108 key terms

Management

The process of coordinating people and other resources to achieve the goals of an organization.

Planning

Establishing organizational goals and deciding how to accomplish them.

Mission

A statement of the basic purpose that makes an organization different from others.

Goal

An end result that an organization is expected to achieve over a one- to ten-year period.

Objective

A specific statement detailing what an organization intends to accomplish over a shorter period of time.

SWOT analysis

The identification and evaluation of a firm’s strengths, weaknesses, opportunities, and threats.

Plan

An outline of the actions.

Strategic plan

An organization’s broadest plan, developed as a guide for major policy setting and decision making.

Tactical plan

A smaller-scale plan developed to implement a strategy.

Operational plan

A type of plan designed to implement tactical plans.

Contingency plan

A plan that outlines alternative courses of action.

Organizing

The grouping of resources and activities to accomplish some end result in an efficient and effective manner.

Leading

The process of influencing people to work toward a common goal.

Motivating

The process of providing reasons for people to work in the best interests of an organization.

Directing

The combined processes of leading and motivating.

Middle manager

A manager who implements the strategy and major policies developed by top management.

First-line manager

A manager who coordinates and supervises the activities of operating employees.

Financial manager

A manager who is primarily responsible for an organization’s financial resources.

Operations manager

A manager who manages the systems that convert resources into goods and services.

Marketing manager

A manager who is responsible for facilitating the exchange of products between an organization and its customers or clients.

Human resources manager

A person charged with managing an organization’s human resources programs.

Administrative manager

A manager who is not associated with any specific functional area but who provides overall administrative guidance and leadership.

Conceptual skills

The ability to think in abstract terms and see how various parts of an organization fit together.

Analytic skills

The ability to identify problems correctly, generate reasonable alternatives, and select the best alternatives to solve problems.

Interpersonal skills

The ability to deal effectively with other people.

Technical skills

Specific skills needed to accomplish a specialized activity.

Leadership

The ability to influence others; different from management as leaders strive for voluntary cooperation.

Autocratic leadership

Task-oriented leadership style where workers are told what to do without involvement in decision-making.

Participative leadership

Leadership style where all members of a team are involved in setting goals and developing strategies.

Laissez-faire leadership

A hands-off leadership style that delegates responsibility and decision-making authority to employees.

Transformational leadership

Leadership style that focuses on transforming organizations and industries.

Transactional leadership

Leadership style that emphasizes structure, performance, and productivity with reward systems.

Charismatic leadership

Personality-dependent leadership style.

Decision making

The act of choosing one alternative from a set of alternatives.

Problem

The discrepancy between an actual condition and a desired condition.

Organization

A group of two or more people working together to achieve a common set of goals.

Organization chart

A diagram representing the positions and relationships within an organization.

Chain of command

The line of authority from the highest to lowest levels of an organization.

Job design

Structuring tasks and activities required to accomplish a firm’s objectives into specific jobs.

Job specialization

The separation of all organizational activities into distinct tasks assigned to different people.

Job rotation

The systematic shifting of employees from one job to another.

Departmentalization

The process of grouping jobs into manageable units.

Departmentalization by function

Grouping jobs that relate to the same organizational activity.

Departmentalization by product

Grouping activities related to a particular product or service.

Departmentalization by location

Grouping activities according to the defined geographic area where they are performed.

Departmentalization by customer

Grouping activities according to the needs of various customer populations.

Delegation

Assigning part of a manager’s work and power to other workers.

Responsibility

The duty to do a job or perform a task.

Authority

The power within an organization to accomplish an assigned job or task.

Accountability

The obligation of a worker to accomplish an assigned job or task.

Span of management

The number of workers who report directly to one manager.

Organizational height

The number of layers, or levels, of management in a firm.

Line structure

An organizational structure in which the chain of command goes directly from person to person throughout the organization.

Line managers

Managers who make decisions and give orders to subordinates to achieve the organization’s goals.

Line-and-staff structure

An organizational structure that combines the chain of command from a line structure with the assistance of staff managers.

Staff managers

Managers who provide support, advice, and expertise to line managers.

Matrix structure

An organizational structure that combines vertical and horizontal lines of authority.

Cross-functional team

A team of individuals with varying specialties and skills brought together to achieve a common task.

Virtual structure

An organizational structure where administration is primary and most functions are contracted out.

Team

Two or more workers collaborating to achieve a shared mission, goal, or work product.

Problem-solving team

A team of knowledgeable employees brought together to tackle a specific problem.

Self-managed teams

Groups of employees with the authority and skills to manage themselves.

Cross-functional team

Teams of individuals with varying specialties brought together to achieve a common task.

Virtual team

A team consisting of members who are geographically dispersed but communicate electronically.

Ad hoc committee

A committee created for a specific short-term purpose.

Standing committee

A relatively permanent committee charged with performing some recurring task.

Task force

A committee established to investigate a major problem or pending decision.

Informal organization

The pattern of behavior and interaction that stems from personal rather than official relationships.

Informal group

A group created by the members themselves to accomplish goals that may or may not be relevant to an organization.

Grapevine

The informal communications network within an organization.

Operations management

All the activities required to produce goods and services.

Reshoring

A situation in which U.S. manufacturers bring manufacturing jobs back to the United States.

Mass production

A manufacturing process that lowers the cost required to produce a large number of identical products.

Analytical process

A process in operations management where raw materials are broken into different component parts.

Synthetic process

A process in operations management where raw materials or components are combined to create a finished product.

Utility

The ability of a good or service to satisfy a human need.

Form utility

Utility created by converting raw materials into finished products or services.

Service economy

An economy where more effort is devoted to the production of services than goods.

Research and development (R&D)

A set of activities intended to identify new ideas that can result in new goods and services.

Design planning

The development of a plan for converting an idea into an actual product or service.

Product line

A group of similar products that differ in relatively minor characteristics.

Product design

The process of creating specifications from which a product can be produced.

Capacity

The number of products or services an organization can produce in a given time.

Labor-intensive technology

A process in which people must do most of the work.

Capital-intensive technology

A process in which machines and equipment do most of the work.

Planning horizon

The time period during which an operational plan will be in effect.

Purchasing

All activities involved in obtaining required materials, supplies, components, and parts.

Material requirements planning (MRP)

A computerized system that integrates production planning and inventory control.

Just-in-time inventory (JIT) system

A system designed to ensure that materials arrive just when they are needed.

Scheduling

The process of ensuring that materials and resources are at the right place at the right time.

Quality control

The process of ensuring that goods and services are produced in accordance with design specifications.

Quality circle

A team of employees who meet on company time to solve problems of product quality.

Inspection

The examination of the quality of work-in-process.

Six Sigma

A disciplined approach relying on statistical data to eliminate defects for a firm’s products and services.

Automation

The total or near-total use of machines to do work.

Robotics

The creation and application of programmable machines to perform a variety of tasks.

Computer-aided design (CAD)

The use of computers to aid in the development of products.

Computer-aided manufacturing (CAM)

The use of software and computers to plan and control manufacturing processes.

Computer-integrated manufacturing (CIM)

A computer system aiding in design and controlling machinery for production.

Continuous process

A manufacturing process producing the same product(s) over a long period.