classical organization theory An early approach to management
that focused on how organizations can be structured most
effectively to meet their goals.
contingency perspective Suggests that, in most organizations,
situations and outcomes are contingent on, or influenced by, other
variables.
Hawthorne studies Conducted between 1927 and 1932, these
studies led to some of the first discoveries of the importance of
human behavior in organizations.
human relations Movement based on the assumption that
employee satisfaction is a key determinant of performance. It
marked the beginning of organizational behavior.
interactionalism Suggests that individuals and situations interact
continuously to determine individuals' behavior.
organizational behavior The study of human behavior in
organizational settings, the interface between human behavior and
the organization, and the organization itself.
scientific management One of the first approaches to
management. It focused on the efficiency of individual workers
and assumed that employees are motivated by money.
system A set of interrelated elements functioning as a whole.
Theory X Concept described by Douglas McGregor indicating an
approach to management that takes a negative and pessimistic
view of workers.
Theory Y Concept described by Douglas McGregor reflecting an
approach to management that takes a positive and optimistic
perspective on workers.
competitive strategy An outline of how a business intends to
compete with other firms in the same industry.
conceptual skills Used to think in the abstract.
controlling The process of monitoring and correcting the actions
of the organization and its members to keep them directed toward
their goals.
decision-making roles There are four basic decision-making
roles: the entrepreneur, the disturbance handler, the resource
allocator, and the negotiator.
diagnostic skills Used to understand cause-and-effect
relationships and to recognize the optimal solutions to problems.
downsizing The process of purposely becoming smaller by
reducing the size of the workforce or shedding divisions or
businesses.
ethics An individual's personal beliefs about what is right and
wrong or good and bad.
informational roles The monitor, the disseminator, and the
spokesperson.
interpersonal roles There are three important interpersonal roles:
the figurehead, the leader, and the liaison.
interpersonal skills Used to communicate with, understand, and
motivate individuals and groups.
leading The process of getting the organization's members to
work together toward the organization's goals.
organizing The process of designing jobs, grouping jobs into
units, and establishing patterns of authority between jobs and
units.
planning The process of determining an organization's desired
future position and the best means of getting there.
productivity An indicator of how much an organization is creating
relative to its inputs.
quality The total set of features and characteristics of a product or
service that determine its ability to satisfy stated or implied needs.
social responsibility An organization's social responsibility is its
obligation to protect and contribute to the social environment in
which it functions.
technical skills The skills necessary to accomplish specific tasks
within the organization.
technology The mechanical and intellectual processes used to
transform inputs into products and services.
assimilation The process through which a minority group learns
the ways of the dominant group. In organizations, this means that
when people of different types and backgrounds are hired, the
organization attempts to mold them to fit the existing
organizational culture.
collectivism The extent to which people emphasize the good of
the group or society.
individualism The extent to which people place primary value on
themselves.
long-term orientation Focused on the future.
masculinity The extent to which the dominant values in a society
emphasize aggressiveness and the acquisition of money and
material goods, rather than concern for people, relationships
among people, and the overall quality of life.
multicultural organization The multicultural organization has six
characteristics: pluralism, full structural integration, full integration
of informal networks, an absence of prejudice and discrimination,
equal identification among employees with organizational goals for
majority and minority groups, and low levels of intergroup conflict.
pluralistic organization An organization that has diverse
membership and takes steps to fully involve all people who differ
from the dominant group.
power distance The extent to which less powerful persons accept
the unequal distribution of power.
prejudices Judgments about others that reinforce beliefs about
superiority and inferiority.
primary dimensions of diversity Factors that are either inborn or
exert extraordinary influence on early socialization: age, ethnicity,
gender, physical abilities, race, and sexual orientation.
secondary dimensions of diversity Factors that are important to
us as individuals and to some extent define us to others but are
less permanent and can be adapted or changed: educational
background, geographic location, income, marital status, military
experience, parental status, religious beliefs, and work
experience.
short-term orientation Focused on the past or present.
stereotypes Rigid judgments about others that ignore the specific
person and the current situation. Acceptance of stereotypes can
lead to the dangerous process of prejudice toward others.
uncertainty avoidance The extent to which people prefer to be in
clear and unambiguous situations.
valuing diversity Means putting an end to the assumption that
everyone who is not a member of the dominant group must
assimilate. The first step is to recognize that diversity exists in
organizations so that we can begin to manage it.
workforce diversity The similarities and differences in such
characteristics as age, gender, ethnic heritage, physical abilities
and disabilities, race, and sexual orientation among the
employees of organizations.
absenteeism Failure to show up for work.
affect A person's feelings toward something.
agreeableness A person's ability to get along with others.
attitudes A person's complexes of beliefs and feelings about
specific ideas, situations, or other people.
attribution theory Suggests that we attribute causes to behavior
based on observations of certain characteristics of that behavior.
