Glossary [Complete]
accountability: The expectation that members of an organization, if called upon, will be able to provide compelling reasons for the decisions that they make
acquisitive economics: Refers to managing property and wealth in such a way as to maximize the short-term monetary value for owners
administrative appraisals: Performance appraisals that are used to justify pay and promotion decisions
administrative inertia: Describes what happens when existing structures and systems persist simply because they are already in place
agreeableness: A personality trait associated with being good natured, cooperative, trustful, and not jealous
analyzer type: These organizations essentially have two spheres of operations, with some parts of the organization operating like a Defender, and other parts operating like a Prospector
Association of South-East Asian Nations (ASEAN): A group of 10 nations in South-East Asia that are committed to reducing barriers to trade among members
attributions: People’s explanations of the causes of behaviors or circumstances
authority: The formal power given to managers to arrange resources and to assign tasks and direct the activities of other members in ways that help to achieve organizational goals
Balanced Scorecard: A management tool used to balance the use of financial goals with the use of other valuable goals that are important to overall organizational well-being
BCG matrix: A tool that, by classifying organizations according to (a) their market share in an industry and (b) the rate of growth of the industry they are operating, helps managers make decisions about unrelated diversification strategy portfolios
behaviors: The ways or manner in which people act
benefits: A subset of compensation that is not typically contingent on performance—for example, retirement plans; health, disability, and life insurance; and perks such as access to workout facilities, on-site daycare services, subsidized cafeteria food, education reimbursement, and laundry services
bounded rationality: Recognizes that the management decision-making process is limited by a lack of complete information and limited cognitive ability when processing information
brainstorming: An unstructured process of sharing ideas
bureaucracy: (Also known as macro approach to organizing) A rational way of organizing based on formal rules, a clear division of labor, and legitimate authority for managers
bureaucratic control: Evident when rules, regulations, policies, and standard operating procedures are used to control the behavior of organizational members
burning platform: An approach to unfreezing organizational members that may be painful; It may involve using rational persuasion or pressure to expose members to alarming information or potential negative consequences
business-level strategy: A strategy followed by an organization within its industry
centralization: Having the decision-making authority rest with managers at the top of an organization’s hierarchy
change agent: Someone who acts as a catalyst and takes leadership and responsibility for managing part of the change process
change-oriented goals and plans: Describe new initiatives and changes to be made in an organization’s practices
channel: The pathway along which a message travels through a medium
charisma: A personal trait or “gift” related to attracting and inspiring followers
clan control: Evident when shared values, norms, and expectations are used to control the behavior of organizational members
closed system: A perspective on organizations that looks at managing activities as though the organization were a self-contained and self-sufficient unit
coaching: (Mainstream leading) Providing training and specific feedback for a task or job; It is a Situational Leadership II style
code of ethics: A formal written statement of an organization’s primary values and the ethical rules it expects its members to abide by
coercive power: The power that rests on a person’s ability to motivate others’ behavior through threat of punishment
collective decoding: Occurs when a message is interpreted by a group of two or more people with the result that each member learns more than any one could alone (and typically more than the sender could have put into the original message)
collectivism: Emphasizes the interests of groups over the self-interests of individuals, and that people look out for one another and demonstrate high loyalty to the group
communication: The process of transferring information by using meaningful symbols so that a message is understood by others
compensation: All monetary payments such as wages, salaries, and bonuses as well as other goods or commodities that are used to reward organizational members
competitive strategy: A strategy designed to create value for customers by providing lower prices or unique features not offered by rival organizations
competitors: Other organizations that offer similar products or services, or offer products and services that meet the same customers’ needs
conceptual skills: The ability to think about complex and broad organizational issues; These skills enable managers to understand how the individual parts of the organization fit together to serve the organization as a whole, and how the organization fits into its larger environment
concertive control: When control moves from residing with management to residing with workers or team members
concurrent controls: Designed to identify and correct problems as they occur
conflict: A real or perceived difference in interests between two or more individuals, groups, or organizations
conscientiousness: A personality trait associated with being achievement oriented, responsible, persevering, and dependable
consequentialist theory: Considers the consequences of an action in determining what is ethical
consideration: A category of behaviors that are supportive, relational, and/or employee oriented
consistent contributors: Someone who contributes regardless of how little his or her teammates contribute
constructive criticism: Refers to providing a serious examination or judgment of something in a way that is intended to help the listener to improve
content school: A linear, rational-analytic, top-down, and linear approach to strategic management
contingency plans: Set out in advance how managers will respond to possible future events that could disrupt the organization’s existing plans
