Glossary

A

Absenteeism

The failure to show up for work

Active listening

Listening for full meaning without making premature judgments or interpretations

Activities

Actions that take place

Adjourning stage

The final stage of group development for temporary groups, during which groups prepare to disband

Affective component

The part of an attitude that’s the emotional or feeling part

Affirmative action programs

Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups

Assumed similarity

An observer’s perception of others influenced more by the observer’s own characteristics than by those of the person observed

Attitudes

Evaluative statements, either favorable or unfavorable, concerning objects, people, or events

Attribution theory

A theory used to explain how we judge people differently, based on what meaning we attribute to a given behavior

Augmented reality

A technology that superimposes a computer-generated image on a user’s view of the real world

Authority

The rights inherent in a managerial position to give orders and expect the orders to be obeyed

B

Balanced scorecard

A performance measurement tool that looks at more than just the financial perspective

Basic corrective action

Corrective action that looks at how and why performance deviated before correcting the source of deviation

Behavior

The actions of people

Behavioral component

The part of an attitude that refers to an intention to behave in a certain way toward someone or something

Behavioral theories of leadership

Theories that isolate behaviors that differentiate effective leaders from ineffective leaders

Benchmarking

The search for the best practices among competitors or noncompetitors that lead to their superior performance

Big data

The vast amount of quantifiable information that can be analyzed by highly sophisticated data processing

Big Five Model

A personality trait model that examines five traits: extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience

Board representatives

Employees who sit on a company’s board of directors and represent the interest of employees

Body language

Nonverbal communication cues such as facial expressions, gestures, and other body movements

Boundaryless career

When an individual takes personal responsibility for his or her own career

Boundaryless organization

An organization whose design is not defined by, or limited to, boundaries imposed by a predefined structure

Bounded rationality

Making decisions that are rational within the limits of a manager’s ability to process information

Brainstorming

An idea-generating process that encourages alternatives while withholding criticism

Break-even analysis

A technique for identifying the point at which total revenue is just sufficient to cover total costs

Business model

strategic design for how a company intends to profit from its broad array of strategies, processes, and activities

Business plan

A written document that summarizes a business opportunity and defines and articulates how the identified opportunity is to be seized and exploited

C

“Calm waters” metaphor

A description of organizational change that likens that change to a large ship making a predictable trip across a calm sea and experiencing an occasional storm

Capabilities

An organization’s skills and abilities in doing the work activities needed in its business

Career

The sequence of work positions held by a person during his or her lifetime

Centralization

The degree to which decision making takes place at upper levels of the organization

Certainty

A situation in which a decision maker can make accurate decisions because all outcomes are known

Chain of command

The line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom

Change agents

People who act as change catalysts and assume the responsibility for managing the change process

Channel

The medium by which a message travels

Charismatic leaders

Enthusiastic, self-confident leaders whose personalities and actions influence people to behave in certain ways

Cloud computing

Storing and accessing data on the Internet rather than on a computer’s hard drive or a company’s network

Code of ethics

A formal document that states an organization’s primary values and the ethical rules it expects managers and nonmanagerial employees

Cognitive component

The part of an attitude made up of the beliefs, opinions, knowledge, and information held by a person

Cognitive dissonance

Any incompatibility or inconsistency between attitudes or between behavior and attitudes

Commitment concept

The idea that plans should extend far enough to meet those commitments made when the plans were developed

Communication

A transfer of understanding and meaning from one person to another

Communication process

The seven-part process of transferring and understanding of meaning

Communities of practice

Groups of people who share a concern, a set of problems, or a passion about a topic and who deepen their knowledge and expertise in that area by interacting on an ongoing basis

Competitive advantage

What sets an organization apart; its distinctive edge

Competitive intelligence

A type of environmental scanning that gives managers accurate information about competitors

Competitive strategy

An organizational strategy for how an organization will compete in its business(es)

Compressed workweek

A workweek where employees work longer hours per day but fewer days per week

Conceptual skills

A manager’s ability to analyze and diagnose complex situations

Concurrent control

Control that takes place while a work activity is in progress

Contingency approach (or situational approach)

