Introduction to Business Management – Key Vocabulary

Vocabulary flashcards covering major thinkers, theories, functions, principles, and contemporary issues from Unit I lecture notes on Business Management.

Organization

A structured arrangement of people working together under a defined system to achieve specific goals.

People (Organizational Element)

The essential human component without which an organization cannot exist.

Structure (Organizational)

The formal pattern of activities, roles, and relationships that coordinate members’ efforts.

Goals (Organizational)

Clear objectives that give direction and purpose to an organization’s activities.

Management

The process of coordinating and overseeing activities to achieve goals effectively and efficiently.

Efficiency

“Doing things right” by maximizing output while minimizing input or resources.

Effectiveness

“Doing the right things” by successfully achieving desired goals or outcomes.

Early Management Era

Pre-1880 period marked by informal management practices such as the division of labour advocated by Adam Smith.

Scientific Management

Taylor’s approach that applies scientific methods to labor for productivity and waste reduction.

Frederick Winslow Taylor

Known as the Father of Scientific Management; promoted systematic study of tasks and worker selection.

One Best Way

Taylor’s notion that every job has a single, most efficient method determined through science.

Scientific Selection of Workers

Choosing employees based on skills and abilities suited to specific tasks.

Differential Piece-Rate System

Taylor’s wage plan that rewards higher productivity with higher pay per unit.

Administrative Management

Fayol’s theory focusing on managerial practices and organizational structure.

Henri Fayol

French engineer dubbed the Father of Modern Management Theory; formulated 14 principles of management.

POCCC

Fayol’s five functions of management: Planning, Organizing, Commanding, Coordinating, Controlling.

Division of Work

Fayol’s principle that specialization increases productivity and efficiency.

Unity of Command

Fayol’s principle that each employee should receive orders from only one superior.

Scalar Chain

A clear chain of authority extending from top to bottom of an organization.

Esprit de Corps

Fayol’s call for team spirit to foster harmony within the organization.

Bureaucratic Management

Weber’s model of a rational, rule-based, hierarchical organization.

Max Weber

German sociologist who developed the Bureaucratic Theory of Management.

Formal Hierarchical Structure

Clearly defined levels of authority and responsibility within an organization.

Impersonality (Bureaucracy)

Decision-making based on rules and logic rather than personal preferences.

Merit-Based Employment

Recruitment and promotion determined by qualifications and performance.

Neo-Classical Management

1930–1950 era emphasizing human and social factors in the workplace.

Human Relations Movement

Approach highlighting motivation, communication, and worker satisfaction as productivity drivers.

Mary Parker Follett

Pioneer who stressed group ethics, shared power, and the human element in management.

Elton Mayo

Leader of the Hawthorne Studies that revealed the importance of social factors at work.

Hawthorne Effect

Productivity increase resulting from workers feeling observed and important.

Illumination Studies

Hawthorne phase testing lighting effects; led to discovery of psychological influences on output.

Relay Assembly Test Room

Hawthorne experiment showing that supportive supervision and group cohesion raise productivity.

Interviewing Program

Hawthorne phase where 21,000 interviews exposed workers’ emotional and social concerns.

Bank Wiring Observation Room

Hawthorne study demonstrating informal group norms controlling individual productivity.

Informal Group Norms

Unwritten standards set by worker groups that influence individual behaviour.

Quantitative Approach

Management perspective using mathematics, statistics, and models for decision-making.

Operations Research (OR)

Application of analytical methods to help make better decisions about complex operations.

PERT/CPM

Network techniques for project planning and control to identify the shortest completion time.

Systems Approach

View of organization as an interrelated, open system interacting with its environment.

Subsystems

Smaller, interdependent parts within an organization (e.g., departments, teams).

Synergy

The concept that the whole organization’s output exceeds the sum of its parts.

Open System

An organization that exchanges inputs and outputs with its external environment.

Feedback Mechanism

Loop that returns information on outputs to adjust processes and improve performance.

Equifinality

Systems principle stating multiple paths can lead to the same outcome.

Contingency Approach

Theory that effective management depends on matching practices to situational variables.

Situational Variables

Factors such as size, technology, culture, and environment that influence managerial choices.

Planning (Management Function)

Setting objectives and deciding on actions to achieve them.

Strategic Planning

Long-term planning focused on overall organizational direction.

Tactical Planning

Medium-term planning at departmental or unit level to implement strategy.

Operational Planning

Short-term, day-to-day planning of specific tasks and activities.

Organizing (Management Function)

Arranging resources and tasks into a structured framework to implement plans.

Departmentalization

Grouping related activities into units or departments.

Span of Control

Number of subordinates a manager can effectively supervise.

Staffing

Recruiting, selecting, training, and developing the human resources of an organization.

Manpower Planning

Estimating and providing the human resources required by the organization.

Directing (Leading)

Guiding, motivating, and supervising employees toward organizational goals.

Motivation (Directing Element)

Incentives and psychological techniques used to boost employee performance.

Controlling (Management Function)

Monitoring performance, comparing it with standards, and taking corrective action.

Pre-control

Control applied before activities begin, such as budgeting and planning standards.

Concurrent Control

Real-time monitoring of ongoing activities to ensure they meet standards.

Post-control

Evaluation after task completion, such as performance reviews and audits.

Goal-Oriented Nature of Management

Characteristic that management always aims at achieving predetermined objectives.

Management as Science

Aspect of management that relies on systematic knowledge, principles, and cause-effect relationships.

Management as Art

Aspect requiring creativity, intuition, and skillful application of knowledge.

Management as Profession

Recognition of management as a specialized field with formal training and ethical standards.

Levels of Management

Hierarchical layers—top, middle, and first-line—each with distinct responsibilities.

Conceptual Skills

Ability to view the organization holistically and solve complex problems; vital at top level.

Human Skills

Interpersonal abilities enabling managers to work effectively with people at all levels.

Technical Skills

Job-specific knowledge and proficiency, most critical for lower-level managers.

Managerial Roles

Mintzberg’s ten roles grouped as interpersonal, informational, and decisional activities of managers.

Figurehead Role

Interpersonal role where the manager performs ceremonial and symbolic duties.

Monitor Role

Informational role involving seeking and receiving information to understand the organization.

Entrepreneur Role

Decisional role where the manager initiates and oversees new projects for improvement.

Globalization (Challenge)

Trend of increased worldwide interconnectedness affecting competition and management practices.

Sustainability (Challenge)

Organizational commitment to environmental and social responsibility alongside profitability.

Organizational Culture

Shared values, norms, and beliefs that shape employee behaviour and organizational climate.

Strong Culture

Culture with widely shared and strongly held values that guide behaviour consistently.

Management vs Administration

Debate over whether administration plans and management executes or whether management is the broader term.

Peter Drucker on Management

View that management manages business, managers, and workers; administration applies to government and non-profits.