Chapters 8-18 Definitions
Chapter 8
Organization Structure:
Organization chart- The reporting structure and division of labor in an organization.
Differentiation- An aspect of the organization’s internal environment created by job specification and the division of labor.
Integration- The degree to which differentiated work units work together and coordinate their efforts.
Division of Labor- The assignment of different tasks to different people or group.
Specialization- A process in which different individuals and units perform different tasks.
Coordination- The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission.
Authority- The legitimate right to make decisions and to tell other people what to do.
Hierarchy- The authority levels of the organizational pyramid.
Corporate Governance- The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders.
Subunits- Subdivisions of an organization.
Span Control- The number of subordinates who report directly to an executive or supervisor.
Delegation- The assignment of new or additional responsibilities to a subordinate.
Responsibility- The assignment of a task that an employee is supposed to carry out.
Accountability- The expectation that employees will perform the job, take corrective action when necessary, in report upward on the status in quality of their performance.
Centralized organization- An organization in which high level executives make most decisions and pass and down to the lower levels for implementation.
Decentralized organization- An organization in which lower level managers make important decisions.
Line departments- Units that deal directly with the organization’s primary goods and services.
Staff departments- Units that support line departments.
Departmentalization- Subdividing an organization into smaller subunits.
Functional organization- Departmentalization around specialized activities such as production, marketing, and human resources.
Divisional organization- Departmentalization that groups units around products, customers, or graphic regions.
Matrix organization- An organization composed of duel reporting relationships in which some managers report to two superiors – the functional manager in a divisional manager.
Unity of command principle- The structure in which each worker reports to one boss, who in turn reports to one boss.
Network organization- A collection of independent, mostly single function firms to collaborate on a good or service.
Dynamic network- Temporary arrangement so among partners that can be assembled and reassembled to adapt to the environments.
Broker- A person who assembles in coordinates participants in the network.
Standardization- Establishing common routines and procedures that apply uniformly to everyone.
Formalization- The presence of rules and regulations governing how people in the organization interact.
Coordination by plan- Interdependent units are required to meet deadlines and objectives that contribute to a common goal.
Coordination by mutual adjustment- Unit’s interact with one another to make accommodations to achieve flexible coordination.
Chapter 9
Organizational Agility:
Mechanistic organization- A form of organization that seeks to maximize internal efficiency.
Organic structure- An organizational form that emphasizes flexibility.
Strategic alliance- A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
Learning organization- An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
High-involvement organization- A type of organization in which top management ensures that there is consensus about the direction in which the business is heading.
Economy’s of scope- off economy’s in which materials and processes employed in one product can be used to make other, related products.
Downsizing- the planned elimination of positions and jobs.
Rightsizing- a successful effort to achieve an appropriate size at which the company performs most effectively.
Survivors syndrome- loss of productivity and morale in employees who remain after downsizing.
Customer relationship management (CRM)- A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns.
Value chain- The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step.
Total quality management (TQM)- An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services.
ISO 9001- a series of quality standards developed by a committee working under the International Organization of Standardization to improve total quality in all businesses for the benefit of producers and consumers.
Technology- the systematic application of scientific knowledge to a new product, process, or service.
Small batch- technologies that produce goods and services in low volume.
Large batch- technologies that produce goods and services in high volume.
Continuous process- the process that is highly automated and as a continuous production flow.
Mass Customization- the production of varied, individually customized products at the low cost of standardize, mass produced products.
Computer-integrated manufacturing (CIM)- The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.
Flexible factories- Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling.
Lean manufacturing- an operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.
Time-based competition (TBC)- Strategies aimed at reducing the total time needed to deliver a good or service.
Logistics- movement of the right goods in the right amount to the right place at the right time.
Just-in-time (JIT)- A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.
Simultaneous engineering- a design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customer’s needs.
Chapter 10
Human Resources Management:
Human Resource Management (HRM)- Formal systems for the management of people within an organization.
Human Capital- The knowledge, skills, and abilities of employees that have economic value.
Human Capital- The knowledge, skills, and abilities of employees that have economic value.
Job Analysis- A tool for determining what is done on a given job and what should be done on that job.
