Below is an alphabetic listing of all glossary terms found throughout the text.

A | B | C | D | E | F | G | H | I | J | K | L | M
N | O | P | Q | R | S | T | U | V | W



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Absenteeism When an individual does not show up for work

accommodative stance A social responsibility stance in which an organization meets its basic legal and ethical obligations and also goes beyond social obligation in selected cases

accurate information Provides a valid and reliable reflection of reality

acquisition The purchase of a firm by a firm that is considerably larger

action plan A plan used to operationalize any other kind of plan

administrative intensity The degree to which managerial positions are concentrated in staff positions

Administrative management Focuses on managing the total organization

administrative model A decision-making model that argues that decision makers (1) have incomplete and imperfect information, (2) are constrained by bounded rationality, and (3) tend to satisfice when making decisions

adverse impact When minority group members pass a selection standard at a rate less than 80 percent of the pass rate of majority group members

affirmative action Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization

Age Discrimination in Employment Act Outlaws discrimination against people older than 40 years; passed in 1967, amended in 1978 and 1986

Agreeableness A person's ability to get along with others

Americans With Disabilities Act Prohibits discrimination against people with disabilities

analyzer strategy A strategy in which the firm attempts to maintain its current businesses and to be somewhat innovative in new businesses

areas of management Managers can be differentiated into marketing, financial, operating, human resource, administration, and other areas

artificial intelligence (AI) The construction of computer systems, both hardware and software, to imitate human behavior; that is, to perform physical tasks, use thought processes, and learn

Attitudes Complexes of beliefs and feelings that people have about specific ideas, situations, or other people

Attribution The process of observing behavior and attributing causes to it

audits An independent appraisal of an organization's accounting, financial, and operational systems.

Authoritarianism The extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations

authority Power that has been legitimized by the organization

automation The process of designing work so that it can be completely or almost completely performed by machines

avoidance Used to strengthen behavior by avoiding unpleasant consequences which would result if the behavior were not performed



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backward vertical integration An organization's beginning the business activities formerly conducted by its suppliers

balance sheet List of assets and liabilities of an organization at a specific point in time

BCG matrix A method of evaluating businesses relative to the growth rate of their market and the organization's share of the market

behavior modification, or OB Mod Method for applying the basic elements of reinforcement theory in an organizational setting

behavioral model A model of organization design consistent with the human relations movement and stressing attention to developing work groups and concern with interpersonal processes

Behaviorally Anchored Rating Scale (BARS) A sophisticated rating method in which supervisors construct a rating scale associated with behavioral anchors

benchmarking The process of learning how other firms do things in an exceptionally high quality manner

benefits Things of value other than compensation that an organization provides to its workers

"Big five" personality traits A popular personality framework based on five key traits

board of directors Governing body elected by a corporation's stockholders charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests

bounded rationality A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits

budget A plan expressed in numerical terms

bureaucracy A model of organization design based on a legitimate and formal system of authority

bureaucratic control A form of organizational control characterized by formal and mechanistic structural arrangements

Burnout A feeling of exhaustion that may develop when someone experiences too much stress for an extended period of time

business plan A document that summarizes the business strategy and structure

business-level strategy The set of strategic alternatives that an organization chooses from as it conducts business in a particular industry or market



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capacity The amount of products, services, or both that can be produced by an organization

cellular layout A physical configuration of facilities used when families of products can follow similar flow paths

centralization The process of systematically retaining power and authority in the hands of higher-level managers

chain of command A clear and distinct line of authority among the positions in an organization

charisma A form of interpersonal attraction that inspires support and acceptance

charismatic leadership Assumes that charisma is an individual characteristic of the leader

Civil Rights Act of 1991 Amends the Original Civil Rights Act, making it easier to bring discrimination lawsuits while also limiting punitive damages

clan control An approach to organizational control based on informal and organic structural arrangements

classical decision model A prescriptive approach to decision making that tells managers how they should make decisions. It assumes that managers are logical and rational and that their decisions will be in the best interests of the organization

closed systems An organizational system that does not interact with its environment

coalition An informal alliance of individuals or groups formed to achieve a common goal

code of ethics A formal, written statement of the values and ethical standards that guide a firm's actions

coercive power The power to force compliance by means of psychological, emotional, or physical threat

