone

The range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse

Recruitment

The set of activities used to obtain a sufficient number of the right employees at the right time

Mediation

The use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and ofter makes suggestions for resolving the dispute

Computer-aided manufacturing

The use of computers in the manufacturing process

Job simulation

The use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job

Form utility

The value producers add to materials in the creation of finished goods and services

Maslows hierarchy of needs

Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self-actualization needs

Core competencies

Those functions that the organization can do as well as or better than any other organization in the world

On the job training

Training at the workplace that lets the employee learn by doing or by watching others for a while and then imitating them

Apprentice programs

Training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft

Flextime plan

Work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours or complete their assigned tasks

Strikebreakers

Workers hired to do the jobs of striking workers until the labor dispute is dissolved

Participative (democratic) leadership

leadership style that consists of managers and employees working together

Autocratic leadership

leadership style that involves making managerial decisions without consulting others

Objectives

Specific, short-term statements detailing how to achieve the organization's goals

Leading

creating a vision and guiding, training, coaching, motivating

Grievance

A charge by employees that management is not abiding by the terms if the negotiated labor-management agreement

Materials requirement planning

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place

Injunction

A court order directing someone to do something or to refrain from doing something

Program evaluation and review technique

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project

Job enrichment

A motivational strategy that emphasizes motivating the worker through the job itself

Job specifications

A written summary of the minimum qualifications required of workers to do a particular job

Training and development

All attempts to improve productivity by increasing an employees ability to perform. Training focuses on short-term skills, whereas development focuses on long-term abilities

Bonus

An amount of money added to wages on a seasonal basis, especially as a reward for good performance

Job sharing

An arrangement whereby two part-time employees share one full-time job

Lockout

An attempt by management to put pressure on unions by temporarily closing the business

Union

An employee organization whose main goal is representing its members in employee-management negotiation of job-related issues

Vision

An encompassing explanation of why the organization exists and where its trying to head

Performance appraisal

An evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination

Mentor

An experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor

Matrix organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure

American Federation of Labor

An organization of craft unions that championed fundamental labor issues; founded in 1886

Decentralized authority

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

Centralized authority

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

Flat organization structure

An organization structure that has few layers of management and a broad span of control

Line organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor

Bureaucracy

An organization with many layers of managers who set rules and regulations and oversee all decisions

Tall organization structure

An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management

Union shop agreement

Clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but must agree to join the union within a prescribed period

Enterprise resource planning

Combines the computerized functions of all of the divisions and subsidiaries of the firm - such as finance, human resources, and order fulfillment - into a single integrated software program that uses a single database

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas

Benchmarking

Comparing an organizations practices, processes, and products against the world's best

Givebacks

Concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save jobs

Quality

Consistently producing what the customer wants while reducing errors before and after delivery to the customer

Cross functional self managed teams

Groups of employees from different departments who work together on a long-term basis

Critical path

In a PERT network, the sequence of tasks that takes the longest time to complete

Hygiene factors

Job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased

Motivators

Job factors that cause employees to be productive and that give them satisfaction; Part of Herzberg's theory of motivating factors

Hourly wage

Payment for labor or services to a worker on an hourly basis

Scientific management

Studying workers to find the most efficient ways of doing things and then teaching people this techniques

Mass customization

Tailoring products to meet the needs of individual customers

Process manufacturing

That part of the production process that physically or chemically changes materials

Assembly process

That part of the production process that puts together components

Orientation

The activity that introduces new employees to the organization; to fellow employees; to their immediate supervisors; and to the policies, practices, and objectives of the firm

Arbitration

The agreement to bring in an impartial third party to render a binding decision in a labor dispute

Departmentalization

The dividing of organizational functions into separate units

Purchasing

The function in a firm that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for goods and services

Goal setting theory

The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions

Chain of command

The line of authority that moves from the top of the hierarchy to the lowest level

Human resource management

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals

Networking (individual)

The process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems

Facility location

The process of selecting a geographic location for a company's operations

Management development

The process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time

Collective bargaining

The process whereby union and management representatives form a labor-management agreement, or contract for workers

Lean manufacturing

The production of goods using less of everything compared to mass production

Economies of scale

The situation in which companies can reduce their production costs id they purchase raw materials in bulk; the average cost of goods goes down as production levels increase

Productivity

The state or quality of producing something; the effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Formal organization

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts

Informal organization

The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization

Production management

The term used to describe all the activities managers do to help their firms create goals

Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex

Shop stewards

Union officials who work permanently in an organization and represent employee interests on a daily basis

Sexual harassment

Unwelcome sexual advances, requests for sexual favors, and other conduct (verbal or physical) of a sexual nature that creates a hostile work environment

Networking (business)

Using communications technology and other means to line organizations and allow them to work together on common objectives

Organizational structure

Widely shared values within an organization that provide unity and cooperation to achieve common goals

Piecework

Work paid for according to the amount produced

Compressed workweek

Work schedule that allows am employee to work a full number of hours per week but in fewer days

Middle management

includes general managers, division mangers, tactical planners

Controlling

management function that creates standards to determine progression

Organizing

management function that designs structure and creates conditions and systems

Planning

management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives

Staffing

management function that includes hiring, motivation, retaining the best people available to accomplish the company's objectives

Supervisory management

managers who are responsible for supervising workers

Mission statement

outline of the fundamental purposes of an organization

Strategic planning

process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals

Tactical planning

process of developing short term statements about what is to be done, who is to do it, and how it is to be done

Contingency planning

process of preparing alternate courses of action

Operational planning

process of setting work standards and schedules necessary to implement the company's tactical objectives

Management

process to accomplish goals through planning, organizing, leading

Technical skills

skills that involve ability to perform tasks in a specific discipline or department.

Conceptual skills

skills that involve ability to picture organization as a whole

Human relations skills

skills that involve communication

Organization chart

visual device that shows relationships among people