Business Management Concepts and Theories

These flashcards cover key vocabulary and concepts from business management, including case analysis, organizational structure, HR processes, leadership, diversity, motivation theories, and communication.

Case Method

A teaching approach that provides opportunities to analyze real business situations.

Functional Techniques

Specialized methods that focus on specific operations within an organization.

Strategic Analysis

The process of evaluating an organization's competitive position and determining future strategies.

PAR

An acronym for Problem Identification, Analysis, and Recommendation in case analysis.

Problem vs. Symptom

A problem is the root cause of issues, while symptoms are the manifestations of the problem.

Multicasuality

The concept that many situations may arise from multiple contributing factors.

Interrelationship

The connection between factors where one factor influences another.

Departmentalization

The division of work and workers into operational organizational units.

Organizational Structure

The vertical and horizontal arrangement of departments within a company.

Product Departmentalization

Organizing workers based on specific products or services they produce.

Matrix Departmentalization

A hybrid organizational structure combining two or more departmentalization forms.

Chain of Command

The vertical line of authority in an organization defining who reports to whom.

Unity of Command

The principle that each employee should report to one boss only.

Line Authority

The right to command immediate subordinates in the chain of command.

Staff Authority

The right to advise but not command others in the organization.

Centralization

The concentration of decision-making authority at the top levels of management.

Decentralization

Distribution of decision-making authority to lower levels within an organization.

Job Specialization

A job that focuses on a small part of a larger task, often repetitive and simple.

Job Rotation

The practice of periodically moving employees between different jobs.

Job Enlargement

Increasing the number of tasks performed by a worker.

Job Enrichment

Adding more responsibilities and autonomy to an employee’s role.

Re-engineering

Radically redesigning business processes to improve performance.

Modular Organization

An organization that outsources non-core business activities.

Virtual Organization

A flexible company that relies on partnerships to share costs and resources.

Employment Legislation

Laws that govern workplace rights and responsibilities.

BFOQ (Bona Fide Occupational Qualification)

Allows employment decisions based on characteristics deemed necessary for a specific job.

Recruiting

The process of attracting and selecting candidates for job openings.

Job Analysis

A systematic process for collecting information about job tasks and requirements.

Job Description

A written summary of the duties and responsibilities required for a position.

Job Specifications

A summary of the qualifications needed to perform a job successfully.

Selection Tests

Methods used to evaluate candidates’ abilities and fit for a job.

Employee Turnover

The rate at which employees leave an organization.

Functional Turnover

The departure of poor-performing employees, which is acceptable to management.

Dysfunctional Turnover

The departure of high-performing employees that negatively impacts the organization.

Surface-Level Diversity

Observable characteristics such as age, gender, and race.

Deep-Level Diversity

Differences in values, beliefs, and personalities among individuals.

Big Five Personality Dimensions

A model categorizing five key traits impacting individual behaviors.

Extraversion

A personality trait indicating a sociable and outgoing disposition.

Emotional Stability

A trait defining how well a person handles stress and emotions.

Agreeableness

A personality dimension reflecting cooperativeness and friendliness.

Conscientiousness

A trait indicating a person's organization and reliability.

Openness to Experience

A characteristic reflecting curiosity and willingness to embrace new ideas.

Expectancy Theory

A motivation theory suggesting effort leads to performance, performance leads to rewards.

Reinforcement Theory

The idea that behavior is influenced by the consequences that follow it.

Management by Objectives (MBO)

A management strategy focusing on achieving specific goals collaboratively.

Transformational Leadership

Leading by motivating and inspiring followers to achieve greater goals.

Perception Process

How individuals filter, organize, and interpret stimuli from their environment.

Communication Process

The sequence of steps involved in the effective exchange of information.

Coaching

A process aimed at improving job performance through direct feedback.

Mentoring

Support focused on career development through guidance and knowledge sharing.

Counseling

Communication addressing personal issues affecting work performance.

Clarifying

Asking questions to gain a better understanding of ambiguous statements.

Summarizing

Reviewing the main points and emotions expressed by the speaker.

Control Process

A sequence of actions to ensure organizational goals are met.

Bureaucratic Control

Use of rules and procedures to monitor performance.

Cybernetic Feasibility

The practicality of implementing control methods in an organization.

CART Criteria

Standards for useful information: Complete, Accurate, Relevant, Timely.