An approach to management that says that individual organizations, employees, and situations are different and require different ways of managing

Contingent workers

Temporary, freelance, or contract workers whose employment is contingent upon demand for their services

Control

Management function that involves monitoring activities to ensure that they’re being accomplished as planned and correcting any significant deviations

Control process

A three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations

Controlling

Monitoring activities to ensure that they are accomplished as planned

Core competencies

The major value-creating capabilities of an Organization

Corporate strategy

An organizational strategy that specifies what businesses a company is in or wants to be in and what it wants to do with those businesses

Cost leadership strategy

When an organization competes on the basis of having the lowest costs in its industry

Creativity

The ability to produce novel and useful ideas

Credibility

The degree to which followers perceive someone as honest, competent, and able to inspire

Critical path

The longest or most time-consuming sequence of events and activities required to complete a project in the shortest amount of time

Cross-functional team

A work team made up of individuals from various departments and that cross traditional departmental lines

Cross-functional teams

Teams made up of individuals from various departments and that cross traditional departmental lines

Customer departmentalization

Grouping activities by customer

D

Decentralization

The degree to which lower-level managers provide input or actually make decisions

Decision criteria

Factors that are relevant in a decision

Decision implementation

Putting a decision into action

Decision trees

A diagram used to analyze a progression of decisions. When diagrammed, a decision tree looks like a tree with branches.

Decision-making process

A set of eight steps that includes identifying a problem, selecting a solution, and evaluating the effectiveness of the solution

Decisional roles

Entailing making decisions or choices

Decoding

Translating a received message

Demographics

The characteristics of a population used for purposes of social studies

Departmentalization

How jobs are grouped together

Design thinking

Approaching management problems as designers approach design problems

Differentiation strategy

When an organization competes on the basis of having unique products that are widely valued by customers

Digital tools

Technology, systems, or software that allow the user to collect, visualize, understand, or analyze data

Directional plans

Plans that are flexible and set general guidelines

Discipline

Actions taken by a manager to enforce an organization’s standards and regulations

Disruptive innovation

Innovations in products, services, or processes that radically change an industry’s rules of the game

Distributive justice

Perceived fairness of the amount and allocation of rewards among individuals

Division of labor (or job specialization)

The breakdown of jobs into narrow repetitive tasks

Divisional structure

An organizational structure made up of separate business units or divisions

Downsizing

The planned elimination of jobs in an organization

E

Economic order quantity (EOQ)

A model that seeks to balance the costs involved in ordering and carrying inventory, thus minimizing total costs associated with carrying and ordering costs

Effectiveness

Doing the right things, or completing work activities so that organizational goals are attained

Efficiency

Doing things right, or getting the most output from the least amount of inputs

Electronic meeting

A type of nominal group technique in which participants are linked by computer

Emojis

Tiny drawings of facial expressions or objects used in text messages, e-mails, and on social media

Emoticons

Representations of facial expressions created by various combinations of keyboard characters

Emotional intelligence (EI)

The ability to notice and to manage emotional cues and information

Employee assistance programs (EAPs)

Programs offered by organizations to help employees overcome personal and health-related problems

Employee benefits

Membership-based rewards designed to enrich employees’ lives

Employee counseling

A process designed to help employees overcome performance-related problems

Employee empowerment

Giving employees the power to make decisions and take actions on their own

Employee engagement

When employees are connected to, satisfied with, and enthusiastic about their jobs

Employee productivity

A performance measure of both work efficiency and effectiveness

Employee recognition programs

Programs that consist of personal attention and expressions of interest, approval, and appreciation for a job well done

Employee theft

Any unauthorized taking of company property by employees for their personal use

Employee training

A learning experience that seeks a relatively permanent change in employees by improving their ability to perform on the job

Employment planning

The process by which managers ensure they have the right numbers and kinds of people in the right places at the right time

Empowerment

The act of increasing the decision-making discretion of workers

Encoding

Converting a message into symbolic form

Entrepreneur

Someone who initiates and actively operates an entrepreneurial venture (EV)

Entrepreneurial ventures (EVs)

Organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals

Entrepreneurship

The process of capitalizing on opportunities by starting new businesses for the purposes of changing, revolutionizing, transforming, or introducing new products or services