Employees observe their own behavior, determine whether it is a
response to external or internal factors, and shape their future
motivated behavior accordingly.
authoritarianism The belief that power and status differences are
appropriate within hierarchical social systems such as
organizations.
"big five" personality traits A set of fundamental traits that are
especially relevant to organizations.
cognition The knowledge a person presumes to have about
something.
cognitive dissonance The anxiety a person experiences when
he or she simultaneously possesses two sets of knowledge or
perceptions that are contradictory or incongruent.
conscientiousness The number of goals on which a person
focuses.
contributions An individual's contributions to an organization
include such things as effort, skills, ability, time, and loyalty.
creativity A person's ability to generate new ideas or to conceive
of new perspectives on existing ideas.
dysfunctional behaviors Those that detract from organizational
performance.
extraversion The quality of being comfortable with relationships;
the opposite extreme, introversion, is characterized by more social
discomfort.
incubation A period of less intense conscious concentration
during which a creative person lets the knowledge and ideas
acquired during preparation mature and develop.
individual differences Personal attributes that vary from one
person to another.
inducements The tangible and intangible rewards provided by
organizations to individuals.
insight The stage in the creative process when all the scattered
thoughts and ideas that were maturing during incubation come
together to produce a breakthrough.
intention A component of an attitude that guides a person's
behavior.
job satisfaction The extent to which a person is gratified or
fulfilled by his or her work.
locus of control The extent to which people believe their
circumstances are a function of their own actions versus external
factors beyond their control.
Machiavellianism A personality trait. People who possess this
trait behave to gain power and to control the behavior of others.
negative affectivity People who possess this trait are generally
downbeat and pessimistic, see things in a negative way, and
seem to be in a bad mood.
negative emotionality Characterized by moodiness and
insecurity; those who have little negative emotionality are better
able to withstand stress.
openness The capacity to entertain new ideas and to change as a
result of new information.
organizational citizenship The extent to which a person's
behavior makes a positive overall contribution to the organization.
organizational commitment A person's identification with and
attachment to an organization.
perception The set of processes by which an individual becomes
aware of and interprets information about the environment.
performance behaviors The total set of work-related behaviors
that the organization expects the individual to display.
personality The relatively stable set of psychological attributes
that distinguish one person from another.
person-job fit The extent to which the contributions made by the
individual match the inducements offered by the organization.
positive affectivity People who possess this trait are upbeat and
optimistic, have an overall sense of well-being, and see things in a
positive light.
preparation Usually the first stage in the creative process. It
includes education and formal training.
psychological contract A person's set of expectations regarding
what he or she will contribute to the organization and what the
organization, in return, will provide to the individual.
risk propensity The degree to which a person is willing to take
chances and make risky decisions.
selective perception The process of screening out information
that we are uncomfortable with or that contradicts our beliefs.
self-efficacy The extent to which we believe we can accomplish
our goals even if we failed to do so in the past.
self-esteem The extent to which a person believes he or she is a
worthwhile and deserving individual.
stereotyping The process of categorizing or labeling people on
the basis of a single attribute.
turnover When people quit their jobs.
verification The final stage of the creative process where the
validity or truthfulness of the insight is determined.
workplace behavior The pattern of action by the members of an
organization that directly or indirectly influences organizational
effectiveness.
dual-structure theory Identifies motivation factors, which affect
satisfaction, and hygiene factors, which affect dissatisfaction.
ERG theory Describes existence, relatedness, and growth
needs.
hierarchy of needs theory Maslow's hierarchy that assumes
human needs are arranged in a hierarchy of importance.
human relations approach Suggested that favorable employee
attitudes result in motivation to work hard.
hygiene factors These factors are extrinsic to the work itself.
They include factors such as pay and job security.
motivation The set of forces that lead people to behave in
particular ways.
motivation factors These factors are intrinsic to the work itself.
They include factors such as achievement and recognition.
motive A factor that determines a person's choice of one course
of behavior from among several possibilities.
need Anything an individual requires or wants.
need for achievement The desire to accomplish a task or goal
more effectively than in the past.
need for affiliation The need for human companionship.
need for power The desire to control the resources in one's
environment.
need theories of motivation These theories assume that need
deficiencies cause behavior.
primary needs The basic physical requirements necessary to
sustain life.
scientific management One of the first approaches to
management. It focused on the efficiency of individual workers
and assumed that employees are motivated by money.
secondary needs The requirements learned from the
environment and culture in which the person lives.
attribution theory Suggests that we attribute causes to behavior
based on observations of certain characteristics of that behavior.
