Principles and Practices of Management

Vocabulary flashcards covering the core principles, management theories, organizational structures, strategic models, and motivation frameworks from the Principles and Practices of Management lecture.

POSDCORB

An acronym coined by Luther Gullick summarizing the key administrative functions of management: Planning, Organising, Staffing, Directing, Coordinating, Reporting, and Budgeting.

Management (Theo Heimann's Conceptions)

Theo Heimann categorizes management into three distinct meanings: Management as a Noun (a group of managers), Management as a Discipline (the subject of study), and Management as a Process (the functions of management).

Technical Skills

Proficiency in specific activities involving methods, processes, procedures, or techniques; specialized knowledge, analytical ability, and facility with tools, which are crucial for lower levels of management.

Human Skills

The ability to work effectively as a group member and build cooperative efforts, involving understanding others' perspectives, resolving conflicts, and building effective teams; essential at all managerial levels.

Conceptual Skills

The ability to see the organization as a whole, recognize interdependencies, and understand the broader context of the industry and societal forces; most critical for top/upper management.

Administration

A top-level, determinative or thinking function concerned with the determination of major objectives, overall plans, and policies, heavily influenced by public opinion and external forces.

Scientific Management

A classical management theory defined by F.W. Taylor as the art of knowing exactly what you want your men to do and then seeing that they do it in the best and cheapest way.

Mental Revolution

A fundamental principle of Taylor's scientific management involving a complete mental shift on the part of both workers and management toward mutual collaboration, shared accountability, and increased prosperity rather than conflict.

Time Study

A work study technique in scientific management used to determine the exact time required to perform a particular task or operation under specified standard conditions.

Motion Study

The systematic analysis of worker movements during task execution aimed at identifying and eliminating wasteful, unnecessary, or inefficient physical motions.

Fatigue Study

The investigation of work conditions, task duration, and physical and mental strain to determine optimal work-rest intervals, reducing accidents and burnout while maintaining productivity.

Differential Piece-Rate System

Taylor's incentive-based wage payment method in which workers who achieve or exceed standard output are paid a higher rate per unit, while those who fail to meet the standard receive a lower rate.

Functional Foremanship

Taylor's supervisory system dividing shop-floor control among eight specialized foremen split between planning (Route Clerk, Instruction Card Clerk, Time and Cost Clerk, Disciplinarian) and production (Gang Boss, Speed Boss, Repair Boss, Inspector).

Unity of Command

Henri Fayol's administrative principle stating that each subordinate should receive orders from and report to only one direct superior to prevent conflicts and role confusion.

Scalar Chain

The unbroken chain of superiors ranging from the ultimate authority down to the lowest ranks, dictating formal channels of authority and communication throughout the enterprise.

Gang Plank

An exception in Fayol's scalar chain that permits direct horizontal communication between two employees at the same hierarchical level during emergencies to prevent delays.

Esprit de Corps

Fayol's 14th principle emphasizing that unity is strength, advocating teamwork, harmony, and mutual understanding among organizational members.

Bureaucracy Theory

Max Weber's structural theory advocating an organization governed by a rational-legal hierarchy, task specialization, explicit official rules, impersonal relationships, and career orientation based on merit.

Neo-Classical Theory

A management approach initiated by Elton Mayo modifying classical doctrine by treating the organization as a social system where human relations and employee behavioral factors are primary.

Open System

A system concept in modern management theory where an enterprise continuously interacts with its external environment, taking in inputs, transforming them, and exporting outputs with environmental feedback.

Contingency Approach

Also called the Situational Approach (associated with J.W. Lorsch), stating there is no single best way to manage; managerial actions depend directly on the specific circumstances and environment.

Planning Premises

The anticipated background assumptions and forecasts regarding the future environment in which operational and strategic plans are expected to operate.

Derivative Plans

Secondary or operational sub-plans developed from the basic master plan to facilitate and support its execution across various departments.

Standing Plans

Recurring organizational plans that provide ongoing guidance for situations and activities that occur repeatedly, including policies, procedures, and rules.

Policy

A broad, flexible plan that establishes parameters and general guidelines for decision-making and thinking within an organization.

Procedure

A rigid, chronological sequence of mandatory operational steps prescribing exactly how a specific recurring activity must be performed.

Rule

A specific, rigid statement specifying definitive actions that must or must not be taken in a given situation, with no room for discretion and prescribed penalties for non-compliance.

Management by Objectives (MBO)

A management system outlined by Peter Drucker (1954) wherein superiors and subordinates jointly define organizational objectives, set performance targets, and evaluate results against those standards.

SWOT Analysis

A strategic planning tool used to evaluate the internal environment (Strengths and Weaknesses) and external environment (Opportunities and Threats) of an organization.

Porter's Five Forces Model

A strategic framework analyzing industry attractiveness and competition through five forces: Competitive Rivalry, Threat of New Entrants, Threat of Substitutes, Bargaining Power of Suppliers, and Bargaining Power of Buyers.

BCG Growth-Share Matrix

A corporate portfolio planning matrix categorizing strategic business units into Stars, Cash Cows, Question Marks, and Dogs based on Market Growth Rate (vertical axis) and Relative Market Share (horizontal axis).

Relative Market Share

A metric calculated as $\text{Relative Market Share} = \frac{\text{Firm's Market Share}}{\text{Largest Competitor's Market Share}}$, indicating competitive strength on the horizontal axis of the BCG Matrix.

