Download Glossary [Complete]

Glossary [Complete]
accountability: The expectation that members of an organization, if called upon, will be
able to provide compelling reasons for the decisions that they make
acquisitive economics: Refers to managing property and wealth in such a way as to
maximize the short-term monetary value for owners
administrative appraisals: Performance appraisals that are used to justify pay and
promotion decisions
administrative inertia: Describes what happens when existing structures and systems
persist simply because they are already in place
agreeableness: A personality trait associated with being good natured, cooperative,
trustful, and not jealous
analyzer type: These organizations essentially have two spheres of operations, with some
parts of the organization operating like a Defender, and other parts operating like a
Prospector
Association of South-East Asian Nations (ASEAN): A group of 10 nations in South-East
Asia that are committed to reducing barriers to trade among members
attributions: People’s explanations of the causes of behaviors or circumstances
authority: The formal power given to managers to arrange resources and to assign tasks
and direct the activities of other members in ways that help to achieve organizational
goals
Balanced Scorecard: A management tool used to balance the use of financial goals with
the use of other valuable goals that are important to overall organizational well-being
BCG matrix: A tool that, by classifying organizations according to (a) their market share in
an industry and (b) the rate of growth of the industry they are operating, helps managers
make decisions about unrelated diversification strategy portfolios
behaviors: The ways or manner in which people act
benefits: A subset of compensation that is not typically contingent on performance—for
example, retirement plans; health, disability, and life insurance; and perks such as
access to workout facilities, on-site daycare services, subsidized cafeteria food, education
reimbursement, and laundry services
bounded rationality: Recognizes that the management decision-making process is limited
by a lack of complete information and limited cognitive ability when processing
information
brainstorming: An unstructured process of sharing ideas
bureaucracy: (Also known as macro approach to organizing) A rational way of organizing
based on formal rules, a clear division of labor, and legitimate authority for managers
bureaucratic control: Evident when rules, regulations, policies, and standard operating
procedures are used to control the behavior of organizational members
burning platform: An approach to unfreezing organizational members that may be painful;
It may involve using rational persuasion or pressure to expose members to alarming
information or potential negative consequences
business-level strategy: A strategy followed by an organization within its industry
centralization: Having the decision-making authority rest with managers at the top of an
organization’s hierarchy
change agent: Someone who acts as a catalyst and takes leadership and responsibility for
managing part of the change process
change-oriented goals and plans: Describe new initiatives and changes to be made in an
organization’s practices
channel: The pathway along which a message travels through a medium
charisma: A personal trait or “gift” related to attracting and inspiring followers
clan control: Evident when shared values, norms, and expectations are used to control the
behavior of organizational members
closed system: A perspective on organizations that looks at managing activities as though
the organization were a self-contained and self-sufficient unit
coaching: (Mainstream leading) Providing training and specific feedback for a task or job; It
is a Situational Leadership II style
code of ethics: A formal written statement of an organization’s primary values and the
ethical rules it expects its members to abide by
coercive power: The power that rests on a person’s ability to motivate others’ behavior
through threat of punishment
collective decoding: Occurs when a message is interpreted by a group of two or more
people with the result that each member learns more than any one could alone (and
typically more than the sender could have put into the original message)
collectivism: Emphasizes the interests of groups over the self-interests of individuals, and
that people look out for one another and demonstrate high loyalty to the group
communication: The process of transferring information by using meaningful symbols so
that a message is understood by others
compensation: All monetary payments such as wages, salaries, and bonuses as well as
other goods or commodities that are used to reward organizational members
competitive strategy: A strategy designed to create value for customers by providing
lower prices or unique features not offered by rival organizations
competitors: Other organizations that offer similar products or services, or offer products
and services that meet the same customers’ needs
conceptual skills: The ability to think about complex and broad organizational issues;
These skills enable managers to understand how the individual parts of the organization
fit together to serve the organization as a whole, and how the organization fits into its
larger environment
concertive control: When control moves from residing with management to residing with
workers or team members
concurrent controls: Designed to identify and correct problems as they occur
conflict: A real or perceived difference in interests between two or more individuals, groups,
or organizations
conscientiousness: A personality trait associated with being achievement oriented,
responsible, persevering, and dependable
consequentialist theory: Considers the consequences of an action in determining what is
ethical
consideration: A category of behaviors that are supportive, relational, and/or employee
oriented
consistent contributors: Someone who contributes regardless of how little his or her
teammates contribute
constructive criticism: Refers to providing a serious examination or judgment of
something in a way that is intended to help the listener to improve
content school: A linear, rational-analytic, top-down, and linear approach to strategic
management
contingency plans: Set out in advance how managers will respond to possible future
events that could disrupt the organization’s existing plans
contingency theory: A sub-field of management theory that suggests there is a fit between
organizational structures and systems, technology, and the larger environment
contingent workers: Those who are contracted to work for a host organization on a
specific project or for a fixed time period, but who are not considered to be employees of
the organization
continuous improvement: Making many small, incremental improvements on an ongoing
basis to how things are done in an organization
controlling: Ensuring that the actions of organizational members are consistent with the
organization’s values and standards
conventional level (of moral development): Tthe second level of moral development, in
