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Principles of Manage
Principles of Management - C483
| Term | Definition |
|---|---|
| Open Systems | Organizations that are affected by, and that affect, their environment. |
| inputs | Goods and services organizations take in and use to create products or services. |
| outputs | The products and services organizations create. |
| external environment | All relevant forces outside a firm’s boundaries, such as competitors, customers, the government, and the economy. |
| competitive environment | The immediate environment surrounding a firm; includes suppliers, buyers (customers), new entrants, and substitute or complementary products. |
| macroenvironment | The general environment, which affects all organizations; includes economic, technological, legal, demographics , and natural environment factors. |
| demographics | Measures of various characteristics of the people who make up groups or other social units. |
| barriers to entry | Conditions that prevent new companies from entering an industry. |
| 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. |
| 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. |
| environmental uncertainty | When managers do not have enough information about the environment 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. |
| strategic maneuvering | An organization’s conscious efforts to change the boundaries of its task environment. |
| domain selection | Entering a new market or industry using an existing expertise. |
| diversification | A firm’s investment in a different product, business, or geographic area. |
| merger or acquisition | One or more companies combining with another. One firm buying another. |
| divestiture | A firm selling one or more businesses. |
| defenders | Companies that stay within a stable product domain as a strategic maneuver. |
| prospectors | Companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises. |
| independent strategies | Strategies that an organization acting on its own uses to change some aspect of its current environment. |
| corporate diplomacy | An umbrella term for attempting to influence external stakeholders through a variety of strategic activities |
| cooperative strategies | Strategies used by firms who want to reach their objectives in cooperation with other firms through alliances and partnerships rather than by competing with them. |
| 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. |
| organization culture | The set of important assumptions about the organization and its goals and practices that members of the company share. |
| affective conflict | Emotional disagreement directed toward other people. |
| bounded rationality | A less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed. |
| brainstorming | A process in which group members generate as many ideas about a problem as they can; criticism is withheld until all ideas have been proposed. |
| certainty | The state that exists when decision makers have accurate and comprehensive information. |
| coalition model | Model of organizational decision making in which groups with differing preferences use power and negotiation to influence decisions. |
| cognitive conflict | Issue-based differences in perspectives or judgments. |
| conflict | Opposing pressures from different sources, occurring on the level of psychological conflict or conflict between individuals or groups. |
| confirmation bias | People believe and accept incoming information that fits what they already believe, and ignore, distort, and reject information that doesn't confirm what they already think. |
| contingency plans | Alternative courses of action that can be implemented based on how the future unfolds. |
| crisis management (CM) | Process of identifying, preparing for, and dealing with potentially catastrophic threats to an organization. |
| custom-made solutions | New, creative solutions designed specifically for the problem. |
| devil’s advocate | A person who has the job of criticizing ideas to ensure that their downsides are fully explored. |
| dialectic | A structured debate comparing two conflicting courses of action. |
| discounting the future | A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits. |
| framing effects | A decision bias influenced by the way in which a problem or decision alternative is phrased or presented. |
| garbage can model | Model of organizational decision making depicting a chaotic process and seemingly random decisions. |
| goal displacement | A decision-making group loses sight of its original goal and a new, less important goal emerges. |
| groupthink | A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus. |
| illusion of control | People’s belief that they can influence events even when they have no control over what will happen. |
| incremental model | Model of organizational decision making in which major solutions arise through a series of smaller decisions. |
| maximizing | A decision realizing the best possible outcome. |
| motivated reasoning | We see what we want to see, and make decisions based more on desire than on evidence. |
| nonprogrammed decisions | New, novel, complex decisions having no proven answers. |
| optimizing | Achieving the best possible balance among several goals. |
| programmed decisions | Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations. |
| ready-made solutions | Ideas that have been seen or tried before. |
| risk | The state that exists when the probability of success is less than 100 percent and losses may occur. |
| satisficing | Choosing an option that is acceptable, although not necessarily the best or perfect. |
