Griffin Fundamentals of Management 3e

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Fundamentals of Management , Third Edition
Ricky W. Griffin, Texas A&M University


	Complete Glossary Below is an alphabetical listing of all glossary terms found throughout the text. A \| B \| C \| D \| E \| F \| G \| H \| I \| J \| K \| L \| M N \| O \| P \| Q \| R \| S \| T \| U \| V \| W -A- [Return to top] administrative management Focuses on managing the total organization administrative model A decision-making model that argues that decision makers (1) have incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions adverse impact When minority group members pass a selection standard at a rate less than 80 percent of the pass rate of majority group members affirmative action Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization Age Discrimination in Employment Act Outlaws discrimination against people older than 40 years; passed in 1967, amended in 1978 and 1986 Agreeableness A person's ability to get along with others Americans With Disabilities Act Prohibits discrimination against people with disabilities artificial intelligence (AI) A computer program that attempts to duplicate the thought processes of experienced decision makers attitudes Complexes of beliefs and feelings that people have about specific ideas, situations, or other people attribution The process of observing behavior and attributing causes to it audit An independent appraisal of an organization's accounting, financial, and operational systems. Authoritarianism The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations Authority Power that has been legitimized by the organization Automation The process of designing work so that it can be completely or almost completely performed by machines Avoidance Used to strengthen behavior by avoiding unpleasant consequences that would result if the behavior were not performed -B- [Return to top] balance sheet List of assets and liabilities of an organization at a specific point in time BCG matrix A method of evaluating businesses relative to the growth rate of their market and the organization's share of the market behavior modification (OB mod) A reinforcement program that starts by specifying behaviors that are to be increased or decreased, then ties these target behaviors to specific forms of reinforcement behavioral management perspective Emphasizes individual attitudes and behaviors and group processes Behaviorally Anchored Rating Scale (BARS) A sophisticated rating method in which supervisors construct a rating scale associated with behavioral anchors Benchmarking The process of learning how other firms do things in an exceptionally high-quality manner Benefits Things of value other than compensation that an organization provides to its workers "big five" personality traits A popular personality framework based on five key traits absenteeism When an individual does not show up for work board of directors Governing body elected by a corporation's stockholders, charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests bounded rationality A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits breakeven analysis A procedure for identifying the point at which revenues start covering costs budget A plan expressed in numerical terms bureaucracy A model of organization design based on a legitimate and formal system of authority bureaucratic control A form of organizational control characterized by formal and mechanistic structural arrangements burnout A feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time business plan A document that summarizes the business strategy and structure business-level strategy The set of strategic alternatives from which an organization chooses as it conducts business in a particular industry or market -C- [Return to top] capacity The amount of products, services, or both that can be produced by an organization causal modeling A group of different techniques that determine causal relationships between different variables cellular layout A physical configuration of facilities used when families of products can follow similar flow paths centralization The process of systematically retaining power and authority in the hands of higher-level managers chain of command A clear and distinct line of authority among the positions in an organization charisma A form of interpersonal attraction that inspires support and acceptance charismatic leadership Assumes that charisma is an individual characteristic of the leader Civil Rights Act of 1991 Amends the Original Civil Rights Act, making it easier to bring discrimination lawsuits while also limiting punitive damages clan control An approach to organizational control based on informal and organic structural arrangements classical decision model A prescriptive approach to decision making that tells managers how they should make decisions; it assumes that managers are logical and rational and that their decisions will be in the best interests of the organization classical management perspective Consists of two distinct branches: scientific management and administrative management closed system An organizational system that does not interact with its environment coalition An informal alliance of individuals or groups formed to achieve a common goal code of ethics A formal, written statement of the values and ethical standards that guide a firm's actions coercive power The power to force compliance by means of psychological, emotional, or physical threat cognitive dissonance Caused when an individual has conflicting attitudes cohesiveness The extent to which members are loyal and committed to the group; the degree of mutual attractiveness within the group collective bargaining The process of agreeing on a satisfactory labor contract between management and a union communication network The pattern through which the members of a group communicate communication skills The manager's abilities to both effectively convey ideas and information to others and to effectively receive ideas and information from others communication The process of transmitting information from one person to another compensation The financial remuneration given by the organization to its employees in exchange for their work competitor An organization that competes with other organizations for resources compressed work schedule Working a full 40-hour week in fewer than the traditional five days computer-assisted manufacturing A technology that relies on computers to design or manufacture products conceptual skills The manager's ability to think in the abstract concern for people That part of the Leadership Grid that deals with the human aspects of leader behavior concern for production The part of the Leadership Grid