which ethical judgments are influenced by social norms or external standards
co-operative: An organization that is owned and democratically run directly by its members
core competency: A strength that is central for achieving an organization’s goals
corporate social responsibility (CSR): Managers’ obligation to act in ways that protect
and improve the welfare of society over and above the owners’ (e.g., stockholders) selfinterests
corporate-level strategy: The strategy followed by an organization to determine in which
industries it will compete
cost leadership: Increasing profit margins by keeping financial costs lower than
competitors’, while still maintaining price and quality at roughly the same level as
competitors’
counter-trade: Occurs when products or services from one country are traded (rather than
bought and sold for currency) for products or services from another country
country club style: Characterized by a high concern for people and a low concern for
production; It is a Leadership Grid style
courage: A virtue that involves acting in hopes of correcting unjust structures; Evident
when someone promotes change initiatives that have the potential to improve overall
happiness even if this might threaten one’s own status
crises: Events that have a major effect on the ability of organizational members to carry out
their daily tasks (e.g., a natural disaster, an economic recession)
customers: The stakeholders who consume an organization’s product and service outputs
data: Facts and figures, some of which may provide valuable information
debt financing: Occurs when entrepreneurs borrow from a bank, family members, friends,
or a financial institution money that must be paid back at some future date
decision: A choice that is made from a number of available alternatives
decision support systems: Allow managers to gather and manipulate data from a variety
of sources to help evaluate performance
decoding: The process by which the receiver attributes meaning to a message
defender type: These organizations have a mechanistic structure, operate in a narrow
segment of a stable environment, have a cost-leader strategy, and often rely on a single
core technology
deference to authority: Recognizes that it is legitimate and desirabel to give formal power
to managers
delegating: (Mainstream leading) Assigning tasks and responsibilities; It is a Situational
Leadership II style
delegation: The process of giving authority to a person or group to make decisions in a
specified sphere of activity
Delphi Technique: A technique where questions are posed to team members remotely and
responses are returned to the leader; The leader then compiles the ideas without
attaching names to them and sends the list back to team members for further
consideration and response
departmentalization: Grouping organizational members and resources together to achieve
the work of the larger organization
deterrent approach: Based on the assumption that misconduct is related to rational
calculations pertaining to the severity of the associated punishments compared to the
potential “benefits” of misconduct
development: Learning activities that result in broad growth for a person, including growth
in terms of a larger career or beyond the scope of the person’s current job
developmental appraisals: Performance appraisals that are used to provide feedback on
progress toward expectations and to identify areas for improvement
dialectical inquiry: A staged debate between two dominant perspectives
differentiation: Offering a unique product or service for which buyers are willing to pay a
premium price
dignification: The emphasis on treating everyone with dignity and respect in community
directing: (Mainstream leading) Instructing a follower on how to do a task or job; It is a
Situational Leadership II style
distinctive competency: A core competency that an organization has that is superior
relative to its competitors’
distributive justice: Concerned with comparing one’s inputs and outcomes to others’
inputs and outcomes
diversified organizations: Compete in more than one industry, or serve customers in
several product, service, or geographic markets
divisional departmentalization: Occurs when members of an organization are grouped so
that they canwork together as a subunit in order to provide specific products or services,
serve similar customers, or work in the same geographic region
documentational capitalism: Characterized by an emphasis on detailed contracts, public
financial reports, and management independence and rights
dominant coalition: The subgroup of an organization’s members (usually managers) that
makes its strategic decisions
ecological footprint: Refers to how many of Earth’s natural resources, measured in acres,
are required to sustain human consumption and to absorb the resulting waste
economic environment: Refers to how financial resources are used and distributed within
a specific region or country
economies of scale: Evident when increases in volume are associated with lower
organizational costs for providing a specific product or service
effectiveness: Choosing the “right” overarching organizational goals to pursue; Draws
attention to the fact that managers, like anyone who makes decisions that affect other
people, have moral obligations
efficiency: Increasing the level of output that is achieved with a given level of inputs
egali-centrism: Evident when people from different cultures work together in a manner
characterized by two-way, give-and-take communication that fosters deeper mutual
understanding, community, and new insights
egoism: A moral philosophy that focuses on the consequences for the individual decision
maker; It is based on the idea of "what benefits me the most"
electronic hubs (eHubs): Computer-based information systems that have the ability to
transmit information in real time, thereby enabling coordination and mutual adjustment
by stakeholders from a variety of organizations
emotional intelligence (EI): The innate or developed ability to recognize, manage, and
exercise emotions in relationships
emotional stability: A personality trait associated with being calm, placid, poised, and not
neurotic
empowering: (Multistream leading) Freeing people to be responsible for work
enabling: (Multistream leading) Sharing or explaining information related to a job and its
context
encoding: Putting a message in understandable terms by using symbols and media
engaging: (Multistream leading) Encouraging affiliation and enhancing intrinsic motivators
entrepreneurs: People who conceive opportunities to offer new or improved goods or
services (or even new markets or ways of doing things), exhibit initiative to pursue those
opportunities, make plans, and mobilize the resources necessary to convert the concepts
into reality
entrepreneurship: Conceiving an opportunity to offer new or improved goods or services,
showing the initiative to pursue that opportunity, making plans and mobilizing the
resources necessary to convert the opportunity into reality
entropy: The natural tendency for a system to fail because it is unable to acquire the inputs
and energy it requires to survive
equipping: (Multistream leading) Creating an environment for continuous learning on the