contingency theory: A sub-field of management theory thatsuggests there is a fit between organizational structures and systems, technology, and the larger environment
contingent workers: Those who are contracted to work for a host organization on a specific project or for a fixed time period, but who are not considered to be employees of the organization
continuous improvement: Making many small, incremental improvements on an ongoing basis to how things are done in an organization
controlling: Ensuring that the actions of organizational members are consistent with the organization’s values and standards
conventional level (of moral development): Tthe second level of moral development, in which ethical judgments are influenced by social norms or external standards
co-operative: An organization that is owned and democratically run directly by its members
core competency: A strength that is central for achieving an organization’s goals
corporate social responsibility (CSR): Managers’ obligation to act in ways that protect and improve the welfare of society over and above the owners’ (e.g., stockholders) self-interests
corporate-level strategy: The strategy followed by an organization to determine in which industries it will compete
cost leadership: Increasing profit margins by keeping financial costs lower than competitors’, while still maintaining price and quality at roughly the same level as competitors’
counter-trade: Occurs when products or services from one country are traded (rather than bought and sold for currency) for products or services from another country
country club style: Characterized by a high concern for people and a low concern for production; It is a Leadership Grid style
courage: A virtue that involves acting in hopes of correcting unjust structures; Evident when someone promotes change initiatives that have the potential to improve overall happiness even if this might threaten one’s own status
crises: Events that have a major effect on the ability of organizational members to carry out their daily tasks (e.g., a natural disaster, an economic recession)
customers: The stakeholders who consume an organization’s product and service outputs
data: Facts and figures, some of which may provide valuable information
debt financing: Occurs when entrepreneurs borrow from a bank, family members, friends, or a financial institution money that must be paid back at some future date
decision: A choice that is made from a number of available alternatives
decision support systems: Allow managers to gather and manipulate data from a variety of sources to help evaluate performance
decoding: The process by which the receiver attributes meaning to a message
defender type: These organizations have a mechanistic structure, operate in a narrow segment of a stable environment, have a cost-leader strategy, and often rely on a single core technology
deference to authority: Recognizes that it is legitimate and desirabel to give formal power to managers
delegating: (Mainstream leading) Assigning tasks and responsibilities; It is a Situational Leadership II style
delegation: The process of giving authority to a person or group to make decisions in a specified sphere of activity
Delphi Technique: A technique where questions are posed to team members remotely and responses are returned to the leader; The leader then compiles the ideas without attaching names to them and sends the list back to team members for further consideration and response
departmentalization: Grouping organizational members and resources together to achieve the work of the larger organization
deterrent approach: Based on the assumption that misconduct is related to rational calculations pertaining to the severity of the associated punishments compared to the potential “benefits” of misconduct
development: Learning activities that result in broad growth for a person, including growth in terms of a larger career or beyond the scope of the person’s current job
developmental appraisals: Performance appraisals that are used to provide feedback on progress toward expectations and to identify areas for improvement
dialectical inquiry: A staged debate between two dominant perspectives
differentiation: Offering a unique product or service for which buyers are willing to pay a premium price
dignification: The emphasis on treating everyone with dignity and respect in community
directing: (Mainstream leading) Instructing a follower on how to do a task or job; It is a Situational Leadership II style
distinctive competency: A core competency that an organization has that is superior relative to its competitors’
distributive justice: Concerned with comparing one’s inputs and outcomes to others’ inputs and outcomes
diversified organizations: Compete in more than one industry, or serve customers in several product, service, or geographic markets
divisional departmentalization: Occurs when members of an organization are grouped so that they canwork together as a subunit in order to provide specific products or services, serve similar customers, or work in the same geographic region
documentational capitalism: Characterized by an emphasis on detailed contracts, public financial reports, and management independence and rights
dominant coalition: The subgroup ofanorganization’s members (usually managers) that makes its strategic decisions
ecological footprint: Refers to how many of Earth’s natural resources, measured in acres, are required to sustain human consumption and to absorb the resulting waste
economic environment: Refers to how financial resources are used and distributed within a specific region or country
economies of scale: Evident when increases in volume are associated with lower organizational costs for providing a specific product or service
effectiveness: Choosing the “right” overarching organizational goals to pursue; Draws attention to the fact that managers, like anyone who makes decisions that affect other people, have moral obligations
efficiency: Increasing the level of output that is achieved with a given level of inputs
egali-centrism: Evident when people from different cultures work together in a manner characterized by two-way, give-and-take communication that fosters deeper mutual understanding, community, and new insights
egoism: A moral philosophy that focuses on the consequences for the individual decision maker; It is based on the idea of "what benefits me the most"