Selection- choosing from among qualified applicants to hire into an organization.
Structured interview- selection technique that involves asking all applicants the same questions and comparing their responses to a standardize set of answers.
Assessment center- a managerial performance test in which candidates participate in a variety of exercises and situations.
Reliability- The consistency of test scores over time and across alternative measurements.
Validity- The degree to which a selection test predicts or correlates with job performance.
Outplacement- the process of helping people who have been dismissed from the company and regains employment elsewhere.
Employment at Will- the legal concept that an employee may be terminated for a reason.
Termination interview- a discussion between a manager and an employee about the employee’s dismissal.
Adverse impact- when a seemingly neutral employment practice has a disproportionately negative effect on a protected group.
Training- Teaching lower-level employees how to perform their present jobs.
Development- Helping managers and professional employees learn the broad skills needed for their present and future jobs.
Needs assessment- an analysis identifying the job, people, and department’s for which training is necessary.
Orientation training- training designed to introduce new employees to the company and familiarize them with policies, procedures, culture, and the like.
Team training- training that provides employees with the skills and perspectives they need to collaborate with each other.
Diversity training- Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce.
Performance Appraisal (PA)- Assessment of an employee’s job performance.
Management by objectives- a process in which objectives set by a subordinate and the supervisor must be reached within a given time period
360 degree appraisal- process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance.
Cafeteria benefits program- an employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs.
Flexible benefit programs- benefit programs in which employees are given credits to spend on benefits that fit their unique needs.
Comparable worth- principle of equal pay for different jobs of equal worth.
Labor Relations- The system of relations between workers and management.
Arbitration- the use of neutral third party to resolve a labor dispute.
Union shop- an organization with the union and the Union Security clause specifying that workers must join the union after a set period of time.
Right to Work- legislation that allows employees to work without having to join a union.
Chapter 11
Managing the Diverse Workforce:
Managing diversity- Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage.
Glass ceiling- an invisible barrier making it difficult for women and minorities to move beyond a certain level in the corporate hierarchy.
Sexual harassment- Conduct of a sexual nature that has negative consequences for employment.
Affirmative action- special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.
Monolithic organization- an organization that has a low degree of structural integration – employing few women, minorities, or other groups that differ from the majority – and thus has a highly homogenous employee population.
Pluralistic organization- an organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial or cultural background.
Multicultural organization- An organization that values cultural diversity and seeks to utilize and encourage it.
Mentors- Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.
Quid pro quo harassment- Submission to or rejection of sexual conduct is used as a basis for employment decisions
Hostile environment- Occurs when unwelcome sexual conduct has the effect of unreasonably interfering with job performance or creating an intimidating or hostile, working environment
Chapter 12
Leadership:
Leader - One who influences others to attain goals. The greater the number of followers, the greater the influence.
Vision- A mental image of a possible and desirable future state of the organization.
Supervisory leadership- behavior that provides guidance, support, and corrective feedback for day to day activities.
Strategic leadership- behavior that gives purpose and meaning to organizations, envisioning and creating a positive future.
Power- the ability to influence others. Sources of power are; legitimate power, reward power, coercive power, and referent power.
Trait approach- A leadership perspective that attempts to determine the personal characteristics that great leaders share.
Behavioral approach- A leadership perspective that attempts to identify what good leaders do—that is, what behaviors they exhibit.
Task performance behaviors- action taken to ensure that the work group or organization reaches its goals.
Group maintenance behaviors- actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group.
Leader-Member Exchange (LMX) theory- highlights the importance of leader behaviors not just towards the group as a whole but towards individuals on a personal basis.
Participation in decision-making- leader behaviors that managers perform in involving their employees in making decisions.
Autocratic leadership- the form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group.
Democratic leadership- the form of leadership in which the later solicits input from subordinates.
Laissez-faire- leadership philosophy characterized by and absence of Managerial decision-making.
Situational approach- Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation.
Vroom model- A situational model that focuses on the participative dimension of leadership.
Fiedler’s contingency model of leadership effectiveness- A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation.
Task-Motivated Leadership- leadership that places primary emphasis on completing the task.
