principle that emphasizes the willingness of subordinates to accept those with authority to act.
the answering for one's actions and accepting the consequences.
a plan that requires employers to make an extra effort to hire and promote people who belong to a protected group.
the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizational goals.
Behavioral management theory
a method that focuses on people as individuals with needs (also known as the human relations movement).
human relations movement: see behavioral management theory.
the process of gathering information from the external environment to identify current or likely events and determine how those events will affect the organization.
an idea-generating process that encourages the development of alternatives while withholding criticism of those alternatives.
a form of organization based on logic, order, and legitimate use of formal authority.
authority is concentrated at the top of the organization.
Chain of command
a line of authority that links all persons in an organization and defines who reports to whom.
the branch of classical management theory that emphasizes the flow of information in organizations.
Classical management theory
a theory, developed during the Industrial Revolution, that proposes "one best way" to perform tasks. Classical management theory developed into two separate branches: the classical scientific school and the classical administrative school.
a branch of the school of classical management theory, whose emphasis is on increasing productivity and efficiency.
an organization that interacts little with its external or outside environment.
authority to punish or recommend punishment.
the exchange of ideas, messages, or information, by speech, signals, or writing.
all work-related payments, including wages, commissions, insurance, and other benefits.
any aspect of an organization that distinguishes it from its competitors in a positive way.
Condition of certainty
situation that occurs when the decision maker has perfect knowledge of all the information needed to make a decision.
identifies physical or psychological conditions that act as stimuli for human behavior.
development of alternative courses of action that can be implemented if and when the original plan proves inadequate because of changing circumstances.
this principle examines the fit between the leader and the situation and provides guidelines for managers to achieve an effective fit (also known as situational theory).
situational theory: see contingency theory.
a system that produces goods by continuously feeding raw materials through highly automated technology.
ongoing plans: see continuing plans.
the systematic process of regulating organization activities to make them consistent with the expectations established in plans, targets, and standards of performance.
method of regulation applied to processes as they are happening.
system that focuses on keeping costs as low as possible through efficient operations and tight controls.
an unexpected problem that has the potential to lead to disaster if not resolved quickly and appropriately.
groups of experts in various specialties (or functions) who work together on solutions to organizational problems.
firms that consciously attempt to spread authority to the lowest possible levels.
a diagram that analyzes hiring, marketing, investment, equipment purchases, pricing, and similar decisions. Decision trees assign probabilities to each possible outcome and calculate payoffs for each decision path.
the downward transfer of authority from a manager to a subordinate.
measurements of various characteristics of the people and social groups who make up a society.
a series of steps that can help employees acquire skills to reach long-term goals, such as job promotions.
a plan whereby a company attempts to set the organization's products or services apart form those of other companies.
a prohibition on trade in a particular area.
legally required or voluntary compensation provided to employees in addition to their salaries.
giving individuals an organization autonomy.
a motivational theory stating that the three factors that influence behavior are the value of the reward, the relationship of the reward to performance, and the effort required for performance
a leader's special knowledge or skills regarding the tasks performed by followers.
selling of an organization's products to a foreign broker or agent.
Feed Forward Controls
method used to identify and prevent defects and deviations from standards.
formal investigations to ensure that procedures, policies, laws, and ethical guidelines are followed in the handling and reporting of financial activities.
Financial Ratio Analysis
the relationship between specific figures on an organization's financial statements; helps explain the significance of those figures.
reports that provide management with information to monitor financial resources.
the lowest level of management.
an employment alternative that allows employees to decide, within a certain range, when to begin and end each work day.
a technique to implement change by determining which forces drive change and which forces resist it.
the hierarchical arrangement of tasks and people within an organization.
authority to make decisions about specific activities undertaken by personnel in other departments.
an organizational design that groups positions into departments on the basis of the specialized activities of the business.
work groups that perform specific organizational functions with members from several vertical levels of the hierarchy.
the informal communications network within an organization (also known as social network and informal channels).
informal channels: see grapevine.
social network: see grapevine.
links compensation and performance by paying employees for actual results, not for seniority or hours worked.
a report that presents the difference between an organization's income and expenses to determine whether the firm operated at a profit or loss over a specified time.
