KEY TERMS – CHAPTER 1 Manager First-line | Strategic Management | Goal

KEY TERMS – CHAPTER 1 manager first-line managers middle managers top managers Someone who coordinates and

oversees the work of other people so that organizational goals can be accomplished. Managers at the lowest level of the organization who manage the work of non-managerial employees. Managers between the first level and the top level of the organization who manage the work of first-line 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. Coordinating and overseeing the work activities of others so that their activities are completed efficiently and effectively. Doing things right, or getting the most output from the least amount of inputs. Doing the right things, or completing activities so that organizational goals are attained. Management function that involves defining goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities. Management function that involves arranging and structuring work to accomplish the organization’s goals. Management function that involves working with and through people to accomplish organizational goals. Management function that involves monitoring, comparing, and correcting work performance. Specific categories of managerial behavior. Managerial roles that involve people and other duties that are ceremonial and symbolic in nature. Managerial roles that involve collecting, receiving, and disseminating information. Managerial roles that revolve around making choices. Job-specific knowledge and techniques needed to proficiently perform specific tasks. The ability to work well with other people individually and in a group. The ability to think and to conceptualize about abstract and complex situations. A deliberate arrangement of people to accomplish some specific purpose. The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational areas, and in organizations in all countries around the globe.

management efficiency effectiveness planning organizing leading controlling management roles interpersonal roles informational roles decisional roles technical skills human skills conceptual skills organization universality of management

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 managementUsing 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 administrativeA theory of management that focused on describing what theory managers do and what constitutes good management

principles of managementFundamental 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 approachThe 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 system closed systems open systems A series of studies during the 1920s and 1930s that provided new insights in individual and group behavior. A set of interrelated and interdependent parts arranged in a manner that produces a unified whole. Systems that are not influenced by and do not interact with their environment. Systems that interact with their environment.

contingency approachManagement 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 (electronicThe 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 (electronicThe sales and marketing aspect of e-business. commerce) intranet A Web-based internal communication system accessible only by organizational employees.

learning organizationAn organization that has developed the capacity to continuously learn, adapt, and change. knowledge managementCultivating 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 symbolic view of management The view that managers are directly responsible for an organization’s success or failure. The view that much of an organization’s success or failure is due to external forces outside managers’ control. The shared values, principles, traditions, and ways of doing things that influence the way organizational members act. Organizational cultures in which the key values are intensely held and widely shared. The process that helps employees adapt to the organization’s culture. A culture where organizational values promote a sense of purpose through meaningful work that takes place in the context of community. Those factors and forces outside the organization that affect the organization’s performance.

organizational culture

strong cultures socialization workplace spirituality

external environment

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. Broad external conditions that may affect the organization. The degree of change and complexity in an organization’s environment. The number of components in an organization’s environment and the extent of the organization’s knowledge about those components. Any constituencies in the organization’s environment that are affected by the organization’s decisions and actions.

general environment environmental uncertainty environmental complexity


KEY TERMS – CHAPTER 5 classical view socioeconomic view social obligation social responsiveness social responsibility The view that management’s only social responsibility is to maximize profits. The view that management’s social responsibility goes beyond making profits to include protecting and improving society’s welfare. When a firm engages in social actions because of its obligation to meet certain economic and legal responsibilities. When a firm engages in social actions in response to some popular social need . A business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society . Applying social criteria (screens) to investment decisions. The recognition of the close link between an organization’s decisions and activities and its impact on the natural environment.

social screening greening of management

values-based management An approach to managing in which managers are guided by the organization’s shared values in their management practices. ethics values ego strength locus of control Principles, values, and beliefs that define what is right and wrong behavior. Basic convictions about what is right and wrong. A personality measure of the strength of a person’s convictions. A personality attribute that measures the degree to which people believe they control their own fate. A formal statement of an organization’s primary values and the ethical rules it expects its employees to follow . Individuals who raise ethical concerns or issues to others inside or outside the organization. An individual or organization who seeks out opportunities to improve society by using practical, innovative, and sustainable approaches.

code of ethics whistleblower

social entrepreneur

social impact management An approach to managing in which managers examine the social impacts of their decisions and actions. KEY TERMS – CHAPTER 6 decision A choice from two or more alternatives.

decision-making process problem decision criteria rational decision making bounded rationality satisficing escalation of commitment intuitive decision making structured problems programmed decision procedure rule

A set of eight steps that include identifying a problem, selecting an alternative, and evaluating the decision’s effectiveness. A discrepancy between an existing and a desired state of affairs. Criteria that define what’s relevant in a decision. Decision-making behavior where choices are consistent and valuemaximizing within specified constraints. Decision-making behavior that’s rational, but limited (bounded) by an individual’s ability to process information. Accepting solutions that are “good enough.” An increased commitment to a previous decision despite evidence that it may have been wrong. Making decisions on the basis of experience, feelings, and accumulated judgment. Straightforward, familiar, and easily defined problems. A repetitive decision that can be handled by a routine approach. A series of interrelated sequential steps that can be used to respond to a well-structured problem.

An explicit statement that tells managers what they can or cannot do.

policy A guideline for making decisions. unstructured problems nonprogrammed decisions certainty risk Problems that are new or unusual and for which information is ambiguous or incomplete. A unique decision that requires a custom-made solution. A situation in which a manager can make accurate decisions because all outcomes are known.