job
equity financing: Occurs when investors in a new venture receive shares of stock and
become part owners of the organization
equity theory: A theory based on the logic of social comparisons and assumes that people
are motivated to seek and preserve social equity in the rewards they expect for
performance
ERG theory: Describes three universal categories of needs: existence, relatedness, and
growth
ergonomics: The science of designing work spaces and tools in an effort to improve
working conditions without compromising productivity
escalation of commitment: Occurs when a manager perseveres with the implementation
of a poor decision despite evidence that it is not working
ethical awareness: The recognition that a situation or behavior has ethical implications
ethical climate: The informal shared perceptions of what are appropriate practices and
procedures
ethical courage: The fortitude to implement an ethical choice even if it is contrary to the
prevailing norms and may have some negative consequences
ethical judgment: The evaluation and resulting selection of various ethical options
ethical wisdom: The process of gathering information and developing alternatives
ethics: A set of principles or moral standards that differentiate right from wrong
ethnocentrism: Evident when managers enter a foreign country with the belief that their
own home country offers the best way to manage
European Union (EU): A political and economic community consisting of 27 European
countries that are committed to making trade among members easier by lowering tariffs
and reducing other impediments to trade
expectancy: The probability perceived by an individual that exerting a given amount of
effort will lead to a certain level of performance
expectancy theory: States that motivation depends on an individual’s learned expectations
about his or her ability to perform certain tasks and receive desired rewards
experimentation: The emphasis placed on an ongoing voluntary implementation of new
ways of performing tasks on a trial basis
expert power: Power this is based on the special knowledge, skills, and expertise that
someone possesses
explicit knowledge: Information that can be articulated or codified, such as that found in
an organization’s standard operating procedures, blueprints, mission statements, and so
on
exporting: Occurs when an organization produces goods and services in its home country
and sells them in another country
extinction: The absence of any reinforcement—either positive or negative—following the
occurrence of a behavior
extraversion: A personality trait associated with being sociable, talkative, assertive, and
adventurous
extrinsic motivation: A source of motivation that comes from factors outside the task itself
Fair Trade: A system of international trade that is based on dialogue, transparency, and
respect, and that benefits producers in poorer countries, consumers in richer countries,
and Earth
feedback: Lets the sender know whether the message has been received as intended
feedback controls: Designed to identify and correct problems after they occur so as to
avoid future problems
feedforward communication: The relationships and prior communication that influence
subsequent messages
feedforward controls: Designed to reduce organizational problems by anticipating
problems before they occur and preventing them
filtering: Occurs when information is withheld or not communicated to others
first-line supervisors: Those leaders who manage the work of organizational members
who are involved in the actual production or creation of an organization’s products or
services
focus: Choosing a small niche in the overall market
formal communication channels: Follow the lines of authority that are shown on an
organizational chart
framing: Presenting ideas and alternatives in a way that has an influence on the choices
that people make
franchising: Occurs when a franchisor sells to a franchisee (for a lump sum payment and a
share of the franchisee’s profits) a complete package required to set up an organization,
including but not limited to its trademark and trade name, its products and services, its
ingredients, its technology and machinery, and its management and standard operating
systems
free trade: International trade that is not subject to national constraints such as tariffs,
quotas, and subsidies
free-riding: Not doing your best or contributing your fair share to reach the team’s goal
frustration–regression principle: Suggests that people who are unable to satisfy higherorder needs at a basic level will compensate by focusing on over-satisfying lower-order
needs
functional departmentalization: Occurs when members of an organization are placed into
the same department based on having similar technical skills and using similar resources
to perform their tasks
Gantt chart: A bar graph that managers use to schedule and allocate resources for a
production job; It identifies various stages of work that need to be completed, sets
deadlines for each stage, and monitors the process
global outsourcing: Importing from another country one or more sub-components of an
organization’s products or services
globalization: Changes in the four dimensions of the external environment (i.e.,
sociocultural, natural, political–legal, and economic–technological factors) that result in
increased interdependence and integration among people and organizations around the
world
goal consensus: The level of agreement among members about which goals the
organization should pursue
goal displacement: Occurs when people get so focused on specific goals that they lose
sight of more important overarching goals
goals: The desired results or objectives that members in an organization are pursuing
grapevine: The informal information network in an organization
greenfield venture: Occurs when an organization builds a new plant where none existed
before
group: A collection of two or more people who share a common interest or association
group efficacy: The collective belief about the group’s performance capability
groupthink: The tendency of cohesive group members to strive for and maintain unanimity
on a decision rather than thoroughly considering all possible alternatives
Hawthorne effect: Indicates that workers’ performance will improve if workers are given
positive attention by managers
horizontal integration: A type of diversification that is evident when an organization’s
services or product line are expanded or offered in new markets
householding: An economic system organized around the principle of being a good steward
of resources for the sake of the family or larger community
human relations movement: Focuses on managerial actions that will increase employee
satisfaction in order to improve productivity
human resource information system (HRIS): A system that tracks demand for human
resources based on jobs or specific skills by comparing those needs with a database of
the current supply of talent within the organization
human resource management (HRM): Management of the people in an organization,
including development, organization, and administration of the organization’s “people
systems.”