that deals with the job and task aspects of leader behavior conflict A disagreement between two or more individuals or groups conglomerate (H-form) design Used by an organization made up of a set of unrelated businesses conscientiousness The number of goals on which a person focuses consideration behavior The behavior of leaders who show concern for subordinates and attempt to establish a warm, friendly, and supportive climate content perspectives Approaches to motivation that try to answer the question: What factor or factors motivate people? contingency perspective Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements contingency planning The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate contributions What the individual provides to the organization control standard A target against which subsequent performance will be compared control The regulation of organizational activities in such a way as to facilitate goal attainment controller A position in organizations that helps line managers with their control activities controlling Monitoring organizational progress toward goal attainment coordination The process of linking the activities of the various departments of the organization corporate-level strategy The set of strategic alternatives from which an organization chooses as it manages its operations simultaneously across several industries and several markets creativity The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas critical path The longest path through a PERT network customer departmentalization Grouping activities to respond to and interact with specific customers or customer groups customer Whoever pays money to acquire an organization's products or services -D- [Return to top] data Raw figures and facts reflecting a single aspect of reality decentralization The process of systematically delegating power and authority throughout the organization to middle and lower-level managers decision making Part of the planning process that involves selecting a course of action from a set of alternatives decision making The act of choosing one alternative from among a set of alternatives decision support system (DSS) An interactive system that locates and presents information needed to support the decision-making process in an organization decision tree A planning tool that extends the concept of a payoff matrix through a sequence of decisions decision-making process Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice decision-making skills The manager's ability to correctly recognize and define problems and opportunities, and then to select an appropriate course of action to solve problems and capitalize on opportunities delegation The process by which a manager assigns a portion of his or her total workload to others Delphi group A form of group decision making in which a group is used to achieve a consensus of expert opinion Departmentalization The process of grouping jobs according to some logical arrangement Development Teaching managers and professionals the skills needed for both present and future jobs diagnostic skills The manager's ability to visualize the most appropriate response to a situation differentiation Extent to which the organization is broken down into subunits differentiation strategy A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services direct investment When a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country distinctive competence An organizational strength possessed by only a small number of competing firms distribution model A model used to determine the optimal pattern of distribution across different carriers and routes diversification The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another diversity Exists in a group or organization when its members differ from one another along one or more important dimensions divisional (M-form) design Based on multiple businesses in related areas operating within a larger organizational framework -E- [Return to top] econometric model A causal model that predicts major economic shifts and their impact on the organization economic community A set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system) economic dimension The overall health and vitality of the economic system in which the organization operates economic indicator A key population statistic or index that reflects the economic well-being of a population effective communication The process of sending a message in such a way that the message received is as close in meaning as possible to the message intended effective Making the right decisions and successfully implementing them effective strategy A strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals efficient Using resources wisely and in a cost-effective way effort-to-performance expectancy The individual's perception of the probability that his or her effort will lead to high performance employee information system (skills inventory) Contains information on each employee's education, skills, experience, and career aspirations; usually computerized Employee Retirement Income Security Act of 1974 (ERISA) Sets standards for pension plan management and provides federal insurance if pension funds go bankrupt employee-centered leader behavior The behavior of leaders who develop cohesive work groups and ensure employee satisfaction empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority entrepreneur Someone who engages in entrepreneurship entrepreneurship The process of planning, organizing, operating, and assuming the risk of a business venture entropy A normal process leading to system decline Equal Employment Opportunity Commission Charged with enforcing Title VII of the Civil Rights act of 1964 Equal Pay Act of 1963 Requires that men and women be paid the same amount for doing the same jobs equity theory Suggests that people are motivated to seek social equity in the rewards they receive for performance escalation of commitment A decision maker's staying with a decision even when it appears to be wrong established market A market in which several large firms compete according to relatively well-defined criteria ethical behavior Behavior that conforms to generally accepted social norms ethical compliance The extent to which an organization and its members follow basic ethical standards of behavior ethics An individual's personal beliefs regarding what is right and wrong or good and bad European Union (EU) The first and most important international market system executive support systems (ESS) A quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers expectancy theory Suggests that motivation depends on two things—how much we want something and how likely we think we are to get it expected value When applied to alternative