WGU Fundamentals for Success in Business Study Guide

Key Terms

  • Personal Ethics

    • Definition: The values and principles that guide individuals in their daily decisions.

    • Importance: Forms the basis for business ethics by influencing work ethic and decision-making during challenges.

  • Organizational Ethics

    • Definition: Principles, values, and standards that guide a whole organization’s behavior and decision-making.

    • Purpose: Ensures that the organization operates ethically and responsibly within society.

  • Code of Conduct

    • Definition: A formal set of expectations and ethical practices that guide individual behavior within an organization.

    • Goal: To ensure consistency and integrity in actions.

  • Business Laws

    • Definition: Rules and regulations governing the rights and conduct of individuals and businesses in commerce.

  • Conflict of Interest

    • Definition: A situation where personal interests interfere with professional responsibilities, leading to biased decisions.

  • Corporate Social Responsibility (CSR)

    • Definition: Business approach integrating social, environmental, and ethical considerations into decision-making.

    • Goal: To positively contribute to society while maintaining profitability.

  • Stakeholders

    • Definition: Any individuals, groups, or organizations with a vested interest or concern in a project or outcome.

  • Social Entrepreneurship

    • Definition: Innovative business methods used to tackle social or environmental issues while generating profit.

  • World Trade Organization (WTO)

    • Definition: An international entity that oversees global trade and aims for smooth, predictable trade flow through agreements and dispute resolution.

Organizational Functions and Values

  • Code of Ethics

    • Definition: A formal document detailing the moral principles and standards expected of individuals within an organization.

  • Transparency

    • Definition: The practice of sharing information openly to foster trust and accountability among stakeholders.

  • Accountability

    • Definition: Responsibility for one’s actions, ensuring alignment with ethical standards and addressing outcomes.

  • Greenwashing

    • Definition: Misleading claims by a company regarding the environmental benefits of its products, aimed to enhance its public image.

  • Whistleblower

    • Definition: An individual who exposes unethical or harmful activities within an organization, often facing personal risk.

  • Manager

    • Definition: An individual responsible for planning, organizing, leading, and controlling an organization's resources to achieve goals.

  • Leader

    • Definition: Someone who inspires and guides others toward a common vision or goal.

  • Individual Contributor

    • Definition: An employee focused primarily on their own responsibilities without managing others.

  • Interpersonal Management Style

    • Definition: Focus on building relationships, communication, and motivating employees.

  • Informational Management Style

    • Definition: Emphasizes gathering and sharing business information to implement strategies.

  • Decisional Management Style

    • Definition: Focuses on making decisions and allocating resources for strategy execution.

  • Organizational Culture

    • Definition: The collective values, beliefs, and norms that shape behaviors in a business context.

  • Competing Values Framework Model (CVF)

    • Definition: A model used to assess organizational culture and dynamics, distinguishing between internal and external focuses.

  • Organizational Structure

    • Definition: The arrangement of roles, authority, and hierarchy within a business.

  • Mechanistic Organizational Structures

    • Characteristics:

    1. Centralization of authority.

    2. Formalized procedures.

    3. Specialization of functions.

  • Organic Organizational Structures

    • Characteristics:

    1. Flat structure, allowing horizontal communication.

    2. Low specialization—knowledge is utilized freely where needed.

    3. Decentralization with shared decision-making participation.

  • Attraction-Selection-Attrition (ASA) Theory

    • Description: Explains how organizations attract and select individuals who fit their existing culture and how over time those who do not fit tend to leave.

    1. Attraction: Individuals are drawn to organizations aligned with their values.

    2. Selection: Organizations choose employees matching existing members' skills.

    3. Attrition: Normal reduction in workforce due to various reasons like resignations.

  • Person-Organization Fit

    • Definition: The alignment between an individual's values, personality, and goals with those of the organization.

Effective Communication

  • Person-Job Fit

    • Definition: Alignment of an individual’s skills and characteristics with job requirements.

