Principles of Management Final Exam – Flashcards
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External Environments
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All events outside a company that have the potential to influence or affect it
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Environmental Change
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The rate at which a company's general and specific environments change
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Stable Environment
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An environment in which the rate of change is slow
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Dynamic Environment
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An environment in which the rate of change is slow
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Punctuated Equilibrium Theory
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The theory that companies go through long periods of stability, followed by short periods of dynamic, fundamental change, and finishing with a return to stability
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Environmental Complexity
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The number and the intensity of external factors in the environment that affects organizations
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Simple Environment
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An environment with few environmental factors
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Complex Environment
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An environment with many environmental factors
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Resource scarcity
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The abundance or shortage of critical organizational resources in an organization's external environment
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Uncertainty
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Extent to which managers can understand or predict which environmental changes and trends will affect their businesses
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General Environment
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The economic, technological, sociocultural, and political trends that indirectly affect all organizations
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Specific Environment
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The customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business
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Business Confidence Indices
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Indices that show managers' level of confidence about future business growth
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Technology
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The knowledge, tools, and techniques used to transform input into output
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Competitors
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Companies in the same industry that sell similar products or services to customers
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Competitive Analysis
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A process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
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Suppliers
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Companies that provide material, human, financial, and informational resources to other companies
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Supplier Dependence
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The degree to which a company relies on a supplier because of the importance of the supplier;s product to the company and the difficulty of finding other sources of that product
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Buyer Dependence
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The degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for it's products
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Opportunistic Behavior
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A transaction in which one party in the relationship benefits at the expense of the other
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Relationship Behavior
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The establishment of mutually beneficial, long-term exchanges between buyers and suppliers
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Industry Regulation
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Regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
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Advocacy Groups
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Concerned citizens who band together to try to influence the business practices of specific industries, businesses and professions
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Public Communications
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An advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out
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Media Advocacy
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An advocacy group tactic that involves framing issues as public issues
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Product Boycott
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An advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase it's product or service
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Environmental Scanning
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Searching the environment for important events or issues that might affect an organization
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Internal Environment
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The events and trends inside an organization that affect management, employees, and organizational culture
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Organizational Culture
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The values, beliefs, and attitudes shared by organizational members
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Organizational Stories
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Stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
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Organizational Heroes
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People celebrated for their qualities and achievements within an organization
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Company Vision
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A company's purpose or reason for existing
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Consistent Organizational Culture
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A company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes
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Behavioral Addition
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The process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create
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Behavioral Substitution
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The process of having managers and employees perform new behaviors central to the "new" organizational culture in place of behaviors that were central to the "old" organizational culture
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Visible Artifacts
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Visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dinning room
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Ethics
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The set of moral principles or values that defines right and wrong for a person or group
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Ethical Behavior
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Behavior that conforms to a society's accepted principles of right and wrong
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Ethical Intensity
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The degree of concern people have about an ethical issue
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Magnitude of Consequences
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The total harm or benefit derived from an ethical decision
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Social Consensus
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Agreement on whether behavior is bad or good
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Probability of Effect
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The chance that something will happen and then harm others
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Temporal Immediacy
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The time between an act and the consequences the act produces
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Proximity of Effect
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The social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions
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Concentration of Effect
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The total harm or benefit that an act produces on the average person
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Preconventional Level of Moral Development
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The first level of moral development, in which people make decisions based on selfish reasons
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Conventional Level of Moral development
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The second level of moral development, in which people make decisions that societal to societal expectations
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Postconventional Level of Moral Development
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The third level of moral development, in which people make decisions based on internalized principles
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Overt Integrity Test
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A written test that estimates job applicant's honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors
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Personality-Based Integrity Test
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A written test that indirectly estimates job applicants' honesty by measuring psychological traits, such as dependability and conscientiousness
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Whistleblowing
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Reporting others' ethics violations to management or legal authorities
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Social Responsibility
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A business's obligation to pursue policies, make decisions, and take actions that benefit society
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Shareholder Model
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A view of social responsibility that holds that an organization's overriding goal should be profit maximization for the benefit of shareholders
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Stakeholder Model
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A theory of corporate responsibility that holds that management's most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders
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Stakeholders
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Persons or groups with a "stake" or legitimate interest in a company's actions
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Primary Stakeholder
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Any group on which an organization relies for its long-term survival
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Secondary Stakeholder
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Ant group that can influence or be influenced by a company and can affect public perceptions about company's socially responsible behavior
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Economic Responsibility
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A company's social responsibility to make a profit by producing a valued product or service
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Legal Responsibility
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A company's social responsibility to obey society's laws and regulations
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Ethical Responsibility
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A company's social responsibility not violate accepted principles of right and wrong when conducting its business
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Discretionary Responsibilities
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The social roles that a company fulfills beyond its economic, legal, and ethical responsibilities
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Social Responsiveness
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Refers to a company's strategy to respond to stakeholders' economic, legal, ethical, or discretionary expectations concerning social responsibility
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Reactive Strategy
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A social responsiveness strategy in which a compay does less than society expects
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Defensive Strategy
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A social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations
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Accommodative Strategy
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A social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem
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Proactive Strategy
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A social responsiveness strategy in which a company anticipates responsibility for a problem before it occurs and does more than society expects to address the problem
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Planning
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Choosing a goal and developing a strategy to achieve that goal
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S.M.A.R.T. Goals
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Goals that are specific, measurable, attainable, realistic, and timely.