courses of action, the sum of all possible values of outcomes from that action multiplied by their respective probabilities expert power The personal power that accrues to someone based on the information or expertise that they possess expert system An information system designed to imitate the thought processes of human experts in a particular field export restraint agreement Accord reached by governments in which countries voluntarily limit the volume or value of goods they export to and import from one another exporting Making a product in the firm's domestic marketplace and selling it in another country external environment Everything outside an organization's boundaries that might affect it external recruiting Getting people from outside the organization to apply for jobs extinction Used to weaken undesired behaviors by simply ignoring or not reinforcing that behavior extraversion A person's comfort level with relationships -F- [Return to top] facilities The physical locations where products or services are created, stored, and distributed Fair Labor Standards Act Sets a minimum wage and requires overtime pay for work in excess of forty hours per week; passed in 1938 and amended frequently since then Family and Medical Leave Act of 1993 Requires employers to provide up to twelve weeks of unpaid leave for family and medical emergencies financial control Concerned with the organization's financial resources financial statement A profile of some aspect of an organization's financial circumstances first-line managers Managers who supervise and coordinate the activities of operating employees first-mover advantage Any advantage that comes to a firm because it exploits an opportunity before any other firm does fixed-interval schedule Provides reinforcement at fixed intervals of time, such as regular weekly paychecks fixed-position layout A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products, such as airplanes fixed-ratio schedule Provides reinforcement after a fixed number of behaviors regardless of the time interval involved, such as a bonus for every fifth sale flexible work schedules (flextime) Allowing employees to select, within broad parameters, the hours they work focus strategy A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers forecasting The process of developing assumptions or premises about the future that managers can use in planning or decision making franchise An arrangement that permits the franchisee (the buyer) to sell the product of the franchiser (seller or parent company). functional (U-form) design Based on the functional approach to departmentalization functional departmentalization Grouping jobs involving the same or similar activities functional group A group created by the organization to accomplish a number of organizational purposes with an indefinite time horizon -G- [Return to top] game theory A planning tool used to predict how competitors will respond to different actions the organization might take GE Business Screen A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business general adaptation syndrome (GAS) General cycle of the stress process general environment The set of broad dimensions and forces in an organization's surroundings that create its overall context goal-setting theory Assumes that behavior is a result of conscious goals and intentions grapevine An informal communication network among people in an organization grievance procedure The means by which a labor contract is enforced group Consists of two or more people who interact regularly to accomplish a common purpose or goal groupthink A situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision -H- [Return to top] horizontal communication Communication that flows laterally within the organization; it involves colleagues and peers at the same level of the organization and may involve individuals from several different organizational units human relations movement Argued that workers respond primarily to the social context of the workplace human resource management (HRM) The set of organizational activities directed at attracting, developing, and maintaining an effective workforce -I- [Return to top] importing Bringing a good, service, or capital into the home country from abroad impression management A direct and intentional effort by someone to enhance his or her image in the eyes of others incentive system A reward system whereby people get different pay amounts at each pay period in proportion to what they do income statement A summary of financial performance over a period of time incremental innovation A new product, service, or technology that modifies an existing one individual differences Personal attributes that vary from one person to another inducements What the organization provides to the individual informal leader A person who engages in leadership activities but whose right to do so has not been formally recognized by the organization or group informal or interest group Created by its members for purposes that may or may not be relevant to those of the organization information Data presented in a way or form that has meaning information technology (IT) Refers to the resources used by an organization to manage information that it needs to carry out its mission initiating-structure behavior The behavior of leaders who define the leader-subordinate role so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed innovation The managed effort of an organization to develop new products or services or new uses for existing products or services integration Degree to which the various subunits must work together in a coordinated fashion interacting group A decision-making group or team in which members openly discuss, argue about, and agree on the best alternative interest group A group formed by its own individual members to attempt to influence business internal recruiting Considering current employees as applicants for higher-level jobs in the organization interpersonal skills The ability to communicate with, understand, and motivate both individuals and groups intranet A private network that functions much like the Internet intrapreneurs Similar to entrepreneurs, except that they develop a new business in the context of a large organization intuition An innate belief about something without conscious consideration inventory control Managing the organization's raw materials, work-in-process, finished-goods, and in-transit inventories inventory model A technique that helps managers decide how much inventory to maintain ISO 9000 A set of quality standards created by the International Organization for Standardization -J- [Return to top] job analysis A systematized procedure for collecting and recording information about jobs job characteristics approach