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goals can be accomplished. first-line managers Managers at the lowest level of the organization who manage the work of non-managerial employees. middle managers Managers between the first level and the top level of the organization who manage the work of first-line managers. top managers Managers at or near the upper levels of the organization structure who are responsible for making organization-wide decisions and establishing the goals and plans that affect the entire organization. management Coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. efficiency Doing things right, or getting the most output from the least amount of inputs. effectiveness Doing the right things, or completing activities so that organizational goals are attained. planning Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. organizing Management function that involves arranging and structuring work to accomplish the organization’s goals. leading Management function that involves working with and through people to accomplish organizational goals. controlling Management function that involves monitoring, comparing, and correcting work performance. management roles Specific categories of managerial behavior. interpersonal roles Managerial roles that involve people and other duties that are ceremonial and symbolic in nature. informational roles Managerial roles that involve collecting, receiving, and disseminating information. decisional roles Managerial roles that revolve around making choices. technical skills Job-specific knowledge and techniques needed to proficiently perform specific tasks.
human skills The ability to work well with other people individually and in a group. conceptual skills The ability to think and to conceptualize about abstract and complex situations. organization A deliberate arrangement of people to accomplish some specific purpose. universality ofThe reality that management is needed in all types and sizes of management organizations, at all organizational levels, in all organizational areas, and in organizations in all countries around the globe. KEY TERMS – CHAPTER 2 division of labor The breakdown of jobs into narrow and repetitive tasks. (or job specialization) Industrial Revolution The substitution of machine power for human power, which made it more economical to manufacture goods in factories rather than at home. scientific management Using the scientific method to determine the “one best way” for a job to be done. therbligs A classification scheme for labeling seventeen basic hand motions. general administrative A theory of management that focused on describing what theory managers do and what constitutes good management practice. principles of management Fundamental rules of management that could be taught in schools and applied in all organizational situations. bureaucracy A form of organization characterized by division of labor, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. quantitative approach The use of quantitative techniques to improve decision making. organizational behavior The field of study concerned with the actions (behavior) of (OB) people at work. Hawthorne Studies A series of studies during the 1920s and 1930s that provided new insights in individual and group behavior. system A set of interrelated and interdependent parts arranged in a manner that produces a unified whole.
closed systems Systems that are not influenced by and do not interact with their environment. open systems Systems that interact with their environment. contingency approach Management approach that says that organizations are different, face different situations (contingencies), and require different ways of managing. workforce diversity A workforce that’s heterogeneous in terms of gender, race, ethnicity, age, and other characteristics that reflect differences. entrepreneurship The process of starting new businesses, generally in response to opportunities. e-business (electronic The way an organization does its work by using electronic business) (Internet-based) linkages with its key constituencies in order to efficiently and effectively achieve its goals. e-commerce (electronic The sales and marketing aspect of e-business. commerce) intranet A Web-based internal communication system accessible only by organizational employees. learning organization An organization that has developed the capacity to continuously learn, adapt, and change. knowledge management Cultivating a learning culture where organizational members systematically gather knowledge and share it with others in the organization so as to achieve better performance. quality management A philosophy of management that is driven by continual improvement and responding to customer needs and expectations. KEY TERMS – CHAPTER 3 omnipotent view of management The view that managers are directly responsible for an organization’s success or failure. symbolic view of management The view that much of an organization’s success or failure is due to external forces outside managers’ control. organizational culture The shared values, principles, traditions, and ways of doing things that influence the way
organizational members act. strong cultures Organizational cultures in which the key values are intensely held and widely shared. socialization The process that helps employees adapt to the organization’s culture. workplace spirituality A culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community. external environment Those factors and forces outside the organization that affect the organization’s performance. specific environment Those external forces that have a direct impact on managers’ decisions and actions and are directly relevant to the achievement of the organization’s goals. general environment Broad external conditions that may affect the organization. environmental uncertainty The degree of change and complexity in an organization’s environment. environmental complexity The number of components in an organization’s environment and the extent of the organization’s knowledge about those components. stakeholders Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions. KEY TERMS – CHAPTER 5 classical view The view that management’s only social responsibility is to maximize profits. socioeconomic view The view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare.
social obligation When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. social responsiveness When a firm engages in social actions in response to some popular social need . social responsibility A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society . social screening Applying social criteria (screens) to investment decisions. greening of management The recognition of the close link between an organization’s decisions and activities and its impact on the natural environment. values-based management An approach to managing in which managers are guided by the organization’s shared values in their management practices. ethics Principles, values, and beliefs that define what is right and wrong behavior. values Basic convictions about what is right and wrong. ego strength A personality measure of the strength of a person’s convictions. locus of control A personality attribute that measures the degree to which people believe they control their own fate. code of ethics A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow . whistleblower Individuals who raise ethical concerns or issues to others inside or outside the organization. social entrepreneur An individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches. social impact management An approach to managing in which managers examine the social impacts of their decisions and actions. KEY TERMS – CHAPTER 6
decision from two or more alternatives.