Cognitive dissonance Caused when an individual has conflicting attitudes

cohesiveness The extent to which members are loyal and committed to the group; the degree of mutual attractiveness within the group

collective bargaining The process of agreeing on a satisfactory labor contract between management and a union

common strength A skill or capability held by numerous competing firms

communication network The pattern through which the members of a group communicate

communication skills The manager's abilities to both effectively convey ideas and information to others and to effectively receive ideas and information from others

communication The process of transmitting information from one person to another

compensation The financial remuneration given by the organization to its employees in exchange for their work

competitive disadvantage A situation in which an organization is not implementing valuable strategies that are being implemented by competing organizations

competitor An organization that competes with other organizations for resources

complete information Provides the manager with all of the information he or she needs

compressed work schedule Working a full forty-hour week in fewer than the traditional five days

computer assisted manufacturing A technology that relies on computers to design or manufacture products

conceptual skills The manager's ability to think in the abstract

concern for people That part of the Managerial Grid that deals with the human aspects of leader behavior

concern for production That part of the Managerial Grid that deals with the job and task aspects of leader behavior

conflict A disagreement between two or more individuals or groups

Conscientiousness The number of goals on which a person focuses

consideration behavior The behavior of leaders who concern for subordinates and attempt to establish a warm, friendly, and supportive climate

content perspectives Approaches to motivation that try to answer the question "what factor or factors motivate people?"

contingency perspective Suggests that appropriate managerial behavior in a given situation depends on, or is contingent on, a wide variety of elements

contingency planning The determination of alternative courses of action to be taken if an intended plan is unexpectedly disrupted or rendered inappropriate

Contributions What the individual provides to the organization

control standard A target against which subsequent performance will be compares

control The regulation of organizational activities in such a way as to facilitate goal attainment

controller A position in organizations that helps line managers with their control activities

controlling Monitoring organizational progress toward goal attainment

coordination The process of linking the activities of the various departments of the organization

corporate social audit A formal and thorough analysis of the effectiveness of a firm's social performance

corporate-level strategy The set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets

Creativity The ability of an individual to generate new ideas or to conceive of new perspectives on existing ideas

customer departmentalization Grouping activities to respond to and interact with specific customers or customer groups

customer Whomever pays money to acquire an organization's products or services



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data Raw figures and facts reflecting a single aspect of reality

decentralization The process of systematically delegating power and authority throughout the organization to middle and lower-level managers

decision making Part of the planning process that involves selecting a course of action from a set of alternatives

decision making skills the manager's ability to correctly recognize and define problems and opportunities and to then select an appropriate course of action to solve problems and capitalize on opportunities

decision making The act of choosing one alternative from among a set of alternatives

decision support system (DSS) An interactive system that locates and presents information needed to support the decision-making process

decisional roles The roles of entrepreneur, disturbance handler, resource allocator, and negotiator, which primarily relate to making decisions

decision-making process Recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice

defender strategy A strategy in which the firm focuses on lowering costs and improving the performance of current products

defensive stance A social responsibility stance in which an organization does everything that is required of it legally but nothing more

delegation The process by which a manager assigns a portion of his or her total workload to others

deliberate strategy A plan of action that an organization chooses and implements to support its mission and goals

Delphi group A form of group decision making in which a group is used to achieve a consensus of expert opinion

departmentalization The process of grouping jobs according to some logical arrangement

development Teaching managers and professionals the skills needed for both present and future jobs

diagnostic skills The manager's ability to visualize the most appropriate response to a situation

differentiation Extent to which the organization is broken down into sub-units

differentiation strategy A strategy in which an organization seeks to distinguish itself from competitors through the quality of its products or services

direct investment When a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country

distinctive competence An organizational strength possessed by only a small number of competing firms

diversification The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another

diversity and multicultural training Training that is specifically designed to better enable members of an organization to function in a diverse and multiculturalism workforce

diversity Exists in a group or organization when its members differ from one another along one or more important dimensions such as age, gender, or ethnicity

domestic business A business that acquires all of its resources and sells all of its products or services within a single country



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economic community A set of countries that agree to markedly reduce or eliminate trade barriers among its member nations (a formalized market system)

economic dimension The overall health and vitality of the economic system in which the organization operates

effective communication The process of sending a message in such a way that the message received is as close in meaning as possible to the message intended

effective Making the right decisions and successfully implementing them

effective strategy A strategy that promotes a superior alignment between the organization and its environment and the achievement of strategic goals

efficient Using resources wisely and in a cost-effective way

effort-to-performance expectancy The individual's perception of the probability that his or her effort will lead to high performance

emergent strategy A pattern of action that develops over time in an organization in the absence of mission and goals, or despite missions and goals

employee information system (skills inventory) Contains information on each employee's education, skills, experience, and career aspirations; usually computerized

Employee Retirement Income Security Act of 1974 (ERISA) Sets standards for pension plan management and provides federal insurance if pension funds go bankrupt

employee-centered leader behavior The behavior of leaders who develop cohesive work groups and ensure employee satisfaction

employment at will A traditional view of the workplace that says organizations can fire their employees for whatever reason they want; recent court judgments are limiting employment at will

empowerment The process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority

entrepreneur Someone who engages in entrepreneurship

entrepreneurship The process of planning, organizing, operating, and assuming the risk of a business venture

entropy A normal process leading to system decline

Equal Employment Opportunity Commission Charged with enforcing Title VII of the Civil Rights act of 1964

