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KEY TERMS – CHAPTER 1 human skills The ability to work well with other

people individually and in a group.


manager Someone who coordinates and
oversees the work of other people so that conceptual skills The ability to think and to
organizational goals can be accomplished. conceptualize about abstract and complex
situations.
first-line managers Managers at the lowest
level of the organization who manage the work organization A deliberate arrangement of
of non-managerial employees. people to accomplish some specific purpose.

middle managers Managers between the universality ofThe reality that management is
first level and the top level of the organization needed in all types and sizes of
who manage the work of first-line managers. management organizations, at all
organizational levels, in all organizational areas,
top managers Managers at or near the upper and in organizations in all countries around the
levels of the organization structure who are globe.
responsible for making organization-wide
decisions and establishing the goals and plans KEY TERMS – CHAPTER 2
that affect the entire organization.
division of labor The breakdown of
management Coordinating and overseeing the jobs into narrow and repetitive tasks.
work activities of others so that their activities (or job specialization)
are completed efficiently and effectively.
Industrial Revolution The substitution of
efficiency Doing things right, or getting the machine power for human power, which made
most output from the least amount of inputs. it more economical to manufacture goods in
factories rather than at home.
effectiveness Doing the right things, or
completing activities so that organizational scientific management Using the scientific
goals are attained. method to determine the “one best way” for a
job to be done.
planning Management function that
involves defining goals, establishing strategies therbligs A classification scheme for
for achieving those goals, and developing plans labeling seventeen basic hand motions.
to integrate and coordinate activities.
general administrative A theory of
organizing Management function that management that focused on describing what
involves arranging and structuring work to theory managers do and what
accomplish the organization’s goals. constitutes good management
practice.
leading Management function that
involves working with and through people to principles of management Fundamental rules
accomplish organizational goals. of management that could be taught in schools
and applied in all organizational situations.
controlling Management function that
involves monitoring, comparing, and correcting bureaucracy A form of organization
work performance. characterized by division of labor, a clearly
defined hierarchy, detailed rules and
management roles Specific categories of regulations, and impersonal relationships.
managerial behavior.
quantitative approach The use of
interpersonal roles Managerial roles that quantitative techniques to improve decision
involve people and other duties that are making.
ceremonial and symbolic in nature.
organizational behavior The field of study
informational roles Managerial roles that concerned with the actions (behavior) of
involve collecting, receiving, and disseminating (OB) people at work.
information.
Hawthorne Studies A series of studies during
decisional roles Managerial roles that the 1920s and 1930s that provided new insights
revolve around making choices. in individual and group behavior.

technical skills Job-specific knowledge system A set of interrelated and


and techniques needed to proficiently perform interdependent parts arranged in a manner that
specific tasks. produces a unified whole.
closed systems Systems that are not
influenced by and do not interact with their organizational members act.
environment.
strong cultures Organizational cultures in
open systems Systems that interact with their which the key values are intensely held and
environment. widely shared.

contingency approach Management socialization The process


approach that says that organizations are that helps employees adapt to the
different, face different situations
(contingencies), and require different ways of organization’s culture.
managing.
workforce diversity A workforce that’s workplace spirituality A culture where
heterogeneous in terms of gender, race, organizational values promote
ethnicity, age, and other characteristics that a sense of
reflect differences. purpose through meaningful work
that takes
entrepreneurship The process of starting place in the context of community.
new businesses, generally in response to
opportunities. external environment Those
factors and forces outside the organization
e-business (electronic The way an that affect
organization does its work by using electronic the organization’s performance.
business) (Internet-based) linkages with its
key constituencies in order to efficiently and specific environment Those
effectively achieve its goals. external forces that have a direct impact on
managers’
e-commerce (electronic The sales and decisions and actions and are directly
marketing aspect of e-business. relevant to
commerce) the achievement of the organization’s
goals.
intranet A Web-based internal
communication system accessible only by general environment Broad
organizational employees. external conditions that may affect the

learning organization An organization that has organization.