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Goal Commitment
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The determination to achieve a goal.
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Action Plan
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The specific steps, people, and resources needed to accomplish a goal
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Proximal Goals
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Short-term goals or subgoals
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Distal Goals
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Long-term or primary goals
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Option-Based Planning
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Maintaining planning flexibility by making small, simultaneous investments in many alternatives in many alternative plans
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Slack Resources
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A cushion of extra resources that can be used with options-based planning to adapt to unanticipated change, problems, or opportunities
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Learning-Based Planning
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Learning better ways of achieving goals by continually testing, changing, and improving plans and strategies
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Strategic Plans
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Overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years
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Vision
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An inspirational statement of an organization's enduring purpose
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Mission
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A statement of a company's overall goal that unifies company-wide efforts toward it's vision, stretches and challenges the organization, and possesses a finish line and a time line
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Tactical Plans
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Plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals with it's mission
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Management by Objectives
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A four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment
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Operational Plans
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Day-to day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over 30-day to six-month period
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Single-Use Plans
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Plans that cover unique, one-time-only events
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Standing Plans
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Plans used repeatedly to handle frequently recurring events
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Policy
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A standing plan that indicated the general course of action that should be taken in response to a particular event or situation
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Procedure
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A standing plan that indicates the specific steps that should be taken in response to a particular event
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Rules and Regulations
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Standing plans that describe how a particular action should be performed, or what must happen or not happen in response to a particular event
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Budgeting
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Quantitative planning through which managers decide how to allocate available money to best accomplish company goals
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Decision Making
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The process of choosing a solution from available alternatives
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Rational Decision Making
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A systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
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Problem
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A gap between a desired state and an existing state
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Decision Criteria
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The standards used to guide judgements and decisions
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Absolute Comparisons
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A process in which each decision criterion is compared to a standard or ranked on its own merits
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Relative Comparisons
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A process in which each decision criterion is compared directly with every other criterion
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Bounded Rationality
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A decision-making process restricted in the real world by limited resources, incomplete and imperfect information, and managers' limited decision-making capabilities
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Maximizing
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Choosing the best alternative
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Satisfying
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Choosing a "good enough" alternative
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Groupthink
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A barrier to good decision making caused by pressure within the group for members to agree with each other
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C-Type Conflict
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Disagreement that focuses on problem and issue-related differences of opinion
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A-Type Conflict
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Disagreement that focuses on individuals or personal issues
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Devil's Advocacy
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A decision-making method in which an individual or a subgroup is assigned the role of a critic
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Dialectical Inquiry
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A decision-making method in which decision makers state the assumptions of a proposed solution that is the opposite of that solution
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Nominal Group Technique
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A decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group
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Delphi Technique
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A decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue
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Stepladder Technique
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A decision-making method in which group members are added to a group discussion one at a time.
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Brainstorming
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A decision-making method in which group members build on each others' ideas to generate as many alternative solutions as possible
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Electronic Brainstorming
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A decision-making method in which group members use computers to build on each others' ideas and generate many alternative solutions.
