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Key Terms
autocratic leaders: Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates
coercive power: Power that is derived from an individual’s ability to threaten negative outcomes.
conceptual skills: A manager’s ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment.
consensual leaders: Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.
consultative leaders
Leaders who confer with subordinates before making a decision but who retain the final decision-making authority.
contingency plans
Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.
controlling
The process of assessing the organization’s progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan.
corporate culture
The set of attitudes, values, and standards that distinguishes one organization from another.
decisional roles
A manager’s activities as an entrepreneur, resource allocator, conflict resolver, or negotiator.
democratic leaders
Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.
effectiveness
The ability to produce the desired result or good.
efficiency
Using the least amount of resources to accomplish the organization’s goals.
empowerment
The process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions.
expert power
Power that is derived from an individual’s extensive knowledge in one or more areas.
free-rein (laissez-faire) leadership
A leadership style in which the leader turns over all authority and control to subordinates.
global management skills
A manager’s ability to operate in diverse cultural environments.
human relations skills
A manager’s interpersonal skills that are used to accomplish goals through the use of human resources.
informational roles
A manager’s activities as an information gatherer, an information disseminator, or a spokesperson for the company.
interpersonal roles
A manager’s activities as a figurehead, company leader, or liaison.
leadership
The process of guiding and motivating others toward the achievement of organizational goals.
leadership style
The relatively consistent way that individuals in leadership positions attempt to influence the behavior of others.
legitimate power
Power that is derived from an individual’s position in an organization.
management
The process of guiding the development, maintenance, and allocation of resources to attain organizational goals.
middle management
Managers who design and carry out tactical plans in specific areas of the company.
mission
An organization’s purpose and reason for existing; its long-term goals.
mission statement
A formal document that states an organization’s purpose and reason for existing and describes its basic philosophy.
nonprogrammed decisions
Responses to infrequent, unforeseen, or very unusual problems and opportunities where the manager does not have a precedent to follow in decision-making.
operational planning
The process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization; helps guide and control the implementation of tactical plans.
organizing
The process of coordinating and allocating a firm’s resources in order to carry out its plans.
participative leaders
Leaders who share decision-making with group members and encourage discussion of issues and alternatives; includes democratic, consensual, and consultative styles.
planning
The process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done; and determining who should do it.
power
The ability to influence others to behave in a particular way.
programmed decisions
Decisions made in response to frequently occurring routine situations.
referent power
Power that is derived from an individual’s personal charisma and the respect and/or admiration the individual inspires.
reward power
Power that is derived from an individual’s control over rewards.
situational leadership
Selecting a leadership style based on the maturity and competency level of those who will complete the task.
strategic planning
The process of creating long-range (one to five years), broad goals for the organization and determining what resources will be needed to accomplish those goals.
supervisory (first-line) management
Managers who design and carry out operation plans for the ongoing daily activities of the firm.
tactical planning
The process of beginning to implement a strategic plan by addressing issues of coordination and allocating resources to different parts of the organization; has a shorter time frame (less than one year) and more specific objectives than strategic planning.
technical skills
A manager’s specialized areas of knowledge and expertise, as well as the ability to apply that knowledge.
top management
The highest level of managers; includes CEOs, presidents, and vice presidents, who develop strategic plans.