human resource management (HRM) planning: The process of using job analysis and
design information to develop a human resource requirements forecast that identifies the
“people needs” of the business in various departments and positions
human skills: The ability to work well with other people and groups, and include skills in
leadership, motivation, interpersonal communication, and conflict management
hybrid departmentalization: Occurs when an organization has both functional
departments and divisional departments
hygiene factors: Refer to the presence or absence of sources of job dissatisfaction
idea champion: A person who actively and enthusiastically supports new ideas
ideal-type: Describes a “pure” model or approach at a theoretical extreme that helps to
orient people’s thinking and practices
imitation: Involves the replication of existing ideas, which may come from other units
within the organization or from outside the organization
importing: Bringing in finished products from a foreign country for resale domestically
impoverished style: Characterized by low concern for both people and production; It is a
Leadership Grid style
incremental change: Occurs when an organization makes improvements in moving toward
its strategic direction
individualism: Emphasizes the interests of the individual over the interests of the group,
and suggests that people should act in their own self-interest
industry: A subset of organizations that can be grouped together because they are all
active in the same branch of the economy or society (e.g., the automobile industry, the
fast-food industry, the education sector, the social services sector)
informal communication channels: May skip hierarchical levels and cut across vertical
chains of command into different departments
information: Data that have been given meaning and are deemed to have value
information distortion: Refers to the tendency to overlook or downplay feedback that
makes a decision look bad, and instead focus on feedback that makes the decision look
good
information systems: Tools that help to identify, collect, organize, and disseminate
information
initiating structure: A category of behaviors that are directive, structural, and/or task
oriented
innovations: Involve the development and implementation of new ideas and practices
inputs: The human, material, and information resources that an organization takes in from
the environment
institutionalization: Certain practices or rules are seen as valuable in and of themselves,
even though they may no longer be rational for the organization
instrumental skills: Human skills used to get other people to meet your own interests or
the interests of the organization
instrumentality: The perceived probability that successfully performing at a certain level
will result in attaining a desired outcome
International Monetary Fund (IMF): An international financial institution that was
established to: (1) promote orderly and stable international monetary exchange; (2)
foster international economic growth and high levels of employment; and (3) provide
temporary financial assistance to countries to help ease balance of payment problems
intrinsic motivation: A source of motivation that comes from doing the activity or work
itself
intuition: Refers to making decisions based on tacit knowledge, which can be based on
experience, insight, hunches, or “gut” feelings
inward structure: An organization structure where managers emphasize experimentation,
sensitization, dignification, and participation among an organization’s internal
stakeholders and operations
iron cage: Max Weber’s metaphor for the force that causes people to live and work in a
world where materialist-individualist goals trump other forms of well-being, where
maximizing financial self-interests overwhelms other considerations, and where this is
seen as a natural fact of life
job analysis: An investigative process of gathering and interpreting information about a job
and its required KSAOs
job characteristics model: Specifies how to increase the motivational potential of a job by
improving the meaningfulness, autonomy, and feedback associated with the job
job-based pay: A compensation system in which employees receive pay based on the jobs
that they hold
joint venture: A variation of a strategic alliance, where the partnering organizations agree
to form a separate, independent, jointly owned organization
justice: A virtue that justifies organizations, holds them together, and ensures that
everyone connected with an organization is treated fairly
justice approach: A moral philosophy concerned with how benefits and harms are
distributed among individuals and groups
just-in-time inventory management systems: Bring all the needed materials for
production together literally just in time for them to be combined into the finished
product
KSAOs: The knowledge, skills, abilities, and other characteristics associated with specific
positions
leadership: The process managers use to influence others so that their work efforts lead to
the achievement of organizational goals
Leadership Grid: Identifies different leadership styles based on combinations of
consideration and initiating structure
leading: Relating with others so that their work efforts result in the achievement of
organizational goals
legitimate power: The capacity that someone has, by virtue of his or her position in an
organization’s hierarchy, to influence other people
licensing: Occurs when an organization in one country sells specific resources—for example,
patent or trademark rights and technical expertise—to an organization in another country
limited liability: The concept (and resulting legislation) that an organization’s owners are
not liable for financial costs greater than the amount they have invested in the
organization
line authority: The formal power that an organizational member is given in order to
manage and make decisions about other people and resources lower down the chain of
command
logistics: The structures and systems required to physically move resources into, within,
and out from an organization
Macro approach to organizing: (Also known as bureaucracy) A rational way of organizing
based on formal rules, a clear division of labor, and legitimate authority for managers
macro environment: Contains four dimensions that managers must deal with at the
regional or national level: socio-cultural, natural, political-legal, and economictechnological environments
mainstream management: Characterized by its primary emphasis on materialistindividualist well-being
management: The process of planning, organizing, leading, and controlling human and
other organizational resources in order to effectively achieve organizational goals
management ethics: The study of moral standards and how they influence managers’
actions
management science: A sub-field of management that aids in planning and decisionmaking by providing sophisticated quantitative techniques to help managers make
optimal use of organizational resources
management-by-wandering-around (MBWA): Allows managers to communicate faceto-face with members in their workplace and to take the pulse of everyday organizational
life
maquilidora: Assembly plants and factories in special regions in Mexico located along the
U.S.–Mexico border where international corporations can take advantage of low wages
