Principles of Management C483 WGU

Flashcard maker : Lily Taylor
Accommodation
A style of dealing with conflict involving cooperation on behalf of the other party but not being assertive about one’s own interests
Accounting audits
Procedures used to verify accounting reports and statements
Acquisition
One firm buying another
Activity-Based costing (ABC)
A method of cost accounting designed to identify streams of activity and then to allocate costs across particular business processes according to the mount of time employees devote to particular activities
Adapters
Companies that take the current industry structure and its evolution as givens, and choose where to compete.
Adverse impact
When a seemingly neutral employment practice has a disproportionately negative effect on a protected group.
Advertising support model
Charging fees to advertise on a site.
affective conflict
Emotional disagreement directed toward other people
affiliate model
Charging fees to direct site visitors to other companies’ sites
affirmative action
Special efforts to recruit and hire qualified members of groups that have been discriminated against in the past.
Alderfer’s ERG theory
A human needs theory postulating that people have three basic sets of needs that can operate simultaneously
arbitration
The use of a neutral third party to resolve a labor dispute.
assessment center
A managerial performance test in which candidates participate in a variety of exercises and situations.
assets
The values of the various items the corporation owns.
Authentic leadership
A style in which the leader is true to himself or herself while leading
autocratic leadership
A form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group
autonomous work groups
Groups that control decisions about and excution of a complete range of tasks
avoidance
A reaction to conflict that involves ignoring the problem by doing nothing at all, or deemphasizing the disagreement.
balance sheet
A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders’ equity
balanced scorecard
Control system combining four sets of performance measures: financial, customer, business process, and learning and growth
barriers to entry
Conditions that prevent new companies from entering an industry
behavioral approach
a leadership perspective that attempts to identify what good leaders do-that is, what behaviors they exhibit
benchmarking
The process of comparing an organization’s practices and technologies with those of other companies.
Bootlegging
Informal work on projects, other than those officially assigned, of employees’ own choosing and initiative
boundaryless organization
organization in which there are no barriers to information flow.
bounded rationality
`A less-than-perfect form of rationality in which decisions 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.
bridge leaders
A leader who bridges conflicting value systems or different cultures.
broker
A person who assembles and coordinates participants in a network
budgeting
The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences; also called budgetary controlling
buffering
Creating supplies of excess resources in case of unpredictable needs
bureaucratic control
The use of rules, regulations, and authority to guide performance
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.
Business strategy
The major actions by which a business competes in a particular industry or market
Cafeteria benefit program
An employee benefit program in which employees choose from a menu of options to create a benefit package tailored to their needs.
Caux Principles
Ethical principles established by international executives based in Caux, Switzerland, in collaboration with business leaders from Japan, Europe, and the United States.
centralized organization
An organization in which high-level executives make most decisions and pass them down to lower levels for implementation.
certainty
The state that exists when decision makers have accurate and comprehensive information.
charismatic leader
A person who is dominant, self-confident, convinced of the moral righteousness of his or her beliefs, and able to arouse a sense of excitement and adventure in followers.
chief information officer (CIO)
Executive in charge of information technology strategy and development.
clan control
Control based on the norms, values, shared goals, and trust among group members.
coaching
Dialogue with a goal of helping another be more effective and achieve his or her full potential on the job.
coalitional 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.
cohesiveness
The degree to which a group is attractive to its members, members are motivated to remain in the group, and members influence one another.
collaboration
A style of dealing with conflict emphasizing both cooperation and assertiveness to maximize both parties’ satisfaction.
comparable worth
Principle of equal pay for different jobs of equal worth.
competing
A style of dealing with conflict involving strong focus on one’s own goals and little or no concern for the other person’s goals.
competitive environment
The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.
competitive intelligence
Information that helps managers determine how to compete better.
compliance-based ethics programs
Company mechanisms typically designed by corporate counsel to prevent, detect, and punish legal violations.
computer-integrated manufacturing (CIM)
The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes.
concentration
A strategy employed for an organization that operates a single business and competes 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.
conceptual and decision skills
Skills pertaining to the ability to identify and resolve problems for the benefit of the organization and its members.
concurrent control
The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed.
conflict
Opposing pressures from different sources, occurring on the level of psychological conflict or of conflict between individuals or groups.
conglomerate diversification
A strategy used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.
contingency plans
Alternative courses of action that can be implemented based on how the future unfolds.
continuous process
A process that is highly automated and has a continuous production flow.
control
Any process that directs the activities of individuals toward the achievement of organizational goals.
controlling
The management function of monitoring performance and making needed changes.
cooperative strategies
Strategies used by two or more organizations working together to manage the external environment.