Relationship-motivated leadership- leadership that places primary emphasis on maintaining good interpersonal relationships.
Hersey and Blanchard’s situational theory- A life-cycle theory of leadership postulating that a manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important.
Job maturity- the level of the eight employee’s skill and technical knowledge relative to the task been performed.
Psychological maturity- an employees self confidence and self respect.
Path-goal theory- A theory that concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals.
Substitutes for leadership- factors in the workplace that can exert the same influence on employees as leaders would provide.
Charismatic leader- A person who is dominant, self-confident, convinced of the moral righteousness of his beliefs, and able to arouse a sense of excitement and adventure in followers.
Transformational leader- a leader who motivates people to transcended their personal interests for the good of the group.
Transactional leaders- leaders who manage through transactions, using their legitimate, reward, and coercive power to give commands and exchange rewards for services rendered.
Level 5 leadership- a combination of strong professional will (determination) and humility that builds and enduring greatness.
Authentic leadership- a style in which the leader is true to himself or herself while leading.
Pseudo-Transformational leaders- leaders who talk about positive change but allow their self interest to take precedence over followers needs.
Servant leaders- a leader who serves others needs while strengthening the organization.
Bridge leaders- a leader who bridges conflicting value systems or different cultures.
Shared leadership- rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.
Lateral leadership- style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.
Chapter 13
Motivating for Performance:
Motivation- Forces that energize, direct, and sustain a person’s efforts.
Managers must motivate people to- join the organization, remain in the organization, and come to work regularly.
Goal-setting theory- A motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end.
Stretch goals- targets that are particularly demanding, sometimes even thought to be impossible.
Law of effect- a law formulated by Edward Thorndike in 1911 stating that behavior that is followed by a positive consequences will likely be repeated.
Reinforcers- positive consequences that motivate behavior.
Organizational behavior modification (OB mod)- the application of reinforcement theory in organizational settings.
Positive reinforcement- applying consequences that increase the likelihood that the person will repeat the behavior that led to it.
Negative reinforcement- removing or withholding an undesirable consequences.
Punishment- administering an aversive consequence.
Extinction- withdrawing or failing to provide a reinforcing consequence.
Expectancy theory- A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome.
Expectancy- employees’ perception of the likelihood that their efforts will enables them to attain their performance goals.
Outcome- a consequence the person receives for his or her performance.
Instrumentality- The perceived likelihood that performance will be followed by a particular outcome.
Maslow’s need hierarchy- A conception of human needs organizing needs into a hierarchy of five major types.
Alderfer’s ERG theory- A human needs theory postulating that people have three basic sets of needs that can operate simultaneously.
Job rotation- changing from one routine task to another to alleviate boredom.
Job enlargement- giving people additional tasks at the same time to alleviate boredom.
Job enrichment- changing the task to make it inherently more rewarding, motivating, and satisfying.
Two factor theory- Herzberg’s Theory describing two factors affecting people’s work motivation and satisfaction.
McClelland’s Needs:
Need for achievement- characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment.
Need for affiliation- reflects a strong desire to be liked by other people
Need for power- a desire to influence or control other people
Hygiene factors- Characteristics of the workplace, such as company policies, working conditions, pay, and supervision that can make people dissatisfied.
Motivators- Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement.
Growth need strength- the degree to which individuals want personal and psychological development.
Empowerment- the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization.
Equity theory- A theory stating that people assess how fairly they have been treated according to two key factors: outcomes and inputs.
Procedural justice- using fair process in decision-making and making sure others know that the process was as fair as possible.
Quality of work life (QWL) programs- programs designed to create a workplace that enhances employee well being.
Psychological contract- a set of perceptions of what employees owe their employers, and what their employers over them.
Chapter 14
Teamwork:
Team- A small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves
mutually accountable.
mutually accountable.
Work teams- Teams that make or do things like manufacture, assemble, sell, or provide service.
Project and development teams- Teams that work on long term projects but disband once the work is completed.
Parallel teams- Teams that operate separately from the regular work structure, and exist temporarily.
Management teams- Teams that coordinate and provide direction to the subunits under their jurisdiction and integrate work among subunits.