decision-making process A set of eight steps that include identifying a problem, selecting an alternative, and evaluating the decision’s effectiveness. problem A discrepancy between an existing and a desired state of affairs. decision criteria Criteria that define what’s relevant in a decision. rational decision making Decision-making behavior where choices are consistent and value-maximizing within specified constraints. bounded rationality Decision-making behavior that’s rational, but limited (bounded) by an individual’s ability to process information. satisficing Accepting solutions that are “good enough.” escalation of commitment An increased commitment to a previous decision despite evidence that it may have been wrong. intuitive decision making Making decisions on the basis of experience, feelings, and accumulated judgment. structured problems Straightforward, familiar, and easily defined problems. programmed decision A repetitive decision that can be handled by a routine approach. procedure A series of interrelated sequential steps that can be used to respond to a wellstructured problem. rule An explicit statement that tells managers what they can or cannot do. policy A guideline for making decisions. unstructured problems Problems that are new or unusual and for which information is ambiguous or incomplete. nonprogrammed decisions A unique decision that requires a custom-made solution. certainty A situation in which a manager can make accurate decisions because all outcomes are known. risk A situation in which the decision maker is able to estimate the likelihood of certain outcomes.
uncertainty A situation in which a decision maker has neither certainty nor reasonable probability estimates available. directive style A decision-making style characterized by low tolerance for ambiguity and a rational way of thinking. analytic style A decision-making style characterized by a high tolerance for ambiguity and a rational way of thinking. conceptual style A decision-making style characterized by a high tolerance for ambiguity and an intuitive way of thinking. behavioral style A decision-making style characterized by a low tolerance for ambiguity and an intuitive way of thinking. heuristics Rules of thumb that managers use to simplify decision making. business performance which provides key performance management (BPM) help managers monitor software projects and employees. KEY TERMS – CHAPTER 7 IT software indicators to efficiency of
short-term plans less.
Plans covering one year or
specific plans Plans that are clearly defined and which leave no room for interpretation. directional plans Plans that are flexible and that set out general guidelines. single-use plan A one-time plan specifically designed to meet the needs of a unique situation. standing plans Ongoing plans that provide guidance for activities performed repeatedly. traditional goal setting An approach to setting goals in which goals are set at the top level of the organization and then broken into subgoals for each level of the organization. means-ends chain An integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level. management by objectives (MBO) A process of setting mutually-agreed upon goals and using those goals to evaluate employee performance. mission The purpose of an organization.
planning Defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities. goals Desired outcomes for individuals, groups, or entire organizations. plans Documents that outline how goals are going to be met. stated goals Official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are. real goals Goals that an organization actually pursues, as defined by the actions of its members. framing A way to use language to manage meaning. strategic plans Plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment. operational plans Plans that specify the details of how the overall goals are to be achieved. long-term plans Plans with a time frame beyond three years.
commitment conceptPlans should extend far enough to meet those commitments made today. formal planning department A group of planning specialists whose sole responsibility is helping to write organizational plans. KEY TERMS – CHAPTER 8 strategic management What managers do to develop the organization’s strategies. strategies The decisions and actions that determine the long-run performance of an organization. business model A strategic design for how a company intends to profits from its strategies, processes, and activities. strategic management process A six-step process that encompasses strategic planning, implementation, and evaluation. mission A statement of the purpose of an organization. opportunities Positive trends in external environmental factors. threatsNegative trends in external environmental factors.
resources An organization’s assets that are used to develop, manufacture, and deliver products or services to its customers. capabilities An organization’s skills and abilities in doing the work activities needed in its business. core competencies The organization’s major value-creating skills and capabilities that determine its competitive weapons. strengths Any activities the organization does well or any unique resources that it has. weaknesses Activities the organization does not do well or resources it needs but does not possess. SWOT analysis An analysis of the organization’s strengths, weaknesses, opportunities, and threats. corporate strategy An organizational strategy that determines what businesses a company is in, should be in, or wants to be in, and what it wants to do with those businesses. growth strategy A corporate strategy that’s used when an organization wants to grow and does so by expanding the number of products offered or markets served, either through its current business(es) or through new business(es). related diversification When a company grows by combining with firms in different, but related, industries. unrelated diversification When a company grows by combining with firms in different and unrelated industries. stability strategy A corporate strategy characterized by an absence of significant change in what the organization is currently doing. renewal strategy A corporate strategy designed to address organizational weakness that are leading to performance declines. retrenchment strategy renewal strategy. A short-run A the more
business or competitive strategy An organizational strategy focused on how the organization will compete in each of its businesses. strategic business units The single businesses of an organization in several different businesses that are independent and formulate their own strategies. competitive advantage What sets an organization apart; its distinctive edge. cost leadership strategy A business or competitive strategy in which the organization competes on the basis of having the lowest costs in its industry. differentiation strategy A business or competitive strategy in which a company offers unique products that are widely valued by customers. focus strategyA business or competitive strategy in which a company pursues a cost or differentiation advantage in a narrow industry segment. stuck in the middle A situation where an organization hasn’t been able to develop either a low cost or a differentiation competitive advantage. functional strategies The strategies used by an organization’s various functional departments to support the business or competitive strategy. strategic flexibility The ability to recognize major external environmental changes, to quickly commit resources, and to recognize when a strategic decision was a mistake. first mover An organization that’s first to bring a product innovation to the market or to use a new process innovation. KEY TERMS – CHAPTER 9 environmental scanning The screening of large amounts of information to anticipate and interpret changes in the environment. competitor intelligence Environmental scanning activity by which organizations gather information about competitors. forecasts Predictions of outcomes.
turnaround strategy renewal strategy for situations in which organization’s performance problems are serious.
quantitative forecasting Forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. qualitative forecasting Forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes.
BCG matrix A strategy tool that guides resource allocation decisions on the basis of 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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