coordination by mutual adjustment
Units interact with one another to make accommodations to achieve flexible coordination.
coordination by plan
Interdependent units are required to meet deadlines and objectives that contribute to a common goal.
core competence
A unique skill and/or knowledge an organization possesses that give it an edge over competitors.
corporate governance
The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders.
corporate social responsibility (CSR)
Obligation toward society assumed by business.
corporate strategy
The set of businesses, markets, or industries in which an organization competes and the distribution of resources among those entities.
cost competitiveness
Keeping costs low to achieve profits and be able to offer prices that are attractive to consumers.
current ratio
A liquidity ratio that indicates the extent to which short-term assets can decline and still be adequate to pay short-term liabilities.
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.
custom-made solutions
New, creative solutions designed specifically for the problem.
debt-equity ratio
A leverage ratio that indicates the company’s ability to meet its long-term financial obligations.
decentralized organization
An organization in which lower-level managers make important decisions.
defenders
Companies that stay within a stable product domain as a strategic maneuver.
delegation
The assignment of new or additional responsibilities to a subordinate.
departmentalization
Subdividing an organization into smaller subunits.
development
Helping managers and professional employees learn the broad skills needed for their present and future jobs.
development project
A focused organizational effort to create a new product or process via technological advances.
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.
differentiation
An aspect of the organization’s internal environment created by job specialization and the division of labor.
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.
discounting the future
A bias weighting short-term costs and benefits more heavily than longer-term costs and benefits.
diversification
A firm’s investment in a different product, business, or geographic area.
diversity training
Programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce.
divestiture
A firm selling one or more businesses.
divisional organization
Departmentalization that groups units around products, customers, or geographic regions.
domain selection
Entering a new market or industry with an existing expertise.
dynamic network
Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment.
ecocentric management
Its goal is the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
economic responsibilities
To produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors.
economies of scope
Economies in which materials and processes employed in one product can be used to make other, related products.
egoism
An ethical system defining acceptable behavior as that which maximizes consequences for the individual.
emotional intelligence
The skills of understanding yourself, managing yourself, and dealing effectively with others.
empowerment
The process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization.
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.
environmental scanning
Searching for and sorting through information about the environment.
environmental uncertainty
Lack of information needed to understand or predict the future.
equity theory
A theory stating that people assess how fairly they have been treated according to two key factors: outcomes and inputs.
ethical climate
In an organization, the processes by which decisions are evaluated and made on the basis of right and wrong.
ethnocentrism
The tendency to judge others by the standards of one’s group or culture, which are seen as superior.
executive champion
An executive who supports a new technology and protects the product champion of the innovation.
expatriates
Parent-company nationals who are sent to work at a foreign subsidiary.
expectancy
Employees’ perception of the likelihood that their efforts will enable them to attain their performance goals.
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.
external audit
An evaluation conducted by one organization, such as a CPA firm, on another.
external environment
All relevant forces outside a firm’s boundaries, such as competitors, customers, the government, and the economy.
extinction
Withdrawing or failing to provide a reinforcing consequence.
extrinsic rewards
Rewards given to a person by the boss, the company, or some other person.
failure rate
The number of expatriate managers of an overseas operation who come home early.
feedback control
Control that focuses on the use of information about previous results to correct deviations from the acceptable standard.
feedforward control
The control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly.
Fiedler’s contingency model of leadership effectiveness
A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation.
final consumer
Those who purchase products in their finished form.
flexible benefit programs
Benefit programs in which employees are given credits to spend on benefits that fit their unique needs.
flexible factories
Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling.
flexible processes
Methods for adapting the technical core to changes in the environment.
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.
formalization
The presence of rules and regulations governing how people in the organization interact.
framing effects
A decision bias influenced by the way in which a problem or decision alternative is phrased or presented.
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).
frontline managers
Lower-level managers who supervise the operational activities of the organization.
functional organization
Departmentalization around specialized activities such as production, marketing, and human resources.
functional strategies
Strategies implemented by each functional area of the organization to support the organization’s business strategy.
garbage can model
Model of organizational decision making depicting a chaotic process and seemingly random decisions.
gatekeeper
A team member who keeps abreast of current developments and provides the team with relevant information.
genius of the and; organizational ambidexterity
Ability to achieve multiple objectives simultaneously.
global model
An organizational model consisting of a company’s overseas subsidiaries and characterized by centralized decision making and tight control by the parent company over most aspects of worldwide operations; typically adopted by organizations that base their global competitive strategy on cost considerations.
goal displacement
A condition that occurs when a decision-making group loses sight of its original goal and a new, less important goal emerges.