| System 1 information processing | A type of decision-making process that is reflexive and done quickly without careful thought. |
| System 2 information processing | A type of decision-making process that is reflective and done slowly with deliberative thought. |
| uncertainty | The state that exists when decision makers have insufficient information. |
| vigilance | A process in which a decision maker carefully executes all stages of decision making. |
| business strategy | The major actions by which a business competes in a particular industry or market. |
| Concentration Strategy | A strategy an organization uses to operate a single business and compete in a single industry. |
| concentric diversification | A strategy used to add new businesses that produce related products or are involved in related markets and activities. |
| conglomerate diversification | A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities. |
| core capability | A unique skill and/or knowledge an organization possesses that gives it an edge over competitors. |
| corporate strategy | The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities. |
| differentiation strategy | A strategy an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions. |
| functional strategies | Strategies implemented by each functional area of the organization to support the organization’s business strategy. |
| goal | A target or end that management desires to reach. |
| low-cost strategy | A strategy an organization uses to build competitive advantage by being efficient and offering a standard no-frills project. |
| mission | An organization’s basic purpose and scope of operations. |
| Not Invented Here (NIH) syndrome | A negative attitude toward knowledge (ideas, technologies) derived from an external source. |
| operational planning | The process of identifying the specific procedures and processes required at lower levels of the organization. |
| plans | The actions or means managers intend to use to achieve organizational goals. |
| resources | Inputs to a system that can enhance performance. |
| scenario | A narrative that describes a particular set of future conditions. |
| situational analysis | A process planners use to gather, interpret, and summarize all information relevant to the planning issue under consideration. |
| stakeholders | Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies. |
| strategic control system | A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action. |
| stakeholders | Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies. |
| strategic control system | A system designed to support managers in evaluating the organization’s progress regarding its strategy and, when discrepancies exist, taking corrective action. |
| strategic goals | Major targets or end results relating to the organization’s long-term survival, value, and growth. |
| strategic management | A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies. |
| strategic planning | A set of procedures for making decisions about the organization’s long-term goals and strategies; see also planning. |
| strategic vision | The long-term direction and strategic intent of a company. |
| strategy | A pattern of actions and resource allocations designed to achieve the organization’s goals. |
| SWOT analysis | A comparison of strengths, weaknesses, opportunities, and threats that helps executives formulate strategy. |
| tactical planning | A set of procedures for translating broad strategic goals and plans into specific goals and plans that are relevant to a distinct portion of the organization, such as functional areas like customer service or human resources. |
| vertical integration | The acquisition or development of new businesses that produce parts or components of the organization’s product. |
| business ethics | The moral principles and standards that guide behavior in the world of business. See also ethics. |
| carbon footprint | The output of carbon dioxide and other greenhouse gases. |
| Caux Principles | A regenerative, collaborative economic system that contrasts with the linear economy described earlier by minimizing input, waste, emissions, and energy leakage. |
| compliance-based ethics programs | Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations. |
| corporate social responsibility (CSR) | Obligation toward society assumed by business. See also ethics. |
| economic responsibilities | To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. |
| egoism | An ethical system defining acceptable behavior as that which maximizes consequences for the individual. |
| ethical climate | In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong. |
| ethical issue | Situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong. |
| ethical leader | One who is both a moral person and a moral manager influencing others to behave ethically. |
| ethical responsibilities | Meeting other social expectations, not written as law. |
| ethics | The system of rules that governs the ordering of values; see also corporate social responsibility. |
| integrity-based ethics programs | Company mechanisms designed to instill in people a personal responsibility for ethical behavior. |
| Kohlberg’s model of cognitive moral development | Classification of people based on their level of moral judgment. |
| legal responsibilities | To obey local, state, federal, and relevant international laws. |
| life-cycle analysis (LCA) | A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact. |
| moral philosophy | Principles, rules, and values people use in deciding what is right or wrong. |
| philanthropic responsibilities | Additional behaviors and activities that society finds desirable and that the values of the business support. |