Employees observe their own behavior, determine whether it is a
response to external or internal factors, and shape their future
motivated behavior accordingly.
avoidance (negative reinforcement) The opportunity to avoid or
escape from an unpleasant circumstance after exhibiting behavior.
Avoidance occurs when the interacting parties' goals are
incompatible and the interaction between groups is relatively
unimportant to the attainment of the goals.
classical conditioning A simple form of learning that links a
conditioned response with an unconditioned stimulus.
continuous reinforcement With this type of reinforcement,
behavior is rewarded every time it occurs.
effort-to-performance expectancy A person's perception of the
probability that effort will lead to performance.
equity The belief that we are being treated fairly in relation to
others.
equity theory Focuses on people's desire to be treated with what
they perceive as equity and to avoid perceived inequity.
expectancy theory Suggests that people are motivated by how
much they want something and the likelihood they perceive of
getting it.
extinction Decreases the frequency of behavior by eliminating a
reward or desirable consequence that follows that behavior.
fixed-interval reinforcement Provides reinforcement on a fixed
time schedule.
fixed-ratio reinforcement Provides reinforcement after a fixed
number of behaviors.
inequity The belief that we are being treated unfairly in relation to
others.
learning A relatively permanent change in behavior or behavioral
potential resulting from direct or indirect experience.
negative reinforcement (avoidance) The opportunity to avoid or
escape from an unpleasant circumstance after exhibiting behavior.
organizational behavior modification (OB mod) The application
of reinforcement theory to people in organizational settings.
outcome Anything that results from performing a particular
behavior.
performance-to-outcome expectancy An individual's perception
of the probability that performance will lead to certain outcomes.
positive reinforcement A reward or other desirable consequence
that a person receives after exhibiting behavior.
process-based perspectives These perspectives focus on how
people behave in their efforts to satisfy their needs.
punishment An unpleasant, or aversive, consequence that results
from behavior.
reinforcement The consequences of behavior.
reinforcement discrimination The process of recognizing
differences between behavior and reinforcement in different
settings.
reinforcement generalization The process through which a
person extends recognition of similar or identical behavior-
reinforcement relationships to different settings.
reinforcement theory This theory is based on the idea that
behavior is a function of its consequences.
schedules of reinforcement Indicate when or how often
managers should reinforce certain behaviors.
social learning Occurs when people observe the behaviors of
others, recognize their consequences, and alter their own
behavior as a result.
valence The degree of attractiveness or unattractiveness a
particular outcome has for a person.
variable-interval reinforcement Varies the amount of time
between reinforcements.
variable-ratio reinforcement Varies the number of behaviors
between reinforcements.
compressed work week A situation in which employees work a
full forty-hour week in fewer than the traditional five days.
empowerment The process of enabling workers to set their own
work goals, make decisions, and solve problems within their
sphere of responsibility and authority.
flexible work schedules (flextime) These schedules give
employees more personal control over the hours they work each
day.
job characteristics approach Focuses on the motivational
attributes of jobs.
job characteristics theory Identifies three critical psychological
states: experienced meaningfulness of the work, experienced
responsibility for work outcomes, and knowledge of results.
job design How organizations define and structure jobs.
job enlargement Involves giving workers more tasks to perform.
job enrichment Entails giving workers more tasks to perform and
more control over how to perform them.
job rotation Systematically moving workers from one job to
another in an attempt to minimize monotony and boredom.
job sharing A situation in which two or more part-time employees
share one full-time job.
job specialization Advocated by scientific management. It can
help improve efficiency, but it can also promote monotony and
boredom.
participation The process of giving employees a voice in making
decisions about their own work.
Telecommuting A work arrangement in which employees spend
part of their time working off-site.
benefits An important form of indirect compensation.
compensation package The total array of money (wages, salary,
commission, incentives, benefits, perquisites, and awards)
provided by the organization to an employee.
continuous improvement Perspective suggesting that
performance should constantly be enhanced.
flexible reward system Allows employees to choose the
combination of benefits that best suits their needs.
goal A desirable objective.
goal acceptance The extent to which a person accepts a goal as
his or her own.
goal commitment The extent to which a person is personally
interested in reaching a goal.
goal difficulty The extent to which a goal is challenging and
requires effort.
goal specificity The clarity and precision of a goal.
incentive systems Plans in which employees can earn additional
compensation in return for certain types of performance.
job analysis The process of systematically gathering information
about specific jobs to use in developing a performance
measurement system, to write job or position descriptions, and to
develop equitable pay systems.
learning organization An organization that works to facilitate the
lifelong learning and personal development of all of its employees
while continually transforming itself to respond to changing
demands and needs.
management by objectives (MBO) A collaborative goal-setting
process through which organizational goals cascade down
throughout the organization.