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.
group maintenance behaviors
Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group.
growth need strength
The degree to which individuals want personal and psychological development.
Hersey and Blanchard’s situational theory
A life-cycle theory of leadership postulating that a manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important.
high-involvement organization
A type of organization in which top management ensures that there is consensus about the direction in which the business is heading.
horizontal communication
Information shared among people on the same hierarchical level.
host-country nationals
Natives of the country where an overseas subsidiary is located.
human capital
The knowledge, skills, and abilities of employees that have economic value.
human resources management (HRM)
Formal systems for the
management of people within an organization.
hygiene factors
Characteristics of the workplace, such as company policies, working conditions, pay, and supervision, that can make people dissatisfied.
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.
independent strategies
Strategies that an organization acting on its own uses to change some aspect of its current environment.
informing
A team strategy that entails making decisions with the team and then informing outsiders of its intentions.
initial public offering (IPO)
Sale to the public, for the first time, of federally registered and underwritten shares of stock in the company.
inpatriate
A foreign national brought in to work at the parent company.
inputs
Goods and services organizations take in and use to create products or services.
instrumentality
The perceived likelihood that performance will be followed by a particular outcome.
integration
The degree to which differentiated work units work together and coordinate their efforts.
integrity-based ethics programs
Company mechanisms designed to instill in people a personal responsibility for ethical behavior.
intermediary model
Charging fees to bring buyers and sellers together.
intermediate consumer
A customer who purchases raw materials or wholesale products before selling them to final customers.
internal audit
A periodic assessment of a company’s own planning, organizing, leading, and controlling processes.
international model
An organizational model that is composed of a company’s overseas subsidiaries and characterized by greater control by the parent company over the research function and local product and marketing strategies than is the case in the multinational model.
interpersonal and communication skills
People skills; the ability to lead, motivate, and communicate effectively with others.
intrapreneurs
New-venture creators working inside big companies.
intrinsic reward
Reward a worker derives directly from performing the job itself.
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.
job enlargement
Giving people additional tasks at the same time to alleviate boredom.
job enrichment
Changing a task to make it inherently more rewarding, motivating, and satisfying.
job maturity
The level of the employee’s skills and technical knowledge relative to the task being performed.
job rotation
Changing from one routine task to another to alleviate boredom.
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.
knowledge management
Practices aimed at discovering and harnessing an organization’s intellectual resources.
Kohlberg’s model of cognitive moral development
Classification of people based on their level of moral judgment.
labor relations
The system of relations between workers and management.
large batch
Technologies that produce goods and services in high volume.
lateral leadership
Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.
law of effect
A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated.
Leader-Member Exchange (LMX) theory
Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis.
leading
The management function that involves the manager’s efforts to stimulate high performance by employees.
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.
learning organization
An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.
legal responsibilities
To obey local, state, federal, and relevant international laws.
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.
Level 5 leadership
A combination of strong professional will (determination) and humility that builds enduring greatness.
liabilities
The amounts a corporation owes to various creditors.
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.
line departments
Units that deal directly with the organization’s primary goods and services.
logistics
The movement of the right goods in the right amount to the right place at the right time.
low-cost strategy
A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.
macroenvironment
The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
make-or-buy decision
The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself.
management audit
An evaluation of the effectiveness and efficiency of various systems within an organization.
management by objectives (MBO)
A process in which objectives set by a subordinate and a supervisor must be reached within a given time period.
management myopia
Focusing on short-term earnings and profits at the expense of longer-term strategic obligations.
management teams
Teams that coordinate and provide direction to the subunits under their jurisdiction and integrate work among subunits.
managing diversity
Managing a culturally diverse workforce by recognizing the characteristics common to specific groups of employees while dealing with such employees as individuals and supporting, nurturing, and utilizing their differences to the organization’s advantage.
market control
Control based on the use of pricing mechanisms and economic information to regulate activities within organizations.
mass customization
The production of varied, individually customized products at the low cost of standardized, mass-produced products.
matrix organization
An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager.
maximizing
A decision realizing the best possible outcome.
mechanistic organization
A form of organization that seeks to maximize internal efficiency.
media richness
The degree to which a communication channel conveys information.
mentors
Higher-level managers who help ensure that high-potential people are introduced to top management and socialized into the norms and values of the organization.
middle-level managers
Managers located in the middle layers of the organizational hierarchy, reporting to top-level executives.
mission
An organization’s basic purpose and scope of operations.
