Management Terms for Exam 1 PDF

management The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. Organization A social entity that is goal-directed and deliberately structured. Effectiveness The degree to which the organization a...

management The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. Organization A social entity that is goal-directed and deliberately structured. Effectiveness The degree to which the organization achieves a stated goal, or succeeds in accomplishing what it tries to do. Providing a product or service that customers value. Efficiency The amount of resources used to achieve an organizational goal. Based on how much raw material, money, and people are necessary for producing a given volume of output. The amount of resources used to produce a product or service. Performance The attainment of organizational goals by using resources in an efficient and effective manner. Time Management Using techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your life. Role A set of expectations for a manager's behavior. Classical Perspective Emerged during the 19th and early 20th century. Took a rational, scientific approach to management and sought to turn organizations into efficient operating machines. Scientific Management A sub-field of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity. Bureaucratic Organizations Approach A sub-field of the classical perspective that emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal record keeping, and separation of management and ownership. Administrative Principles Approach A sub-field of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling Humanistic Perspective Emphasizes the importance of understanding human behaviors, needs, and attitudes in the workplace, as well as social interactions and group processes. Has three sub-fields: the human relations movement, the human resources perspective, and the behavioral sciences approach. Human Relations Movement Based on the idea that truly effective control comes from within the individual worker rather than from strict, authoritarian control. The Hawthorne Studies Important in shaping ideas concerning how managers should treat workers. Studies in late 1800s, early 1900s at a lighting company between workers and managers in Chicago. The Hawthorne Effect Observation that employee motivation is affected as much or more by recognition and show of concern, as it is by improvements in their work conditions. Human Resources Perspective Maintained an interest in worker participation and considerate leadership but shifted the emphasis to consider the daily tasks that people perform. Behavioral Sciences Approach Uses scientific methods and draws from sociology, psychology, anthropology, economics, and other disciplines to develop theories about human behavior and interaction in an organizational setting. Management Science Also referred to as the quantitative perspective. Uses mathematics, statistical techniques and computer technology to facilitate management decision making, particularly for complex problems. Three subsets: operations research, operations management, and information technology. Quants Refers to financial managers and others who base their decision on complex quantitative analysis, under the assumption that using advance mathematics and sophisticated computer technology can accurately predict how the market works and help them reap huge profits. Systems Thinking The ability to see both the distinct elements of a system or situation and the complex and changing interation among those elements. System A set of interrelated parts that function as a whole to achieve a common purpose. Subsystems Parts of a system that depend on one another. Synergy The whole is greater than the sum of its parts. Contingency View Tells managers that what works in one organizational situation might not work in others. Total Quality Movement Focuses on managing the total organization to deliver better quality to customers. Four important elements: employee involvement, focus on the customer, benchmarking, and continuous improvement. Social Media Programs These include online community pages, social media sites such as Facebook and LinkedIn, micro-blogging platforms such as Twitter, and company online forums that enable managers to interact electronically with employees, customers, partners, and other stakeholders. Customer Relationship Management These systems use the latest information technology to keep in close touch with customers, to collect and manage large amounts of customer data, and provide superior customer value. Supply Chain Management Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers. Abbreviated Scenario Thinking Scenarios are like stories that offer alternative vivid pictures of what the future will be like and how managers will respond. Typically, two to five scenarios are developed for each set of factors, ranging from the most optimistic to the most pessimistic view. Achievement Culture Suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. Values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results. Adaptability Culture An environment that requires fast response and high-risk decision making. Managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors. BCG Matrix Named for the Boston Consulting Group that developed it. Organizes businesses along the dimensions of business growth and market share. Bottom of the Pyramid Concept This concept proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poor. Boundary-Spanning Roles Link and coordinate the organization with key elements in the external environment. Serve two purposes: detect and process information about changes in the environment and represent the organization's interests to the environment. Business Intelligence Results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant. Ceremony A planned activity at a special event to reinforce company values. Chief Ethics Officer A manager who oversees all aspects of ethics and legal compliance. Code of Ethics A formal statement of the company's values concerning ethics and social issues. It communicates to employees what the company stands for. They tend to exist in two types: principle-based statements and policy-based statements. Collectivism A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests. Compensatory Justice Argues that individuals should be compensated for the cost of their injuries by the party responsible. Competitive Advantage What sets the organization apart from other and provides it with a distinctive edge for meeting customer or client needs in the marketplace. Competitive Intelligence Activities designed to get as much information as possible about one's rivals. Consistency Culture Uses an internal focus and a consistency orientation for a stable environment. Following the rules and being thrifty are valued, and the culture supports and rewards a methodical, rational, orderly way of doing things. Contingency Plans Define company responses to be taken in the case of emergencies, setbacks, or unexpected conditions. Conventional Level At this level, people learn to conform to the expectations of good behavior as defined by colleagues, family, friends, and society. Core Competence Something that the organization does especially well in comparison to its competitors. Corporate Credos General statements