Business Management Concepts

Flashcards focusing on key terms and definitions from business management concepts.

Self-Actualization Needs

Allowing employees to help make decisions and giving them autonomy to reach their full potential.

Human Capital

Handling the employees involved in a business process.

Industrial Revolution Impact

Increased machine use, lowered product costs, and shifted focus to factory work.

Douglas McGregor

Theorist who developed Theory X and Theory Y, favoring Theory Y for better management.

Contingency Approach to Management

Management should adapt using plans like business development and disaster recovery plans as needs change.

Quantitative Approach to Management

A management method that uses mathematical techniques for decision-making.

Esteem Needs Fulfillment

By providing praise, promotions, and increased responsibilities.

Systems Approach to Management

Views an organization as a system of interrelated parts working together.

Theory X

Belief that employees dislike work and require strict supervision and motivation via pay.

Time and Motion Studies

Studies by Frederick Taylor to determine the most efficient way to perform tasks.

Closed System

A business system that operates independently with limited external interaction.

Max Weber

Theorist of bureaucratic management, emphasizing hierarchy, rules, and work specialization.

Reengineering

Redesigning existing processes to improve customer satisfaction.

Process Planning

Setting up the steps necessary to produce a product.

Theory Y

Belief that employees are responsible, enjoy work, and have potential.

Hierarchy in Bureaucratic Organizations

A strict chain of command where everyone knows their position.

Job Appointments Determinants

Competence and experience.

Kaizen

A Japanese philosophy emphasizing continuous, small improvements and efficiency.

Maslow’s Hierarchy of Needs

Physiological → Safety → Social → Esteem → Self-Actualization.

Gantt Chart

A visual schedule of project tasks from start to finish.

Hawthorne Studies

Experiments showing that workers are motivated by management attention and rewards.

Task and Bonus System

A pay system where base pay is provided, and bonuses are given for meeting performance goals.

Operations Management Focus

Coordinating employees, materials, and capital to produce a product.

Subsystem in Systems Management

A component that operates within a larger system.

Summary Elements in Gantt Chart

Elements containing multiple terminal tasks.

Classical Management Theory

Focus on reducing costs and improving work methods during the Industrial Revolution.

Discipline Principle in Fayol's Principles

All organizations need discipline to function effectively.

Safety Needs Fulfillment in Business

Through job security and safe working conditions.

Abraham Maslow

Psychologist who created the hierarchy of human needs motivating behavior.

Terminal Elements in Gantt Chart

Specific small tasks needed to complete a larger project.

Social Needs Fulfillment in Business

Through relationships, accessible managers, and work-life balance.

Scientific Management

A theory focused on improving individual worker productivity.

Taylor’s Four Principles of Scientific Management

1. Document optimal work methods 2. Scientifically hire/train workers 3. Cooperate with workers 4. Divide work between managers and workers.

Materials Planning in Operations Management

Gathering necessary items to complete production.

Administrative Management

Classical management style focusing on processes and principles over work methods.

Synergy in Systems Theory

When all parts of a system work effectively together.

Bureaucratic Organizations Management

Using rules and regulations to guide behavior.

Needs Theories

Focused on internal motivations and unfulfilled desires that drive behavior.

Fayol’s 14 Principles of Management

Guidelines for building strong, organized, and efficient organizations.

Frederick Taylor's Observations on Business Shortcomings

Processes were inefficient, employees were underpaid, and their potential was untapped.

Manager Relationships in Bureaucratic Organizations

Managers should treat employees fairly and impersonally.

Hawthorne Studies Outcome

Led to the human relations movement and behavioral management theory.

Capital Requirements in Operations Management

Machines and buildings needed for production.

Division of Work in Fayol’s Principles

Specialization increases efficiency.

Remuneration in Fayol’s Principles

Fair compensation—both financial and non-financial.

Authority Principle in Fayol’s Theory

Managers must assign and ensure completion of tasks.

Behavioral Management Theory

Focus on understanding employee needs to boost satisfaction and productivity.

Open System in Systems Theory

A business model that interacts with its environment and has various supplier options.

Division of Labor in Bureaucratic Organizations

Work is highly specialized; employees focus on tasks they are skilled at.