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.
motivators
Factors that make a job more motivating, such as additional job responsibilities, opportunities for personal growth and recognition, and feelings of achievement.
moving
Instituting the change.
multicultural organization
An organization that values cultural diversity and seeks to utilize and encourage it.
multinational model
An organizational model that consists of the subsidiaries in each country in which a company does business, with ultimate control exercised by the parent company.
needs assessment
An analysis identifying the jobs, people, and departments for which training is necessary.
negative reinforcement
Removing or withholding an undesirable consequence.
network organization
A collection of independent, mostly single-function firms that collaborate on a good or service.
nonprogrammed decisions
New, novel, complex decisions having no proven answers.
North American Free Trade Agreement (NAFTA)
An economic pact that combined the economies of the United States, Canada, and Mexico into one of the world’s largest trading blocs.
offshoring
Moving work to other countries.
one-way communication
A process in which information flows in only one direction—from the sender to the receiver, with no feedback loop.
open-book management
Practice of sharing with employees at all levels of the organization vital information previously meant for management’s eyes only.
open systems
Organizations that are affected by, and that affect, their environment.
operational planning
The process of identifying the specific procedures and processes required at lower levels of the organization.
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.
optimizing
Achieving the best possible balance among several goals.
organic structure
An organizational form that emphasizes flexibility.
organizational behavior modification (OB mod)
The application of reinforcement theory in organizational settings.
organization chart
The reporting structure and division of labor in an organization.
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.
outplacement
The process of helping people who have been dismissed from the company regain employment elsewhere.
parading
A team strategy that entails simultaneously emphasizing internal team building and achieving external visibility.
parallel teams
Teams that operate separately from the regular work structure, and exist temporarily.
participation in decision making
Leader behaviors that managers perform in involving their employees in making decisions.
path-goal theory
A theory that concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals.
perception
The process of receiving and interpreting information.
performance appraisal (PA)
Assessment of an employee’s job performance.
performance gap
The difference between actual performance and desired performance.
philanthropic responsibilities
Additional behaviors and activities that society finds desirable and that the values of the business support.
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.
power
The ability to influence others.
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.
proactive change
A response that is initiated before a performance gap has occurred.
probing
A team strategy that requires team members to interact frequently with outsiders, diagnose their needs, and experiment with solutions.
procedural justice
Using fair process in decision making and making sure others know that the process was as fair as possible.
product champion
A person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.
profit and loss statement
An itemized financial statement of the income and expenses of a company’s operations.
programmed decisions
Decisions encountered and made before, having objectively correct answers, and solvable by using simple rules, policies, or numerical computations.
project and development teams
Teams that work on long-term projects but disband once the work is completed.
prospectors
Companies that continuously change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises.
pseudotransformational leaders
Leaders who talk about positive change but allow their self-interest to take precedence over followers’ needs.
psychological contract
A set of perceptions of what employees owe their employers, and what their employers owe them.
psychological maturity
An employee’s self-confidence and self-respect.
quality circles
Voluntary groups of people drawn from various production teams who make suggestions about quality.
quality of work life (QWL) programs
Programs designed to create a workplace that enhances employee well-being.
reactive change
A response that occurs under pressure; problem-driven change.
ready-made solutions
Ideas that have been seen or tried before.
recruitment
The development of a pool of applicants for jobs in an organization.
reflection
Process by which a person states what he or she believes the other person is saying.
refreezing
Strengthening the new behaviors that support the change.
relationship-motivated leadership
Leadership that places primary emphasis on maintaining good interpersonal relationships.
relativism
Philosophy that bases ethical behavior on the opinions and behaviors of relevant other people.
reliability
The consistency of test scores over time and across alternative measurements.
resources
Inputs to a system that can enhance performance.
return on investment (ROI)
A ratio of profit to capital used, or a rate of return from capital.
rightsizing
A successful effort to achieve an appropriate size at which the company performs most effectively.
risk
The state that exists when the probability of success is less than 100 percent and losses may occur.
Sarbanes-Oxley Act
An act passed into law by Congress in 2002 to establish strict accounting and reporting rules in order to make senior managers more accountable and to improve and maintain investor confidence.
satisficing
Choosing an option that is acceptable, although not necessarily the best or perfect.
self-designing teams
Teams with the responsibilities of autonomous work groups, plus control over hiring, firing, and deciding what tasks members perform.
semiautonomous work groups
Groups that make decisions about managing and carrying out major production activities but get outside support for quality control and maintenance.
servant-leader
A leader who serves others’ needs while strengthening the organization.
shapers
Companies that try to change the structure of their industries, creating a future competitive landscape of their own design.
shared leadership
Rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.
simultaneous 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.
situational analysis
A process planners use, within time and resource constraints, to gather, interpret, and summarize all information relevant to the planning issue under consideration.
situational approach
Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation.
skunkworks
A project team designated to produce a new, innovative product.
small batch
Technologies that produce goods and services in low volume.
small business
A business having fewer than 100 employees, independently owned and operated, not dominant in its field, and not characterized by many innovative practices.
smoothing
Leveling normal fluctuations at the boundaries of the environment.