An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences job enlargement An alternative to job specialization that involves giving the employee more tasks to perform job enrichment An alternative to job specialization that involves increasing both the number of tasks the worker does and the control the worker has over the job job evaluation An attempt to assess the worth of each job relative to other jobs job rotation An alternative to job specialization that involves systematically moving employees from one job to another job satisfaction or dissatisfaction An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work job sharing When two part-time employees share one full-time job. job specialization The degree to which the overall task of the organization is broken down and divided into smaller component parts job-centered leader behavior The behavior of leaders who pay close attention to the job and work procedures involved with that job joint venture A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis just-in-time (JIT) An inventory management technique in which materials are scheduled to arrive in small batches as they are needed, eliminating the need for resources such as big reserves and warehouse space just-in-time (JIT) method An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted -K- [Return to top] There are no terms for the letter K. -L- [Return to top] labor relations The process of dealing with employees when they are represented by union Labor-Management Relations Act Passed in 1947 to limit union power; also known as the Taft-Hartley Act Layout The physical configuration of facilities, the arrangement of equipment within facilities, or both Leader One who can influence the behaviors of others without having to rely on force; one accepted by others as a leader leader-member exchange (LMX) model Stresses that leaders have different kinds of relationships with different subordinates leadership As a process, the use of noncoercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organization culture; as a property, the set of characteristics attributed to individuals who are perceived to be leaders leading The set of processes used to get members of the organization to work together to further the interests of the organization learning organization One that works to facilitate the lifelong learning and personal development of all of its employees, while continually transforming itself to respond to changing demands and needs least preferred co-worker (LPC) The measuring scale that asks leaders to describe the person with whom he or she is able to work least well least-preferred coworker (LPC) The measuring scale that asks leaders to describe the person with whom he or she is able to work least well legal compliance The extent to which an organization complies with local, state, federal, and international laws legitimate power Power granted through the organizational hierarchy; the power defined by the organization that is to be accorded people occupying particular positions licensing An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales linear programming A planning technique that determines the optimal combination of resources and activities location departmentalization Grouping jobs on the basis of defined geographic sites or areas location The physical positioning or geographic site of facilities locus of control The degree to which an individual believes that behavior has a direct impact on the consequences of that behavior -M- [Return to top] machiavellianism Behavior directed at gaining power and controlling the behavior of others Malcolm Balrige Award Named after a former secretary of commerce, this prestigious award is given to firms that achieve major quality improvements Management A set of functions directed at the efficient and effective utilization of resources in the pursuit of organizational goals management by wandering around An approach to communication that involves the manager’s literally wandering around and having spontaneous conversations with others management information systems (MIS) Support an organization’s managers by providing daily reports, schedules, plans, and budgets management science Focuses specifically on the development of mathematical models managerial ethics Standards of behavior that guide individual managers in their work managerial innovation A change in the management process in an organization manufacturing A form of business that combines and transforms resource inputs into tangible outcomes maquiladora Light assembly plant built in northern Mexico close to the U.S. border and given special tax breaks by the Mexican government Maslow's hierarchy of needs Suggests that people must satisfy five groups of needs in order—physiological, security, belongingness, esteem, and self-actualization matrix design Based on two overlapping bases of departmentalization mechanistic organization Similar to the bureaucratic model, most frequently found in stable environments merit system A reward system whereby people get different pay raises at the end of the year, depending on their overall job performance middle managers The relatively large set of managers responsible for implementing the policies and plans developed by top managers and for supervising and coordinating the activities of first-line managers mission A statement of an organization's fundamental purpose motivation The set of forces that cause people to behave in certain ways -N- [Return to top] National Labor Relations Act Passed in 1935 to set up procedures for employees to vote whether to have a union; also known as the Wagner Act National Labor Relations Board Established by the Wagner Act to enforce its provisions need for achievement The desire to accomplish a goal or task more effectively than in the past need for affiliation The desire for human companionship and acceptance need for power The desire to be influential in a group and to control one's environment negative emotionality Extent to which a person is poised, calm, resilient and secure niche A segment of a market not currently being exploited nominal group A structured technique used to generate creative and innovative alternatives or ideas nonprogrammed decision A decision that is relatively unstructured; occurs much less often than a programmed decision nonverbal communication Any communication exchange that does not use words or that uses words to carry more meaning than the strict definition of the words themselves norm Standard of behavior that the group accepts and expects of its members North American Free Trade Agreement (NAFTA) An agreement between the United States, Canada, and Mexico to promote trade with one another -O- [Return to top] Occupational Safety and Health Act