of principle. Corporate Social Responsibility Management's obligation to make choices and take actions that will contribute to the welfare and interests of society, not just the organization. Crisis Planning Enables an organization to cope with sudden, unexpected events that have the potential to destroy the organization if managers aren't prepared with a quick and appropriate response. Cultural Leader Someone who defines and uses signals and symbols to influence corporate culture. Culture The set of key values, beliefs, understandings, and norms shared by members of an organization. Customers People and organizations in the environment that acquire goods or services from the organization. Decentralized Planning Involves everyone in an organization. Experts work with managers in major divisions or departments to develop their own goals and plans. Direct Investing A market entry strategy in which the organization is directly involved in managing its production facilities in a foreign country. Discretionary Responsibility Purely voluntary and is guided by a company's desire to make social contributions not mandated by economics, law, or ethics. Such activities include generous philanthropic contributions that offer no payback to the company and are not expected. Distributive Justice Justice that requires different treatment of people not be based on arbitrary characteristics, such as a man and a woman getting different pay if they are equally qualified and doing the same job. Economic Development Differs widely around the world- countries can be described as being developed or developing financially. Economic Dimension Represents the general economic health of the country or region in which the organization operates. Consumer purchasing power, the unemployment rate, and interest rates are part of an organization's economic environment. Economic Responsibility The business institution's responsibility to produce the goods and services that society wants and to maximize profits for its owners and shareholders. Ethical Dilemma The technical, economic, political/legal, and sociocultural dimensions that affect a firm's external environment. Ethical Responsibility Behaviors that are not necessarily codified into law and may not serve the corporation's direct economic interests. Ethics Committee A group of executives (and sometimes lower-level employees as well) appointed to oversee company ethics. Ethics The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrong. Ethnocentric Companies Companies that place emphasis on their home countries. Ethnocentrism The belief that one's own group is inherently superior to other groups. Exporting A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries. Femininity Reflects the values of relationships, cooperation, group decision making, and quality of life. Franchising A form of licensing in which a company provides its foreign franchises with a complete package of materials and services. General Environment Affects organizations indirectly. Includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally. Geocentric Companies Truly world-oriented companies and favor no specific country. Global Mindset The ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics. Global Outsourcing Also called off-shoring. Engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies. Globalization The integration and interdependence of economic, technological, sociocultural, and political systems across diverse geographic regions. Goal A desired future circumstance or condition that the organization attempts to realize. Greenfield Venture The most risky type of direct investment, in which a company builds a subsidiary from scratch in a foreign country. Hero A figure who exemplifies the deeds, character, and attributes of a strong culture. The role models for employees to follow. High-Context Culture A culture where people are sensitive to circumstances surrounding social exchanges. High-Performance Culture A culture that is based on a solid organizational mission or purpose, embodies shared adaptive values that guide decisions and business practices, and encourages individual employee ownership of both bottom-line results and the organization's cultural backbone. Individualism Reflects a value for a loosely knit social framework in which individuals are expected to take care of themselves. Individualism Approach An approach that contends that acts are moral when they promote the individual's best long-term interests. Infrastructure The physical facilities such as highways, airports, utilities, and telephone lines that support economic activities. Internal Environment The environment that includes the elements within the organization's boundaries. Composed of current employees, management, and especially corporate culture, which defines employee behavior in the internal environment and how well the organization will adapt to the external environment. International Dimension An element of the external environment. Includes events originating in foreign countries, as well as new opportunities for U.S. companies in other countries. International Management The management of business operations conducted in more than one country. Involvement Culture Emphasizes and internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment. Places high value on meeting the needs of employees, and the organization may be characterized by a caring, family-like atmosphere. Joint Venture When a company shares costs and risks with another firm, typically in the host country, to develop new products, build a manufacturing facility, or set up a sales and distribution network. Justice Approach Moral decisions must be based on the standards of equity, fairness, and impartiality. Labor Market Represents people in the environment who can be hired to work for the organization. Legal Responsibility Defines what society deems as important with respect to appropriate corporate behavior. Legal-Political Dimension Includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior. Licensing A corporation in one country makes certain resources available to companies in another country. These resources include technology, managerial skills, and patent or trademark rights. Long-Term Orientation Found in China and other Asian countries, includes a greater concern for the future and highly values thrift and perseverance. Low-Context Culture People use communication primarily to exchange facts and information; meaning is derived primarily from words; business transactions are more important than building relationships and trust; individual welfare and achievement are more important than the group. Management by Means Focuses attention on the methods and processes used to achieve goals. Management by Objectives A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance. Masculinity Preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success. Merger When two or more organizations combine to become one. Mission The organization's values, aspirations, and reason for being. If it is well-defined then it becomes the basis for development of all subsequent goals and plans. Mission Statement A broadly stated definition of purpose that distinguishes the organization from others of a similar type. Moral-Rights Approach An approach that assets that human beings have fundamental rights and liberties that cannot