Table of Content

Glossary Chapter 1 ............................................................................................................................ 2

Chapter 2 ........................................................................................................................................... 3
Chapter 5 ........................................................................................................................................... 5
Chapter 7 ........................................................................................................................................... 7
Chapter 8 ........................................................................................................................................... 9
Chapter 9 ......................................................................................................................................... 11
Chapter 10 ....................................................................................................................................... 13
Chapter 11 ....................................................................................................................................... 16
Glossary Chapter 1

Conceptual skill The cognitive ability to see the organization as a whole and the relationships among its parts.

Controlling Is concerned with monitoring employees’ activities, keeping the organization on track toward meeting its goals
and making corrections as necessary.

Effectiveness The degree to which the organization achieves a stated goal.

Efficiency The amount of resources—raw materials, money, and people—used to produce a desired volume of output.

First-line manager A manager who is at the first or second level of the hierarchy and is directly responsible for overseeing a group of
production employees.

Functional manager A manager responsible for a department that performs a single functional task, such as finance or marketing.

General manager A manager responsible for several departments that perform different functions.

Human skill A manager’s ability to work with and through other people and to work effectively as part of a group.

Leading Using influence to motivate employees to achieve the organization’s goals.

Management The attainment of organizational goals in an effective and efficient manner through planning, organizing, leading,
and controlling organizational resources.

Middle manager A manager who works at the middle level of the organization and is responsible for a major division or department.

Organization A social entity that is goal directed and deliberately structured.

Organizing The deployment of organizational resources to achieve strategic goals; involves assigning tasks, grouping tasks
into departments, and allocating resources.

Performance The organization’s ability to attain its goals by using resources in an efficient and effective manner.
Planning The management function concerned with defining goals for future performance and how to attain them.

Project manager A manager who is responsible for a specific work project that involves people from various functions and levels of
the organization.

Role A set of expectations for one’s behavior.

Technical skill The understanding of and proficiency in the performance of specific tasks.

Top manager A manager who is at the top of the organizational hierarchy and is responsible for the entire organization.

Chapter 2
Chapter 2

Administrative A subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the
principles approach management functions of planning, organizing, commanding, coordinating, and controlling.

Behavioral sciences Draws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an
approach organizational setting.

Classical perspective Takes a rational, scientific approach to management and seeks to turn organizations into efficient operating machines.

Contingency view Tells managers that what works in one organizational situation might not work in others.

Customer
Systems that use information technology to keep in close touch with customers, collect and manage large amounts of customer
relationship
data, and provide superior customer value.
management (CRM)

Economic force Affects the availability, production, and distribution of a society’s resources.

Hawthorne studies A series of research efforts that was important in shaping ideas concerning how managers should treat workers.
Human relations
Stresses the satisfaction of employees’ basic needs as the key to increased productivity.
movement

Human resources
Suggests that jobs should be designed to meet people’s higher-level needs by allowing employees to use their full potential.
perspective

Humanistic
Emphasizes understanding human behavior, needs, and attitudes in the workplace.
perspective

Information The hardware, software, telecommunications, database management, and other technologies used to store, process, and
technology (IT) distribute information.

Intranet An internal communications system that uses the technology and standards of the Internet but is accessible only to people within
the organization.

Knowledge The process of systematically gather knowledge, making it widely available throughout the organization, and fostering a culture of
management learning.

Management science Uses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for
complex problems. Also called the quantitative perspective.

Operations The field of management that uses various tools and techniques to ensure that goods and services are produced efficiently and
management delivered successfully to customers or clients.

Political force Relates to the influence of political and legal institutions on people and organizations.

Quants Refers to financial managers and others who make decisions based primarily on complex quantitative analysis.

Scientific A subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution
management to improving labor productivity.

Social forces Aspects of a society that guide and influence relationships among people, such as their values, needs, and standards of behavior.

Social media Include online community pages, social media sites, microblogging platforms, and company online forums that enable managers
programs to interact electronically with employees, customers, partners, and other stakeholders.
Subsystems Parts of a system that depend on one another for their functioning.

Supply chain Managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing
management finished goods to consumers.

Synergy A concept that says that the whole is greater than the sum of its parts.

System A set of interrelated parts that function as a whole to achieve a common purpose.

Systems thinking Looking not just at discrete parts of an organizational situation, but also at the continually changing interactions among the parts.

Total quality
Focuses on managing the total organization to deliver quality to customers.
management (TQM)

Bureaucratic
Emphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility,
organizations
formal recordkeeping, and separation of management and ownership.
approach

Chapter 5

Chapter 5

Chief ethics officer A manager who oversees all aspects of ethics and legal compliance.

Code of ethics A formal statement of the organization’s values regarding ethics and social responsibility.

