Fundamentals of Business Management – People & Organizational Behavior

Vocabulary flashcards covering key roles, theories, structures, leadership styles, communication methods, team concepts, and organizational behavior topics from the lecture notes.

Director

Senior officer responsible for safeguarding shareholders’ capital, setting objectives, ensuring policy compliance, organizing resources, monitoring activities, and determining profit distribution.

Managing Director (MD)

Executive who provides leadership, makes urgent decisions, appoints senior staff, implements policy, maintains morale, and oversees overall company operations.

Executive Director

Board member with functional responsibilities who is involved in day-to-day management, sets long-term plans, delegates duties, and monitors tasks.

Non-Executive Director

Part-time board member who attends meetings and advises but does not take part in daily management.

Company Secretary

Executive officer (not a director) who arranges shareholder meetings, records minutes, and ensures legal compliance and maintenance of statutory books.

Manager

Individual at various levels who ensures functional efficiency and effectiveness by setting targets, solving day-to-day problems, and motivating staff.

Production Operative

Employee who directly operates machinery or equipment to produce goods or services.

Support Staff

Workers—such as clerks, receptionists, office personnel—who assist the internal functioning of an organization.

Hierarchical Structure

Traditional organization chart where authority flows from board of directors to chief executive, senior managers, middle managers, supervisors, and operatives.

Centralization

Management approach where decision-making and key functions (e.g., purchasing, advertising) are grouped at headquarters for efficiency.

Decentralization

Delegation of authority to multiple locations or levels to enhance flexibility and local decision-making.

Scientific Management

School of thought (Taylor, Gantt, Gilbreth) focusing on work study and task efficiency to motivate workers.

Administrative Management

Fayol’s approach emphasizing planning, organizing, commanding, coordinating, and controlling as core managerial functions.

Human Relations School

Management perspective (Maslow, Alderfer, McGregor, Herzberg) that studies social and psychological factors influencing employee performance.

Systems Approach

Viewpoint (Trist, Bamforth) treating the organization as an interrelated system adapting to its environment.

Contingency Approach

Theory (Woodward, Burns & Stalker) that states no single best way exists; optimal structure depends on size, technology, and environment.

Maslow’s Hierarchy of Needs

Five-level model—physiological, safety, social, esteem, self-actualization—explaining progressive human motivation.

Self-Actualization

Continuous drive to reach personal potential, characterized by creativity, independence, and self-expression.

Theory X

McGregor’s assumption that people dislike work, avoid responsibility, and must be controlled or coerced to perform.

Theory Y

McGregor’s assumption that work is natural, people seek responsibility, and can exercise self-direction toward goals.

Herzberg Motivators

Job factors (recognition, achievement, responsibility, advancement) that create satisfaction and motivate performance.

Herzberg Hygiene Factors

Work conditions (pay, policies, supervision, environment) that prevent dissatisfaction but do not motivate when improved.

Job Enlargement

Horizontal expansion giving workers additional tasks to reduce monotony and increase variety.

Job Enrichment

Vertical redesign that adds responsibility, autonomy, and recognition to make work more meaningful.

Job Rotation

Planned movement of employees between tasks to combat boredom and develop versatility.

Group Working

Arrangement where teams complete whole tasks rather than isolated job fragments.

Expectancy Theory

Motivational model (Porter & Lawler) linking effort to performance and rewards based on perceived achievability.

Delegation

Process of entrusting tasks and authority to subordinates while retaining ultimate responsibility.

Authority

Formal power to make decisions and expect compliance from subordinates.

Leadership

Art of organizing work and motivating people to achieve objectives through skills like communication and decision-making.

Span of Control

Number of subordinates a manager can effectively supervise, typically five to six for direct oversight.

Legal Authority

Power derived from organizational rules and formal positions.

Personal Authority

Influence stemming from a superior’s personality and charisma in the eyes of subordinates.

Authority by Reputation

Power based on recognized expertise or knowledge.

Economic Authority

Right to decide based on economic ownership or purchasing power (e.g., consumer choice).

Autocratic Leader

Leader who expects unquestioning obedience and excludes employees from decision-making.

Democratic Leader

Leader who consults employees and shares decision-making responsibilities.

Bureaucratic Leader

Manager who strictly follows rules and procedures, limiting flexibility and initiative.

Paternalistic Leader

Manager who shows concern for workers’ welfare in exchange for loyalty and hard work.

Laissez-Faire Leader

Leader who sets clear objectives but allows subordinates freedom to determine how to achieve them.

Management by Objectives (MBO)

Process of setting, implementing, monitoring, and evaluating clear, measurable goals to align individual and organizational performance.

Communication

Two-way process of transmitting information through listening, speaking, reading, and writing to achieve mutual understanding.

Verbal Communication

Spoken exchange of information, such as face-to-face conversations or phone calls.

Non-Verbal Communication

Written or symbolic forms of information exchange, including letters, memos, and reports.

Formal Communication

Messages that follow official procedures and are often recorded, such as committee minutes or interview notes.

Informal Communication

Casual information exchange without strict procedures, such as impromptu meetings or phone calls.

Internal Communication

Information flow within an organization (e.g., between sales and personnel departments).

External Communication

Exchange of information between an organization and outside parties, like customers or suppliers.

Transmitter

Sender or originator of a communication message.

Channel

Medium used to convey a message (e.g., fax, email, telephone).

Braille

Tactile writing system using raised dots enabling visually impaired people to read by touch.

Sign Language

Visual language using hand and body movements for communication, especially among the deaf.

Electronic Data Interchange (EDI)

Computer-to-computer exchange of standardized business data improving speed, cost, and accuracy in transactions.

Physical Barrier

Obstacle to communication arising from environmental separation, such as different buildings or sites.

Attitudinal Barrier

Communication breakdown caused by staff attitudes, prejudices, or resistance.

Team

Group of individuals working together toward a common objective.

Commitment (Team Benefit)

Sense of purpose and belonging motivating members to avoid letting the group down.

Team Building

Training activities focused on developing trust, cooperation, and problem-solving skills within a group.

Team Role: Leader

Member who coordinates activities and guides the team toward objectives.

Team Role: Innovator

Creative member who generates ideas and solves problems.

Team Role: Doer

Practical member who implements decisions and ensures tasks are completed.

Organizational Culture

Shared values, beliefs, norms, and behaviors that influence employee motivation and business performance.

Conflict

Disagreement arising from differing stakeholder interests, poor communication, or organizational issues.