and enjoy low tariffs when their products are exported to the United States
market control: Evident when competition is used to control the behavior of organizational
members
Maslow’s hierarchy of needs: The theory that people are motivated to satisfy five need
levels: physiological, safety, love, esteem, and self-actualization
materialism: Places a high value on material possessions, financial well-being, and
productivity
matrix departmentalization: A type of hybrid structure in which members are
simultaneously assigned to both functional and divisional departments
McClelland’s acquired needs theory: States that certain types of needs or desires are
acquired during an individual’s lifetime
mechanistic structure: An organization structure characterized by a relatively high level of
standardization, specialization, centralization, and functional departmentalization
media richness: A communication medium’s ability to resolve ambiguity
medium: The method that is used to carry a message from the sender to the receiver
members: Employees and volunteers who work for or belong to an organization
mentoring: A means of coaching junior managers in which a senior manager within the
organization gives a specific junior manager clear directions, accurate feedback, expert
advice, and support
merit-based pay: A compensation scheme in which employees earn a permanent increase
in compensation based on past performance that is captured in the performance
appraisal; It is used in job-based pay systems
message: A specific idea or general information that one person wants to convey to others
Micro approach to organizing: (Also known as scientific management) The rational study
of tasks and people in order to design and maximize the productivity of individual jobs
micro-financing movement: Develops financial institutions that provide small loans and
other banking services to micro-entrenpreneurs and other poor people
middle managers: Those leaders who manage the work of first-line managers and others
middle-of-the-road-management style: Exhibits both relational and task behaviors in an
insufficient or underdeveloped manner; It is a Leadership Grid style
millennial-generation: Students who were born in the period 1982-2001
minimizer strategy: Provides desired goods and services in a way that limits different
kinds of costs (e.g., financial, social, ecological)
misfit type: These organizations have misalignments among their internal organization
structures and/or environments, strategy, and technology
mission statement: Identifies the fundamental purpose of an organization as well as what
an organization does, whom it serves, and how it differs from similar organizations
moral point of view: A framework of values used to develop internally consistent and
logically justified principles and standards of right and wrong
moral-rights view: A moral philosophy concerned with maintaining and protecting the
fundamental rights and privileges of individuals
motivation: A psychological force that helps to explain what arouses, directs, and maintains
human behavior
motivator factors: Refer to the presence or absence of sources of job satisfaction
multi-analyzer type: These organizations have two spheres of operations, with some parts
of the organization operating like a multi-defender, and other parts operating like a multiprospector
multi-defender type: These organizations have an inward structure, operate in a
segmented environment, use a minimizer strategy, and focus on enhancing well-being
within the organization
multinational company (MNC): An organization that receives more than 25 percent of its
total sales revenue from outside its home country
multi-prospector type: These organizations have an outward structure, operate in an area
of the environment where there is broad receptivity, have a transformer strategy, and
focus on enhancing well-being beyond the organization
multistream management: Characterized by its emphasis on multiple forms of well-being
for multiple stakeholders
Myers–Briggs Type Indicator (MBTI): A personality inventory based on Carl Jung’s work
on psychological types
national culture: The shared values, beliefs, knowledge, and general patterns of behavior
that characterize citizens in a nation
natural environment: A component of the macro environment that includes all living and
non-living things that have not been created by human technology or human activity
negative reinforcement: The removal of an unpleasant consequence following a desired
behavior; Also called avoidance learning
network structure: Occurs when an organization enters fairly stable, complex relationships
with a variety of other organizations that provide essential services, like manufacturing
and distribution
noise: Potential barriers that may impede communication at all four steps of the
communication process
Nominal Group Technique: An information-sharing technique in which the leader asks
participants to silently and individually write down all their ideas related to a specific
question
non-government ogranization (NGO): A non-profit organization whose primary mission
is to model and advocate for social, cultural, legal, or environmental change
nonprogrammed decisions: Involve developing and choosing among new alternatives in
situations where programmed alternatives have not yet been developed or are not
appropriate
norms: Shared beliefs about social and task behaviors in a group
North American Free Trade Agreement (NAFTA): Reduces tariff and non-tariff barriers
between the U.S., Mexico, and Canada
ongoing goals and plans: Guide the organization’s continuing activities that are consistent
with the basic purpose of the organization
on-the-job training (OJT): A type of training in which a more experienced member of the
organization teaches a specific job or task to a newer member
open book management: An approach to management whereby managers share detailed
information concerning the financial and operational condition of the organization
open system: A perspective that emphasizes an organization’s place in the larger
environment and its dependence on access to inputs (e.g., raw materials, labor) and a
market (e.g., customers) for its outputs
openness to experience: A personality trait associated with being intellectual, original,
imaginative, and cultured
operant conditioning: The use of reinforcement principles to systematically reinforce
desirable work behavior and discourage undesirable work behavior; Also called behavior
modification
operational goals: Outcomes to be achieved by an organizational department, workgroup,
or individual member
operational plans: The steps and actions that will help to meet short-term goals (usually
with a timeline of a year or less)
operations information systems: Help managers to monitor and coordinate the flow of
work between various organizational subunits and their suppliers, and in particular help
to identify and overcome potential bottlenecks, shortages in inventory, and overproduction
operations management: A form of applied management science that uses quantitative
techniques to help managers make decisions that allow organizations to produce goods
and services more efficiently
operations research: A sub-field of management science that emphasizes mathematical
model building
organic structure: An organization structure characterized by relatively low levels of