developed the capacity to continuously learn,
adapt, and change. environmental uncertainty The degree
of change and complexity in an organization’s
knowledge management Cultivating a environment.
learning culture where organizational members
systematically gather knowledge and share it environmental complexity The number
with others in the organization so as to achieve of components in an organization’s
better performance.
environment and the extent of the
quality management A philosophy of organization’s
management that is driven by continual knowledge
improvement and responding to customer about those components.
needs and expectations.
KEY TERMS – CHAPTER 3 stakeholders Any
constituencies in the organization’s
omnipotent view of management The view
that managers are directly responsible for an environment that are affected by the
organization’s success or failure. organization’s
decisions
symbolic view of management The view and actions.
that much of an organization’s success or
failure is KEY TERMS – CHAPTER 5
due to external forces outside managers’
control. classical view The view that management’s
only social responsibility is to maximize profits.
organizational culture The shared
values, principles, traditions, and ways socioeconomic view The view that
of doing management’s social responsibility goes
things that influence the way beyond making profits to include protecting and
improving society’s welfare.
decision A choice
social obligation When a firm engages in from two or more alternatives.
social actions because of its obligation to meet
certain economic and legal responsibilities. decision-making process A set of eight steps
that include identifying a problem, selecting an
social responsiveness When a firm alternative, and evaluating the decision’s
engages in social actions in response to some effectiveness.
popular social need .
problem A discrepancy between an
social responsibility A business’s intention, existing and a desired state of affairs.
beyond its legal and economic obligations, to
do the right things and act in ways that are decision criteria Criteria that define what’s
good for society . relevant in a decision.

rational decision making Decision-making


social screening Applying social criteria behavior where choices are consistent and
(screens) to investment decisions. value-maximizing within specified constraints.

greening of management The recognition of bounded rationality Decision-making behavior


the close link between an organization’s that’s rational, but limited (bounded) by an
decisions and activities and its impact on the individual’s ability to process information.
natural environment.
satisficing Accepting solutions that are
values-based management An approach to “good enough.”
managing in which managers are guided by the
organization’s shared values in their escalation of commitment An increased
management practices. commitment to a previous decision despite
evidence that it may have been wrong.
ethics Principles, values, and beliefs that define
what is right and wrong behavior. intuitive decision making Making decisions
on the basis of experience, feelings, and
values Basic convictions about what is right and accumulated judgment.
wrong.
structured problems Straightforward, familiar,
and easily defined problems.
ego strength A personality measure of the
strength of a person’s convictions. programmed decision A repetitive
decision that can be handled by a routine
approach.
locus of control A personality attribute
that measures the degree to which people procedure A series of interrelated sequential
believe they control their own fate. steps that can be used to respond to a well-
structured problem.

code of ethics A formal statement of an rule An explicit statement that tells


organization’s primary values and the ethical managers what they can or cannot do.
rules it expects its employees to follow .
policy A guideline for making decisions.
whistleblower Individuals who raise ethical
concerns or issues to others inside or outside unstructured problems Problems that are
the organization. new or unusual and for which information is
ambiguous or incomplete.

social entrepreneur An individual or nonprogrammed decisions A unique decision


organization who seeks out opportunities that requires a custom-made solution.
to improve society
by using practical, innovative, and certainty A situation in which a manager
sustainable can make accurate decisions because all
approaches. outcomes are known.

social impact management An approach to risk A situation in which the decision maker
managing in which managers examine the is able to estimate the likelihood of certain
social impacts of outcomes.
their decisions and actions.
KEY TERMS – CHAPTER 6
uncertainty A situation in which a decision short-term plans Plans covering one year or
maker has neither certainty nor reasonable less.
probability estimates available.
specific plans Plans that are clearly defined and
directive style A decision-making style which leave no room for interpretation.
characterized by low tolerance for ambiguity
and a rational way of thinking. directional plans Plans that are flexible and
that set out general guidelines.
analytic style A decision-making style
characterized by a high tolerance for ambiguity single-use plan A one-time plan
and a rational way of thinking. specifically designed to meet the needs of a
unique situation.
conceptual style A decision-making style
characterized by a high tolerance for ambiguity standing plans Ongoing plans that
and an intuitive way of thinking. provide guidance for activities performed
repeatedly.
behavioral style A decision-making style
characterized by a low tolerance for ambiguity traditional goal setting An approach to
and an intuitive way of thinking. setting goals in which goals are set at the top
level of the organization and then broken into
heuristics Rules of thumb that managers subgoals for each level of the organization.
use to simplify decision making.
means-ends chain An integrated network of
goals in which the accomplishment of goals at
business performance IT software one level serves as the means for achieving the
which provides key performance goals, or ends, at the next level.
management (BPM) indicators to
help managers monitor management by objectives (MBO) A process of
software efficiency of setting mutually-agreed upon goals and using
projects and employees. those goals to evaluate employee performance.
KEY TERMS – CHAPTER 7
mission The purpose of an organization.
planning Defining the organization’s goals,
establishing an overall strategy for achieving commitment conceptPlans should extend far
those goals, and developing plans for enough to meet those commitments made
organizational work activities. today.