Entropy in Systems Theory

The state of disorder or breakdown in a system.

Physiological Needs Fulfillment in Business

Through breaks and reasonable working conditions.

Team Learning in Learning Organizations

Emphasizes collaboration, shared dialogue, and mutual accountability.

Primary Focus of Learning Organizations

Ensuring that all employees are constantly learning to meet organizational objectives.

Lewin's 3-Stage Model of Change

Three stages: 'Unfreezing', 'Changing', and 'Refreezing'.

People-Oriented Organizational Changes

Changes focusing on improving skills, performance, and relationships.

Kotter's 8-Step Change Model of Management

A model consisting of eight steps to help implement change effectively.

Causes of Organizational Change

Planned change, internal factors, and external factors.

Implementation Stage in Planned Change Process

The stage where the actual change is implemented after identifying the need for change.

Personal Mastery in Learning Organizations

Organizations support the personal and professional goals of employees.

Fixed Work

Work that remains unchanged requiring little oversight.

Force-Field Analysis Change Model

Helps managers define problems, set objectives, and identify forces resisting change.

Creating the Guiding Coalition in Kotter's Model

Selecting a team of employees with expertise to drive change.

Decentralized Authority in Organizations

A structure with multiple layers of management across departments.

Organic Organizational Structure

Characterized by dependent functional areas and decentralized decision-making.

Internal Factors for Organizational Change

Changes within a company, such as organizational events or controlled factors.

Reasons for Employee Resistance to Change

Lack of awareness, resistance to new behaviors, distrust, and fear of change.

External Factors for Organizational Change

Forces outside the company that require proactive adaptation.

High Centralization in Organizations

A structure where power is concentrated in a few individuals.

Centralized Authority in Organizations

Decision-making is concentrated at the top.

Mechanistic Organizational Structure

A structure for stable environments with centralized decision-making.

Variable Work

Work that changes daily and requires significant management oversight.

Work Specialization (Division of Labor)

Dividing complex tasks into specialized jobs for efficiency.

Decentralized Authority in Organizations

Involves multiple layers of management allowing for delegation.

Personal Mastery in a Learning Organization

Support for the personal and professional goals of employees.

Internal Factors for Organizational Change

Changes within the company.

Kotter's 8-Step Change Model

A model outlining steps for successful organizational change.

Planned Change Process

Structured process to increase success in organizational changes.

Force-Field Analysis Change Model

Defines problems, states objectives, and identifies resistance forces.

Implementation Stage of Planned Change Process

Involves executing the actual change after strategy development.

Variable Work

Requires significant oversight and is often managed closely.

High Centralization in Organizations

Power is held by a small group.

External Factors for Organizational Change

Forces outside that necessitate adaptation.

Self-Directed Work Team

A team where employees operate without a manager, accountable for their own work.

Effects of Groupthink

Inhibits creativity and leads to poor decision-making.

Performing Stage of Group Development

The group is highly productive and supportive towards each other.

Adjourning Stage of Group Development

Occurs after the group completes its task, involving wrapping up and disbanding.

Bruce Tuckman

Theorist who proposed the five stages of group development.

Groupthink

A phenomenon where a group reaches a poor decision to maintain harmony.

Possible Positive Results of Team Conflict

Highlights strengths of diverse viewpoints and problem-solving ability.

Forming Stage of Group Development

Group members are introduced, feeling unsure as they get to know each other.

Cross-Functional Work Team

Members from different functional areas working towards a common goal.

Functional Work Team

Composed of individuals from various levels, managed by multiple managers.

Storming Stage of Group Development

Stage marked by conflict and the emergence of dominant personalities.

Norming Stage of Group Development

Group members become comfortable and collaborate smoothly.

Factors Increasing Groupthink Likelihood

Outspoken leader, similar backgrounds, group isolation.

Coercive Power in Business Leadership

Ability to punish or prevent employees from taking actions.

Authoritarian/Autocratic Leadership

Leaders control decisions, effective in crisis but limits input.

Hersey-Blanchard's Model of Situational Leadership

Leadership based on employee maturity.

High LPC Leader in Fiedler's Contingency Theory

Values relationships, performs well in favorable conditions.

Informal Leadership Role

Unofficial role based on personality rather than authority.