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Production Blocking
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A disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea
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Evaluation Apprehension
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Fear of what others will think of your ideas
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Resources
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The assets, capabilities, processes, information and knowledge that an organization uses to improve its effectiveness and efficiency, create and sustain competitive advantage and fulfill a need or solve a problem
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Competitive Advantage
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Providing greater value for customers than competitors can
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Sustainable Competitive Advantage
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A competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
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Valuable Resources
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A resource that allows companies to improve efficiency and effectiveness
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Rare Resource
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A resource that is not controlled or possessed by many competing firms
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Imperfectly Imitable Resource
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A resource that is impossible or extremely costly or difficult for other firms to duplicate
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Nonsubstitutable Resource
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A resource that produces value or competitive advantage and has no equivalent substitutes or replacements
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Competitive Inertia
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A reluctance to change strategies or competitive practices that have been successful in the pasr
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Strategic Dissonance
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A discrepancy between a company's intended strategy and the strategic actions managers take when implementing that strategy
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Situational Analysis
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An Assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment
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Distinctive Competence
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What a company can make, do, or perform better than it's competitors
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Core Capabilities
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The internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs
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Strategic Group
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A group of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunities
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Secondary Firms
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The firms in a strategic group that follows strategies related to but somewhat different form those of the core firms
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Strategic Reference Points
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The strategic targets managers use to measure whether a firm has developed the core competencies if needs to achieve a sustainable competitive advantage
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Corporate-Level Strategy
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The overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
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Diversification
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A strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does bot doom the entire portfolio
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Portfolio Strategy
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A corporate-level strategy that minimize risk by diversifying investment among various businesses or product lines.
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Acquisition
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The purchase of a company by another company
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Unrelated diversification
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Creating or acquiring companies in completely unrelated businesses
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BCG Matrix
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A portfolio strategy, developed by the Boston Consulting Group, that categorizes a corporation's businesses by growth rate and relative market share, and helps managers decide how to invest corporate funds
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Star
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A company with a large share of a fast-growing market
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Question Mark
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A company with a small share of a fast-growing market
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Cash Cow
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A company with a large share of slow-growing market
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Dog
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A company with a small share of a slow-growing market
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Related Diversification
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Creating or acquiring companies that share similar products, manufacturing, marketing, technology or culture
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Grand Strategy
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A broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use
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Growth Strategy
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A strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
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Stability Strategy
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A strategy that focuses on improving the way in which the company sells the same products or services to the same customers
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Retrenchment Strategy
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A strategy that focuses on turning around very poor company performance by shrink the size or scope of the business
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Recovery
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The strategic actions taken after retrenchment to return to a growth strategy
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Industry-Level Strategy
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A corporate strategy that addresses the question "How should we compete in this industry?"
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Character of the Rivalry
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S measure of the intensity of competitive behavior between companies in an industry
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Threat of New Entrants
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A measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry
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Threat of Substitute Products or Services
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A measure of the ease with which customer can find substitute foe an industry's products or services
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Bargaining Power of Suppliers
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A measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs
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Bargaining Power of Buyers
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A measure of the influence that customers have on a firm's prices
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Cost Leadership
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The positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry
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Differentiation
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The positioning strategy of providing a product or service that is sufficiently different from competitors' offerings that customers are willing to pay a premium price for it
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Focus Strategy
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The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment
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Defenders
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Companies using an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers
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Prospectors
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Companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market
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Analyzers
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Companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors
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Reactors
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Companies using an adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur
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Firm-Level Strategy
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A corporate strategy that addresses the question "How should we compete against a particular firm?"