goals Desired outcomes for individuals, formal planning department A group of planning
groups, or entire organizations. specialists whose sole responsibility is helping
to write organizational plans.
plans Documents that outline how goals are KEY TERMS – CHAPTER 8
going to be met.
strategic management What managers do
stated goals Official statements of what an to develop the organization’s strategies.
organization says, and what it wants its various
stakeholders to believe, its goals are. strategies The decisions and actions that
determine the long-run performance of an
real goals Goals that an organization organization.
actually pursues, as defined by the actions of its
members. business model A strategic design for how
a company intends to profits from its strategies,
framing A way to use language to processes, and activities.
manage meaning.
strategic management process A six-step
strategic plans Plans that apply to the process that encompasses strategic planning,
entire organization, establish the organization’s implementation, and evaluation.
overall goals, and seek to position the
organization in terms of its environment. mission A statement of the purpose of an
organization.
operational plans Plans that specify the
details of how the overall goals are to be opportunities Positive trends in external
achieved. environmental factors.

long-term plans Plans with a time frame threatsNegative trends in external


beyond three years. environmental factors.
resources An organization’s assets that are business or competitive strategy An
used to develop, manufacture, and deliver organizational strategy focused on how the
products or services to its customers. organization will compete in each of its
businesses.
capabilities An organization’s skills and
abilities in doing the work activities needed in strategic business units The single
its business. businesses of an organization in several
different businesses that are independent and
core competencies The organization’s major formulate their own strategies.
value-creating skills and capabilities that
determine its competitive weapons. competitive advantage What sets an
organization apart; its distinctive edge.
strengths Any activities the organization
does well or any unique resources that it has. cost leadership strategy A business or
competitive strategy in which the organization
weaknesses Activities the organization does competes on the basis of having the lowest
not do well or resources it needs but does not costs in its industry.
possess.
differentiation strategy A business or
SWOT analysis An analysis of the competitive strategy in which a company offers
organization’s strengths, weaknesses, unique products that are widely valued by
opportunities, and threats. customers.

corporate strategy An organizational strategy focus strategyA business or competitive


that determines what businesses a company is strategy in which a company pursues a cost or
in, should be in, or wants to be in, and what it differentiation advantage in a narrow industry
wants to do with those businesses. segment.

growth strategy A corporate strategy stuck in the middle A situation where an


that’s used when an organization wants to grow organization hasn’t been able to develop either
and does so by expanding the number of a low cost or a differentiation competitive
products offered or markets served, either advantage.
through its current business(es) or through new
business(es). functional strategies The strategies used by an
organization’s various functional departments
related diversification When a company to support the business or competitive strategy.
grows by combining with firms in different, but
related, industries. strategic flexibility The ability to recognize
major external environmental changes, to
unrelated diversification When a company quickly commit resources, and to recognize
grows by combining with firms in different and when a strategic decision was a mistake.
unrelated industries.
first mover An organization that’s first to
stability strategy A corporate strategy bring a product innovation to the market or to
characterized by an absence of significant use a new process innovation.
change in what the organization is currently KEY TERMS – CHAPTER 9
doing.
environmental scanning The screening of
renewal strategy A corporate strategy large amounts of information to anticipate and
designed to address organizational weakness interpret changes in the environment.
that are leading to performance declines.
competitor intelligence Environmental
retrenchment strategy A short-run scanning activity by which organizations gather
renewal strategy. information about competitors.

turnaround strategy A forecasts Predictions of outcomes.


renewal strategy for situations in which
the quantitative forecasting Forecasting that
organization’s performance problems are applies a set of mathematical rules to a series
more of past data to predict outcomes.
serious.
qualitative forecasting Forecasting that
BCG matrix A strategy tool that guides uses the judgment and opinions of
resource allocation decisions on the basis of knowledgeable individuals to predict outcomes.
market share and growth rate of SBUs.
benchmarkingThe search for the best practices
among competitors or noncompetitors that lead
to their superior performance.

resources The assets of the organization


including financial, physical, human, intangible,
and structural/cultural.

budgetA numerical plan for allocating resources


to specific activities.

scheduling Detailing what activities have to


be done, the order in which they are to be
completed, who is to do each, and when they
are to be completed.

Gannt chart A scheduling chart developed by


Henry Gantt that shows actual and planned
output over a period of time.

load chart A modified Gantt chart that


schedules capacity by entire departments or
specific resources.

PERT network A flowchart diagram showing the


sequence of activities needed to complete a
project and the time or cost associated with
each.

events End points that represent the completion


of major activities in a PERT network.

activities The time or resources needed to


progress from one event to another in a PERT
network.

slack time The amount of time an individual


activity can be delayed without delaying the
whole project.

critical path The longest sequence of


activities in a PERT network.

breakeven analysis A technique for identifying


the point at which total revenue is just sufficient
to cover total costs.

linear programming A mathematical technique


that solves resource allocation problems.

project A one-time-only set of activities that has


a definite beginning and ending point in time.

project management The task of getting a


project’s activities done on time, within budget,
and according to specifications.

scenario A consistent
view of what the future is likely to be.

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