Management and Organization Exam 1

management

the process of working with people and resources to accomplish organizational goals

planning

the management function of systematically making decisions about the goals and activities that an individual, a group, a work unit, or the overall organization will pursue

organizing

the management function of assembling and coordinating human, financial, physical, informational, and other resources needed to achieve goals

leading

the management function that involves the manager’s efforts to stimulate high performance by employees

controlling

the management function of monitoring performance and making needed changes

top-level managers

senior executives responsible for the overall management and effectiveness of the organization

middle-level managers

managers located in the middle layers of the organizational hierarchy, reporting to top-level executives

frontline managers

lower-level managers who supervise the operational activities of the organization

team leaders

employees who are responsible for facilitating successful team performance

leader

interpersonal role focused on developing effective strategies to achieve organizational goals

liaison

interpersonal role focused on maintaining a network of outside stakeholders and alliances that provide information and favors

figurehead

interpersonal role focused on performing symbolic duties on behalf of the organization, like greeting important visitors and speaking at important events

monitor

informational role focused on seeking information to develop a thorough understanding of the organization and its environment

disseminator

informational role focused on sharing information between different people, like employees and managers; sometimes interpreting and integrating diverse perspectives

spokesperson

informational role focused on communicating on behalf of the organization about plans, policies, actions, and results

entrepreneur

decisional role focused on searching for new business opportunities and initiating new projects to create change

disturbance handler

decisional role focused on taking corrective action during crises or other conflicts

resource allocator

decisional role focused on providing funding and other resources to units or people; includes making major organizational decisions

negotiator

decisional role focused on engaging in negotiations with stakeholders inside and outside the organization

technical skills

the ability to perform a specialized task involving a particular method or process

conceptual and decision skills

skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members

interpersonal and communication skills

people skills; the ability to lead, motivate, and communicate effectively with others

emotional intelligence

the skills of understanding yourself, managing yourself, and dealing effectively with others

social capital

goodwill stemming from your social relationships

knowledge management

practices aimed at discovering and harnessing an organization’s intellectual resources

innovation

the introduction of new goods and services

service

the speed and dependability with which an organization delivers what customers want

speed

fast and timely execution, response, and delivery of results

cost competitiveness

keeping costs low to achieve profits and to be able to offer prices that are attractive to consumers

economies of scale

reductions in the average cost of a unit of production as the total volume produced increases

systematic management

a classical management approach that attempted to build into operations the specific procedures and processes that would ensure coordination of effort to achieve established goals and plans

scientific management

a classical management approach that applied scientific methods to analyze and determine the “one best way” to complete production tasks

bureaucracy

a classical management approach emphasizing a structured, formal network of relationships among specialized positions in the organization

administrative management

a classical management approach that attempted to identify major principles and functions that managers could use to achieve superior organizational performance

human relations

a classical management approach that attempted to understand and explain how human psychological and social processes interact with the formal aspects of the work situation to influence performance

hawthorne effect

people’s reactions to being observed or studied, resulting in superficial rather than meaningful changes in behavior

sociotechnical systems theory

an approach to job design that attempts to redesign tasks to optimize operation of a new technology while preserving employees’ interpersonal relationships and other human aspects of the work

quantitative management

a contemporary management approach that emphasizes the application of quantitative analysis to managerial decisions and problems

organizational behavior

a contemporary management approach that studies and identifies management activities that promote employee effectiveness by examining the complex and dynamic nature of individual, group, and organizational processes

systems theory

a theory stating that an organization is a managed system that changes inputs to outputs

inputs

materials and other resources that organizations take in from the external environment and transform into goods and services

outputs

the products (goods and services) organizations create

contingency perspective

an approach to the study of management proposing that the managerial strategies, structures, and processes that result in high performance depend on the characteristics, or important contingencies, or the situation in which they are applied

contingencies

factors that determine the appropriateness of managerial actions

open systems

organizations that are affected by, and that affect, their environments (and other systems)

external environment

all relevant forces outside a firm’s boundaries, such as competitors, customers, the government, and the economy

macroenvironment

the general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations

demographics

statistical characteristics of a group or population such as age, gender, and education level

competitive environment

the immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like

barriers to entry

conditions that prevent new companies from entering an industry

final consumer

a customer who purchases products in their finished form

intermediate consumer

a customer who purchases raw materials or wholesale products before selling them to final customers

switching costs

fixed costs buyers face when they change suppliers

supply chain management

the managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers

environmental uncertainty

lack of information needed to understand or predict the future

environmental scanning

searching for and sorting through information about the environment

competitive intelligence

information that helps managers determine how to compete better

scenario

a narrative that describes a particular set of future conditions

forecasting

method for predicting how variables will change the future

benchmarking

the process of comparing an organization’s practices and technologies with those of other companies

empowerment

the process of sharing power with employees to enhance their confidence in their ability to perform their jobs and contribute to the organization

buffering

creating supplies of excess resources in case of unpredictable needs

smoothing

leveling normal fluctuations at the boundaries of the environment

flexible processes

methods for adapting the technical core to changes in the environment

independent strategies

strategies that an organization acting on its own uses to change some aspect of its current environment

cooperative strategies

strategies used by two or more organizations working together to manage the external environment

strategic maneuvering

an organization’s conscious efforts to change the boundaries of its task environment

domain selection

entering a new market or industry with existing expertise

diversification

a firm’s investment in a different product, business, or geographic area

merger

one or more companies combining with another

acquistion

one firm buying another

divestiture

a firm selling one or more businesses

prospectors

companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying, and merging or acquiring new enterprises

defenders

companies that stay within a stable product domain as a strategic maneuver

internal environment

all relevant forces inside a firm’s boundaries, such as its managers, employees, resources, and organizational culture

organizational culture

the set of assumptions that members of an organization share to create internal cohesion and adapt to the external environment

visible artifacts

the components of an organization that can be seen and heard, such as office layout, dress, orientation, stories, and written material

values

the underlying qualities and desirable behaviors that are important to the organization

unconscious assumptions

strongly held and taken-for-granted beliefs that influence behavior in the firm

ethics

the moral principles and standards that guide the behavior of an individual or group

ethical issue

a situation, problem, or opportunity in which one must choose among several actions that must be evaluated as morally right or wrong

business ethics

the moral principles and standards that guide behavior in the world of business

moral philosophy

the principles, rules, and values people use in deciding what is right or wrong

universalism

the ethical system stating that all people should uphold certain values that society needs to function

egoism

an ethical principles holding that individual self-interest is the actual motive of all conscious action

utilitarianism

an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers

relativism

a philosophy that bases ethical behavior on the opinions and behaviors of relevant other people

virtue ethics

a perspective that what is moral comes from what a mature person with good “moral character” would deem right

Kohlberg’s model of cognitive moral development

classification of people based on their level of moral judgment

Sarbanes-Oxley (SOX) Act

an act that established strict accounting and reporting rules to make senior managers more accountable and to improve and maintain investor confidence

ethical climate

in an organization, the processes by which decisions are evaluated and made on the basis of right and wrong

ethical leader

one who is both a moral person and a moral manager influencing others to behave ethically

compliance-based ethics programs

company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations

integrity-based ethics programs

company mechanisms designed to instill in people a personal responsibility for ethical behavior

corporate social responsibility

obligation toward society assumed by business

economic responsibilities

to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors

legal responsibilities

to obey local, state, federal, and relevant international laws

ethical responsibilities

meeting other social expectations, not written as law

philanthropic responsibilities

additional behaviors and activities that society finds desirable and that the values of the business support

transcendent education

an education with five higher goals that balance self-interest with responsibility to others