performance measurement (performance appraisal) The
process by which someone (1) evaluates an employee's work
behaviors by measurement and comparison with previously
established standards, (2) documents the results, and (3)
communicates the results to the employee.
performance plan An understanding between an employee and a
manager concerning what and how a job is to be done such that
both parties know what is expected and how success is defined
and measured.
perquisites Special privileges awarded to selected members of
an organization, usually top managers.
reward system The system that consists of all organizational
components, including people, processes, rules and procedures,
and decision-making activities, involved in allocating
compensation and benefits to employees in exchange for their
contributions to the organization.
self-efficacy The extent to which we believe we can accomplish
our goals even if we failed to do so in the past.
surface value The objective meaning or worth a reward has to an
employee.
symbolic value The subjective and personal meaning or worth a
reward has to an employee.
360-degree feedback Performance management system in which
people receive performance feedback from those on all sides of
them in the organization: their boss, their colleagues and peers,
and their own subordinates.
total quality management (TQM) A form of management that
focuses on the customer, an environment of trust and openness,
working in teams, breaking down internal organizational barriers,
team leadership and coaching, shared power, and continuous
improvement. Use of this approach often involves fundamental
changes in the organization's culture.
burnout A general feeling of exhaustion that develops when an
individual simultaneously experiences too much pressure and has
too few sources of satisfaction.
distress The unpleasant stress that accompanies negative
events.
eustress The pleasurable stress that accompanies positive
events.
general adaptation syndrome (GAS) Identifies three stages of
response to a stressor: alarm, resistance, and exhaustion.
hardiness A person's ability to cope with stress.
interpersonal demands Stressors associated with group
pressures, leadership, and personality conflicts.
life change Any meaningful change in a person's personal or
work situation; too many life changes can lead to health
problems.
life trauma Any upheaval in an individual's life that alters his or
her attitudes, emotions, or behaviors.
optimism The extent to which a person sees life in relatively
positive or negative terms.
organizational stressors Factors in the workplace that can cause
stress. physical demands Stressors associated with the job's
physical setting, such as the adequacy of temperature and lighting
and the physical requirements the job makes on the employee.
role A set of expected behaviors associated with a particular
position in a group or organization.
role ambiguity Arises when a role is unclear.
role conflict Occurs when the messages and cues constituting a
role are clear but contradictory or mutually exclusive.
role demands Stressors associated with the role a person is
expected to play.
role overload Occurs when expectations for the role exceed the
individual's capabilities.
stress A person's adaptive response to a stimulus that places
excessive psychological or physical demands on that person.
task demands Stressors associated with the specific job a person
performs.
type A People who are extremely competitive, highly committed to
work, and have a strong sense of time urgency.
type B People who are less competitive, less committed to work,
and have a weaker sense of time urgency.
work-life relationships The interrelationships between a person's
work life and personal life.
all-channel network In this type of network, all members
communicate with all other members.
chain network In this type of network, each member
communicates with the person above and below, except for the
individuals on each end who communicate with only one person.
channel noise A disturbance in communication that is primarily a
function of the medium.
circle network In this type of network, each member
communicates with the people on both sides but with no one else.
communication The social process in which two or more parties
exchange information and share meaning.
communication networks Networks that form spontaneously and
naturally as the interactions among workers continue over time.
cosmopolite Links the organization to the external environment
and may also be an opinion leader in the group.
decoding The process by which the receiver of the message
interprets its meaning.
encoding The process by which the message is translated from
an idea or thought into transmittable symbols.
feedback The process in which the receiver returns a message to
the sender that indicates receipt of the message.
fidelity The degree of correspondence between the message
intended by the source and the message understood by the
receiver.
gatekeeper An individual who has a strategic position in the
network that allows him or her to control information moving in
either direction through a channel.
grapevine An informal system of communication that coexists
with the formal system.
isolate Individual who tends to work alone and to interact and
communicate little with others.
isolated dyad Two people who tend to work alone and to interact
and communicate little with others.
jargon The specialized or technical language of a trade,
profession, or social group.
liaison An individual who serves as a bridge between groups,
tying groups together and facilitating the communication flow
needed to integrate group activities.
medium The channel or path through which the message is
transmitted.
noise Any disturbance in the communication process that
interferes with or distorts communication.
receiver The individual, group, or organization that perceives the
encoded symbols; the receiver may or may not decode them and
try to understand the intended message.
semantics The study of language forms.
source The individual, group, or organization interested in
communicating something to another party.
transmission The process through which the symbols that
represent a message are sent to the receiver.
verification The feedback portion of communication in which the
receiver sends a message to the source indicating receipt of the
message and the degree to which he or she understood the
message.
wheel network In this type of network, information flows between
the person at the end of each spoke and the person in the middle.
accommodation Occurs when the parties' goals are compatible
and the interaction between groups is relatively unimportant to the
goals' attainment.
affinity group Collections of employees from the same level in
the organization who meet on a regular basis to share information,
capture emerging opportunities, and solve problems.
avoidance (negative reinforcement) The opportunity to avoid or
escape from an unpleasant circumstance after exhibiting behavior.