of 1970 (OSHA) Directly mandates the provision of safe working conditions open system An organizational system that interacts with its environment openness A person's rigidity of beliefs and range of interests operational goal A goal set by and for lower-level managers of the organization operational plan Focuses on carrying out tactical plans to achieve operational goals operations control Focuses on the processes the organization uses to transform resources into products or services operations management Concerned with helping the organization more efficiently produce its products or services operations management The total set of managerial activities used by an organization to transform resource inputs into products, services or both oral communication Face-to-face conversation, group discussions, telephone calls, and other circumstances in which the spoken word is used to transmit meaning organic organization Very flexible and informal model of organization design, most often found in unstable and unpredictable environments organization change Any substantive modification to some part of the organization organization culture The set of values, beliefs, behaviors, customs, and attitudes that helps an organization's members understand what it stands for, how it does things, and what it considers important organization development An effort that is planned, organizationwide, and managed from the top; it is intended to increase organization effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge organization structure and design The set of elements that can be used to configure an organization organizational behavior Contemporary field focusing on behavioral perspectives on management organizational citizenship The behavior of individuals that makes a positive overall contribution to the organization organizational commitment An attitude that reflects an individual's identification with and attachment to the organization itself organizational life cycle Progression through which organizations evolve as they grow and mature organizational opportunity An area in the environment that, if exploited, may generate high performance organizational simulation A model of a real-world situation that can be manipulated to discover how it functions organizational size Total number of full-time or full-time-equivalent employees organizational strength A skill or capability that enables an organization to conceive of and implement its strategies organizational threat An area in the environment that increases the difficulty of an organization’s achieving high performance organizational weakness A skill or capability that does not enable an organization to choose and implement strategies that support its mission organizing Grouping activities and resources in a logical fashion outcomes Consequences of behaviors in an organizational setting; usually rewards outsourcing Subcontracting services and operations to other firms that can perform them more cheaply or better overall cost leadership strategy A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms owner Whoever can claim property rights on an organization -P- [Return to top] participation The process of giving employees a voice in making decisions about their own work path-goal theory A theory of leadership suggesting that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards payoff matrix A decision-making tool that specifies the probable value of different alternatives depending on different possible outcomes associated with each perception The set of processes through which an individual becomes aware of and interprets information about the environment performance appraisal A formal assessment of how well an employee is doing his or her job performance behaviors The total set of work-related behaviors that the organization expects the individual to display performance-to-outcome expectancy The individual's perception that her or his performance will lead to a specific outcome personality The relatively permanent set of psychological and behavioral attributes that distinguish one person from another person-job fit The extent to which the contributions made by the individual match the inducements offered by the organization PERT A planning tool that uses a network to plan projects involving numerous activities and their interrelationships philanthropic giving Awarding funds or gifts to charities or worthy causes planned change Change that is designed and implemented in an orderly and timely fashion in anticipation of future events planning Setting an organization's goals and deciding how best to achieve them policy A standing plan that specifies the organization's general response to a designated problem or situation political behavior The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes political-legal dimension The government regulation of business and the general relationship between business and government pooled interdependence When units operate with little interactions, their output is simply pooled portfolio management technique A method that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance positive reinforcement A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed postaction control Monitors the outputs or results of the organization after the transformation process is complete power The ability to affect the behavior of others preliminary control Attempts to monitor the quality or quantity of financial, physical, human, and information resources before they actually become part of the system probability The likelihood, expressed as a percentage, that a particular event will or will not occur process innovation A change in the way a product or service is manufactured, created, or distributed process layout A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products process perspectives Approaches to motivation that focus on why people choose certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained these goals product departmentalization Grouping activities around products or product groups product innovation A change in the physical characteristics of a product or service, or the creation of a new one product layout A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed product life cycle A model that portrays how sales volume for products changes over the life of products productivity An economic measure of efficiency that summarizes what is produced relative to resources used to produce it product-service mix How many and what kinds of products or services (or both) to offer program A single-use plan for a large set of activities programmed decision A decision that is fairly structured or recurs with some frequency (or both) project A single-use plan of less scope and complexity than a