standardization, specialization, and centralization, and by a divisional departmentalization
organization: A goal-directed, deliberately-structured group of people working together to
achieve results
organization design: The process of developing an organizational type by ensuring that
there is a fit between and among an organization’s structural characteristics and its
environment, strategy, and technology
organization structure: The combination of the four fundamental elements of organizing
that describe how managers ensure (1) work activities are being completed in the best
way; (2) members know which subtasks they should perform; (3) there is orderly
deference among members; and (4) members work together harmoniously
organizational change: Any substantive modification to some aspect of an organization
organizational citizenship behavior (OCB): A behavior that goes above and beyond
normal role expectations to help others or benefit the organization
organizational commitment: A motivational force that binds a person to a particular
organization
organizational culture: The set of informal shared values, norms, standards for behavior,
and expectations that influence the ways in which individuals, teams, and groups interact
with one another and cooperate to achieve company goals
organizational type: Refers to a specific, coherent way that the four fundamental elements
of an organization’s structure fit with one another, and how the organization’s structure
as a whole fits with the organization’s environment, strategy, and technology
organization-specific responsibility (OSR): Managers’ obligation to ensure that plans
serve the financial interests and goals of the organization’s owner(s)
organizing: Ensuring that tasks have been assigned; A structure of organizational
relationships created to facilitate meeting organizational goals
outputs: The goods, services, and other resources that an organization puts into the
environment
outsourcing: Using contracts to transfer some of an organization’s recurring internal
activities and decision-making rights to outsiders
outward structure: An organization structure where managers emphasize
experimentation, sensitization, dignification, and participation among an organization’s
external stakeholders and operations
owners: Stakeholders who make the basic decisions as to what an organization is and does,
and are responsible for the creation and overarching governance of the organization
participation: The emphasis on mutuality and giving stakeholders a voice in how the
organization is managed and how jobs are performed
pay-for-performance (PFP): A compensation scheme in which each member’s pay is
linked directly to individual, group, or organizational performance; The direct relationship
is expected to raise productivity
perception: The meaning given to a message by either the sender or the receiver
performance appraisal: The process of specifying what performance is expected of a
member of the organization and then providing feedback on the member’s performance
performance management: The use of human resource management processes to ensure
that each employee’s activities and outputs are aligned with the organization’s goals
performance standards: Goals that subordinates are expected to meet
personality: The unique and relatively stable pattern of behaviors, thoughts, and emotions
shown by individuals
planned change: Change that is designed and implemented in an orderly and timely
fashion; It is generally a direct response to the recognition of a performance gap—that is,
a discrepancy between the desired and actual state of affairs
planning: Identifying an organization’s goals and strategies, and allocating the appropriate
organizational resources required to achieve them
plans: Describe the steps and actions that are required to achieve goals
policies: Provide guidelines for making decisions and taking action in various situations
political-legal environment: Includes both the prevailing philosophy and objectives of the
various levels of government, as well as existing laws and regulations
polycentrism: Evident when there is an assumption that managers in a host country know
the best way to manage an organization in the host country
positive reinforcement: The administration of a pleasant and rewarding consequence
following a desired behavior
post-conventional level (of moral development): The highest level of moral
development, in which ethical judgments are influenced by transcendent universal
principles
postmaterialism: Evident when people decrease their emphasis on material well-being,
and increase their emphasis on values like the free expression of ideas, improved
democratization, and the development of societies that are more humane
practical wisdom: A virtue that fosters the capacity for deliberation and action to obtain
what is good for the community, especially by asking insightful questions, evaluating
real-world management situations, and applying relevant knowledge; Prudence
pre-conventional level (of moral development): The lowest level of moral development,
in which ethical judgments are influenced by rewards and punishments
procedural justice: Concerned with the extent to which policies and rules are
participatively developed, transparent, and fairly administered
procedures: Outline the specific steps that must be taken when performing certain tasks
process school: A bottom-up, emergent, and egalitarian approach to strategic
management that emphasizes strategic learning
process theories of motivation: Describe how people can be motivated
product life cycle: Consists of four phases in the life of a product—introduction, growth,
maturity, and decline
programmed decisions: Involve choosing a standard alternative in response to recurring
organizational problems or opportunities
prospector type: These organizations have an organic structure, operate in a broad market
of a changing environment, have a differentiation strategy, and rely on technology that is
difficult to analyze
proxemics: The study of how physical space conveys messages
psychological contract: An unwritten expectation about the exchanges that will take place
between an employee and the organization
punishment: Decreases the frequency of or eliminates an undesirable behavior by making
an unpleasant consequence contingent on that behavior’s occurrence
quality of life: Placing a high value on relationships, the welfare of others, and social wellbeing
quotas: Restrictions on the quantity of certain goods or services that can be imported or
exported from a country
realistic job preview (RJP): Provides information about a job’s challenges and joys,
including both its positive and its negative sides; Such information helps to match
members with positions, improves job satisfaction, and reduces turnover
reciprocity: An economic system organized around the principles of neighborliness and
trading with one another
recruitment: The staffing process of identifying and attracting the people with the essential
KSAOs
recruitment channels: The means by which organizations funnel potential members into
the selection process (e.g., relationships with universities or employment agencies,
newspaper ads, postings on internal or external websites)
redistribution: An economic system organized around the principle that everyone should
have enough
referent power: The ability to motivate through identification with or association with