Avoidance occurs when the interacting parties' goals are
incompatible and the interaction between groups is relatively
unimportant to the attainment of the goals.
collaboration Occurs when the interaction between groups is
very important to goal attainment and the goals are compatible.
command group A relatively permanent, formal group with
functional reporting relationships; usually included in the
organization chart.
communication and decision-making The stage of group
development where members discuss their feelings more openly
and agree on group goals and individual roles in the group.
competition Occurs when the goals are incompatible and the
interactions between groups are important to meeting goals.
compromise Occurs when the interaction is moderately important
to meeting goals and the goals are neither completely compatible
nor completely incompatible.
conflict A disagreement among parties. It has both positive and
negative characteristics.
conflict resolution Occurs when a manager resolves a conflict
that has become harmful or serious.
conflict stimulation The creation and constructive use of conflict
by a manager.
control and organization The stage of group development where
the group is mature; members work together and are flexible,
adaptive, and self-correcting.
formal group Formed by an organization to do its work.
friendship group A group that is relatively permanent and
informal and draws its benefits from the social relationships
among its members.
goal compatibility The extent to which the goals of more than
one person or group can be achieved at the same time.
group Two or more people who interact with one another such
that each person influences and is influenced by each other
person.
group cohesiveness The extent to which a group is committed to
staying together.
group composition The degree of similarity or difference among
group members on factors important to the group's work.
group performance factors Composition, size, norms, and
cohesiveness. They affect the success of the group in fulfilling its
goals.
group size The number of members of the group; it affects the
number of resources available to perform the task.
groupthink Occurs when a group's overriding concern is a
unanimous decision rather than critical analysis of alternatives.
informal group A group that is established by its members.
interest group A group that is relatively temporary and informal
and is organized around a common activity or interest of its
members.
linking role A position for a person or group that serves to
coordinate the activities of two or more organizational groups.
motivation and productivity The stage of group development in
which members cooperate, help each other, and work toward
accomplishing tasks.
mutual acceptance The stage of group development that is
characterized by members sharing information about themselves
and getting to know each other.
norm A standard against which the appropriateness of a behavior
is judged.
social loafing The tendency of some members of groups to put
forth less effort in a group than they would when working alone.
superordinate goal An organizational goal that is more important
to the well-being of the organization and its members than the
more specific goals of interacting parties.
task group A relatively temporary, formal group established to do
a specific task.
management teams Consist of managers from various areas;
they coordinate work teams.
problem-solving teams Temporary teams established to attack
specific problems in the
workplace.
product development teams Combinations of work teams and
problem-solving teams that create new designs for products or
services that will satisfy customer needs.
quality circles Small groups of employees from the same work
area who regularly meet to discuss and recommend solutions to
workplace problems.
team A small number of people with complementary skills who are
committed to a common purpose, common performance goals,
and approach for which they hold themselves mutually
accountable.
virtual teams Teams that work together by computer and other
electronic communication utilities; members move in and out of
meetings and the team itself as the situation dictates.
work teams Include all the people working in an area, are
relatively permanent, and do the daily work, making decisions
regarding how the work of the team is done.
behavioral approach Approach to leadership that tries to identify
behaviors that differentiated effec-tive leaders from nonleaders. It
uses rules of thumb, suboptimizing, and satisficing in making
decisions.
consideration behavior Involves being concerned with
subordinates' feelings and respecting subordinates' ideas.
employee-centered leader behavior Involves attempting to build
effective work groups with high performance goals.
Hersey and Blanchard model Identifies different combinations of
leadership presumed to work best with different levels of
organizational maturity on the part of followers.
initiating-structure behavior Involves clearly defining the leader-
subordinate roles so that subordinates know what is expected of
them.
job-centered leader behavior Involves paying close attention to
the work of subordinates, explaining work procedures, and
demonstrating a strong interest in performance.
leader-member exchange (LMX) This model of leadership
stresses the fact that leaders develop unique working relationships
with each of their subordinates.
leadership Both a process and a property. As a process,
leadership involves the use of noncoercive influence. As a
property, leadership is the set of characteristics attributed to
someone who is perceived to use influence successfully.
Leadership Grid Evaluates leadership behavior along two
dimensions, concern for production and concern for people, and
suggests that effective leadership styles include high levels of both
behaviors.
least-preferred coworker (LPC scale) Presumes to measure a
leader's motivation.