be taken away by an individual's decision. Thus, and ethically correct decision is one that best maintains the rights of those affected by it. Multinational Corporation A corporation that receives more than 25 percent of its total sales revenues from operations outside the parent's home country. Natural Dimension Includes all elements that occur naturally on Earth, including plants, animals, rocks, and resources such as air, water, and climate. Operational Goals The results expected from departments, work groups, and individuals are the operational goals. Opportunities When managers see potential accomplishments that exceed specified current goals. Organizational Ecosystem Includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive. Organizational Environment Includes all elements existing outside the boundary of the organization that have the potential to affect the organization. Plan A blueprint for goal achievement and specifies the necessary resource allocations, schedules, tasks, and other actions. Planning Incorporates determining the organization's goals and defining the means for achieving them. Policy-Based Statements Generally outline the procedures to be used in specific ethical situations. These situations include marketing practices, conflicts of interest, observance of laws, proprietary information, political gifts, and equal opportunities. Political Risk The risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments. Poly-centric Companies Companies oriented toward the markets of individual foreign host countries. Post-Conventional or Principled Level Individuals are guided by an internal set of values based on universal principles of justice and right and will even disobey rules or laws that violate these principles. Practical Approach This approach sidesteps debates about what is right, good, or just and bases decisions on prevailing standards of the profession and the larger society, taking the interests of all stakeholders into account. Preconventional Level Individuals are concerned with external rewards and punishments and obey authority to avoid detrimental personal consequences. In an organizational context, this level may be associated with managers who use an autocratic or coercive leadership style, with employees oriented toward dependable accomplishment of specific tasks. Principle-Based Statements Designed to affect corporate culture; they define fundamental values and contain general language about company responsibilities, quality of products, and treatment of employees. Procedural Justice Requires that rules be administered fairly. Rules should be clearly stated and consistently and impartially enforced. Profit-Maximizing View Economic responsibility, carried to the extreme. Scenario Building An extension of contingency planning; a forecasting technique. Scenarios Alternative vivid pictures of what the future might be like. Short-Term Orientation Found in Russia and West Africa. More concerned with the past and the present and places a high value on tradition and meeting social obligations. Single-Use Plans Developed to achieve a set of goals that are not likely to be repeated in the future. Slogan A phrase or sentence that succinctly expresses a key corporate value. Many companies use one to convey special meaning to employees. Sociocultural Dimension Represents the demographic characteristics as well as the norms, customs, and values of the general population. Important characteristics are geographical distribution and population density, age, and education levels. Stakeholder Any group or person within or outside the organization that has some type of investment or interest in the organization's performance and is affected by the organization's actions (employees, customers, shareholders, and so forth). Stakeholder Mapping A technique that provides a systematic way to identify the expectations, needs, importance, and relative power of various stakeholders, which may change over time. Standing Plans Ongoing plans that provide guidance for tasks or situations that occur repeatedly within the organization. Story A narrative based on true events and is repeated frequently and shared among organizational employees. Strategic Goals Sometimes called official goals. Broad statements describing where the organization wants to be in the future. Strategic Issues Events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives. Strategic Management The set of decisions and actions used to formulate and execute strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals. Strategic Plans Define the action steps by which the company intends to attain strategic goals. The blueprint that defines the organizational activities and resource allocations--in the form of cash, personnel, space, and facilities--required for meeting these targets. Strategy The plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining the organization's goals. Strengths Natural talents and abilities that have been supported and reinforced with learned knowledge and skills. Stretch Goals Reasonable yet highly ambitious goals that are so clear, compelling, and imaginative that they fire up employees and engender excellence. They are typically so far beyond the current levels that people have to be innovative to find ways to reach them. Suppliers People that provide the raw materials that the organization uses to produce its output. Sustainability Economic development that generates wealth and meets the needs of the current generation while preserving the environment and society so future generations can meet their needs as well. SWOT Analysis A careful assessment of strengths, weaknesses, opportunities, and threats that affect organizational performance. Symbol An object, act, or event that conveys meaning to other. Tactical Goals The step after strategic goals are formed. The results that major divisions and departments within the organization intend to achieve. Tactical Plans Designed to help execute the major strategic plans and to accomplish a specific part of the company's strategy. Task Environment An environment that is closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. It includes competitors, suppliers, customers, and the labor market. Technological Dimension A dimension of the general environment that includes scientific and technological advancements in a specific industry, as well as in society at large. Threats Characteristics of the external environment that may prevent the organization from achieving its strategic goals. Triple Bottom Line Measuring an organization's social performance, its environmental performance, and its financial performance. Sometimes called the three P's: People, Planet, and Profit. Uncertainty Managers know which goals they wish to achieve, but information about alternatives and future events is incomplete. Utilitarian Approach Moral behavior produces the greatest good for the greatest number. Comes from the 19th century philosophers Jeremy Bentham and John Stuart Mill. Weaknesses Internal characteristics that might inhibit or restrict the organization's performance. Whistle-Blowing Employee disclosure of illegal, unethical, or illegitimate practices on the employer's part. Wholly Owned Foreign Affiliate A foreign subsidiary over which an organization has complete control. You can also click the terms or definitions to blu