others
reinforcement: A response or consequence linked to a behavior
related diversification: Expands an organization’s activity in industries related to its
current activities
relational capitalism: Characterized by an emphasis on relational contracts, the long-term
reputations of organizations, and interdependence and rights of stakeholders
relationship skills: Skills used to deepen connections between people and to participate in
collaborative creative efforts
resources: Organizational assets that can represent a possible source of competitive
advantage that can be sustained over time
responsibility: The obligation or duty of members to perform assigned tasks
reward power: The ability to give or withhold positive benefits or rewards
risk: The likelihood that an alternative chosen by decision makers will result in a negative
outcome
rules and regulations: Prescribed patterns of behavior that guide everyday work tasks
satisficing: Evident when managers accept an adequate response to a problem or
opportunity, rather than make the effort to develop an optimal response
scalar chain: A management principle that says organizations should have a chain of
authority that extends from the top to the bottom of its hierarchy, and that includes
every employee
scientific management: (Also known as the micro approach to organizing) The rational
study of tasks and people in order to design and maximize the productivity of individual
jobs
scripts: Learned frameworks that provide direction for people by helping them to interpret
and respond to what is happening around them
selection: The staffing process of choosing which people to hire from all the job applicants
or recruits
selection reliability: A measure of the ability of a selection method or tool to consistently
provide accurate assessments
selection validity: A measure of the relationship between the scores that applicants receive
during assessment as part of the recruiting process and their subsequent job
performance
selective perception: Occurs when people screen out information that they want to avoid
self-control: A virtue that helps individuals overcome impulsive actions, self-serving use of
their power, and greediness; Temperance
self-efficacy: A person’s belief that he or she will be able to complete a task successfully
self-fulfilling prophecy effect: The idea that subordinates often live up (or down) to the
expectations of their managers
self-reference criterion: Evident when a person uses the assumptions and terms of his or
her own culture to try to understand and relate to people from other cultures
semantic problems: Arise when words have different meanings for different people
sensitization: The emphasis on searching for and responding to needs and opportunities in
order to improve the status quo
servant leader: One who is active, purposeful, and self-controlled in working towards
others’ growth, gain, and esteem
servant leadership: An active approach to leadership that promotes the interests of others
over the leader’s own interests
simple type: These organizations have an organic structure, operate in a narrow segment
of a changing environment, have a focus strategy, and tend to rely on technology with
high task variety and high interdependence
Situational Leadership II: Describes four leadership situations and the appropriate
leadership styles based on the “developmental level” of followers
skill-based pay: A compensation system in which members are paid a base hourly wage
rate for doing their jobs and then receive additional increments for acquiring other skills
perceived as being valuable to the organization
social audit: A systematic analysis of the effect that an organization is having on its
stakeholders and society as a whole
social cohesion: The attachment and attraction of team members to one another
social construction of reality: Occurs when something is perceived as an objective reality
(e.g., a $100 bill), and people allow it to shape their subsequent thinking and action,
even though its meaning has been created by humans and must be constantly recreated
by humans in order to exist
social entrepreneurship: Conceiving of an opportunity to provide social value (not just
private financial value), relentlessly pursuing that opportunity while being accountable to
relevant stakeholders, continuously learning from and improving upon plans, and
mobilizing the resources necessary to sustainably convert that opportunity into reality
socially responsible investing (SRI): Using criteria of social or environmental principles
to make investment decisions
socio-cultural environment: The norms, customs, and values of a general population and
its demographic sub-groups
socioemotional behaviors: Address interpersonal and emotional needs
span of control: The number of members a given manager has authority over
specialization: Grouping standardized organizational tasks into separate jobs
spirituality: A state or quality of a heightened sensitivity to one’s human or transcendent
spirit
staff authority: The formal power a member is given in order to provide advice and offer
specific technical expertise to other members; This does not include the power to make
the actual decisions about what is done
staffing: The human resource management (HRM) process of identifying, attracting, hiring,
and retaining people with the necessary KSAOs to fulfill the responsibilities of current and
future jobs in the organization
stakeholder: Any group or person within or outside an organization who is directly affected
by the organization and has a stake in its performance
standardization: The development of uniform practices for organizational members to
follow in doing their jobs
standing operating procedures: Outline specific steps that must be taken when
performing certain tasks
standing plans: Provide guidance for activities that are performed repeatedly
stereotyping: Making assumptions about other people based on their gender, race, age, or
some other characteristic
strategic alliance: When managers from different organizations in at least two countries
pool their organization’s resources and “know-how” in order to share the risks and
rewards for developing a new market or product
strategic choice theory: Describes how managers, influenced by their values, make three
key interrelated decisions regarding an organization’s performance standards, domain,
and organization design
strategic learning: Using insights from an organization’s actual strategy to improve its
intended strategy
strategic management: The analysis and decisions necessary to formulate and implement
strategy
strategy: The combination of goals, plans, and actions designed to accomplish an
organization’s mission
stretch goal: A goal so difficult that people must think “outside the box” in order to achieve
it
structural behaviors: Address the structure of the task and work context
subject matter experts (SME): Experts in a specific occupation or specific task
subsidies: Direct or indirect payments made by a government to domestic firms, which help
them to compete better with goods and services produced in other countries
succession plan: The management process of identifying talented employees who have the
potential to succeed in jobs of increased responsibility within the organization
superordinate goal: A higher-level goal