Equal Pay Act of 1963 Requires that men and women be paid the same amount for doing the same jobs

equity theory Suggests that people are motivated to seek social equity in the rewards they receive for performance

ERG theory of motivation Suggests that people's needs are grouped into three possibly overlapping categories--existence, relatedness, and growth

escalation of commitment A decision maker's staying with a decision even when it appears to be wrong

established market A market in which several large firms compete according to rleatively well-defined criteria

ethical behavior Behavior that conforms to generally accepted social norms

ethical compliance The extent to which an organization and its members follow basic ethical standards of behavior

ethics An individual's personal beliefs regarding what is right and wrong or good and bad

ethnicity The ethnic composition of a group or organization

European Union (EU) The first and most important international market system

executive support systems (ESS) A quick-reference, easy-access application of information systems specially designed for instant access by upper-level managers

expectancy theory Suggests that motivation depends on two things--how much we want something and how likely we think we are to get it

expert power The personal power that accrues to someone based on the information or expertise that they possess

export restraint agreements Accords reached by governments in which countries voluntarily limit the volume or value of goods they export and import from one another

exporting Making a product in the firm's domestic marketplace and selling it in another country

external environment Everything outside an organization's boundaries that might affect it

external recruiting Getting people from outside the organization to apply for jobs

extinction Used to weaken undesired behaviors by simply ignoring or not reinforcing that behavior

extranets A communication network that allows selected outsiders limited access to an organization’s internal information system, or intranet

Extraversion a person's comfort level with relationships



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facilities The physical locations where products or services are created, stored, and distributed

Fair Labor Standards Act Sets a minimum wage and requires overtime pay for work in excess of forty hours per week; passed in 1938 and amended frequently since then

Family and Medical Leave Act of 1993 Requires employers to provide up to twelve weeks of unpaid leave for family and medical emergencies

financial control Concerned with the organization’s financial resources

financial control Concerned with the organization's financial resources

financial statement A profile of some aspect of an organization's financial circumstances

firewalls Software and hardware systems that allow employees access to both the Internet and the company’s internal computer network while barring access by outsiders

first-mover advantage Any advantage that comes to a firm because it exploits an opportunity before any other firm does

five competitive forces The threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers

fixed-interval schedules Provide reinforcement at fixed intervals of time, such as regular weekly pay checks

fixed-position layout A physical configuration of facilities arranged around a single work area; used for the manufacture of large and complex products such as airplanes

fixed-ratio schedules Provide reinforcement after a fixed number of behaviors regardless of the time interval involved, such as a bonus for every fifth sale

flexible work schedules, or flextime Allowing employees to select, within broad parameters, the hours they work

focus strategy A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers

forward vertical integration An organization's beginning the business activities formerly conducted by its customers

franchising agreement A contract between an entrepreneur (the franchisee) and a parent company (the franchiser); the entrepreneur pays the parent company for the use of the trademarks, products, formulas, and business plans

functional departmentalization Grouping jobs involving the same or similar activities

functional group A group created by the organization to accomplish a number of organizational purposes with an indefinite time horizon



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GE Business Screen A method of evaluating businesses along two dimensions: (1) industry attractiveness and (2) competitive position; in general, the more attractive the industry and the more competitive the position, the more an organization should invest in a business

General Adaptation Syndrome General cycle of the stress process

general environment The set of broad dimensions and forces in an organization's surroundings that create its overall context

glass ceiling A perceived barrier that exists in some organizations that presumably keeps women from advancing to top management positions

global business A business that transcends national boundaries and is not committed to a single home country

goal orientation the manner in which people are motivated to work toward different kinds of goals

grapevine An informal communication network among people in an organization

grievance procedure The means by which a labor contract is enforced

group Consists of two or more people who interact regularly to accomplish a common purpose or goal

groupthink A situation that occurs when a group or team's desire for consensus and cohesiveness overwhelms its desire to reach the best possible decision



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H-form or conglomerate Used by an organization made up of a set of unrelated businesses

horizontal communication Communication that flows laterally within the organization; it involves colleagues and peers at the same level of the organization and may involve individuals from several different organizational units

human relations movement Argued that workers respond primarily to the social context of the workplace

human resource management The set of organizational activities directed at attracting, developing, and maintaining an effective workforce