Compensatory Argues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should
justice not be held responsible for matters over which they have no control.
Corporate social The obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of
responsibility society as well as the organization.

Discretionary A voluntary measure guided by the organization’s desire to make social contributions not mandated by economics, laws, or
responsibility ethics.

Distributive justice Requires that different treatment of individuals not be based on arbitrary characteristics.

Ethical dilemma A situation in which all alternative choices or behaviors have potentially negative consequences.

Ethics The code of moral principles and values that governs the behaviors of a person or group with respect to what is right or
wrong.

Ethics committee A group of executives (and sometimes lower-level employees as well) charged with overseeing company ethics by ruling on
questionable issues and disciplining violators.

Individualism A decision-making approach suggesting that actions are ethical when they promote the individual’s best long-term
approach interests, because with everyone pursuing self-interest, the greater good is ultimately served.

Justice approach Says that ethical decisions must be based on standards of equity, fairness, and impartiality.

Moral rights
Holds that ethical decisions are those that best maintain the fundamental rights of the people affected by them.
approach

Practical approach A decision-making approach that sidesteps debates about what is right, good, or just, and bases decisions on the prevailing
standards of the profession and the larger society.

Procedural justice Holds that rules should be clearly stated and consistently and impartially enforced.

Stakeholder Any group or person within or outside the organization that has some type of investment or interest in the organization’s
performance.

Stakeholder
A systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.
mapping
Sustainability Economic development that generates wealth and meets the needs of the current population while preserving society and
the environment for the needs of future generations.

Triple bottom line Refers to measuring the organization’s financial performance, social performance, and environmental performance.

Utilitarian approach A method of ethical decision making saying that the ethical choice is the one that produces the greatest good for the
greatest number.

Whistle-blowing The disclosure by employees of unethical, illegitimate, or illegal practices by an organization.

Chapter 7

Glossary

Chapter 7

Contingency Identifies important factors in the environment and defines a range of alternative responses to be taken in the case of
planning emergencies, setbacks, or unexpected conditions.

Decentralized An approach where top executives or planning experts work with managers in major divisions or departments to develop
planning their own goals and plans.

Goal A desired future state that the organization wants to realize.

Intelligence team A cross-functional group of people who work together to gain a deep understanding of a specific competitive issue and
offer insight and recommendations for planning.

Management by An approach that focuses people on the methods and processes used to attain results, rather than on the results
means (MBM) themselves.

Management by A method whereby managers and employees define goals for every department, project, and person and use them to
objectives (MBO) monitor subsequent performance.
Mission An organization’s purpose or reason for existence.

Mission statement A broadly stated definition of the organization’s basic business scope and operations that distinguishes it from similar types
of organizations.

Operational goal A specific, measurable result that is expected from departments, work groups, and individuals.

Operational plan Specifies the action steps toward achieving operational goals and supports tactical activities.

Plan A blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goals.

Scenario building An approach where managers look at trends and discontinuities and imagine possible alternative futures to build a
framework within which unexpected future events can be managed.

Single-use plan A plan that is developed to achieve a set of goals that is unlikely to be repeated in the future.

Standing plan An ongoing plan used to provide guidance for tasks that occur repeatedly in the organization.

Strategic goal A broad statement of where an organization wants to be in the future. Pertains to the organization as a whole rather than
to specific divisions or departments.

Strategic plan Action steps by which an organization intends to attain strategic goals.

Strategy map A visual representation of the key drivers of an organization’s success, showing the cause-and-effect relationship among
goals and plans.

Stretch goal A reasonable yet highly ambitious and compelling goal that energizes people and inspires excellence.

Tactical goal The outcome that major divisions and departments must achieve for an organization to reach its overall goals.

Tactical plan Designed to help execute major strategic plans and to accomplish a specific part of a company’s strategy.
Chapter 8

Glossary

Chapter 8

BCG matrix A concept developed by the Boston Consulting Group (BCG) that evaluates strategic business units with respect to two
dimensions—business growth rate and market share—and classifies them as cash cows, stars, question marks, or dogs.

Business-level
Pertains to each business unit or product line within the organization.
strategy

Competitive
Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace.
advantage

Core competence Something that the organization does particularly well in comparison to others.

Corporate-level
Pertains to the organization as a whole and the combination of business units and products that make it up.
strategy

Cost leadership A strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more
strategy efficient than others in the industry.

Differentiation A strategy with which managers seek to distinguish the organization’s products and services from those of others in the
strategy industry.

Diversification The strategy of moving into new lines of business.

Focus strategy A strategy where managers use either a differentiation or a cost leadership approach, but they concentrate on a specific
regional market or buyer group.

Functional-level Pertains to the major functional departments within each business unit, such as manufacturing, marketing, and research
strategy and development.
Globalization
A strategy where product design and advertising are standardized throughout the world.
strategy

Multidomestic Means that competition in each country is handled independently, and product design and advertising are modified to suit
strategy the specific needs of individual countries.

