D072 Glossary Terms

personal ethics

form the basis for business ethics by guiding daily decisions through values, work ethic, and handling challenges

organizational ethics

the principles, values, and standards that guide the behavior, decision-making, and actions of an organization as a whole, ensuring that it operates in a socially responsible and ethical manner

code of conduct

a set of guidelines and standards that outline the expected behavior, ethical practices, and responsibilities of individuals within an organization or group, ensuring consistency, professionalism, and integrity in their action

stakeholders

individuals, groups, or organizations that have an interest or concern in a particular project, decision, or outcome

business laws

a set of rules and regulations that govern the rights, relations, and conduct of individuals and businesses engaged in commerce and trade

conflict of interest

when an individual's personal interests interfere with their professional responsibilities or decisions, potentially leading to biased or unethical outcome

corporate social responsibility (CSR)

a business approach where companies integrate social, environmental, and ethical considerations into their operations and decision-making processes, aiming to contribute positively to society while maintaining profitability

social entrepreneurship

the use of innovative business methods to address social or environmental issues while generating profit

World Trade Organization (WTO)

an international organization that regulates global trade between nations, aiming to ensure that trade flows smoothly, predictably, and freely by establishing and enforcing trade agreements, resolving disputes, and promoting fair competition

code of ethics

a formal document that outlines the moral principles and standards of behavior that individuals within an organization or profession are expected to follow, guiding their decision-making and ensuring integrity, fairness, and accountability

transparency

the practice of openly and honestly sharing information and decisions with stakeholders to build trust, ensure accountability, and support ethical practices

accountability

taking responsibility for one's actions and decisions, ensuring they align with ethical standards and addressing their outcomes

greenwashing

the deceptive practice where a company falsely promotes its products, policies, or initiatives as environmentally friendly to mislead consumers and improve its public image without making substantial sustainability efforts

whistleblower

an individual who reports or exposes unethical, illegal, or harmful activities within an organization, often risking their own job security or personal safety to bring such issues to light

manager

an individual responsible for planning, organizing, leading, and controlling an organization's resources and personnel to achieve specific goals and objectives while ensuring effective teamwork and performance

leader

someone who inspires, motivates, and guides others toward a common goal

individual contributor

an employee who focuses on their own work and responsibilities rather than managing or leading others

interpersonal

management style of building relationships, communication, role modeling, evaluating, and motivating employees

informational

management style of gathering, analyzing, and sharing business information to prioritize and implement strategies

decisional

management style of making decisions, allocating resources, negotiating, and planning for strategy execution

organizational culture

the shared values, beliefs, and norms of an organization that affect the strategies and operating procedures of the business

competing values framework model (CVF)

a framework for assessing organizational culture and organizational dynamics

internally focused

focused on “development, collaboration, integration of activities, and coordination” within the organization

externally focused

focus will concentrate more on markets, technologies, competitors, and customers that are outside of the organization

organizational structure

the framework or legal structure of the business, including the organizational chart, hierarchy structures, and formal system of roles and authority in a business

mechanistic organizational structures

hierarchical, bureaucratic organizational structure characterized by (1) centralization of authority, (2) formalization of procedures and practices, and (3) specialization of functions

organic organizational structures

organizational structure characterized by (1) flatness: communications and interactions are horizontal, (2) low specialization: knowledge resides wherever it is most useful, and (3) decentralization: a great deal of formal and informal participation in decision-making

attraction-selection-attrition (ASA)

a theory that outlines how employees join and leave organizations based on three interrelated dynamic processes. (1) People choose organizations who are similar to themselves in terms of personality, values, interests, and other attributes; (2) organizations are more likely to select those who possess knowledge, skills, and abilities similar to the ones their existing members possess; and (3) over time, those who do not fit in well are more likely to leave. 

attraction

mechanism by which employees align and are drawn to organizations that match individual culture, preferences, and working style.

selection

mechanism by which organizations choose employees for a specific role and/or fit.