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importing Bringing a good, service, or capital into the home country from abroad

impression management A direct and intentional effort by someone to enhance his or her image in the eyes of others

incentive system A reward system whereby people get different pay amounts at each pay period in proportion to what they do

income statement A summary of financial performance over a period of time

incremental innovation A new product, service, or technology that modifies an existing one

Individual differences Personal attributes that vary from one person to another

Inducements What the organization provides to the individual

informal leader A person who engages in leadership activities but whose right to do so has not been formally recognized by the organization or group

informal or interest group Created by its members for purposes that may or may not be relevant to those of the organization

information Data presented in a way or form that has meaning

information technology Refers to the resources used by an organization to manage information that it needs to carry out its mission

informational roles The roles of monitor, disseminator, and spokesperson, which involve the processing of information

infrastructure The schools, hospitals, power plants, railroads, highways, ports, communication systems, air fields, and commercial distribution systems of a country

initiating-structure behavior The behavior of leaders who define the leader-subordinate role so that everyone knows what is expected, establishing formal lines of communication, and determine how tasks will be performed

innovation The managed effort of an organization to develop new products or services or new uses for existing products or services

integration Degree to which the various sub-units must work together in a coordinated fashion

interacting group or team A decision-making group or team in which members openly discuss, argue about, and agree on the best alternative

interest group A group formed by its own individual members to attempt to influence business

intermediate plan A plan that generally covers from one to five years

internal environment The conditions and forces within an organization

internal recruiting Considering current employees as applicants for higher-level jobs in the organization

international business A business that is primarily based in a single country but acquires some meaningful share of its resources or revenues (or both) from other countries

international dimension The extent to which an organization is involved in or affected by business in other countries

Internet (Net) A gigantic network of networks serving millions of computers offering information on business, science, and government and providing communication flows among more than 170,000 separate networks around the world

Internet Service Provider (ISP) A commercial firm that maintains a permanent connection to the Net and sells temporary connections to subscribers

interpersonal roles The roles of figurehead, leader, and liaison, which involve dealing with other people

interpersonal skills The ability to communicate with, understand, and motivate both individuals and groups

intranet A communication network similar to the internet but operating within the boundaries of a single organization

intrapreneurs Similar to entrepreneurs except that they develop a new business in the context of a large organization

intuition An innate belief about something without conscious consideration

inventory control Managing the organization's raw materials, work-in-process, finished goods, and products in-transit

ISO 9000 A set of quality standards created by the International Organization for Standardization



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job analysis A systematized procedure for collecting and recording information about jobs

job characteristics approach An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences

job design The determination of an individual's work-related responsibilities

job enlargement An alternative to job specialization that involves giving the employee more tasks to perform

job enrichment An alternative to job specialization that involves increasing both the number of tasks the worker does and the control the worker has over the job

job evaluation An attempt to assess the worth of each job relative to other jobs

job rotation An alternative to job specialization that involves systematically moving employees from one job to another

Job satisfaction or dissatisfaction An attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work

job sharing When two part-time employees share one full-time job.

job specialization The degree to which the overall task of the organization is broken down and divided into smaller component parts

job-centered leader behavior The behavior of leaders who pay close attention to the job and work procedures involved with that job

joint ventures A special type of strategic alliance when the partners share in the ownership of an operation on an equity basis

just-in-time (JIT) method An inventory system that has necessary materials arriving as soon as they are needed (just in time) so that the production process is not interrupted



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knowledge workers Specialists, usually professionally-trained and certified—engineers, scientists, information technology specialists, psychologists—who rely on information technology to design new products or create new business processes

knowledge workers Works whose contributions to an organization are based on what they know



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labor relations The process of dealing with employees when they are represented by union

Labor-Management Relations Act Passed in 1947 to limit union power; also known as the Taft-Hartley Act

layout The physical configuration of facilities, the arrangement of equipment within facilities, or both

leader-member exchange (lmx) approach Stresses that leaders have different kinds of relationships with different subordinates

leaders People who can influence the behaviors of others without having to rely on force; those accepted by others as leaders

leadership As a process, the use of noncoercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group or organization culture; as a property, the set of characteristics attributed to individuals who are perceived to be leaders

leading The set of processes used to get members of the organization to work together to further the interests of the organization

learning organization One that works to facilitate the lifelong learning and personal development of all of its employees while continually transforming itself to respond to changing demands and needs

least preferred co-worker (LPC) The measuring scale that asks leaders to describe the person with whom he or she is able to work least well

legal compliance The extent to which an organization complies with local, state, federal, and international laws

legitimate power Power granted through the organizational hierarchy; it is the power defined by the organization that is to be accorded people occupying particular positions

levels of management The differentiation of managers into three basic categories--top, middle, and first-line

licensing An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales

line position A position in the direct chain of command that is responsible for the achievement of an organization's goals

lobbying The use of persons or groups to formally represent a company or group of companies before political bodies to influence legislation

location departmentalization Grouping jobs on the basis of defined geographic sites or areas

location The physical positioning or geographic site of facilities

Locus of control The degree to which an individual believes that behavior has a direct impact on the consequences of that behavior

long-range plan A plan that covers many years, perhaps even decades; common long-range plans are for five years or more