Environmental complexity

The number of components in an organization’s environment, how similar the components are, and the extent of knowledge that the organization has about those components

Environmental scanning

An analysis of the external environment, which involves screening large amounts of information to detect emerging trends

Environmental uncertainty

The degree of change, predictability of change, and complexity in an organization’s environment

Equity theory

The theory that an employee compares his or her job’s input-to-outcome ratio with that of relevant others and then corrects any inequity

Escalation of commitment

An increased commitment to a previous decision despite evidence that it may have been a poor decision

Ethical communication

Presented material that contains all relevant information, is true in every sense, and is not deceptive in any way

Ethical culture

A culture in which the shared concept of right and wrong behavior in the workplace reflects the organization’s core values and influences employees’ ethical decision making

Ethics

A set of rules or principles that defines right and wrong conduct

Ethnicity

Social traits, such as one’s cultural background or allegiance, that are shared by a human population

Events

End points that represent the completion of major activities

Expectancy theory

The theory that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual

Exporting

Making products domestically and selling them abroad

External environment

Factors, forces, situations, and events outside the organization that affect its performance

F

Family-friendly benefits

Benefits that provide a wide range of scheduling options and allow employees more flexibility at work, accommodating their needs for work/life balance

Feasibility study

An analysis of the various aspects of a proposed entrepreneurial venture designed to determine its feasibility

Feedback

Checking to see how successfully a message has been transferred

Feedback control

Control that takes place after a work activity is done

Feedforward control

Control that takes place before a work activity is done

Fiedler contingency model

Leadership theory proposing that effective group performance depends on the proper match between a leader’s style and the degree to which the situation allowed the leader to control and influence

Filtering

Deliberately manipulating information to make it appear more favorable to the receiver

First-line managers

Supervisors responsible for directing the day-today activities of nonmanagerial employees and/or team leaders

Fixed-point reordering system

A method for a system to “flag” the need to reorder inventory at some preestablished point in the process

Flextime (also known as flexible work hours)

A work scheduling system in which employees are required to work a specific number of hours per week but can vary when they work those hours within certain limits

Focus strategy

When an organization competes in a narrow segment or niche with either a cost focus or a differentiation focus

Foreign subsidiary

A direct investment in a foreign country that involves setting up a separate and independent facility or office

Formal planning department

A group of planning specialists whose sole responsibility is to help write the various organizational plans

Formalization

How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures

Forming stage

The first stage of group development in which people join the group and then define the group’s purpose, structure, and leadership

Franchising

An agreement in which an organization gives another organization the right, for a fee, to use its name and operating methods

Functional departmentalization

Grouping activities by functions performed

Functional strategy

Strategy used in an organization’s various functional departments to support the competitive strategy

Functional structure

An organizational design that groups similar or related occupational specialties together

Fundamental attribution error

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others

G

Gamification

Applying typical aspects of game playing to other areas of activity especially in a work setting

Gantt chart

A planning tool that shows in bar graph form when tasks are supposed to be done and compares that with the actual progress on each

General administrative theory

Descriptions of what managers do and what constitutes good management practice

Global corporation

An MNC that centralizes management and other decisions in the home country

Global sourcing

Purchasing materials or labor from around the world, wherever it is cheapest

Global strategic alliance

A partnership between an organization and foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities

Global village

A boundaryless world where goods and services are produced and marketed worldwide

GLOBE

The Global Leadership and Organizational Behavior Effectiveness research program, a program that studies cross-cultural leadership behaviors

Goal-setting theory

The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals

Goals (objectives)

Desired outcomes or targets

Grapevine

An unofficial channel of communication

Group

Two or more interacting and interdependent individuals who come together to achieve specific goals

Group cohesiveness

The degree to which group members are attracted to one another and share the group’s goals

Groupthink

When a group exerts extensive pressure on an individual to withhold his or her different views in order to appear to be in agreement

Growth strategy

A corporate strategy in which an organization expands the number of markets served or products offered either through its current business(es) or through new business(es)

H

Halo effect

When we form a general impression of a person on the basis of a single characteristic