Power Distance

A Hofstede cultural dimension measuring the degree to which less powerful members of organizations expect and accept that power is distributed unequally.

Line Organization

The oldest and simplest organizational structure (also known as scalar or military organization) characterized by direct, unbroken vertical flow of authority from top management downward.

Line and Staff Organization

A structure combining direct line executives (commanders who possess decision-making authority) with staff specialists (advisors who provide expert guidance, technical support, and counsel).

Matrix Organization

A dual-command organizational structure combining functional and project forms, where employees report simultaneously to both functional department heads and project managers.

Boundaryless Organization

An organization designed to eliminate internal vertical and horizontal barriers as well as external boundaries separating the enterprise from customers, suppliers, and environmental partners.

Hollow Organization

A design that focuses strictly on retaining core internal competencies while outsourcing non-core operational functions to trusted external business partners.

Modular Organization

An organizational structure in which a manufacturing process is partitioned into specific interchangeable modules, with separate external firms producing distinct components assembled by the core firm.

Network Organization

A structure built around a central hub organization that coordinates independent partner enterprises performing design, manufacturing, finance, and marketing functions via contracts.

Authority

The institutionalized legal right vested in a formal position to command subordinates, allocate resources, enforce compliance, and make organizational decisions.

Power

The capacity or ability of an individual to influence the behavior, attitudes, or decisions of others, which can exist informally without legal or official backing.

Referent Power

Power grounded in an individual's charisma, personal attraction, or interpersonal characteristics that inspires others to identify with, emulate, and follow them.

Expert Power

Power derived from possessing specialized knowledge, technical expertise, or unique cognitive skills that others acknowledge, depend on, and lack.

Delegation of Authority

The process by which a manager entrusts part of their work, passes down authority to subordinates, and demands accountability while retaining ultimate responsibility.

Decentralisation

A totalistic organizational philosophy involving the systematic dispersal of decision-making authority down to departmental, divisional, and sectional semi-autonomous units.

Span of Control

The total number of subordinates that a manager or administrator can directly supervise and control efficiently and effectively.

Graicunas' Formula

A mathematical relationship developed by A.V. Graicunas demonstrating that as the number of subordinates $n$ increases arithmetically, the number of potential superior-subordinate relationships $r$ increases geometrically: $r = n\left(\frac{2^n}{2} + (n - 1)\right)$.

Content Theories of Motivation

Theories of motivation (also called needs theories) that identify specific intrinsic and extrinsic human needs that initiate, guide, and sustain human behavior.

Process Theories of Motivation

Cognitive theories of motivation that explain the psychological mechanisms, cognitive choices, and processes through which human behavior is energized, directed, and evaluated.

Hierarchy of Needs Theory

Abraham Maslow's motivation theory postulating that human needs arrange hierarchically across five levels: Physiological, Safety and Security, Love and Belonging, Self-Esteem, and Self-Actualization.

Hygiene Factors

Extrinsic job context elements in Herzberg's Two-Factor Theory (such as company policy, supervision, salary, working conditions, and security) whose absence causes job dissatisfaction, but whose presence does not create motivation.

Motivational Factors

Intrinsic job content elements in Herzberg's Two-Factor Theory (such as achievement, recognition, challenging work, responsibility, and advancement) that generate positive job satisfaction and enhance productivity.

Learned Needs Theory

David McClelland's motivation framework stating that human behavior is driven by three acquired needs: Need for Achievement ($\text{n-Ach}$), Need for Power ($\text{n-Pow}$), and Need for Affiliation ($\text{n-Aff}$).

Theory X and Theory Y

Douglas McGregor's two distinct views of human nature: Theory X assumes workers are inherently lazy, avoid responsibility, and prefer security; Theory Y assumes workers are self-directed, seek responsibility, and possess creativity.

ERG Theory

Clayton Alderfer's condensed motivation model categorizing needs into Existence (material needs), Relatedness (interpersonal ties), and Growth (personal development), allowing for simultaneous pursuit of needs.

Frustration-Regression Principle

An ERG Theory mechanism stating that when an individual experiences continuous frustration in satisfying higher-level needs (such as Growth), they regress to actively pursuing lower-level needs (such as Relatedness).

Equity Theory

J. Stacy Adams' social exchange theory stating that individuals compare their input-to-outcome ratio to that of a referent other, and will act to eliminate psychological tension if they perceive unfairness.

Expectancy Theory

Victor Vroom's cognitive motivation theory positing that motivation is the mathematical product of three variables: $\text{Motivation} = \text{Expectancy} \times \text{Instrumentality} \times \text{Valence}$.

Instrumentality

The perceived probability in Vroom's Expectancy Theory that reaching a specific level of job performance will actually result in attaining the desired organizational outcome or reward.

Valence

The affective value or emotional attractiveness an employee assigns to an expected organizational reward or outcome within Vroom's Expectancy Theory.

Reinforcement Theory

B.F. Skinner's behavioral theory founded on the Law of Effect, asserting that individual behavior is controlled by environmental consequences rather than internal cognitive feelings or drives.

Goal Setting Theory

Edwin Locke's motivation framework asserting that specific, difficult, and challenging performance goals paired with strong goal commitment and self-efficiency yield superior work performance.