Portfolio strategy Pertains to the mix of SBUs and product lines that fit together in a logical way to provide synergy and competitive
advantage.

Pressure group Works within the legal-political framework to influence companies to behave in socially responsible ways.

Related
Moving into a new business that is related to the corporation’s existing business activities.
diversification

Strategic business A division of the organization that has a unique business, mission, product or service line, competitors, and markets relative
unit (SBU) to other units of the same organization.

Strategic Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively
management superior fit between an organization and its environment so as to achieve organizational goals.

Strategy A plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive
advantage, and attaining goals.

Strategy execution The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward
achieving strategic outcomes.

Strategy The stage of strategic management that includes the planning and decision making that lead to the establishment of the
formulation organization’s goals and a specific strategic plan.

SWOT analysis An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational
performance.

Transnational
A strategy that combines global coordination to attain efficiency with local flexibility to meet needs in different countries.
strategy
Unrelated
Refers to expanding into totally new lines of business.
diversification

Vertical integration A strategy of expanding into businesses that either provide the supplies needed to make products or distribute and sell the
company’s products.

Chapter 9

Glossary

Chapter 9

Administrative A decision-making model that includes the concepts of bounded rationality and satisficing and describes how managers
model make decisions in situations that are characterized by uncertainty and ambiguity.

After-action review A disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn’t, and how
to do things better.

Ambiguity A condition in which the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and
information about outcomes is unavailable.

Bounded rationality Means that people have the time and cognitive ability to process only a limited amount of information on which to base
decisions.

Brainstorming A technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for making a decision.

Certainty A situation in which all the information the decision maker needs is fully available.

Classical model A decision-making model based on the assumption that managers should make logical decisions that are economically
sensible and in the organization’s best economic interest.

Coalition An informal alliance among managers who support a specific goal or solution.
Decision A choice made from available alternatives.

Decision making The process of identifying problems and opportunities and then resolving them.

Decision styles Differences among people with respect to how they perceive problems and make choices.

Descriptive An approach that describes how managers actually make decisions, rather than how they should make decisions according
to a theoretical model.

Devil’s advocate A person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature
consensus.

Diagnosis The step in which managers analyze underlying causal factors associated with the decision situation.

Electronic
Brainstorming that takes place in an interactive group over a computer network, rather than meeting face to face.
brainstorming

Escalating
Refers to continuing to invest time and money in a decision despite evidence that it is failing.
commitment

Evidence-based A process founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making
decision making informed and intelligent decisions based on the best available facts and evidence.

Groupthink The tendency of people in groups to suppress contrary opinions in a desire for harmony.

Implementation Involves using managerial, administrative, and persuasive abilities to translate a chosen decision alternative into action.

Intuition An aspect of administrative decision making that refers to a quick comprehension of a decision situation based on past
experience but without conscious thought.

Nonprogrammed A decision made in response to a situation that is unique, is poorly defined and largely unstructured, and has important
decision consequences for the organization.

Normative Means that it defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome.

Opportunity A situation in which managers see potential organizational accomplishments that exceed current goals.
Problem A situation in which organizational accomplishments have failed to meet established goals.

Programmed A decision made in response to a situation that has occurred often enough to enable managers to develop decision rules
decision that can be applied in the future.

Risk Means that a decision has clear-cut goals and good information is available, but the future outcomes associated with each
alternative are subject to chance.

Risk propensity The willingness to undertake risk with the opportunity of gaining an increased payoff.

Satisficing Refers to choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are
presumed to exist.

Uncertainty Occurs when managers know which goals they want to achieve, but information about alternatives and future events is
incomplete.

Chapter 10

Glossary

Chapter 10

Accountability Means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above
them in the chain of command.

Authority The formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes
desired by the organization.

Centralization Means that decision authority is located near top organization levels.

Chain of command An unbroken line of authority that links all individuals in the organization and specifies who reports to whom.
Collaboration A joint effort between people from two or more departments to produce outcomes that meet a common goal or shared
purpose.

Continuous process
Involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.
production

Coordination The managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

Cross-functional
A group of employees from various functional departments that meet as a team to resolve mutual problems.
team

Decentralization Means that decision authority is pushed down to lower organization levels.

Delegation When managers transfer authority and responsibility to positions below them in the hierarchy.

Departmentalization The basis for grouping individual positions into departments and departments into the total organization.

Divisional structure An organizational structure that groups employees and departments based on similar organizational outputs (products or
services), such that each division has a mix of functional skills and tasks.

Flat structure An organizational structure characterized by an overall broad span of management and relatively few hierarchical levels.