Transnational teams- Work groups composed of multinational members whose activities span multiple countries.
Virtual teams- Teams that are physically dispersed and communicate electronically more than face-to-face.
Self-managing teams- autonomous work groups in which workers are trained to do all or most of the jobs in a unit, have no immediate supervisor, and make decisions previously made by front line supervisors.
Traditional workgroups- groups that have no managerial responsibilities.
Quality circles- voluntary groups of people drawn from various production teams who make suggestions about quality.
Semiautonomous workgroups- groups that make decisions about managing and carrying out major production activities but get outside support for quality control and maintenance.
Autonomous workgroups- groups that control decisions about and execution of a complete range of tasks.
Self-designing teens- teens with the responsibilities of autonomous workgroups, plus control over hiring, firing, and deciding what tasks members perform.
Social loafing- working less hard and been less productive when it in a group.
Social facilitation effect- working harder when in a group than when working alone.
Norms- shared beliefs about how people should think and behave.
Task specialist- an individual who has more advanced job related skills and abilities than other group members possess.
Teen maintenance specialist- individual who develops and maintains team harmony.
Forming- group members attempt to lay the ground rules for what types of behavior are acceptable.
Storming- hostilities and conflict arise, and people jockey for positions of power and status.
Norming- group members agree on their shared goals, and norms and closer relationships develop.
Performing- the group channels its energies into performing its tasks.
Cohesiveness- The degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.
Gatekeeper- team member who keeps abreast of current developments and provides the team with relevant information.
Informing- a team strategy that entails making decisions with the team and then informing outsiders of its intentions.
Parading- a team strategy that entails simultaneously emphasizing internal team building and achieving external visibility.
Probing- a team strategy that requires team members to interact frequently with outsiders, diagnose their needs and experiment with solutions.
Avoidance- A reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement.
Accommodation- A style of dealing with conflict involving cooperation on behalf of the other party but not being assertive about one’s own interests.
Compromise- A style of dealing with conflict involving moderate attention to both parties’ concerns.
Competing- A style of dealing with conflict involving strong focus on one’s own goals and little or no concern for the other person’s goals.
Collaboration- A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties’ satisfaction.
Superiordinates goals- higher level goals taking priority over specific individual or group goals.
Mediator- a third party who intervenes to help others managed their conflict.
Chapter 15
Communicating:
Communication- The transmission of information and meaning from one party to another through the use of shared symbols.
One-Way Communication- a process in which information only flows in one direction – from the sender to the receiver, with no feedback loop.
Two-Way Communication- a process in which information flows in two directions – the receiver provides feedback, and the sender is receptive to the feedback.
Perception- the process of receiving and interpreting information.
Filtering- the process of withholding, ignoring, or distorting information.
Noise- Interference in the system. Blocks perfect understanding.
Examples of Noise- ringing telephones, thoughts about other things, simple fatigue or stress.
Oral communication- includes face-to-face discussion, telephone conversations, and formal presentations and speeches.
Written communication- includes e-mail, memos, letters, reports, computer files, and other written documents.
Web 2.0- A set of Internet-based applications that encourage user-provided content and collaboration, social networking, podcasts, RSS, and wikis
Virtual office- A mobile office in which people can Work anywhere, as long as they have the tools to communicate with customers and colleagues.
Media richness- the degree to which a communication channel conveys information.
Reflection- process by which a person states what he or she believes the other person is saying.
Downward communication- information that flows from a higher to lower levels in the organization’s hierarchy.
Coaching- dialogue with the goal of helping another be more effective and achieve his or her full potential on the job.
Open-Book management- practice of sharing with employees at all levels of the organization vital information previously meant for management’s eyes only.
Upward communication- information of flows from lower to higher levels in the organization’s hierarchy.
Horizontal communication- information shared among people of the same hierarchal level.
Grapevine- informal communication network.
Boundary Less Organization- organization in which there are no barriers to information flow.
Chapter 16
Managerial Control:
Control- Any process that directs the activities of individuals toward the achievement of organizational goals.
Bureaucratic control- than if the use of rules, regulations, and authority to guide performance.