A situation in which the decision maker is able to estimate the likelihood of certain outcomes. A situation in which a decision maker has neither certainty nor reasonable probability estimates available. A decision-making style characterized by low tolerance for ambiguity and a rational way of thinking. A decision-making style characterized by a high tolerance for ambiguity and a rational way of thinking. A decision-making style characterized by a high tolerance for ambiguity and an intuitive way of thinking. A decision-making style characterized by a low tolerance for ambiguity and an intuitive way of thinking. Rules of thumb that managers use to simplify decision making. IT software which provides key performance indicators to help managers monitor efficiency of projects and employees. Defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing plans for organizational work activities.

uncertainty directive style analytic style conceptual style behavioral style heuristics business performance management (BPM) software KEY TERMS – CHAPTER 7 planning

goals Desired outcomes for individuals, groups, or entire organizations.

plans Documents that outline how goals are going to be met. stated goals real goals framing strategic plans Official statements of what an organization says, and what it wants its various stakeholders to believe, its goals are. Goals that an organization actually pursues, as defined by the actions of its members. A way to use language to manage meaning. Plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its environment. Plans that specify the details of how the overall goals are to be achieved. Plans with a time frame beyond three years. Plans covering one year or less. Plans that are clearly defined and which leave no room for interpretation. Plans that are flexible and that set out general guidelines. A one-time plan specifically designed to meet the needs of a unique situation. Ongoing plans that provide guidance for activities performed repeatedly. 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. 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.

operational plans long-term plans short-term plans specific plans directional plans single-use plan standing plans traditional goal setting

means-ends chain

management by objectives (MBO) A process of setting mutually-agreed upon goals and using those goals to evaluate employee performance. mission commitment concept formal planning department KEY TERMS – CHAPTER 8 strategic management strategies business model strategic management process mission opportunities threats resources capabilities What managers do to develop the organization’s strategies. The decisions and actions that determine the long-run performance of an organization. A strategic design for how a company intends to profits from its strategies, processes, and activities. A six-step process that encompasses strategic planning, implementation, and evaluation. A statement of the purpose of an organization. Positive trends in external environmental factors. Negative trends in external environmental factors. An organization’s assets that are used to develop, manufacture, and deliver products or services to its customers. An organization’s skills and abilities in doing the work activities needed in its business. The purpose of an organization. Plans should extend far enough to meet those commitments made today. A group of planning specialists whose sole responsibility is helping to write organizational plans.

core competencies strengths weaknesses SWOT analysis corporate strategy

The organization’s major value-creating skills and capabilities that determine its competitive weapons. Any activities the organization does well or any unique resources that it has. Activities the organization does not do well or resources it needs but does not possess. An analysis of the organization’s strengths, weaknesses, opportunities, and threats. 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. 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). When a company grows by combining with firms in different, but related, industries. When a company grows by combining with firms in different and unrelated industries. A corporate strategy characterized by an absence of significant change in what the organization is currently doing. A corporate strategy designed to address organizational weakness that are leading to performance declines. A short-run renewal strategy. A renewal strategy for situations in which the organization’s performance problems are more serious. A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of SBUs. An organizational strategy focused on how the organization will compete in each of its businesses. The single businesses of an organization in several different businesses that are independent and formulate their own strategies. What sets an organization apart; its distinctive edge. A business or competitive strategy in which the organization competes on the basis of having the lowest costs in its industry. A business or competitive strategy in which a company offers unique products that are widely valued by customers. A business or competitive strategy in which a company pursues a cost or differentiation advantage in a narrow industry segment. A situation where an organization hasn’t been able to develop either a low cost or a differentiation competitive advantage. The strategies used by an organization’s various functional departments to support the business or competitive strategy. The ability to recognize major external environmental changes, to quickly commit resources, and to recognize when a strategic decision was a mistake.

growth strategy

related diversification unrelated diversification stability strategy renewal strategy retrenchment strategy turnaround strategy

BCG matrix business or competitive strategy strategic business units

competitive advantage cost leadership strategy differentiation strategy focus strategy stuck in the middle functional strategies strategic flexibility

first mover KEY TERMS – CHAPTER 9 environmental scanning competitor intelligence forecasts quantitative forecasting qualitative forecasting benchmarking resources budget scheduling Gannt chart load chart PERT network

An organization that’s first to bring a product innovation to the market or to use a new process innovation. The screening of large amounts of information to anticipate and interpret changes in the environment. Environmental scanning activity by which organizations gather information about competitors. Predictions of outcomes. Forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. Forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes. The search for the best practices among competitors or noncompetitors that lead to their superior performance. The assets of the organization including financial, physical, human, intangible, and structural/cultural. A numerical plan for allocating resources to specific activities. 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. A scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time. A modified Gantt chart that schedules capacity by entire departments or specific resources. 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 slack time critical path breakeven analysis linear programming The time or resources needed to progress from one event to another in a PERT network. The amount of time an individual activity can be delayed without delaying the whole project. The longest sequence of activities in a PERT network. A technique for identifying the point at which total revenue is just sufficient to cover total costs. A mathematical technique that solves resource allocation problems.

projectA one-time-only set of activities that has a definite beginning and ending point in time. project management scenario The task of getting a project’s activities done on time, within budget, and according to specifications. A consistent view of what the future is likely to be.

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