Organization and Management: Concepts and Theories

Vocabulary practice flashcards covering fundamental management concepts, core functions (planning, organizing, leading, controlling), and classical through contemporary management theories.

Management

The coordination and administration of tasks to achieve a goal, or the process of planning, organizing, leading, and controlling an organization's activities effectively and efficiently to achieve its goals.

Efficiency

The ability to maximize output with minimum input, often referred to as "doing things right."

Effectiveness

The capacity to attain an intended objective or result, often referred to as "doing the right thing."

Planning

The first function in management; the process of establishing objectives and suitable courses of action before undertaking them through environmental scanning, forecasting, and decision-making.

Organizing

The management function of arranging an organization's structure, designing individual jobs, and coordinating managerial practices and resource use to achieve organizational goals.

Organizational Design Decisions

Decisions made regarding the structure and framework of an organization within which effort is coordinated.

Departmentalization

The practice of clustering jobs into departments to coordinate effort effectively, which can be organized by function, product, geography, or customer.

Leading

The process of directing and influencing the task-related activities of organization members by motivating them, handling conflicts decisively, and modeling supportive qualities.

Controlling

The process of monitoring actual organizational activities to ensure conformity to planned activities and standards, consisting of establishing performance standards, comparing actual performance against standards, and taking corrective action.

Scientific Management Theory

A management theory developed by Frederick Taylor (1856-1915) that studies work performance scientifically, advocating task simplification, ability-matched assignments, and thorough supervision.

Taylor's Formulation of Scientific Management

Frederick Winslow Taylor's characterization of scientific management as consisting of "$75\%$ science and $25\%$ common sense."

Henry Ford's Model T Innovation

The application of scientific management through an installed moving assembly line where workers concentrate on a single task, reducing assembly time from $12.5\text{ hours}$ to $1\frac{1}{2}\text{ hours}$.

Administrative Management Theory

A management theory developed by Henri Fayol (1841-1925) that examines organizations from the manager's perspective, proposing six main leader functions (forecast, plan, organize, coordinate, command, control) and 14 principles.

Division of Work

Henri Fayol's principle of dividing each job into small, specialized tasks and assigning responsibilities to specialists.

Authority and Responsibility

Henri Fayol's principle where authority signifies the right to give orders and power, while responsibility means the obligation to realize objectives.

Discipline (Fayol)

A management principle ensuring expectations are understandable at every level of the organization in terms of obedience, application, and respect to superiors.

Unity of Command

A principle stating that a subordinate should receive orders from only one boss or superior.

Unity of Direction

A principle establishing that all operations in an organization must work jointly toward a common objective under one plan and one head.

Order (Fayol)

A principle that requires jobs and materials to be in their proper place for efficient management and organizational direction.

Scalar Chain

A line of command and communication running in unbroken succession from the superior to subordinates.

Centralization

A principle indicating that a single central point in the organization should exercise general direction and control over all parts.

Remuneration

The principle stating that both financial and non-financial incentives provided to workers must be fair and adequate.

Subordination of Individual Interest to Common Interests

The management principle requiring workers to prioritize the common interests of the organization over individual interests.

Equity (Fayol)

The principle of treating personnel with fair discipline and order to foster employee loyalty and devotion.

Stability of Tenure Personnel

A principle emphasizing job security for employees, noting that retaining industrious personnel is a priority for management.

Initiative (Fayol)

The principle encouraging employees to act on their own using creative means to support organizational objectives.

Esprit de Corps

The management principle of promoting harmony of interest and teamwork among workers.

Systems Theory

A management theory developed by Herbert A. Simon (1915-2001) that views an organization as a unified collection of parts functioning as a whole, linked to external entities like suppliers, customers, and regulators.

Four Elements of an Organizational System

The components of an organization identified by Zarate (2016): Inputs (materials/human resources), Transformation process (technology/managerial operations), Outputs (products/services), and Feedback (environmental reactions).

Closed Systems

Systems that limit their interactions with the external environment.

Open Systems

Systems that interrelate and actively exchange with the outside environment.

Contingency Theory

Also known as the situational approach; a behavioral theory introduced in 1967 by Fred Fiedler stating that there is no single best way to organize, lead, or make decisions.

Fiedler's Contingency Model

A leadership model asserting that a leader's personality determines how effectively they address specific workplace situations.

Quality Management Theory

A theory developed post-World War II primarily by William Edwards Deming (1900-1993) focusing on consistency, minimal or zero production errors, and customer satisfaction.

Kaizen

A Japanese concept introduced in 1986 meaning "change for the better," which focuses on gradual, continuous improvement involving all members of an organization.