Market control- control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
Planned control- control based on the norms, values, shared goals, and trust among group members.
Standard- expected performance for a given goal; a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.
Principle of exception- a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard.
Concurrent control- the control process used well plans are being carried out, including directing, monitoring, and fine tuning activities as they are performed.
Feedback control- control that focuses on the use of information about previous results to correct deviations from the acceptable standard.
Management audit- an evaluation of the effectiveness and efficiency of various systems within an organization.
External audit- an evaluation conducted by one organization, such as a CPA firm, on another.
Internal audit- a periodic assessment of a company’s own planning, organizing, leading, and controlling processes.
Budgeting- The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences, also called budgetary controlling.
Accounting audits- procedures used to verify accounting reports and statements.
Activity Based Costing (ABC)- the methods of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.
Balance sheet- A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity.
Profit and loss statement- An itemized financial statement of the income and expenses of a company’s operations.
Assets- The values of the various items the corporation owns.
Liabilities- The amounts a corporation owes to various creditors.
Stockholders’ equity- The amount accruing to the corporation’s owners.
Assets = Liabilities + Stockholders’ equity
Current ratio- a liquidity ratio that indicates that extent to which short term assets can decline and still be adequate to pay short term liabilities.
Debt equity ratio- in leverage ratio that indicates the company’s ability to meet its long-term financial obligations.
Run On Investment (ROI)- a ratio of profit to capitol used or a rate of return from capitol.
Management myopia- focusing on short term earnings and profits at the expense of long-term strategic obligations.
Balanced scorecard- control system combining four sets of performance measures: financial, customer, business process, and learning and growth.
Transfer price- price change by one unit for a good or service provided to another unit within the organization.
Chapter 17
Managing Technology and Innovation:
Technology- The systematic application of scientific knowledge to a new product, process, or service.
Innovation- A change in method or technology; a positive, useful departure from previous ways of doing things.
Technology life cycle- a predictable pattern followed by technological innovation, from its inception and development to market saturation and replacement.
Technology audit- process of clarifying the key technologies on which an organization depends.
Benchmarking- the process of comparing the organization’s practices and technologies with those of other companies.
Scanning- focuses on what can be done and what is being developed, places greater emphasis on identifying and monitoring the sources of new technologies for an industry.
Make-or-buy decision- The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself.
Chief information officer- consecutive in charge of information technology strategy and development.
Tactical innovator- a person who developed a new technology or has the key skills to install and operate the technology.
Product champion- a person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.
Executive champion- an executive who supports a new technology and protects the product champion of the innovation.
Development project- the focused organizational effort to create a new product or process via technological advances.
Sociotechnical Systems- an approached to job designing that attempts to redesign tasks to optimize operations of the new technology while preserving employees interpersonal relationships and other human aspects of the work.
Measuring Current Technologies
Emerging technologies- are still under development and thus are unproved.
Pacing technologies- have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.
Emerging technologies- are still under development and thus are unproved.
Pacing technologies- have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.
Key technologies- have proved effective, but they also provide a strategic advantage because not everyone uses them.
Base technologies- are those that are commonplace in the industry; everyone must have them to be able to operate.
Chapter 18
Creating and Managing Change:
Tyranny of the or- the belief that things must be either A or B and cannot be both, that only one goal and not another can be attained.
Genius of the and; organizational ambidexterity- ability to achieve multiple objectives simultaneously.
Organization development (OD)- The system wide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness.
Unfreezing- realizing that current practices are inappropriate and that new behavior in as necessary.
Performance gap- the difference between actual performance and desired performance.
Moving- institute to change.
Force-field analysis- An approach to implementing the unfreezing/ moving/refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change.
Refreezing- strengthening the new behaviors that support the change.
Total organization change- introducing and sustaining multiple policies, practices and procedures across multiple units and levels.
Reactive change- a response that occurs under pressure; problem-driven change.
Proactive change- a response that is initiated before a performance gap has occurred.
Adapters- companies that take the current industry structure and its evolution as givens, and choose where to compete.
Shapers- companies that try to change the structure of their industries, creating a future competitive landscape of their own design.