program psychological contract The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide to the individual punishment Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed purchasing management Buying materials and resources needed to produce products and services -Q- [Return to top] qualitative forecasting technique One of several techniques that rely on individual or group judgment rather than on mathematical analyses quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs quantitative management perspective Applies quantitative techniques to management queuing model A model used to optimize waiting lines in organizations quota A limit on the number or value of goods that can be traded -R- [Return to top] radical innovation A new product, service, or technology, that completely replaces an existing one ratio analysis The calculation of one or more financial ratios to assess some aspect of the organization's financial health reactive change A piecemeal response to circumstances as they develop realistic job preview (RJP) Provides the applicant with a real picture of what performing the job the organization is trying to fill would be like reciprocal interdependence When activities flow both ways between units recruiting The process of attracting individuals to apply for jobs that are open reengineering The radical redesign of all aspects of a business to achieve major gains in cost, service, or time referent power The personal power that accrues to someone based on identification, imitation, loyalty, or charisma regression model An equation that uses one set of variables to predict another variable regulator A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices regulatory agency An agency created by the government to regulate business activities reinforcement theory Approach to motivation that explains the role of rewards as they cause behavior to change or remain the same over time related diversification A strategy in which an organization operates in several businesses that are somehow linked with one another replacement chart Lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement resource deployment How an organization distributes its resources across the areas in which it competes revenue forecasting The prediction of future revenues from all sources reward power The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments reward systems The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded risk propensity The degree to which an individual is willing to take chances and make risky decisions risk propensity The extent to which a decision maker is willing to gamble in making a decision robot Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings role ambiguity Arises when the sent role is unclear and the individual does not know what is expected of him or her role conflict Occurs when the messages and cues comprising the sent role are clear but contradictory or mutually exclusive role overload Occurs when expectations for the role exceed the individual's capabilities to perform role structure The set of defined roles and interrelationships among those roles that group members define and accept role The part an individual plays in a group in helping the group reach its goals rules and regulations Describe exactly how specific activities are to be carried out -S- [Return to top] sales forecasting The prediction of future sales satisficing The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency scientific management Concerned with improving the performance of individual workers scope When applied to strategy, it specifies the range of markets in which an organization will compete screening control Relies heavily on feedback processes during the transformation process selective perception The process of screening out information that we are uncomfortable with or which contradicts our beliefs self-efficacy An individual's beliefs about her or his capabilities to perform a task self-esteem The extent to which a person believes that he or she is a worthwhile and deserving individual sequential interdependence When the output of one unit becomes the input of another in sequential fashion service organization An organization that transforms resources into services single-product strategy A strategy in which an organization manufactures just one product or service and sells it in a single geographic market single-use plan Developed to carry out a course of action that is not likely to be repeated in the future situational view of organization design Based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors small business A business that is privately owned by one individual or a small group of individuals; it has sales and assets that are not large enough to influence its environment social responsibility The set of obligations an organization has to protect and enhance the societal context in which it functions socialization Generalized norm conformity that occurs as a person makes the transition from being an outsider to being an insider in the organization soldiering Employees’ deliberately working at a slow pace span of management The number of people who report to a particular manager speed The time needed by the organization to get its activities, including developing, making, and distributing products or services, accomplished standard operating procedure (SOP) A standing plan that outlines the steps to be followed in a particular circumstance standing plan Developed for activities that recur regularly over a period of time state of certainty A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative state of risk A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates state of uncertainty A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have statistical quality control (SQC) A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and in-process sampling steps in rational decision making Recognize and define the decision situation; identify appropriate alternatives; evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; follow up and evaluate the results of the chosen alternative stereotyping The process of categorizing or labelling people on the basis of a single attribute strategic alliance A cooperative arrangement between two or more firms for mutual benefit strategic business unit (SBU) A single business or set of businesses within a larger organization strategic control Control aimed at ensuring that the organization is maintaining an effective alignment with its environment and is moving toward achieving its strategic goals strategic control Focuses on how effectively the organization's strategies are succeeding in helping the organization meet its goals strategic goal A goal set by and for top management of the organization