| relativism | Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people. |
| Sarbanes-Oxley Act | An act passed into law by Congress to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence. |
| stewardship | Contributing to the long-term welfare of others. |
| sustainable growth | Economic growth and development that meets present needs without harming the needs of future generations. |
| transcendent education | An education with five higher goals that balance self-interest with responsibility to others. |
| triple bottom line (TBL) | Economic, social, and environmental performance. |
| universalism | The ethical system stating that all people should uphold certain values that society needs to function. |
| utilitarianism | An ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers. |
| virtue ethics | Perspective that what is moral comes from what a mature person with “good” moral character would deem right. |
| bootlegging | Informal work on projects, other than those officially assigned, of employees’ own choosing and initiative. |
| business accelerator | Organization that provides support and advice to help young businesses grow. |
| business incubators | Protected environments for new small businesses. |
| business plan | A formal planning step that focuses on the entire venture and describes all the elements involved in starting it. |
| entrepreneur | Individual who establishes a new organization without the benefit of corporate sponsorship. |
| entrepreneurial orientation | The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services. |
| entrepreneurial venture | A new business having growth and high profitability as primary objectives. |
| entrepreneurship | The pursuit of lucrative opportunities by enterprising individuals. |
| franchising | An entrepreneurial alliance between a franchisor (an innovator who has created at least one successful store and wants to grow) and a franchisee (a partner who manages a new store of the same type in a new location). |
| initial public offering (IPO) | Sale to the public, for the first time, of federally registered and underwritten shares of stock in the company. |
| intrapreneurs | New venture creators working inside big companies. |
| legitimacy | People’s judgment of a company’s acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values. |
| opportunity analysis | A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate your idea into a viable business, and your source(s) of capital. |
| skunkworks | A project team designated to produce a new, innovative product. |
| small business | A business having fewer than 500 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices. |
| social capital | Goodwill stemming from your social relationships; a competitive advantage in the form of relationships with other people and the image other people have of you. |
| social enterprise | Organization that applies business models and leverages resources in ways that address social problems. |
| social entrepreneurship | Leveraging resources to address social problems. |
| unfreezing | Realizing that current practices are inappropriate and that new behavior is necessary. |
| tyranny of the or | The belief that things must be either A or B and cannot be both; that only one goal and not another can be attained. |
| total organization change | Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels. |
| shapers | Companies that try to change the structure of their industries, creating a future competitive landscape of their own design. |
| refreezing | Strengthening the new behaviors that support the change. |
| reactive change | A response that occurs under pressure; problem-driven change. |
| proactive change | A response that is initiated before a performance gap has occurred. |
| performance gap | The difference between actual performance and desired performance. |
| organizational ambidexterity | Ability to achieve multiple objectives simultaneously. |
| organization development (OD) | The systemwide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness. |
| large group interventions for total organization change | Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels. |
| genius of the and | Ability to achieve multiple objectives simultaneously. |
| force-field analysis | An approach to implementing the unfreezing/moving/refreezing model by identifying the forces that prevent people from changing and those that will drive people toward change. |
| adapters | Companies that take the current industry structure and its evolution as givens, and choose where to compete. |
| technology life cycle | A predictable pattern followed by a technological innovation, from its inception and development to market saturation and replacement. |
| technology audit | Process of clarifying the key technologies on which an organization depends. |
| technology | The systematic application of scientific knowledge to a new product, process, or service. |
| technical innovator | A person who develops a new technology or has the key skills to install and operate the technology. |
| sociotechnical systems | 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. |
| product champion | A person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it. |
| make-or-buy decision | The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself. |
| innovation | The introduction of new goods and services; a change in method or technology; a positive, useful departure from previous ways of doing things. |
| executive champion | An executive who supports a new technology and protects the product champion. |