LPC theory A theory of leadership that suggests that the appropriate style of leadership varies with situational favorableness



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Machiavellianism Behavior directed at gaining power and controlling the behavior of others

Malcolm Balridge Award Named after a former Secretary of Commerce, this prestigious award is given to firms that achieve major quality improvements

management A set of activities (including planning and decision making, organizing, leading, and controlling) directed at an organization's resources (human, financial, physical, and information), with the aim of achieving organizational goals in an efficient and effective manner

management by objectives (MBO) A formal goal setting process involving collaboration between managers and subordinates; the extent to which goals are accomplished is a major factor in evaluating and rewarding the subordinate's performance

management by wandering around An approach to communication that involves the manager literally wandering around and having spontaneous conversations with others

management information system (MIS) Supports an organization’s managers by providing daily reports, schedules, plans, and budgets

management science Focuses specifically on the development of mathematical models

manager Someone whose primary responsibility is to carry out management process

managerial ethics Standards of behavior that guide individual managers in their work

managerial innovation A change in the management process in an organization

manufacturing A form of business that combines and transforms resource inputs into tangible outcomes

maquiladoras Light assembly plants built in northern Mexico close to the U.S. border that are given special tax breaks by the Mexican government

market economy An economy based on the private ownership of business and allows market factors such as supply and demand to determine business strategy

market systems Clusters of countries that engage in high levels of trade with each other

Maslow's hierarchy of needs Suggests that people must satisfy five groups of needs in order--physiological, security, belongingness, esteem, and self-actualization

matrix design Based on two overlapping bases of departmentalization

mechanistic organization Similar to the bureaucratic or System 1 model, most frequently found in stable environments

merger The purchase of one firm by another firm of approximately the same size

merit system A reward system whereby people get different pay raises at the end of the year depending on their overall job performance

M-Form or divisional design Based on multiple businesses in related areas operating within a larger organizational framework

mission A statement of an organization's fundamental purpose

motivation The set of forces that cause people to behave in certain ways

multicultural organization An organization that has achieved high levels of diversity, is able to fully capitalize on the advantages of diversity, and which has few diversity-related problems.

multiculturalism The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.

multinational business One that has a worldwide marketplace from which it buys raw materials, borrows money, and manufactures its products and to which it subsequently sells its products



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National Labor Relations Act Passed in 1935 to set up procedures for employees to vote whether to have a union; also known as the Wagner Act

National Labor Relations Board Established by the Wagner Act to enforce its provisions

nationalized To be taken over by the government

need for achievement The desire to accomplish a goal or task more effectively than in the past

need for affiliation The desire for human companionship and acceptance

need for power The desire to be influential in a group and to control one's environment

Negative affectivity A tendency to be generally downbeat and pessimistic, see things in a negative way, and seem to be in a bad mood

Negative emotionality Extent to which a person is poised, calm, resilient and secure

niche A segment of a market not currently being exploited

nominal group A structured technique used to generate creative and innovative alternatives or ideas

nonprogrammed decision A decision that is relatively unstructured; occurs much less often than a programmed decision

nonverbal communication Any communication exchange that does not use words or that uses words to carry more meaning than the strict definition of the words themselves

norms Standards of behavior that the group accepts and expects of its members

North American Free Trade Agreement (NAFTA) An agreement between the United States, Canada, and Mexico to promote trade with one another



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obstructionist stance An approach to social responsibility in which firms do as little as possible to solve social or environmental problems

Occupational Safety and Health Act of 1970 Directly mandates the provision of safe working conditions

open system An organizational system that interacts with its environment

Openness A person's rigidity of beliefs and range of interests

operational goal A goal set by and for lower-level managers of the organization

operational plan Focuses on carrying out tactical plans to achieve operational goals

operations control Focuses on the processes the organization uses to transform resources into products or services

operations management Concerned with helping the organization more efficiently produce its products or services

operations management The total set of managerial activities used by an organization to transform resource inputs into products, services or both

optimizing Balancing and reconciling possible conflicts among goals

oral communication Face-to-face conversation, group discussions, telephone calls, and other circumstances in which the spoken word is used to transmit meaning

organic organization Very flexible and informal model of organization design, most often found in unstable and unpredictable environments

organization A group of people working together in structured and coordinated fashion to achieve a set of goals

organization change Any substantive modification to some part of the organization

organization culture The set of values, beliefs, behaviors, customs, and attitudes that helps an organization's members understand what it stands for, how it does things, and what it considers important.