Harvesting

Exiting a venture when an entrepreneur hopes to capitalize financially on the investment in the venture

Hawthorne studies

Research done in the late 1920s and early 1930s devised by Western Electric industrial engineers to examine the effect of different work environment changes on worker productivity, which led to a new emphasis on the human factor in the functioning of organizations and the attainment of their goals

Heuristics

Judgmental shortcuts or “rules of thumb” used to simplify decision making

Hierarchy of needs theory

Maslow’s theory that there is a hierarchy of five human needs: physiological, safety, social, esteem, and self-actualization

Human resource inventory

A report listing important information about employees such as name, education, training, skills, languages spoken, and so forth

Human resource management (HRM)

The management function concerned with getting, training, motivating, and keeping competent employees

Hygiene factors

Factors that eliminate job dissatisfaction but don’t motivate

I

Idea champions

Individuals who actively and enthusiastically support new ideas, build support for, overcome resistance to, and ensure that innovations are implemented

Immediate corrective action

Corrective action that addresses problems at once to get performance back on track

Importing

Acquiring products made abroad and selling them Domestically

Inclusion

The achievement of a work environment in which all individuals are treated fairly and respectfully, have equal opportunities and resources, and can contribute fully to the organization’s success

Industrial Revolution

The advent of machine power, mass production, and efficient transportation beginning in the late eighteenth century in Great Britain

Information overload

What results when information exceeds processing capacity

Informational roles

Involving collecting, receiving, and disseminating information

Innovation

The process of taking a creative idea and turning it into a useful product, service, or method of operation

Intergroup development

Activities that attempt to make several work groups more cohesive

Interpersonal roles

Involving people (subordinates and persons outside the organization) and other duties that are ceremonial and symbolic in nature

Interpersonal skills

A manager’s ability to work with, understand, mentor, and motivate others, both individually and in groups

Intuitive decision making

Making decisions on the basis of experience, feelings, and accumulated judgment

ISO 9001

A series of international quality standards that set uniform guidelines for processes to ensure that products conform to customer requirements

J

Jargon

Technical language specific to a discipline or Industry

Job analysis

An assessment that defines jobs and the behaviors necessary to perform them

Job characteristics model (JCM)

A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes

Job description

A written statement that describes a job

Job design

The way tasks are combined to form complete jobs

Job enrichment

The vertical expansion of a job by adding planning and evaluation responsibilities

Job involvement

The degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance important for self-worth

Job satisfaction

An employee’s general attitude toward his or her job

Job sharing

When two or more people split a full-time job

Job specification

A written statement of the minimum qualifications that a person must possess to perform a given job successfully

Joint venture

A specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose

K

Karoshi

A Japanese term that refers to a sudden death caused by overworking

Knowledge management

Cultivating a learning culture in which organizational members systematically gather knowledge and share it with others

L

Layoff-survivor sickness

A set of attitudes, perceptions, and behaviors of employees who survive layoffs

Leader

Someone who can influence others and who has managerial authority

Leader-member exchange (LMX) theory

A leadership theory that says leaders create in- groups and out-groups and those in the in- group will have higher performance ratings, less turnover, and greater job satisfaction

Leader-participation model

A leadership contingency theory that’s based on a sequential set of rules for determining how much participation a leader uses in decision making according to different types of situations

Leadership

The process of leading a group and influencing that group to achieve its goals

Leading

Directing and coordinating the work activities of an organization’s people

Learning

A relatively permanent change in behavior that occurs as a result of experience

Learning organization

An organization that has developed the capacity to continuously learn, adapt, and change

Least-preferred coworker (LPC) questionnaire

A questionnaire that measures whether a leader was task or relationship oriented

Licensing

An agreement in which an organization gives another the right, for a fee, to make or sell its products, using its technology or product specifications

Line authority

Authority that entitles a manager to direct the work of an employee

Linear programming

A mathematical technique that solves resource allocation problems

Load chart

A modified version of a Gantt chart that lists either whole departments or specific resources

Locus of control

The degree to which people believe they control their own fate

Long-term plans

Plans with a time frame beyond three years

M

Machiavellianism (“Mach”)