LPC theory of leadership Suggests that a leader's effectiveness
depends on the situation.
Michigan leadership studies These studies defined job-centered
and employee-centered leadership as opposite ends of a single
leadership continuum.
Ohio State leadership studies These studies defined leader
consideration and initiating-structure behaviors as independent
dimensions of leadership.
path-goal theory of leadership Suggests that effective leaders
clarify the paths (behaviors) that will lead to desired rewards
(goals).
trait approach This approach attempted to identify stable and
enduring character traits that differentiated effective leaders from
nonleaders.
Vroom's decision tree approach to leadership This model
attempts to prescribe how much participation subordinates should
be allowed in making decisions.
charisma A form of interpersonal attraction that inspires support
and acceptance from others.
charismatic leadership A type of influence based on the leader's
personal charisma.
coercive power The extent to which a person has the ability to
punish or physically or psychologically harm someone else.
expert power The extent to which a person controls information
that is valuable to someone else.
impression management A direct and intentional effort by
someone to enhance his or her own image in the eyes of others.
influence The ability to affect the perceptions, attitudes, or
behaviors of others.
leadership substitutes Individual, task, and organizational
characteristics that tend to outweigh the leader's ability to affect
subordinates' satisfaction and performance.
legitimate power Power that is granted by virtue of one's position
in the organization.
organizational politics Activities carried out by people to acquire,
enhance, and use power and other resources to obtain their
desired outcomes.
personal power Resides in the person, regardless of the position
he or she fills.
position power Resides in the position, regardless of who is filling
that position.
power The potential ability of a person or group to exercise
control over another person or group.
referent power Exists when one person wants to be like or
imitates someone else.
reward power The extent to which a person controls rewards that
another person values.
superleadership Occurs when a leader gradually and
purposefully turns over power,
responsibility, and control to a self-managing work group.
transformational leadership The set of abilities that allows the
leader to recognize the need for change, to create a vision to
guide that change, and to execute that change effectively.
behavioral approach Approach to leadership that tries to identify
behaviors that differentiated effec-tive leaders from nonleaders. It
uses rules of thumb, suboptimizing, and satisficing in making
decisions.
bounded rationality The idea that decision makers cannot deal
with information about all the aspects and alternatives pertaining
to a problem and therefore choose to tackle some meaningful
subset of it.
brainstorming A technique used in the idea-generation phase of
decision making that assists in the development of numerous
alternative courses of action.
certainty Condition under which the manager knows the
outcomes of each alternative.
cognitive dissonance The anxiety a person experiences when
he or she simultaneously possesses two sets of knowledge or
perceptions that are contradictory or incongruent.
conflict model A very personal approach to decision making
because it deals with the personal conflicts that people experience
in particularly difficult decision situations.
contingency plans Alternative actions to take if the primary
course of action is unexpectedly disrupted or rendered
inappropriate.
decision making The process of choosing from among several
alternatives.
decision rule A statement that tells a decision maker which
alternative to choose based on the characteristics of the decision
situation.
defensive avoidance Entails making no changes in present
activities and avoiding any further contact with associated issues
because there appears to be no hope of finding a better solution.
Delphi technique A method of systematically gathering
judgments of experts for use in developing forecasts.
escalation of commitment The tendency to persist in an
ineffective course of action when evidence reveals that the project
cannot succeed.
ethics An individual's personal beliefs about what is right and
wrong or good and bad.
group polarization The tendency for a group's average
postdiscussion attitudes to be more extreme than its average
prediscussion attitudes.
groupthink Occurs when a group's overriding concern is a
unanimous decision rather than critical analysis of alternatives.
hypervigilance A frantic, superficial pursuit of some satisficing
strategy.
negotiation The process in which two or more parties (people or
groups) reach agreement even though they have different
preferences.
nominal group technique Technique in which group members
follow a generate-discussion-vote cycle until they reach an
appropriate decision.
nonprogrammed decision A decision that recurs infrequently
and for which there is no previously established decision rule.
practical approach The approach to decision making that
combines the steps of the rational approach with the conditions in
the behavioral approach to create a more realistic process for
making decisions in organizations.