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Direct Competition
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The rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions
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Market Commonality
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The degree to which two companies have overlapping products, services, or customers in multiple markets
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Resource Similarity
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The extent to which a competitor has similar amounts and kinds of resources
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Attack
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A competitive move designed to reduce a rival's market share or profits
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Response
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A competitive counter-move, prompted by rival's attack, to defend or improve a company's market share or profit
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Organizational Innovation
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The successful implementation of creative ideas in organizations
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Creativity
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The production of novel and useful ideas
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Organizational Change
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A difference in the form, quality, or condition of an organization over time
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Technology Cycle
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A cycle that begins with the "birth" of a new technology and ends when that technology reaches it's limits and is replaced by newer, substantially better technology
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S-Curve Pattern of Innovation
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A Pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again reaches it's limits
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Innovation Streams
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Patterns of innovation over time that can create sustainable competitive advantage
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Technological Discontinuity
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The phrase of an innovation stream in which a scientific advance or unique combination of existing technologies creates a significant breakthrough in performance or function
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Discontinuous Change
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The phase of a technology cycle characterized by technological substitution and design competition
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Technological Substitution
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The purchase of new technologies to replace older ones
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Design Competition
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Competition between old and new technologies to establish a new technological standard or dominant design
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Dominant Design
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A new technological design or process that becomes the accepted market standard
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Technological Lockout
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The inability of company to competitively sell it's products because it relied on old technology or non-dominant design
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Incremental Change
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The phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design
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Creative Work Environments
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Workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged
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Flow
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A psychological state of effortlessness, in which you become completely absorbed in what you're doing and time seems to pass quickly
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Experiential Approach to Innovation
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An approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding
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Design Iteration
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A cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype
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Product Prototype
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A full-scale working model that is being tested for design, function, and reliability
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Testing
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The systematic comparison of different product designs or design iterations
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Milestones
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Formal project review points used to assess progress and performance
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Multifunctional Teams
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Work teams composed of people from different departments
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Compression Approach to Innovation
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An approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation
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Generational Change
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Change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology
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Organizational Decline
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A large decrease in organizational performance that occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival
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Change Forces
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Forces that support the existing state of conditions in organizations
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Resistance to Change
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Opposition to change resulting from self-interest, misunderstanding and distrust, or a general intolerance for change
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Unfreezing
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Getting the people affected by change to believe that change is needed
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Change Intervention
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The process used to get workers and managers to change their behavior and work practices
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Refreezing
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Supporting and reinforcing new changes so that they "stick"
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Coercion
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The use of formal power and authority to force others to change
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Results-Driven Change
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Change created quickly by focusing on the measurement and improvement of results
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General Electric Workout
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A three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems
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Transition Management Team
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A team of 8 to 12 people whose full-time job is to manage and coordinate a company's change process
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Organizational Development
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A philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance
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Change Agent
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The person formally in charge of guiding a change effort
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Global Business
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The buying and selling of goods and services by people from different countries
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Multinational Corporation
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A corporation that owns businesses in two or more countries
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Direct Foreign Investment
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A method of investment in which a company builds a new business or buys an existing business in a foreign country
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Trade Barriers
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Government-imposed regulations that increased regulations that increase the coast and restrict the number of imported goods
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Protectionism
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A government's use of trade barriers to shield domestic companies and their workers from foreign competition
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Tariff
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A direct tax on imported goods
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Non-Tariff Barriers
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Non-tax methods of increasing the cost or reducing the volume of imported goods
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Quotas
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A limit on the number or volume of imported products
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Voluntary Export Restraints
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Voluntarily imposed limits on the number or volume of products exported to a particular country
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Government Import Standard
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A standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports
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Subsidies
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Government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition
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Customs Classification
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A classification assigned to imported products by government officials that affect the size of the tariff and imposition of import quotas
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General Agreement on Tariffs and Trade
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A worldwide trade agreement that reduced and eliminated tariffs, limited government subsides, and established protections for intellectual property
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World Trade Organization
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The successor to GATT
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Regional Trading Zones
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Areas in which tariff and non-tariff barriers on trade between countries are reduced or eliminated
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Maastricht Treaty
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A regional trade agreement between most European countries