A measure of the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify means

Management

The process of getting things done, effectively and efficiently, through and with other people

Management by objectives (MBO)

A process of setting mutually agreed-upon goals and using those goals to evaluate employee performance

Management by walking around (MBWA)

When a manager is out in the work area interacting with employees

Managerial grid

A two-dimensional grid for appraising leadership styles

Managerial roles

Specific categories of managerial behavior; often grouped around interpersonal relationships, information transfer, and decision making

Managers

Individuals in an organization who direct and oversee the activities of others

Manufacturing organizations

Organizations that produce physical goods

Mass production

Large-batch manufacturing

Matrix structure

A structure in which specialists from different functional departments are assigned to work on projects led by a project manager

Means-ends chain

An integrated network of goals in which higher-level goals are linked to lower-level goals, which serve as the means for their accomplishment

Mechanistic organization

A bureaucratic organization; a structure that’s high in specialization, formalization, and centralization

Message

A purpose for communicating that’s to be conveyed

Middle managers

Individuals who are typically responsible for translating goals set by top managers into specific details that lower-level managers will see get done

Mission

A statement of an organization’s purpose

MNC (multinational corporation)

Any type of international company that maintains operations in multiple countries

Motivation

The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal

Motivators

Factors that increase job satisfaction and motivation

Multidomestic corporation

An MNC that decentralizes management and other decisions to the local country where it’s doing business

Myers-Briggs Type Indicator (MBTI)

A personality assessment that uses four dimensions of personality to identify different personality types

N

Necessity entrepreneurs

Individuals who start an EV out of necessity

Need for achievement (nAch)

The drive to succeed and excel in relation to a set of standards

Need for affiliation (nAff)

The desire for friendly and close interpersonal Relationships

Need for power (nPow)

The need to make others behave in a way that they would not have behaved otherwise

Network organization

An organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes

Nominal group technique

A decision-making technique in which group members are physically present but operate independently

Nonmanagerial employees

People who work directly on a job or task and have no responsibility for overseeing the work of others

Nonprogrammed decision

A unique and nonrecurring decision that requires a custom-made solution

Norming stage

The third stage of group development, which is characterized by close relationships and cohesiveness

Norms

Standards or expectations that are accepted and shared by a group’s members

O

Omnipotent view of management

The view that managers are directly responsible for an organization’s success or failure

Open systems

Systems that dynamically interact with their environment

Open workplaces

Workplaces that have few physical barriers and enclosures

Open-book management

A motivational approach in which an organization’s financial statements (the “books”) are shared with all employees

Operant conditioning

A theory of learning that says behavior is a function of its consequences

Operations management

The study and application of the transformation process

Opportunities

Positive trends in the external environment

Opportunity-based entrepreneurs

Individuals who start an EV to pursue an opportunity

Organic organization

A structure that’s low in specialization, formalization, and centralization

Organization

A deliberate collection of people brought together to accomplish some specific purpose

Organization design

When managers develop or change the organization’s structure

Organization development (OD)

Efforts that assist organizational members with a planned change by focusing on their attitudes and values

Organizational behavior (OB)

The field of study that researches the actions (behaviors) of people at work

Organizational change

Any alteration of an organization’s people, structure, or technology

Organizational citizenship behavior

Discretionary behavior that’s not part of an employee’s formal job requirements, but that promotes the effective functioning of the organization

Organizational commitment

An employee’s orientation toward the organization in terms of his or her loyalty to, identification with, and involvement in the organization

Organizational processes

The way organizational work is done

Organizational vision

A broad comprehensive picture of what an entrepreneur wants his or her organization to become

Organizing

The function of management in which the organization's structure is created by determining what needs to be done, how it will be done, and who is to do it

Orientation

Introducing a new employee to the job and the Organization

P

Parochialism

A narrow focus in which managers see things only through their own eyes and from their own perspective

Path-goal theory

A leadership theory that says the leader’s job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the organization’s or group’s goals

Pay-for-performance programs

Variable compensation plans that pay employees on the basis of some performance measure

Perception

A process by which we give meaning to our environment by organizing and interpreting sensory impressions

Performance management system

A system that establishes performance standards that are used to evaluate employee performance