PRAM model This model guides the negotiator through the four
steps of planning for agreement, building relationships, reaching
agreements, and maintaining relationships.
problem solving A form of decision making in which the issue is
unique and alternatives must be developed and evaluated without
the aid of a programmed decision rule.
programmed decision A decision that recurs often enough for a
decision rule to be developed.
rationaldecision-making approach A systematic, step-by-step
process for making decisions.
risk Condition under which the decision maker cannot know with
certainty what the outcome of a given action will be but has
enough information to estimate the probabilities of various
outcomes.
satisficing Examining alternatives only until a solution that meets
minimal requirements is found.
self-reactions Comparisons of alternatives with internalized moral
standards.
suboptimizing Knowingly accepting less than the best possible
outcome to avoid unintended negative effects on other aspects of
the organization.
uncertainty Condition under which the decision maker lacks
enough information to estimate the probability of possible
outcomes.
unconflicted adherence Continuing with current activities if doing
so does not entail serious risks.
unconflicted change Involves making changes in present
activities if doing so presents no serious risks.
vigilant information processing Involves thoroughly
investigating all possible alternatives, weighing their costs and
benefits before making a decision, and developing contingency
plans.
acceptance theory of authority The theory that the manager's
authority depends on the subordinate's acceptance of the
manager's right to give directives and to expect compliance with
them.
administrative hierarchy The system of reporting relationships in
the organization, from the lowest to the highest managerial levels.
authority Power that has been legitimized within a particular
social context.
centralization A structural policy in which decision-making
authority is concentrated at the top of the organizational
hierarchy.
configuration An organization's shape, which reflects the division
of labor and the means of coordinating the divided tasks.
delegation The transfer to others of authority to make decisions
and use organizational resources.
departmentalization The manner in which divided tasks are
combined and allocated to work groups.
division of labor The way the organization's work is divided into
different jobs to be done by different people.
formalization The degree to which rules and procedures shape
the jobs and activities of employees.
human organization Rensis Likert's approach that is based on
supportive relationships, participation, and overlapping work
groups.
ideal bureaucracy Weber's model that is characterized by a
hierarchy of authority and a system of rules and procedures
designed to create an optimally effective system for large
organizations.
management functions Set forth by Henri Fayol; they include
planning, organizing, command, coordination, and control.
organization A group of people working together to attain
common goals.
organization chart A diagram showing all people, positions,
reporting relationships, and lines of formal communication in the
organization.
organization structure The system of task, reporting, and
authority relationships within which the organization does its work.
organizational goals Objectives that management seeks to
achieve in pursuing the firm's purpose.
responsibility An obligation to do something with the expectation
of achieving some act or output.
span of control The number of people who report to a manager.
adhocracy This structure is typically found in young organizations
in highly technical fields. Within it, decision making is spread
throughout the organization, power resides with the experts,
horizontal and vertical specialization exists, and there is little
formalization.
autonomous work groups Groups used to integrate an
organization's technical and social systems for the benefit of large
systems.
contingency approach An approach to organization design
where the desired outcomes for the organization can be achieved
in several ways.
divisionalized form This structure is typical of old, very large
organizations. Within it, the organization is divided according to
the different markets served. Horizontal and vertical specialization
exists between divisions and headquarters, decision making is
divided between headquarters and divisions, and outputs are
standardized.
environmental complexity The number of environmental
components that impinge on organizational decision making.
environmental dynamism The degree to which environmental
components that impinge on organizational decision making
change.
environmental uncertainty Exists when managers have little
information about environmental events and their impact on the
organization.
general environment The broad set of dimensions and factors
within which the organization operates, including political-legal,
sociocultural, technological, economic, and international factors.
machine bureaucracy This structure is typical of large, well-
established organizations. Work is highly specialized and
formalized, and decision making is usually concentrated at the
top.
matrix design Combines two different designs to gain the benefits
of each; typically combined are a product or project
departmentalization scheme and a functional structure.
mechanistic structure This structure is primarily hierarchical.
Within it, interactions and communications are typically vertical,
instructions come from the boss, knowledge is concentrated at the
top, and loyalty and obedience are required to sustain
membership.
open system A system that interacts with its environment.
organic structure This structure is set up like a network. Within it,
interactions and communications are horizontal, knowledge
resides wherever it is most useful to the organization, and
membership requires a commitment to the organization's tasks.
organizational downsizing A popular trend aimed at reducing
the size of corporate staff and middle management to reduce
costs.
organizational environment Everything outside an organization.
It includes all elements, people, other organizations, economic
factors, objects, and events that lie outside the boundaries of the
organization.
organizational technology The mechanical and intellectual
processes that transform inputs into outputs.
professional bureaucracy This structure is characterized by
horizontal specialization by professional area of expertise, little
formalization, and decentralized decision making.
reengineering The radical redesign of organizational processes
to achieve major gains in cost, time, and provision of services.
rethinking Looking at organization design in totally different ways,
perhaps even abandoning the classic view of the organization as a
pyramid.
simple structure This structure is typical of relatively small or new
organizations and has little specialization or formalization. Within
this structure, power and decision making are concentrated in the
chief executive.
social subsystem Includes the interpersonal relationships that
develop among people in organizations.
sociotechnical systems approach An approach to organization
design that views the organization as an open system structured
to integrate the technical and social subsystems into a single
management system.