organization design The overall set of structural elements and the relationships among those elements used to manage the total organization

organization development An effort that is planned, organization wide, and managed from the top; it is intended to increase organization effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge

organization structure The set of elements that can be used to configure an organization

organizational behavior Contemporary field focusing on behavioral perspectives on management

Organizational citizenship The behavior of individuals that makes a positive overall contribution to the organization

Organizational commitment An attitude that reflects an individual's identification with and attachment to the organization itself

organizational life cycle Progression through which organizations evolve as they grown and mature

organizational opportunity An area in the environment that, if exploited, may generate high performance

organizational size Total number of full-time or full-time-equivalent employees

organizational stakeholders People and organizations who are directly affected by the behaviors of an organization and who have a stake in its performance

organizational strengths A skill or capability that enables an organization to conceive of and implement its strategies

organizational threat An area in the environment that increases the difficulty of an organization is achieving high performance

organizational weakness A skill or capability that does not enable an organization to choose and implement strategies that support its mission

organizing Deciding how best to group organizational activities and resources

organizing Grouping activities and resources in a logical fashion

outcomes Consequences of behaviors in an organizational setting, usually rewards

outsourcing Sub-contracting services and operations to other firms that can perform them cheaper and/or better

overall cost leadership strategy A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms

owner Whomever can claim property rights on an organization



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Pacific Asia A market system located in Southeast Asia

participation The process of giving employees a voice in making decisions about their own work

path-goal theory A theory of leadership suggesting that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards

Perception The set of processes by which an individual becomes aware of and interprets information about the environment

performance appraisal A formal assessment of how well an employee is doing his or her job

Performance behaviors The total set of work-related behaviors that the organization expects the individual to display

performance-to-outcome expectancy The individual's perception that her or his performance will lead to a specific outcome

Personality The relatively permanent set of psychological and behavioral attributes that distinguish one person from another

Person-job fit The extent to which the contributions made by the individual match the inducements offered by the organization

philanthropic giving Awarding funds or gifts to charities or worthy causes

planned change Change that is designed and implemented in an orderly and timely fashion in anticipation of future events

planning Setting an organization's goals and deciding how best to achieve them

policy A standing plan that specifies the organization's general response to a designated problem or situation

political action committee (PAC) An organization created to solicit and distribute money to political candidates

political behavior The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes

political-legal dimension The government regulation of business and the general relationship between business and government

pooled interdependence when units operate with little interactions, their output is simply pooled.

portfolio management technique A method that diversified organizations use to determine which businesses to engage in and how to manage these businesses to maximize corporate performance

Positive affectivity A tendency to be relatively upbeat and optimistic, have an overall sense of well-being, see things in a positive light, and seem to be in a good mood

positive reinforcement A method of strengthening behavior with rewards or positive outcomes after a desired behavior is performed

postaction control Monitors the outputs or results of the organization after the transformation process is complete

power orientation the beliefs that people in a culture hold about the appropriateness of power and authority differences in hierarchies such as business organizations

power The ability to affect the behavior of others

preliminary control Attempts to monitor the quality or quantity of financial, physical, human, and information resources before they actually become part of the system

proactive stance A social responsibility stance in which an organization views itself as a citizen in a society and proactively seeks opportunities to contribute to that society

process innovation A change in the way a product or service is manufactured, created, or distributed

process layout A physical configuration of facilities arranged around the process; used in facilities that create or process a variety of products

process perspectives Approaches to motivation that focus on why people choose certain behavioral options to fulfill their needs and how they evaluate their satisfaction after they have attained these goals

product departmentalization Grouping activities around products or product groups

product innovation A change in the physical characteristics of a product or service or the creation of a new one

product layout A physical configuration of facilities arranged around the product; used when large quantities of a single product are needed

product life cycle A model that portrays how sales volume for products changes over the life of products

productivity An economic measure of efficiency that summarizes what is produced relative to resources used to produce it

product-service mix How many and what kinds of products or services (or both) to offer

program A single-use plan for a large set of activities

programmed decision A decision that is fairly structured or recurs with some frequency (or both)

project A single-use plan of less scope and complexity than a program

prospector strategy A strategy in which the firm encourages creativity and flexibility and is often decentralized

Psychological contract The overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide to the individual

punishment Used to weaken undesired behaviors by using negative outcomes or unpleasant consequences when the behavior is performed

purchasing management Buying materials and resources needed to produce products and services