Performance-simulation tests

Selection devices based on actual job behaviors

Performing stage

The fourth stage of group development, when the group is fully functional and works on the group task

Personality

A unique combination of emotional, thought, and behavioral patterns that affect how a person reacts to situations and interacts with others

PERT network analysis

A flowchart-like diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity

Planning

Defining goals, establishing strategy, and developing plans to coordinate activities

Plans

Documents that outline how goals are going to be met

Policy

A guideline for making decisions

Political skills

A manager’s ability to build a power base and establish the right connections

Portfolio entrepreneur

An individual who retains an original business and builds a portfolio of additional businesses through inheriting, establishing, or purchasing them

Power

An individual’s capacity to influence decisions

Principles of management

Fayol’s fundamental or universal principles of management practice

Proactive personality

A personality trait describing those individuals who are more prone to take actions to influence their environment

Problem

A discrepancy between an existing and a desired state of affairs to follow

Problem-solving teams

A team from the same department or functional area that’s involved in efforts to improve work activities or to solve specific problems

Procedural justice

Perceived fairness of the process used to determine the distribution of rewards

Procedure

A series of interrelated, sequential steps used to respond to a structured problem

Process consultation

Using outside consultants to assess organizational processes such as workflow, informal intra-unit relationships, and formal communication channels

Process departmentalization

Grouping activities on the basis of work or customer flow

Process production

Continuous flow or process production

Product departmentalization

Grouping activities by major product areas

Professionalism

How you conduct yourself at work—your attitudes, your actions, your behaviors

Programmed decision

A repetitive decision that can be handled using a routine approach

Project

A one-time-only set of activities with a definite beginning and ending point

Project management

The task of getting project activities done on time, within budget, and according to specifications

Project structure

A structure in which employees continuously work on projects

Q

Quantitative approach

The use of quantitative techniques to improve decision making

Queuing theory

Also known as waiting line theory, it is a way of balancing the cost of having a waiting line versus the cost of maintaining the line. Management wants to have as few stations open as possible to minimize costs without testing the patience of its customers.

R

Race

The biological heritage (including physical characteristics, such as one’s skin color and associated traits) that people use to identify themselves

Range of variation

The acceptable parameters of variance between actual performance and a standard

Rational decision making

Describes choices that are consistent and value maximizing within specified constraints

Readiness

The extent to which people have the ability and willingness to accomplish a specific task

Real goals

Those goals an organization actually pursues as shown by what the organization’s members are doing

Realistic job preview (RJP)

A preview of a job that provides both positive and negative information about the job and the company

Recruitment

Locating, identifying, and attracting capable Applicants

Referent

The persons, systems, or selves against which individuals compare themselves to assess equity

Reliability

The degree to which a selection device measures the same thing consistently

Remote work

Doing work via virtual devices from any remote location

Renewal strategy

A corporate strategy that addresses declining organizational performance

Resources

An organization’s assets that it uses to develop, manufacture, and deliver products to its customers

Responsibility

An obligation to perform assigned duties

Rights view of ethics

View that says ethical decisions are made in order to respect and protect individual liberties and privileges

Ringisei

Japanese consensus-forming group decisions

Risk

A situation in which a decision maker is able to estimate the likelihood of certain outcomes

Role

Behavior patterns expected of someone who occupies a given position in a social unit

Rule

An explicit statement that tells employees what can or cannot be done

S

Satisfice

Accepting solutions that are “good enough”

Scientific management

The use of scientific methods to define the “one best way” for a job to be done

Selection process

Screening job applicants to ensure that the most appropriate candidates are hired

Selective perception (communication)

Selectively perceiving or hearing a communication based on your own needs, motivations, experiences, or other personal characteristics

Selective perception (perceptual shortcuts)

The tendency for people to only absorb parts of what they observe, which allows us to “speed read” others

Self-efficacy

An individual’s belief that he or she is capable of performing a task

Self-employment

Individuals who work for profit or fees in their own business, profession, trade, or farm

Self-esteem (SE)

An individual’s degree of like or dislike for himself or herself

Self-managed work team

A type of work team that operates without a manager and is responsible for a complete work process or segment