strategy The plans and actions necessary to achieve
organizational goals.
structural imperatives The three structural imperatives,
environment, technology, and size, are the three primary
determinants of organization structure.
system A set of interrelated elements functioning as a whole.
task environment This environment includes specific
organizations, groups, and individuals that influence the
organization.
technical (task) subsystem The means by which inputs are
transformed into outputs.
universal approach An approach to organization design where
prescriptions or propositions are designed to work in any
circumstance.
virtual organization A temporary alliance between two or more
organizations that band together to undertake a specific venture.
cultural values The values that employees need to have and act
on for the organization to act on the strategic values.
empowerment The process of enabling workers to set their own
work goals, make decisions, and solve problems within their
sphere of responsibility and authority.
incremental innovation Continues the technical improvement
and extends the applications of radical and systems innovations.
innovation The process of creating and doing new things that are
introduced into the marketplace as products, processes, or
services.
intrapreneurship Entrepreneurial activity that takes place within
the context of a large corporation.
organization climate Current situations in an organization and
the linkages among work groups, employees, and work
performance.
organization culture The set of values that helps the
organization's employees understand which actions are
considered acceptable and which unacceptable.
organizational socialization The process through which
employees learn about the firm's culture and pass their knowledge
and understanding on to others.
procedural justice The extent to which the dynamics of an
organization's decision-making processes are judged to be fair by
those most affected by them.
radical innovation A major breakthrough that changes or creates
whole industries.
socialization The process through which individuals become
social beings.
strategic values The basic beliefs about an organization's
environment that shape its strategy.
systems innovation Creates a new functionality by assembling
parts in new ways.
Type Z firm This type of firm is committed to retaining employees;
evaluates workers' performance based on both qualitative and
quantitative information; emphasizes broad career paths;
exercises control through informal, implicit mechanisms; requires
that decision making occur in groups and be based on full
information sharing and consensus; expects individuals to take
responsibility for decisions; and emphasizes concern for people.
change agent A person responsible for managing a change
effort.
organization development The process of planned change and
improvement of the organization through application of knowledge
of the behavioral sciences.
overdetermination Occurs because numerous organizational
systems are in place to ensure that employees and systems
behave as expected to maintain stability.
quality of work life The extent to which workers can satisfy
important personal needs through their experiences in the
organization.
refreezing The process of making new behaviors relatively
permanent and resistant to further change.
structural change A systemwide organization development
involving a major restructuring of the organization or instituting
programs such as quality of work life.
transition management The process of systematically planning,
organizing, and implementing change.
unfreezing The process by which people become aware of the
need for change.
applied research Conducted to solve particular problems or
answer specific questions.
basic research Involves discovering new knowledge rather than
solving specific problems.
case study An in-depth analysis of one setting.
field experiment Similar to a laboratory experiment but is
conducted in a real organization.
field survey Typically relies on a questionnaire distributed to a
sample of people selected from a larger population.
laboratory experiment Involves creating an artificial setting
similar to a real work situation to allow control over almost every
possible factor in that setting.
reliability The extent to which a measure is consistent over time.
research design The set of procedures used to test the predicted
relationships among natural phenomena.
scientific research The systematic investigation of hypothesized
propositions about the relationships among natural phenomena.
validity The extent to which a measure actually reflects what it
was intended to measure.
career A perceived sequence of attitudes and behaviors
associated with work-related experiences and activities over a
person's life span.
career pathing The identification of a certain sequence of jobs in
a career that represents a progression through the organization.
career planning Process in which individuals evaluate their
abilities and interests, consider alternative career opportunities,
establish career goals, and plan practical development activities.
career stages The periods in which an individual's work life is
characterized by specific needs, concerns, tasks, and activities.
career management The process of implementing organizational
career planning.
entry stage (exploration stage) Characterized by self-
examination, role tryouts, and occupational exploration.
establishment stage(settling-down stage) Stage in which the
individual gets more recognition for improvement.
exit (withdrawal) stage Characterized by a pattern of decreasing
performance as individuals prepare to move on or retire.
human resource planning Forecasting the organization's human
resource needs, developing replacement charts (charts showing
planned succession of personnel for all levels of the organization),
and preparing inventories of the skills and abilities individuals
need to move within the organization.
job hopping Occurs when an individual makes fewer adjustments
within the organization and moves to different organizations to
advance his or her career.
mastery stage The stage where individuals develop a stronger
attachment to their organizations and lose some career flexibility;
performance may vary.
mentoring Occurs when an older, more experienced person helps
a younger employee grow and advance by providing advice,
support, and encouragement.
occupation A group of jobs that are similar with respect to the
type of tasks and training involved.
trial stage (socialization stage) Stage in which individuals more
specifically explore jobs and performance begins to improve.