supporting: (Mainstream leading) Expressing confidence in the follower’s abilities and
sharing decision-making authority; It is a Situational Leadership II style
sustainable development: Development that meets the needs of the present without
compromising the ability of future generations to meet their own needs
sustaincentrism: A perspective promoting balance between the human and ecological
concerns in organizational endeavors
sustained competitive advantage: A competitive strategy that other organizations are
unable to duplicate
sustenance economics: Refers to managing property and wealth in such a way as to
increase the long-term overall well-being for owners, members, and other stakeholders
switching: The extent to which the membership in a virtual organization changes over time
SWOT analysis: Examines an organization’s internal strengths and weaknesses in light of
external opportunities and threats
synergy: Occurs when two or more systems are more successful working together than
they are working independently
systems analysis: An approach used to analyze complex problems that cannot be solved
by intuition, straightforward mathematics, or simple experience
systems theory: A sub-field of management that aids in planning and decision making by
highlighting managers’ unique responsibilities and vantage points in overseeing the entire
organization
tacit knowledge: Information or an ability that people hold that is difficult to articulate
and/or codify
tariffs: Taxes on goods or services entering a country
task analyzability: The ability to reduce tasks down to mechanical steps and to create
objective, computational procedures for problem solving
task cohesion: The shared commitment among members to achieving a goal
task environment: Contains four key groups of stakeholders that managers need to pay
attention to: customers, members, owners, and other organizations (e.g., suppliers and
competitors)
task interdependence: The interconnection of tasks, typically in a group environment
task management style: Exhibits a high concern for production and a low concern for
people; It is a Leadership Grid style
task variety: The frequency of unexpected, novel, or exceptional events that occur during
work
team: A task-oriented collection of people who work interdependently as a unit to achieve
common goals, and are accountable to one another to achieve those goals
team style: Characterized by both high levels of concern for people and production; It is a
Leadership Grid style
technical skills: Expertise in a particular field, such as marketing, accounting, computer
software development, or international trade agreements
technology: The combination of equipment (e.g., computers, machinery, tools) and skills
(e.g., techniques, knowledge, processes) by which the acquisition, design, production,
and distribution of goods and services can be managed
teleopathy: An addiction to the unbalanced pursuit of a single purpose or goal
Theory X: States that managers assume people are inherently lazy, dislike work, will avoid
working hard unless forced to do so, and prefer to be directed rather than accepting
responsibility
Theory Y: States that managers assume people are inherently motivated to work and will
feel unfulfilled if they do not have the opportunity to work and make a contribution to
society
think-tank: An organization that conducts research to inform and influence areas like social
and public policy, technology, and defense
time and motion studies: Use of stopwatches and ergonomic principles to design jobs to
maximize productivity
time orientation: The concept differentiates between cultures that have a short-term
versus a long-term orientation
top managers: Those leaders who have organization-wide managerial responsibilities (e.g.,
CEOs, Vice-Presidents, and Board Chairs)
Total Quality Management (TQM): Emphasizes how managers can continuously improve
an organization’s work systems so that its products or services better deliver the quality
desired by customers
training: Learning activities that improve an individual’s skills or performance in a specific
area or current position
traits: Personal characteristics that remain relatively stable
transactional leaders: Focus on fair exchanges with organizational members to motivate
them to achieve established goals
transaction-processing systems: Record and process recurring and routine activities that
take place in an organization
transformational change: Occurs when an organization changes its strategic direction
transformational leaders: Focus on inspiring change in members and the organization
transformer strategy: Provides desired goods and services in a way that redeems what
were previously discarded or underappreciated resources (e.g., waste, pollution)
uncertainty: Evident when decision makers do not know what outcomes to expect with
choosing a particular alternative
unity of command: A principle of management that states that each organizational
employee reports to only one superior
unity of direction: A principle of management that states that managers and employees
should be guided by a single plan of action
unplanned change: Involves making ad hoc or piecemeal responses to unanticipated
events or crises as they occur
unrelated diversification: Growing an organization by entering new industries or by
acquiring other organizations unrelated to the organization’s current activities
utilitarianism: A moral philosophy that holds that ethical managers strive to produce “the
greatest good for the greatest number”
valence: The value an individual attaches to an outcome
value chain: The sequence of activities needed to convert an organization’s inputs (e.g.,
raw materials, new employees) into outputs (e.g., products and services)
value loop: Describes the activities whereby an organization’s inputs are converted into
outputs, which in turn are linked to the organization’s future inputs
venture capitalist: A company or individual that invests money in an organization in
exchange for a share of ownership and profits
vertical integration: A type of diversification that occurs when an organization produces its
own inputs (backward integration) or sells its own outputs (forward integration)
virtual organization: An organization where members come and go on an “as-needed”
basis and are networked together with an information technology architecture that
enables them to synchronize their activities
virtue theory: A moral philosophy that focuses on character and how people practice and
facilitate the practice of virtues in community, and thereby facilitate happiness
virtues: Good ways of acting that are noble or have value regardless of the end result or
consequences
vision statement: Describes what an organization is striving to become
voluntary simplicity type: These organizations have an outward structure, operate in a
narrow segment of the environment, have a narrow minimizer or transformer strategy,
and focus on enhancing well-being within and/or beyond the organization
whistleblowers: Organization insiders who identify unethical behavior and display the
courage to report it
World Bank: Provides financial and technical assistance in an attempt to reduce poverty in
developing countries
World Trade Organization (WTO): Facilitates trade among its more than 150 member
countries by urging countries to lower tariffs and to work toward free trade and open
markets