Self-monitoring

A personality trait that measures the ability to adjust behavior to external situational factors

Self-serving bias

The tendency for individuals to attribute their successes to internal factors while putting the blame for failures on external factors

Serial entrepreneur

An individual who has sold or closed an original business, founded another business, sold or closed that business, and continues this cycle of entrepreneurial behavior

Service organizations

Organizations that produce nonphysical products in the form of services

Sexual harassment

Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual’s employment, performance, or work environment

Shaping behavior

The process of guiding learning in graduated steps, using reinforcement or lack of reinforcement

Sharing economy

An economic environment in which asset owners share with other individuals through a peer-to-peer service, for a set fee, their underutilized physical assets or their knowledge, expertise, skills, or time

Short-term plans

Plans with a time frame of one year or less

Simple structure

An organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization

Single-use plan

A one-time plan specifically designed to meet the needs of a unique situation

Situational leadership theory (SLT)

A leadership contingency theory that focuses on followers’ readiness

Six Sigma

A quality standard that establishes a goal of no more than 3.4 defects per million units or procedures

Skill-based pay

A pay system that rewards employees for the job skills they demonstrate

Skunk works

A small group within a large organization, given a high degree of autonomy and unhampered by corporate bureaucracy, whose mission is to develop a project primarily for the purpose of radical innovation

Slack time

The time difference between the critical path and all other paths

Small business

An independent business having fewer than 500 employees that doesn’t necessarily engage in any new or innovative practices and has relatively little impact on its industry

Social entrepreneur

An individual or organization that seeks out opportunities to improve society by using practical, innovative, and sustainable approaches

Social learning theory

A theory of learning that says people can learn through observation and direct experience

Social loafing

The tendency for individuals to expend less effort when working collectively than when working individually

Social media

Forms of electronic communication through which users create online communities to share ideas, information, personal messages, and other content

Social obligation

When a business firm engages in social actions because of its obligation to meet certain economic and legal responsibilities

Social responsibility (corporate social responsibility, or CSR)

A business firm’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society

Social responsiveness

When a business firm engages in social actions in response to some popular social need

Span of control

The number of employees a manager can efficiently and effectively supervise

Specific plans

Plans that are clearly defined and leave no room for interpretation

Stability strategy

A corporate strategy in which an organization continues to do what it is currently doing

Staff authority

Positions with some authority that have been created to support, assist, and advise those holding line authority

Stakeholders

Any constituencies in an organization’s environment that are affected by that organization’s decisions and actions

Standing plans

Plans that are ongoing and provide guidance for activities performed repeatedly

Stated goals

Official statements of what an organization says, and wants its stakeholders to believe, its goals are

Status

A prestige grading, position, or rank within a group

Status conformity

Adjusting one’s behavior to align with a group’s norms. A prestige grading, position, or rank within a group

Stereotyping

When we judge someone on the basis of our perception of a group to which that person belongs

Storming stage

The second stage of group development, which is characterized by intragroup conflict

Strategic business units (SBUs)

An organization’s single businesses that are independent and formulate their own competitive strategies

Strategic management

What managers do to develop an organization’s strategies

Strategic management process

A six-step process that encompasses strategy planning, implementation, and evaluation

Strategic plans

Plans that apply to the entire organization and encompass the organization’s overall goals

Strategies

Plans for how the organization will do what it’s in business to do, how it will compete successfully, and how it will attract its customers in order to achieve its goals

Strengths

Any activities the organization does well or any unique resources that it has

Stress

Response to anxiety over intense demands, constraints, or opportunities

Stressors

Factors that cause stress

Strong cultures

Cultures in which the key values are deeply held and widely shared

Structured problem

A straightforward, familiar, and easily defined problem

Survey feedback

A method of assessing employees’ attitudes toward and perceptions of a change

Sustainability

A company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies

Sustaining innovation

Innovations that represent small and incremental changes in established products rather than dramatic breakthroughs

SWOT analysis

The combined external and internal analyses

Symbolic view of management

The view that much of an organization’s success or failure is due to external forces outside managers’ control

Systems approach

An approach to management that views an organization as a system, which is a set of interrelated and interdependent parts arranged in a manner that produces a unified whole