strategic management A comprehensive and ongoing management process aimed at formulating and implementing effective strategies; a way of approaching business opportunities and challenges strategic partner (strategic ally) An organization working together with one or more other organizations in a joint venture or similar arrangement strategic plan A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals strategy A comprehensive plan for accomplishing an organization's goals strategy formulation The set of processes involved in creating or determining the strategies of the organization; focuses on the content of strategies strategy implementation The methods by which strategies are operationalized or executed within the organization; focuses on the processes through which strategies are achieved stress An individual's response to a strong stimulus, which is called a stressor structural control Concerned with how the elements of the organization's structure are serving their intended purpose substitutes for leadership A concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of subordinates, the task, or the organization subsystem A system within another system supplier An organization that provides resources for other organizations supply chain management The process of managing operations control, resource acquisition, and inventory so as to improve overall efficiency and effectiveness SWOT An acronym that stands for strengths, weaknesses, opportunities, and threats Synergy Exists among a set of businesses when their economic value together is greater than the sum of their economic values separately Synergy Two or more subsystems working together to produce more than the total of what they might produce working alone System An interrelated set of elements functioning as a whole -T- [Return to top] tactical goal A goal set by and for middle managers of the organization tactical plan A plan aimed at achieving tactical goals and developed to implement parts of a strategic plan tactical plan A plan aimed at achieving tactical goals which is developed to implement parts of a strategic plan tariff A tax collected on goods shipped across national boundaries task environment Specific organizations or groups that affect the organization task group A group created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon team A group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities team organization An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy. technical innovation A change in appearance or performance of products or services, or the physical processes through which a product or service passes technical skills The skills necessary to accomplish or understand tasks relevant to the organization technological dimension The methods available for converting resources into products or services technological forecasting The prediction of what future technologies are likely to emerge and when they are likely to be economically feasible technology Conversion processes used to transform inputs into outputs technology The set of processes and systems used by organizations to convert resources into products or services telecommuting Allowing employees to spend part of their time working off site, usually at home Theory X A pessimistic and negative view of workers consistent with the views of scientific management Theory Y A positive view of workers, representing the assumptions that human relations advocates make time management skills The manager's ability to prioritize work, to work efficiently, and to delegate appropriately time-series analysis A forecasting technique that extends past information into the future through the calculation of a best-fit line Title VII of the Civil Rights Act of 1964 Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship top managers The relatively small set of senior executives who manage the overall organization total quality management (TQM) A strategic commitment by top management to change its whole approach to business to make quality a guiding factor in everything it does training Teaching operational or technical employees how to do the job for which they were hired transaction processing systems (TPS) Applications of information processing for basic day-to-day business transactions transformational leadership Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking turnover When people quit their job two-factor theory of motivation Suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors—motivation factors and hygiene factors Type A Individuals who are extremely competitive, very devoted to work, and have a strong sense of time urgency Type B Individuals who are less competitive, less devoted to work, and have a weaker sense of time urgency -U- [Return to top] unethical behavior Behavior that does not conform to generally accepted social norms universal perspective An attempt to identify the one best way to do something unrelated diversification A strategy in which an organization operates in several businesses that are not related to one another -V- [Return to top] valence An index of how much an individual desires a particular outcome; the attractiveness of the outcome to the individual validation Determining the extent to which a selection device is really predictive of future job performance variable-interval schedule Provides reinforcement at varying intervals of time, such as occasional visits by the supervisor variable-ratio schedule Provides reinforcement after varying numbers of behaviors are performed, such as the use of complements by a supervisor on an irregular basis venture capital company A company that actively seeks to invest in new businesses vertical communication Communication that flows up and down the organization usually along formal reporting lines; it takes place between managers and their subordinates and may involve several different levels of the organization virtual organization One that has little or no formal structure Vroom’s decision tree approach Predicts what kinds of situations call for what degrees of group participation -W- [Return to top] whistle blowing The disclosure by an employee of illegal or unethical conduct on the part of others within the organization work team An alternative to job specialization that allows an entire group to design the work system it will use to perform an interrelated set of tasks workplace behavior A pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness written communication Memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning -X- There are no terms for the letter X. [Return to top] -Y- There are no terms for the letter Y. [Return to top] -Z- There are no terms for the letter Z. [Return to top]





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