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North American Free Trade Agreement
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A regional trade agreement between the United States, Canada, and Mexico
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Central America Free Trade Agreement
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A regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
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South American Nations
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A regional trade agreement between Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela
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Association of Southeast Asian Nations
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A regional trade agreement between Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam
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Asia-Pacific Economic Cooperation
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A regional trade agreement between Australia, Canada, Chile, the People's Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the United States, and all the members of ASEAN, except Cambodia, Laos, and Myanmar
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Global Consistency
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When a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures
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Local Adaptation
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Modifying rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies
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Exporting
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Selling domestically produced products to customers in foreign countries
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Cooperative Contract
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An agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country
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Licensing
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An agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor's product, sell its service or use its brand name in a specified foreign market
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Franchise
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a Collection of networking firms in which the manufacturer or marketer of a product to service, the franchisor, licenses the entire business to another person or organization, the franchisee
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Strategic Alliance
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An agreement in which companies combine key resources, costs, risk, technology, and people
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Joint Venture
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A strategic alliance in which two existing companies collaborate to form a third, independent company
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Wholly Owned Affiliates
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Foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company
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Global New Ventures
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New companies that are founded with active global strategy and have sales, employees, and financing in different countries
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Purchasing Power
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The relative cost of standard set of goods and services in different countries
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Political Uncertainty
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The risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events
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Policy Uncertainty
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The risk associated with changes in laws and government polices that directly affect the way foreign companies conduct business
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National Culture
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The set of shared values and beliefs that affect the perceptions, decisions, and behavior of the people from a particular country
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Expatriate
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Someone who lives and works outside his or her native country
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Organizational Structure
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The vertical and horizontal configuration of departments, authority, and jobs within a company
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Organizational Process
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The collection of activities that transform inputs into outputs that customer value
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Departmentalization
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Subdividing work and workers into separate organizational units responsible for completing particular tasks
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Functional Departmentalization
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Organizing work and workers into separate units responsible for particular business functions or areas of expertise
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Product Departmentalization
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Organizing work and workers into separate units responsible for producing or services
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Customer Departmentalization
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Organizing work and workers into separate units responsible for particular kinds of customers
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Geographic Departmentalization
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Organizing work and workers into separate units responsible for doing business in particular geographic areas
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Matrix Departmentalization
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A hybrid organizational structure in which two or more forms of departmentalization, most often product and functional are used together
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Simple Matrix
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A form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
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Complex Matrix
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A form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems
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Authority
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The right to give commands, take action, and make decisions to achieve organizational objectives
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Chain of Command
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The vertical line authority that clarifies who reports to whom throughout the organization
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Unity of Command
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A management principle that workers should report to just one boss
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Line Authority
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The right to command immediate subordinates in the chain of command
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Staff Authority
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The right to advise, but not command, others who are not subordinates in the chain of command
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Line Function
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An activity that contributes directly to create or selling the company's products
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Staff Function
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An Activity that does not contribute directly to create or selling the company's products, but instead supports line activities
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Delegation of Authority
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The assignment of direct authority and responsibility to a sub ordinate to complete tasks for which the manager is normally responsible
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Centralization of Authority
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The location of most authority at the upper levels of the organization
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Decentralization
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The location of a significant amount of authority in the lower levels of the organization
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Standardization
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Solving problems by consistently applying the same rules, procedures, and processes
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Job Design
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The number, kind and variety of tasks that individual workers perform in doing their jobs
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Job Specialization
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A job composed of small part of a larger task process
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Job Rotation
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Periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
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Job Enlargement
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Increasing the number of different tasks that a worker performs within one particular job
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Job Enrichment
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Increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work
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Job Characteristics Model
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An approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes
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Internal Motivation
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Motivation that comes from the job itself rather than form outside rewards
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Skill Variety
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The number of doifferent activities performed in a job
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Task Identity
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The degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work
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Task Significance
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The degree to which a job is perceived to have a substantial impact on others inside or outside the organization
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Autonomy
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The degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job
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Feedback
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The amount of information the job provides to workers about their work performance
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Mechanistic Organization
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An organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles.