  • Subcultural

    • Definition: Groups within the broader culture with distinct beliefs or interests.

  • Passive Communication

    • Definition: Avoidance of expressing thoughts and needs, often neglecting personal rights in conversation.

  • Aggressive Communication

    • Definition: Forceful expression of thoughts without regard for others' feelings, often leading to conflict.

  • Assertive Communication

    • Definition: Confident and respectful expression of needs and thoughts, promoting openness in dialogue.

  • Passive-Aggressive Communication

    • Definition: Indirect expression of negative feelings through subtle behaviors or sarcasm, avoiding direct confrontation.

  • Rehearsing

    • Definition: Focusing on one's response instead of listening during conversations, inhibiting genuine engagement.

  • Active Listening

    • Definition: Fully concentrating and demonstrating interest in what is being said through engagement and responses.

Emotional Intelligence and Leadership

  • Emotional Intelligence (EI)

    • Definition: The ability to recognize and manage one's own emotions and those of others.

  • Emotional Quotient (EQ)

    • Definition: Measure of a person's emotional intelligence.

  • Intelligence Quotient (IQ)

    • Definition: Number representing an individual's reasoning ability compared to statistical norms for their age.

  • Moral Identity

    • Definition: The importance of being ethical to one’s self-concept.

  • Grit

    • Definition: A combination of passion and perseverance toward long-term goals despite challenges.

  • Machiavellianism

    • Definition: A personality trait marked by manipulative behavior and self-interest often compromising morality.

  • Meditation

    • Definition: The practice of focusing entirely on one specific area to promote reflection and awareness.

  • Mindfulness

    • Definition: A conscious awareness state of the present moment.

  • Journaling

    • Definition: Recording thoughts and feelings for self-reflection and understanding.

  • Leadership

    • Definition: The ability to inspire and guide individuals towards shared goals.

  • Followers

    • Description: Individuals who support a leader's vision and participate in achieving objectives.

  • Locus of Control

    • Definition: A concept describing whether individuals believe they control their own outcomes (internal) or are controlled by external factors (external).

  • Consideration

    • Description: A leadership behavior focusing on relationships, respect, and team member well-being.

  • Initiating

    • Description: Leadership behavior focused on defining tasks and establishing roles to enhance productivity.

  • Job-Centered Behavior

    • Definition: Leadership style prioritizing tasks and productivity over personal needs.

  • Employee-Member-Centered Behavior

    • Definition: Leadership style that emphasizes team member well-being and development.

  • Power

    • Definition: Ability to influence or control others' actions and decisions to achieve objectives.

  • Rational Persuasion

    • Definition: Use of logical arguments and factual evidence to convince others.

  • Inspirational Appeals

    • Definition: Influencing method that seeks emotional commitment through values and ideals.

  • Design Thinking

    • Definition: A problem-solving method focusing on user needs and iterative development of solutions.

  • Leadership Style

    • Definition: The approach taken by leaders to guide and manage their team.

  • Task-Oriented Approach

    • Definition: Leadership focusing on efficient task completion and structure.

  • People-Centered Approach

    • Definition: Leadership prioritizing relationship building and team support.

  • Autocratic Leadership

    • Definition: Style where decisions are made independently with little input, risking morale and creativity.

  • Participative Leadership

    • Definition: Style encouraging input from team members, promoting collaboration.

  • Laissez-Faire Leadership

    • Definition: Style marked by minimal direction, allowing autonomy but risks lack of accountability.

  • Transactional Leadership

    • Definition: Based on rewards and punishments linked to performance.

  • Transformational Leadership

    • Definition: Motivates followers to exceed expectations by emphasizing vision and personal growth.

  • Situational Theory of Leadership

    • Definition: Effective leadership adapts styles based on situational needs and follower capabilities.

  • Follower Maturity

    • Definition: Refers to the capability and willingness of followers to perform tasks independently.