attrition

the unpredictable and uncontrollable but normal reduction of workforce due to resignations, retirement, sickness, or death

person–organization fit

the degree to which a person’s values, personality, goals, and other characteristics match those of the organization

person–job fit

the degree to which a person’s skill, knowledge, abilities, and other characteristics match the job demands

subculture

a group within a larger culture, with differing beliefs or interests that set them apart from the mainstream

passive

communication style of someone who tends to avoid expressing their thoughts, feelings, or needs, often prioritizing others' opinions over their own and allowing their rights to be overlooked in conversations

aggressive

communication style of someone who expresses their thoughts, feelings, and needs in a forceful or hostile manner, often disregarding the feelings and rights of others, which can lead to conflict and hostility in interactions

assertive

communication style of someone who expresses their thoughts, feelings, and needs confidently and respectfully, advocating for themselves while also considering the rights and feelings of others, promoting open and honest dialogue

passive-aggressive

communication style of someone who indirectly expresses negative feelings or resentment instead of openly addressing issues, often using sarcasm, procrastination, or subtle behaviors to convey their displeasure while avoiding direct confrontation

rehearsing

refers to the tendency of individuals to focus on preparing their response rather than actively listening to the other person, often leading to a lack of genuine engagement in the discussion.

active listening

involves fully concentrating, understanding, responding, and remembering what the speaker is saying, demonstrating genuine interest and engagement through verbal and non-verbal cues to enhance understanding and build rapport

emotional quotient (EQ)

the measure of a person's emotional intelligence

moral identity

how much being an ethical, principled person is important to someone's sense of who they are

grit

the combination of passion and perseverance towards long-term goals, even in the face of obstacles and setbacks

Machiavellianism

a personality trait characterized by manipulation, cunning, and a focus on self-interest, often at the expense of morality or ethics

meditation

the skill of focusing 100% of your energy and attention to reflect on one specific area

mindfulness

a state of consciousness in which you are aware of the present moment

leadership

the ability to inspire, guide, and influence others toward achieving a common goal or vision

followers

people who support, engage with, and contribute to a leader's vision, often by actively participating in and executing tasks to reach shared objectives

locus of control

a psychological concept that describes an individual's belief about the extent to which they have control over events affecting them; an internal locus suggests control through personal actions, while an external locus attributes outcomes to external forces

consideration

a leadership behavior that emphasizes showing respect, building relationships supporting team members' well-being, creating a positive and inclusive work environment

initiating

a leadership behavior focused on defining tasks, setting goals, and establishing clear roles and expectations to enhance productivity and ensure effective task completion

job-centered behavior

a leadership style that prioritizes tasks, productivity and meeting organizational goals, often focusing on efficiency structure and performance standards over personal needs

employee-member-centered behavior

a leadership style that emphasizes the needs, personal development, and well-being of team members, aiming to foster a supportive, collaborative, and motivating work environment

power

the ability to influence or control the actions and decisions of others to achieve specific goals or outcomes

rational persuasion

a tactic of influence where logical arguments and factual evidence are used to convince others of a particular idea or course of action

inspirational appeals

a method of influence that seeks to elicit enthusiasm or emotional commitment by appealing to others' values, ideals, or aspirations

design thinking

a problem-solving approach that emphasizes understanding users' needs, generating creative solutions, and iteratively testing and refining ideas to develop effective, innovative products or services.

leadership style

the approach a leader takes to guide, motivate, and manage their team

task-oriented approach

focuses on completing tasks efficiently, with leaders emphasizing structure, goals, and deadlines

people-centered approach

focuses on building relationships, supporting team members, and fostering collaboration

autocratic leadership

a style where the leader makes decisions independently with little to no input from others, emphasizing control and efficiency, but can lead to diminished employee morale and creativity

participative leadership

a style where leaders seek input from team members and encourage collaboration and shared decision-making, but can lead to slower processes and potential conflict if consensus is not reached

laissez-faire leadership

a style that provides minimal direction, allowing team members significant autonomy, but can lead to lack of accountability and direction when not managed properly

transactional leadership

based on exchanges, where leaders provide rewards or punishments based on followers' performance

transformational leadership

inspires and motivates followers to exceed expectations by focusing on vision, innovation, and personal growth

situational theory of leadership

suggest that effective leadership depends on adapting one's style to the specific situation and the needs of followers

follower maturity

refers to the ability and willingness of followers to take responsibility and perform tasks independently