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Organic Organization
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An organization characterized by broadly defined jobs and responsibility; loosely defined frequently changing roles
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Intraorganizational Process
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The collection of activities that take place within an organization to transform inputs into outputs that customers value
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Re-engineering
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Fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed
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Task Interdependence
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The extent to which collective action is required to complete and entire piece of work
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Pooled Interdependence
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Work completed by having each job or department independently contribute to the whole
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Sequential Interdependence
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Work completed in succession with one group's or job's outputs becoming the inputs for the next group or job
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Reciprocal Interdependence
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Work completed by different jobs or groups working together in a back and forth manner
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Empowering Workers
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Permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions
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Empowerment
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Feelings of intrinsic motivation, in which workers perceive their workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination
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Behavioral Informality
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A workplace atmosphere characterized by spontaneity, casualness, and interpersonal familiarity
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Behavioral Formality
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A workplace atmosphere characterized by routine and regimen, specific rules about how to behave and impersonal detachment
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Open Office Systems
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Offices in which the physical barriers that separate workers have been removed in order to increase communication and interaction
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Shared Spaces
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Spaces used by and open to all employees
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Private Spaces
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Spaces used by and open to just one employee
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Inter-organizational Process
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A collection of activities that take place among companies to transform inputs into outputs that customers value
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Modular Organization
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An organization that outsources noncore business activities to outside companies, suppliers, specialists or consultants
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Virtual Organization
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An organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services
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Work Team
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A small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes
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Cross Training
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Training team members to do all or most of the jobs performed by the other team members
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Social Loafing
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Behavior in which team members withhold their efforts and fail to perform their share of the work.
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Traditional Work Group
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A group composed of two or more people who work together to achieve a shared goal
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Employee Involvement Team
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Team that provides advice or makes suggestions to management concerning specific issues
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Semi-autonomous Work Group
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A group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service
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Self-managing Team
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A team that manages and controls all of the major tasks of producing a product or service
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Self-designing Team
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A team that has the characteristics of self-managing teams but also controls team design, work tasks, and team membership
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Cross-functional Team`
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A team composed of employees from different functional areas of the organization
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Virtual Team
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A team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task
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Project Team
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A team created to complete specific, one-time projects or tasks within a limited time
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Norms
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Informally agreed on standards that regulate team behavior
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Cohesiveness
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The extent to which team members are attracted to a team and motivated to remain in it
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Forming
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The first stage of team development, in which team members meet each other, form initial impressions, and begin to establish team norms
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Storming
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The second stage of development, characterized by conflict and disagreement, in which team members disagree over ehat the team should do and how it should do it
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Norming
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The third stage of team development, in which team members begin to settle into their roles, group cohesion grows, and positive team norms develop
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Performing
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The fourth and final stage of team development, in which performance improves because the team has matured into an effective, fully functioning team
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De-norming
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A reversal of the norming stage, in which team performance begins to decline as the size, scope, goal, or members of the team change
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De-storming
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A reversal of the storming phase, in which the team's comfort level decreases, team cohesion weakens, and angry emotions and conflict may flare
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De-forming
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A reversal of the forming stage, in which team members position themselves to control pieces of the team, avoid each other and isolate themselves from team leaders
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Structural Accommodation
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The ability to change organizational structures, polices and practices in order to meet stretch goals
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Bureaucratic Immunity
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The ability to make changes without first getting approval from managers or other parts of an organization
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Individualism Collectivism
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The degree to which a person believes that people should be self sufficient and that loyalty to one's self is more important than loyalty to team or company
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Team Level
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The average level of ability, experience, personality, or any other factor on a team
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Team Diversity
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The variances or differences in ability, experience personality, or any other factor on a team
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Interpersonal Skills
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Skills, such as listening, communicating, questioning, and providing feedback, that enable people to have effective working relationships with others
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Skill Based Pay
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Compensation system that pays employees for learning additional skills or knowledge
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Gain-sharing
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A compensation system in which companies share the financial value of performance gains, such as productivity, cost savings or quality, with their workers
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Human Resource Management
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The process of finding, developing, and keeping the right people to form a qualified workforce
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Bona Fide Occupational Qualification
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An exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but onlu if they are reasonably necessary to the normal operation of that particular business.
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Disparate Treatment
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Intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs
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Adverse Impact
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Unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted or trained at substantially lower rates than others
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Four-Fifths Rule
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A rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact.
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Sexual Harassment
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A form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job
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Quis Pro Quo Sexual Harassment
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A form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment
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Hostile Work Environment
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A form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment
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Recruiting
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The process of developing a pool of qualified job applicants
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Job Analysis
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A purposeful, systematic process for collecting information on the important work related aspects of a job
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Job Description
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A written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
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Job Specifications
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A written summary of the qualifications needed to successfully perform a particular job.
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Job Specifications
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A written summary of the qualifications needed to successfully perform a particular job.