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 facilitation effect
Working harder when in a group than when working alone.
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.
span of control
The number of subordinates who report directly to an executive or supervisor.
specialization
A process in which different individuals and units perform different tasks.
staff departments
Units that support line departments.
stakeholders
Groups and individuals who affect and are affected by the achievement of the organization’s mission, goals, and strategies.
standardization
Establishing common routines and procedures that apply uniformly to everyone.
stockholders’ equity
The amount accruing to the corporation’s owners.
strategic alliance
A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals.
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 leadership
Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future.
strategic management
A process that involves managers from all parts of the organization in the formulation and implementation of strategic goals and strategies.
strategic maneuvering
An organization’s conscious efforts to change the boundaries of its task environment.
strategic planning
A set of procedures for making decisions about the organization’s long-term goals and strategies.
strategic vision
The long-term direction and strategic intent of a company.
stretch goals
Targets that are particularly demanding, sometimes even thought to be impossible.
structured interview
Selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
subscription model
Charging fees for site visits.
substitutes for leadership
Factors in the workplace that can exert the same influence on employees as leaders would provide.
subunits
Subdivisions of an organization.
superordinate goals
Higher-level goals taking priority over specific individual or group goals.
supervisory leadership
Behavior that provides guidance, support, and corrective feedback for day-to-day activities.
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.
survivor’s syndrome
Loss of productivity and morale in employees who remain after a downsizing.
switching costs
Fixed costs buyers face when they change suppliers.
SWOT analysis
A comparison of Strengths, Weaknesses, Opportunities, and Threats that helps executives formulate strategy.
360-degree appraisal
Process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance.
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 a functional area like marketing.
task performance behaviors
Actions taken to ensure that the work group or organization reaches its goals.
task specialist
An individual who has more advanced job-related skills and abilities than other group members possess.
team maintenance specialist
Individual who develops and maintains team harmony.
team training
Training that provides employees with the skills and perspectives they need to collaborate with others.
technical innovator
A person who develops a new technology or has the key skills to install and operate the technology.
technical skill
The ability to perform a specialized task involving a particular method or process.
technology audit
Process of clarifying the key technologies on which an organization depends.
technology life cycle
A predictable pattern followed by a technological innovation, from its inception and development to market saturation and replacement.
termination interview
A discussion between a manager and an employee about the employee’s dismissal.
third-country nationals
Natives of a country other than the home country or the host country of an overseas subsidiary.
time-based competition (TBC)
Strategies aimed at reducing the total time needed to deliver a good or service.
top-level managers
Senior executives responsible for the overall management and effectiveness of the organization.
total organization change
Introducing and sustaining multiple policies, practices, and procedures across multiple units and levels.
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.
traditional work groups
Groups that have no managerial responsibilities.
trait approach
A leadership perspective that attempts to determine the personal characteristics that great leaders share.
transactional leaders
Leaders who manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered.
transcendent education
An education with five higher goals that balance self-interest with responsibility to others.
transfer price
Price charged by one unit for a good or service provided to another unit within the organization.
transformational leader
A leader who motivates people to transcend their personal interests for the good of the group.
transnational model
An organizational model characterized by centralizing certain functions in locations that best achieve cost economies; basing other functions in the company’s national subsidiaries to facilitate greater local responsiveness; and fostering communication among subsidiaries to permit transfer of technological expertise and skills.
transnational teams
Work groups composed of multinational members whose activities span multiple countries.
two-factor theory
Herzberg’s theory describing two factors affecting people’s work motivation and satisfaction.
two-way communication
A process in which information flows in two directions— the receiver provides feedback, and the sender is receptive to the feedback.
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.
unfreezing
Realizing that current practices are inappropriate and that new behavior is necessary.
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.
unity-of-command principle
A structure in which each worker reports to one boss, who in turn reports to one boss.
universalism
The ethical system stating that all people should uphold certain values that society needs to function.
valence
The value an outcome holds for the person contemplating it.
validity
The degree to which a selection test predicts or correlates with job performance.
value
The monetary amount associated with how well a job, task, good, or service meets users’ needs.
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.
vertical integration
The acquisition or development of new businesses that produce parts or components of the organization’s product.
virtue ethics
Perspective that what is moral comes from what a mature person with “good” moral character would deem right.
Vroom model
A situational model that focuses on the participative dimension of leadership.

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