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Glossary
ACTION An acronym that helps managers remember the six steps in decision making. The letters stand
for analyze the problem, consider alternative solutions, take action, implement the solution, ongoing
evaluation, and need for adjustments.
benevolent autocratic One of four categories of management identifed by Rensis Likert. In this
category, managers make the decisions but give employees some freedom in performing their jobs as
long as they follow procedures.
Blake and Mouton Two management experts who developed the Situational Leadership model. The
model identifies five leadership styles based on the degree of concern a manager has for people and
production.
Blanchard, Kenneth See “Hersey, Paul.”
communication An act of transmitting a message, usually verbal or written. In communicating, one
person shares an idea with others, with the goal of being understood.
consultative One of four categories of management identifed by Rensis Likert. In this category,
managers consult with employees to set objectives and make decisions, employees are given
freedom to handle their work, and the level of trust is fairly high.
controlling One of the five functions of management, this consists of monitoring progress according to
plan and correcting or adjusting the strategy when objectives are not being met.
country club leadership One of the five leadership styles identified in Blake and Mouton’s Situational
Leadership. This style emerges when a manager has high concern for employees, but little concern
for production.
decision The act of reaching a conclusion or making a judgment.
delegation The act of assigning tasks and responsibilities to an employee and giving the person
authority to carry out the responsibility.
directing One of the five functions of management, this consists of guiding, communicating, instructing,
teaching, coaching, and motivating employees to do the best job possible.
downward communication Communication in which management sends its message to employees.
expectancy theory See “Vroom, Victor.”
exploitative autocratic One of four categories of management identifed by Rensis Likert. In this
category, managers distrust workers, make all the decisions, and use threats or punishment to
motivate.
formal structure The formal assigning of resources, people, and responsibilities in order to achieve
goals. Formal structure is usually depicted on an organization chart.
grapevine A natural network of informal communication in which people who work together converse
casually and socially.
hierarchy of needs See “Maslow, Abraham.”
Hersey, Paul A management expert who, with Kenneth Blanchard, expanded on the Situational
Leadership model. Hersey and Blanchard identify four leadership styles based on the degree of
concern a person has for task and relationships.
Herzberg, Frederick A management expert who developed two categories of need in the work place.
Hygiene needs include salary, fringe benefits, working conditions, and personnel policies. Motivation
needs include responsibility, recognition, challenge, achievement, and personal growth.
horizontal communication Communication in which peers communicate with each other across
departmental lines.
impoverished leadership One of the five leadership styles identified in Blake and Mouton’s Situational
Leadership. This style emerges when a manager has little concern for production or for the
employees.
informal structure The spontaneous communication and relationships among employees. Informal
structure is not depicted on an organization chart.
leadership The ability to enlist the loyalty and commitment of employees to reach a goal.
Likert, Rensis A former director of the Institute for Social Research at the University of Michigan. He
developed a theory of management systems in which he identified four categories of manager:
exploitative autocratic, benevolent autocratic, consultative, and participative team.
management The task of getting work done through people.
Maslow, Abraham A psychologist who studied motivation by dividing human needs into five categories:
physical needs, security (or safety) needs, social needs, self-esteem needs, and self-actualization (or
self-fulfillment) needs. Maslow’s model is called the Hierarchy of Needs.
Maslow’s Hierarchy of Needs See “Maslow, Abraham.”
McClelland, David A Harvard Professor who developed a motivation theory that identified three needs:
power, affiliation, and achievement.
McGregor, Douglas A management expert who identified two extremes of belief that influence how
managers treat employees: theory X and theory Y.
middle management The people who report to senior management and are responsible for overseeing
the people and the work of two or more units.
middle-road leadership One of the five leadership styles identified in Blake and Mouton’s Situational
Leadership. This style emerges when a manager has moderate concern for both people and
production.
organization chart A chart that shows the credit union’s reporting structure. It indicates managerial
relationships and communication channels.
organizing One of the five functions of management, this consists of determining how the work will be
divided and accomplished.
participative team One of four categories of management identifed by Rensis Likert. In this category,
the emphasis is on group participation, with full involvement of workers in setting objectives and
making work decisions.
planning One of the five functions of management, this consists of determining what needs to be done
to achieve the credit union’s goals.
productivity The amount of output per employee.
reinforcement theory See “Skinner, B. F.”
self-fulfilling prophecy A phenomenon that occurs when the expectation of an event causes it to
happen.
senior management The people who develop strategies for the entire credit union.
Skinner, B. F. A psychologist who developed Reinforcement Theory. It was Skinner’s belief that
managers could apply three types of reinforcement to employee behavior: they can reward behavior,
punish behavior, or ignore behavior.
SMART An acronym that helps managers remember the key criteria for goals. The letters stand for
specific, measurable, achievable, results, and time-specific.
staffing One of the five functions of management, this consists of matching the right person with the
right job.
supervisory management The people whose responsibility it is to supervise the activity of an employee
group.
task leadership One of the five leadership styles identified in Blake and Mouton’s Situational
Leadership. This style emerges when a manager has high concern for production and efficiency, but
little concern for the employees.
team leadership One of the five leadership styles identified in Blake and Mouton’s Situational
Leadership. This style emerges when a manager has high concern for both people and production.
theory X One of two types of management beliefs identifed by Douglas McGregor. According to
McGregor, managers who held theory X beliefs thought that employees disliked work and would avoid
it when possible. Therefore, these managers believed that employees needed to be pressured,
threatened, and coerced to produce.
theory Y One of two types of management beliefs identifed by Douglas McGregor. According to
McGregor, managers who held theory Y beliefs thought that employees saw work as a natural part of
life and found it to be generally satisfying. Therefore, these managers believed that employees should
be encouraged to take responsibility and make decisions.
time audit A process that enables managers to analyze how they spend their time.
top management See “senior management.”
upward communication Communication in which employees inform management about what is going
on.
Vroom, Victor A management expert who developed expectancy theory. This theory focuses on
employees and the choices they make. Vroom believed that employees make choices in their jobs—
whether conscious or not—based on three factors: the employee’s belief that an action he or she
takes will lead to a certain outcome, the employee’s desire for the outcome, and the employee’s ability
to perform the required task.