| disruptive innovation | A process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves "up market," eventually displacing established competitors. |
| development project | A focused organizational effort to create a new product or process via technological advances. |
| design thinking | A human-centered approach to problem solving and solution finding that is based on nonlinear iterations of inspiration, ideation, and implementation. |
| chief information officer (CIO) | Executive in charge of information technology strategy and development. |
| triple bottom line (TBL) | Economic, social, and environmental performance. |
| transfer price | Price charged by one unit for a good or service provided to another unit within the organization. |
| strategy map | A depiction of how an organization plans to convert its various assets into desired outcomes. |
| stockholders’ equity | The amount accruing to the corporation’s owners. |
| standard | Expected performance for a given goal; a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed. |
| return on investment (ROI) | A ratio of profit to capital used, or a rate of return from capital. |
| profit and loss statement | an itemized financial statement of the income and expenses of a company’s operations. |
| principle of exception | A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard. |
| market control | Control based on the use of pricing mechanisms and economic information to regulate activities within organizations. |
| management myopia | Focusing on short-term earnings and profits at the expense of longer-term strategic requirements. |
| management audit | An evaluation of the effectiveness and efficiency of various systems within an organization. |
| Glossary liabilities | The amounts a corporation owes to various creditors. |
| internal audit | A periodic assessment of a company’s own planning, organizing, leading, and controlling processes. |
| feedforward control | The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly. |
| feedback control | Control that focuses on the use of information about previous results to correct deviations from the acceptable standard. |
| voice | When people speak up with good intentions about work-related issues, rather than remaining silent. |
| virtual office | A mobile office in which people can work anywhere, as long as they have the tools to communicate with customers and colleagues. |
| upward communication | Information that flows from lower to higher levels in the organization’s hierarchy. |
| two-way communication | A process in which information flows in two directions—the receiver provides feedback, and the sender is receptive to the feedback. |
| transparency | People’s beliefs that the information their employer and others send them is of high quality, as defined by accuracy, timeliness, and full disclosure of relevant information. |
| reflection | Process by which a person states what he or she believes the other person says or means. |
| perception | The process of receiving and interpreting information. |
| open-book management | Practice of sharing with employees at all levels of the organization vital information previously meant for management’s eyes only. |
| one-way communication | A process in which information flows in only one direction—from the sender to the receiver, with no feedback loop. |
| media richness | The degree to which a communication channel conveys information. |
| horizontal communication | Information shared among people on the same hierarchical level. |
| filtering | Withholding or ignoring information. |
| downward communication | Information that flows from higher to lower levels in the organization’s hierarchy. |
| communication | The transmission of information and meaning from one party to another through the use of shared symbols. |
| boundaryless organization | Organization in which there are few major obstacles to information flow. |
| transnational teams | Teams composed of multinational members whose activities span multiple countries. Such teams differ from other work teams by being multicultural and by often being geographically dispersed, being psychologically distant, and working on highly complex proj |
| teaming | A strategy of teamwork on the fly, creating many temporary, changing teams |
| superordinate goals | Higher-level goals taking priority over specific individual or group goals. |
| social loafing | Working less hard and being less productive when in a group. |
| social facilitation effect | Working harder when in a group than when working alone. |
| self-managed teams | Autonomous work groups in which workers are trained to do all or most of the jobs in a unit, have no immediate supervisor, and make decisions previously made by frontline supervisors. |
| self-designing teams | Teams with the responsibilities of autonomous work groups, plus control over hiring, firing, and deciding what tasks members perform. |
| psychological safety | When employees feel they can speak up honestly and freely without fear. |
| project and development teams | Teams that work on long-term projects but disband once the work is completed. |
| valence | The value an outcome holds for the person contemplating it. |
| two-factor theory | Herzberg’s theory describing two factors affecting people’s work motivation and satisfaction. |
| stretch goals | Targets that are particularly demanding, sometimes even thought to be impossible. |
| quality of work life (QWL) programs | Programs designed to create a workplace that enhances employee well-being. |
| psychological contract | A set of perceptions of what employees owe their employers, and what their employers owe them |