T

Tactical plans

Plans that specify the details of how the overall goals are to be achieved

Team leaders

Individuals who are responsible for leading and facilitating the activities of a work team

Team structure

A structure in which the entire organization is made up of work teams

Team-building

Using activities to help work groups set goals, develop positive interpersonal relationships, and clarify the roles and responsibilities of each team member

Technical skills

Job-specific knowledge and techniques needed to perform work tasks

Technology

Any equipment, tools, or operating methods that are designed to make work more efficient

Telecommuting

A work arrangement in which employees work at home and are linked to the workplace by virtual device

Theory of justice view of ethics

View that says ethical decisions are made in order to enforce rules fairly and impartially

Theory X

The assumption that employees dislike work, are lazy, avoid responsibility, and must be coerced to work

Theory Y

The assumption that employees are creative, enjoy work, seek responsibility, and can exercise self-direction

Threats

Negative trends in the external environment

Three-needs theory

McClelland’s theory, which says that three acquired (not innate) needs—achievement, power, and affiliation—are major motives at work

360-degree appraisal

An appraisal device that seeks feedback from a variety of sources for the person being rated

Top managers

Individuals who are responsible for making decisions about the direction of the organization and establishing policies that affect all organizational members

Total quality management (TQM)

A managerial philosophy devoted to continual improvement and responding to customer needs and expectations

Traditional goal setting

Goals set by top managers flow down through the organization and become subgoals for each organizational area

Trait theories of leadership

Theories that isolate characteristics (traits) that differentiate leaders from nonleaders

Transactional leaders

Leaders who lead primarily by using social exchanges (or transactions)

Transformation process

The process that converts resources into finished goods and services

Transformational leaders

Leaders who stimulate and inspire (transform) followers to achieve extraordinary outcomes

Transnational (borderless) organization

An MNC where artificial geographic boundaries are eliminated

Trust

The belief in the integrity, character, and ability of a leader

Turnover

Voluntary and involuntary permanent withdrawal from an organization

Two-factor theory

Herzberg’s motivation theory, which proposes that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated with job dissatisfaction

Type A personality

People who have a chronic sense of urgency and an excessive competitive drive

Type B personality

People who are relaxed and easygoing and accept change easily

U

Uncertainty

A situation in which a decision maker has neither certainty nor reasonable probability estimates available

Unit production

The production of items in units or small batches

Unity of command

Structure in which each employee reports to only one manager

Unstructured problem

A problem that is new or unusual for which information is ambiguous or incomplete

Utilitarian view of ethics

View that says ethical decisions are made solely on the basis of their outcomes or consequences

V

Validity

The proven relationship between a selection device and some relevant criterion

Value

The performance characteristics, features and attributes, and any other aspects of goods and services for which customers are willing to give up resources

Value chain

The entire series of organizational work activities that add value at each step from raw materials to finished product

Value chain management

The process of managing the sequence of activities and information along the entire value chain

Variable pay

A pay system in which an individual’s compensation is contingent on performance

Verbal intonation

An emphasis given to words or phrases that conveys meaning

Virtual organization

An organization that consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects

Virtual team

A type of work team that uses technology to link physically dispersed members in order to achieve a common goal

Visionary leadership

The ability to create and articulate a realistic, credible, and attractive vision of the future that improves on the present situation

W

Weaknesses

Activities the organization doesn’t do well or resources it needs but doesn’t possess

Wellness programs

Programs offered by organizations to help employees prevent health problems

“White-water rapids” metaphor

A description of organizational change that likens that change to a small raft navigating a raging river

Work councils

Groups of nominated or elected employees who must be consulted when management makes decisions involving personnel

Work specialization

Dividing work activities into separate job tasks; also called division of labor

Work teams

Groups whose members work intensely on specific, common goals using their positive synergy, individual and mutual accountability, and complementary skills

Workforce diversity

Ways in which people in a workforce are similar and different from one another in terms of gender, age, race, sexual orientation, ethnicity, cultural background, and physical abilities and disabilities

Workplace misbehavior

Any intentional employee behavior that is potentially harmful to the organization or individuals within the organization

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