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quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs

quantitative management perspective Applies quantitative techniques to management

quota A limit on the number or value of goods that can be traded



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radical innovation A new product, service, or technology, that completely replaces an existing one

ratio analysis The calculation of one or more financial ratios to assess some aspect of the organization's financial health

reaction plan A plan developed to react to an unforeseen circumstance

reactive change A piecemeal response to circumstances as they develop

reactor strategy A strategy in which a firm has no consistent approach to strategy

realistic job preview (RJP) Provides the applicant with a real picture of what performing the job the organization is trying to fill would be like

Reciprocal interdependence when activities flow both ways between units.

recruiting The process of attracting individuals to apply for jobs that are open

reengineering The radical redesign of all aspects of a business to achieve major gains in cost, service, or time

referent power The personal power that accrues to someone based on identification, imitation, loyalty, or charisma

regulation Government's attempts to influence business by establishing laws and rules that dictate what businesses can and cannot do in prescribed areas

regulator A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices

regulatory agency An agency created by the government to regulate business activities

reinforcement perspective Approach to motivation that explains the role of rewards as they cause behavior to change or remain the same over time

related diversification A strategy in which an organization operates in several businesses that are somehow linked with one another

relevant information Assures managers that the information is useful to them in their particular circumstances for their particular needs

replacement chart Lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement

resource deployment How an organization distributes its resources across the areas in which it competes

reward power The power to give or withhold rewards, such as salary increases, bonuses, promotions, praise, recognition, and interesting job assignments

reward systems The formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded

Risk propensity The degree to which an individual is willing to take chances and make risky decisions

risk propensity The extent to which a decision maker is willing to gamble in making a decision

robot Any artificial device that is able to perform functions ordinarily thought to be appropriate for human beings

role ambiguity Arises when the sent role is unclear and the individual does not know what is expected of him or her

role conflict Occurs when the messages and cues comprising the sent role are clear but contradictory or mutually exclusive

role overload Occurs when expectations for the role exceed the individual's capabilities to perform

role structure The set of defined roles and interrelationships among those roles that the group members define and accept

roles The parts individuals play in groups in helping the group reach its goals

rules and regulations Describe exactly how specific activities are to be carried out



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satisficing The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency

scientific management Concerned with improving the performance of individual workers

scope When applied to strategy, it specifies the range of markets in which an organization will compete

screening control Relies heavily on feedback processes during the transformation process

Selective perception The process of screening out information that we are uncomfortable with or which contradicts our beliefs

Self-efficacy An individual's beliefs about her or his capabilities to perform a task

Self-esteem The extent to which a person believes that he or she is a worthwhile and deserving individual

sequential interdependence when the output of one unit becomes the input of another in sequential fashion.

service organization An organization that transforms resources into services

short-range plan A plan that generally covers a span of one year or less

single-product strategy A strategy in which an organization manufactures just one product or service and sells it in a single geographic market

single-use plan Developed to carry out a course of action that is not likely to be repeated in the future

situational view of organization design Based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors

small business A business that is privately owned by one individual or a small group of individuals; it has sales and assets that are not large enough to influence its environment

social orientation A person's beliefs about the relative importance of the individual versus groups to which that person belongs

social responsibility The set of obligations an organization has to protect and enhance the societal context in which it functions

socialization Generalized norm conformity that occurs as a person makes the transition from being an outsider to being an insider in the organization

sociocultural dimension The customs, mores, values, and demographic characteristics of the society in which the organization functions

soldiering Employees deliberately working at a slow pace

span of management The number of people who report to a particular manager

speed The time needed by the organization to get its activities, including developing, making, and distributing products or services accomplished

staff position A position Intended to provide expertise, advice, and support for line positions

standard operating procedure (SOP) A standing plan that outlines the steps to be followed in a particular circumstance

standing plan Developed for activities that recur regularly over a period of time

state of certainty A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative

state of risk A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates

state of uncertainty A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the consequences each alternative is likely to have

statistical quality control (SQC) A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and in-process sampling

steps in rational decision making Recognize and define the decision situation; identify appropriate alternatives; evaluate each alternative in terms of its feasibility, satisfactoriness, and consequences; select the best alternative; implement the chosen alternative; follow-up and evaluate the results of the chosen alternative

Stereotyping The process of categorizing or labelling people on the basis of a single attribute

strategic alliances A cooperative arrangement between two or more firms for mutual benefit

strategic control Focuses on how effectively the organization's strategies are succeeding in helping the organization meet its goals

strategic controls Control aimed at insuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals

strategic goal A goal set by and for top management of the organization

strategic imitation The practice of duplicating another organization's distinctive competence and thereby implementing a valuable strategy

strategic management A comprehensive and ongoing management process aimed at formulating and implementing effective strategies; it is a way of approaching business opportunities and challenges

strategic partner or ally An organization working together with one or more other organizations in a joint venture or similar arrangement

strategic plan A general plan outlining decisions of resource allocation, priorities, and action steps necessary to reach strategic goals

strategy A comprehensive plan for accomplishing an organization's goals

strategy formulation The set of processes involved in creating or determining the strategies of the organization; it focuses on the content of strategies

strategy implementation The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved

Stress An individual's response to a strong stimulus, which is called a stressor

structural control Concerned with how the elements of the organization's structure are serving their intended purpose

substitutes for leadership A concept that identifies situations in which leader behaviors are neutralized or replaced by characteristics of subordinates, the task, and the organization

subsystem A system within another system

supplier An organization that provides resources for other organizations

supply chain management The process of managing operations control, resource acquisition, and inventory so as to improve overall efficiency and effectiveness

sustained competitive advantage A competitive advantage that exists after all attempts at strategic imitation have ceased

SWOT An acronym that stands for strengths, weaknesses, opportunities, and threats

synergy Two or more subsystems working together to produce more than the total of what they might produce working alone

System 1 design Similar to the bureaucratic model

System 4 design Similar to behavioral model

system An interrelated set of elements functioning as a whole



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tactical goal A goal set by and for middle managers of the organization

tactical plan A plan aimed at achieving tactical goals and is developed to implement parts of a strategic plan

tariff A tax collected on goods shipped across national boundaries

task environment Specific organizations or groups that affect the organization

task group A group created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon

team A group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities

team organization An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy.

technical innovation A change in appearance or performance of products or services or the physical processes through which a product or service passes

technical skills The skills necessary to accomplish or understand tasks relevant to the organization

technological dimension The methods available for converting resources into products or services

technology Conversion processes used to transform inputs into outputs

technology The set of processes and systems used by organizations to convert resources into products or services

telecommuting Allowing employees to spend part of their time working off-site, usually at home

the behavioral management perspective Emphasizes individual attitudes and behaviors and group processes

the classical management perspective Consists of two distinct branches--scientific management and administrative management

Theory X A pessimistic and negative view of workers consistent with the views of scientific management

Theory Y A positive view of workers; it represents the assumptions that human relations advocates make

time management skills the manager's ability to prioritize work, to work efficiently, and to delegate appropriately

time orientation the extent to which members of a culture adopt a long term versus a short term outlook on work, life, and other elements of society.

timely information Available in time for appropriate managerial action

Title VII of the Civil Rights Act of 1964 Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship

total quality management (TQM) A strategic commitment by top management to change its whole approach to business to make quality a guiding factor in everything it does

training Teaching operational or technical employees how to do the job for which they were hired

transaction processing system (TPS) Applications of information-processing for basic day-to-day business transactions

transformational leadership Leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking

Turnover When people quit their jobs

two-factor theory of motivation Suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors--motivation factors and hygiene factors

Type A Individuals who are extremely competitive, very devoted to work, and have a strong sense of time urgency

Type B Individuals who are less competitive, less devoted to work, and have a weaker sense of time urgency



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U-form or functional design Based on the functional approach to departmentalization

uncertainty A major force caused by change and complexity that affects many organizational activities

uncertainty orientation the feeling individuals have regarding uncertain and ambiguous situations

unethical behavior Behavior that does not conform to generally accepted social norms

universal perspective An attempt to identify the one best way to do something

unrelated diversification A strategy in which an organization operates several businesses that are not associated with one another



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valence An index of how much an individual desires a particular outcome; it is the attractiveness of the outcome to the individual

validation Determining the extent to which a selection device is really predictive of future job performance

variable-interval schedules Provide reinforcement at varying intervals of time, such as occasional visits by the supervisor

variable-ratio schedules Provide reinforcement after varying numbers of behaviors are performed, such as the use of complements by a supervisor on an irregular basis

venture capital company A group of small investors seeking to make profits on companies with rapid growth potential

vertical communication Communication that flows up and down the organization usually along formal reporting lines; it takes place between managers and their subordinates and may involve several different levels of the organization

virtual organization One that has little or no formal structure.

Vroom’s decision tree approach Predicts what kinds of situations call for what degrees of group participation



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web browser The software that enables the user to access information on the Web

whistle blowing The disclosing by an employee of illegal or unethical conduct on the part of others within the organization

work team An alternative to job specialization that allows an entire group to design the work system it will use to perform an interrelated set of tasks

Workplace behavior A pattern of action by the members of an organization that directly or indirectly influences organizational effectiveness

World Wide Web (WWW) A system with universally accepted standards for storing, retrieving, formatting, and displaying information

written communication Memos, letters, reports, notes, and other circumstances in which the written word is used to transmit meaning



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