electronic hubs (eHubs): Computer-based information systems that have the ability to transmit information in real time, thereby enabling coordination and mutual adjustment by stakeholders from a variety of organizations
emotional intelligence (EI): The innate or developed ability to recognize, manage, and exercise emotions in relationships
emotional stability: A personality trait associated with being calm, placid, poised, and not neurotic
empowering: (Multistream leading) Freeing people to be responsible for work
enabling: (Multistream leading) Sharing or explaining information related to a job and its context
encoding: Putting a message in understandable terms by using symbols and media
engaging: (Multistream leading) Encouraging affiliation and enhancing intrinsic motivators
entrepreneurs: People who conceive opportunities to offer new or improved goods or services (or even new markets or ways of doing things), exhibit initiative to pursue those opportunities, make plans, and mobilize the resources necessary to convert the concepts into reality
entrepreneurship: Conceiving an opportunity to offer new or improved goods or services, showing the initiative to pursue that opportunity, making plans and mobilizing the resources necessary to convert the opportunity into reality
entropy: The natural tendency for a system to fail because it is unable to acquire the inputs and energy it requires to survive
equipping: (Multistream leading) Creating an environment for continuous learning on the job
equity financing: Occurs when investors in a new venture receive shares of stock and become part owners of the organization
equity theory: A theory based on the logic of social comparisons and assumes that people are motivated to seek and preserve social equity in the rewards they expect for performance
ERG theory: Describes three universal categories of needs: existence, relatedness, and growth
ergonomics: The science of designing work spaces and tools in an effort to improve working conditions without compromising productivity
escalation of commitment: Occurs when a manager perseveres with the implementation of a poor decision despite evidence that it is not working
ethical awareness: The recognition that a situation or behavior has ethical implications
ethical climate: The informal shared perceptions of what are appropriate practices and procedures
ethical courage: The fortitude to implement an ethical choice even if it is contrary to the prevailing norms and may have some negative consequences
ethical judgment: The evaluation and resulting selection of various ethical options
ethical wisdom: The process of gathering information and developing alternatives
ethics: A set of principles or moral standards that differentiate right from wrong
ethnocentrism: Evident when managers enter a foreign country with the belief that their own home country offers the best way to manage
European Union (EU): A political and economic community consisting of 27 European countries that are committed to making trade among members easier by lowering tariffs and reducing other impediments to trade
expectancy: The probability perceived by an individual that exerting a given amount of effort will lead to a certain level of performance
expectancy theory: States that motivation depends on an individual’s learned expectations about his or her ability to perform certain tasks and receive desired rewards
experimentation: The emphasis placed on an ongoing voluntary implementation of new ways of performing tasks on a trial basis
expert power: Power this is based on the special knowledge, skills, and expertise that someone possesses
explicit knowledge: Information that can be articulated or codified, such as that found in an organization’s standard operating procedures, blueprints, mission statements, and so on
exporting: Occurs when an organization produces goods and services in its home country and sells them in another country
extinction: The absence of any reinforcement—either positive or negative—following the occurrence of a behavior
extraversion: A personality trait associated with being sociable, talkative, assertive, and adventurous
extrinsic motivation: A source of motivation that comes from factors outside the task itself
Fair Trade: A system of international trade that is based on dialogue, transparency, and respect, and that benefits producers in poorer countries, consumers in richer countries, and Earth
feedback: Lets the sender know whether the message has been received as intended
feedback controls: Designed to identify and correct problems after they occur so as to avoid future problems
feedforward communication: The relationships and prior communication that influence subsequent messages
feedforward controls: Designed to reduce organizational problems by anticipating problems before they occur and preventing them
filtering: Occurs when information is withheld or not communicated to others
first-line supervisors: Those leaders who manage the work of organizational members who are involved in the actual production or creation of an organization’s products or services
focus: Choosing a small niche in the overall market
formal communication channels: Follow the lines of authority that are shown on an organizational chart
framing: Presenting ideas and alternatives in a way that has an influence on the choices that people make
franchising: Occurs when a franchisor sells to a franchisee (for a lump sum payment and a share of the franchisee’s profits) a complete package required to set up an organization, including but not limited to its trademark and trade name, its products and services, its ingredients, its technology and machinery, and its management and standard operating systems
free trade: International trade that is not subject to national constraints such as tariffs, quotas, and subsidies
free-riding: Not doing your best or contributing your fair share to reach the team’s goal
frustration–regression principle: Suggests that people who are unable to satisfy higher-order needs at a basic level will compensate by focusing on over-satisfying lower-order needs
functional departmentalization: Occurs when members of an organization are placed into the same department based on having similar technical skills and using similar resources to perform their tasks
Gantt chart: A bar graph that managers use to schedule and allocate resources for a production job; It identifies various stages of work that need to be completed, sets deadlines for each stage, and monitors the process