Functional structure An organizational structure in which activities are grouped together by common function from the bottom to the top of the
organization.

Line authority The formal power to direct and control immediate subordinates.

Mass production Characterized by long production runs to manufacture a large volume of products with the same specifications.

Matrix approach A structural approach that uses both functional and divisional chains of command simultaneously, in the same part of the
organization.

Matrix boss A functional or product supervisor responsible for one side of the matrix.

Modular approach An approach in which a manufacturing company uses outside suppliers to provide large chunks of a product such as an
automobile, which are then assembled into a final product by a few employees.
Organization chart A visual representation of an organization’s structure.

Organization The framework in which an organization defines how tasks are divided, resources are deployed, and departments are
structure coordinated.

Permanent team A group of employees from all functional areas permanently assigned to focus on a specific task or activity.

Reengineering The radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Relational Frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared
coordination knowledge, and mutual respect.

Responsibility The duty to perform the task or activity that one has been assigned.

Service
An organization that produces nonphysical outputs that require customer involvement and cannot be stored in inventory.
organization

Service technology Characterized by intangible outputs and direct contact between employees and customers.

Small-batch A type of manufacturing technology that involves the production of goods in batches of one or a few products designed to
production customer specification.

Span of
The number of employees reporting to a supervisor. Sometimes called span of control.
management

Staff authority The right to advise, counsel, and recommend in the manager’s area of expertise.

Tall structure An organizational structure characterized by an overall narrow span of management and a relatively large number of
hierarchical levels.

Team-based A structure in which an entire organization is made up of horizontal teams that coordinate their activities and work directly
structure with customers to accomplish organizational goals.

Technical
The degree to which complex machinery is involved in the production process to the exclusion of people.
complexity
Top leader In a matrix structure, the person who oversees both the product and the functional chains of command and is responsible
for the entire matrix.

Two-boss employee In a matrix structure, a person who reports to two supervisors simultaneously.

Virtual network An organizational structure in which the organization subcontracts most of its major functions to separate companies and
structure coordinates their activities from a small headquarters organization.

Work specialization The degree to which organizational tasks are subdivided into individual jobs. Sometimes called division of labor.

Chapter 11

Glossary

Chapter 11

Ambidextrous Incorporating structures and processes that are appropriate for both the creative impulse and the systematic
approach implementation of innovations.

Change agent An organization development (OD) specialist who contracts with an organization to help managers facilitate change.

Changing The “intervention” stage of organization development (OD), when change agents teach people new behaviors and skills
and guide them in using them in the workplace.

Creativity The generation of novel ideas that may meet perceived needs or respond to opportunities for the organization.

Culture change A major shift in the norms, values, and mindset of an entire organization.

Disruptive Innovations in products, services, or processes that radically change competition in an industry, such as the advent of
innovation streaming video or e-books.

Force-field analysis A technique for determining which forces drive a proposed change and which forces restrain it.
Horizontal linkage Means that several departments, such as marketing, research, and manufacturing, work closely together to develop new
model products.

Idea champion A person who sees the need for change and is passionately committed to making it happen.

Idea incubator An organizational program that provides a safe harbor where employees can generate and develop ideas without
interference from company bureaucracy or politics.

Inventory The goods the organization keeps on hand for use in the production process up to the point of selling the final products to
customers.

Just-in-time (JIT)
An inventory control system that schedules materials to arrive precisely when they are needed on a production line.
inventory system

Large-group An organization development (OD) approach that brings together people from different parts of the organization (and
intervention often including outside stakeholders) to discuss problems or opportunities and plan for change.

Need for change A disparity between actual and desired performance.

New-venture team A unit separate from the mainstream organization that is responsible for initiating and developing innovations.

Open innovation A process where people search for and commercialize innovative ideas beyond the boundaries of the organization.

Organization A planned, systematic process of change that uses behavioral science techniques to improve an organization’s health and
development (OD) effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning
and problem-solving capabilities.

Organizational
The adoption of a new idea or behavior by an organization.
change

People change A change in the attitudes and behaviors of a few employees.

Product change A change in an organization’s products or services, such as the Whirlpool two-oven range or the Amazon Kindle Fire.

Refreezing The stage of organization development (OD) where people have incorporated new values, attitudes, and behaviors into
their everyday work and the changes become institutionalized in the culture.
Skunkworks A separate informal, highly autonomous, and often secretive group that focuses on breakthrough ideas.

Survey feedback Where organization development (OD) change agents survey employees to gather their opinions regarding corporate
values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share
the results and brainstorm solutions to problems identified by the results.

Team building An organization development (OD) intervention that enhances cohesiveness by helping groups of people learn to work
together as a team.

Technology change A change in production processes—how an organization does its work.

Unfreezing The stage of organization development (OD) in which people are made aware of problems and the need for change.