| procedural justice | Using fair processes in decision making and making sure others know that the process was as fair as possible. |
| positive reinforcement | Applying consequences that increase the likelihood that a person will repeat the behavior that led to it. |
| organizational behavior modification (OB mod) | The application of reinforcement theory in organizational settings. |
| Maslow’s need hierarchy | A conception of human needs organizing needs into a hierarchy of five major types. |
| law of effect | A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated. |
| job rotation | Changing from one task to another to alleviate boredom. |
| job enrichment | Changing a task to make it inherently more rewarding, motivating, and satisfying |
| job enlargement | Giving people additional tasks at the same time to alleviate boredom. |
| intrinsic reward | Reward a worker derives directly from performing the job itself. |
| instrumentality | The perceived likelihood that performance will be followed by a particular outcome. |
| hygiene factors | Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied. |
| growth need strength | The degree to which individuals want personal and psychological development. |
| goal-setting theory | A motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end. |
| extrinsic reward | Reward given to a person by the boss, the company, or some other person. |
| extinction | Withdrawing or failing to provide a reinforcing consequence. |
| expectancy theory | A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome. |
| equity theory | A theory stating that people assess how fairly they have been treated according to two key factors: outcomes and inputs. |
| Alderfer’s ERG theory | A human needs theory postulating that people have three basic sets of needs that can operate simultaneously. |
| pluralistic organization | An organization that has a relatively diverse employee population and makes an effort to involve employees from different gender, racial, or cultural backgrounds. |
| monolithic organization | An organization that has a low degree of structural integration—employing few women, minorities, or other groups that differ from the majority—and thus has a highly homogeneous employee population. |
| glass ceiling | An invisible barrier that makes it difficult for women and minorities to move beyond a certain hierarchical level. |
| assimilation | The absorption into the cultural tradition of a population or group. |
| validity | The degree to which a selection test predicts or correlates with job performance. |
| union shop | An organization with a union and a union security clause specifying that workers must join the union after a set period of time. |
| 360-degree appraisal | Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance. |
| structured interview | Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers. |
| human capital | The knowledge, skills, and abilities of employees that have economic value. |
| employment-at-will | The legal concept that an employer can terminate an employee for any reason. |
| adverse impact | When a seemingly neutral employment practice has a disproportionately negative effect on a protected group. |
| value chain | The sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step. |
| Value Chain steps | Research and Development focus- Inbound logistic- Operations- Outbound Logistic- Marketing and Sales- Service |
| total quality management (TQM) | An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services. |
| time-based competition (TBC) | Strategies aimed at reducing the total time needed to deliver a good or service. |
| six sigma quality | A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction. A system that calls for subassemblie |
| ordinary capabilities | Capabilities pertaining to basic administrative and operational functions. |
| mechanistic organization | A form of organization that seeks to maximize internal efficiency. |
| mass customization | The production of varied, individually customized products at the low cost of standardized, mass-produced products. |
| lean manufacturing | An operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement. |
| just-in-time (JIT) | A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed. |
| ISO 9001 | A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers. |
| flexible factories | Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling. |
| economies of scope | Economies in which materials and processes employed in one product can be used to make other, related products. |
| dynamic capabilities | Higher-level strategic capabilities (compared with ordinary capabilities) that aid rapid adaptation. |
| customer relationship management (CRM) | A multifaceted process focusing on creating two-way exchanges with customers to foster intimate knowledge of their needs, wants, and buying patterns. |
| centralized organization | An organization in which high-level executives make most decisions and pass them down to lower levels for implementation. |
| concurrent engineering | A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers’ needs. |
| computer-integrated manufacturing (CIM) | The use of computer-aided design and computer-aided manufacturing to sequence and optimize multiple production processes. |
| ambidextrous organization | An organization that is simultaneously good at exploitation and exploration. |
| adaptive organization | An organization capable of performing well and being flexible and agile enough to change and deliver results quickly as needed. |
| Job Shop | Companies that produce low volume or small batches |
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