the pattern, behavior, and interaction that stems from personal rather than official relationships.
real-time, face-to-face, or voice-to-voice conversation that allows immediate feedback.
organizational culture that allows employees flexibility and authority in pursuing and developing new ideas.
a study that determines all tasks and qualifications needed for each position.
a written statement of a job's requirements, processes, and rationale.
a type of job re-design that increases the variety of tasks a position includes (also known as horizontal job loading).
horizontal job loading: see job enlargement.
a type of job re-design that not only includes an increased variety of tasks, but also provides the employee with more responsibility and authority (also known as vertical job loading).
vertical job loading: see job enrichment.
temporarily assigning employees to different job, or tasks to different people, on a rotating basis.
process in which one full-time job is split between two or more persons (also known as twinning).
twinning: see job sharing.
a business relationship formed between a domestic and foreign firm.
a Japanese term used in the business setting to mean incremental, continuous improvement.
establishing and influencing others to follow a specific direction.
firms thatutilize people, values, and systems to continuously change and improve performance based on the lessons of experience.
vested authority stemming from a formal management position in an organization.
Contract that grants one firm the right to make or sell another company's products.
a manager's right to direct the work of his or her employees and make decisions without consulting others.
measurements of an organization's ability to generate cash.
the process of administering and coordinating resources effectively, efficiently, and in an effort to achieve the goals of the organization.
Management Information Systems
(MIS)collects, organizes, and distributes data in such a way that the information meets managers' needs.
a person responsible for the work performance of one or more other persons.
a system used to manufacture a large number of uniform products in an assembly line.
the effective design of organizational goals that encourages the accomplishment of low-level goals as a way of achieving high-level goals.
a highly bureaucratic organizational method, with centralized authority, detailed rules and procedures, a clear-cut division of labor, narrow span of controls, and formal coordination.
a document that describes what an organization stands for and why it exists.
research designed to isolate the best possible method of performing a given job.
Multinational Corporations (MNC)
organizations operating facilities in one or more countries.
a construct of motivation based upon physical or psychological conditions that act as stimuli for human behavior.
an operating process that relies on other organizations to perform critical functions on a contractual basis.
actions, gestures, and other aspects of physical appearance that can be a powerful means of transmitting messages (also known as body language).
Body language: see nonverbal communication.
a method in which an individual or organization must interact with various and constantly changing components in both the external and internal environments.
specific, measurable results expected from first-level managers, work groups, and individuals.
developed by a first level supervisor as the means to achieve operational objectives in support of tactical plans.
a management system founded on cooperation and knowledge-based authority.
a group of individuals who work together to accomplish a common goal.
a significant change that affects an entire company.
a pictorial display of the official lines of authority and communication within an organization.
the byproduct of organizational culture; it is the barometer for determining the morale of the employees.
an organization's personality.
the creation or change of an organization's structure, the configuration and interrelationships of positions and departments.
Organizational Development (OD)
a plan that focuses on changing an entire organization by changing processes and organizational culture.
the process of establishing the orderly use of resources by assigning and coordinating tasks.
a socialization process designed to provide necessary information to new employees and welcome them into the organization.
a formal, structured system designed to measure an employee's job performance against designated standards.
Philosophy of Management
a manager's set of personal beliefs and values about people and work.
a blueprint for goal achievement that specifies the necessary resource allocations, schedules, tasks, and other actions.
the deliberate structuring of operations and behaviors in anticipation of environmental forces.
the act of determining the organization's goals and defining the means for achieving them.
legal rights of employees regarding who has access to information about their work history and job performance.
a set of step-by-step directions that explain how activities or tasks are to be carried out.
rationales that attempt to explain how workers select behavioral actions to meet their needs and determine their choices.
measurements of an organization's ability to generate profits.
reflects the degree to which a goods or services meet the demands and requirements of the marketplace.
using quantitative techniques, such as statistics, information models, and computer simulations, to improve decision making.
a rationale that helps allocate services or workstations to minimize customer waiting and service cost.
government regulations that limit the import of specific products within the year.
activities an organization uses to attract a pool of viable candidates.
redesigning processes requiring input from every employee in the company to achieve dramatic improvements in cost, quality, service, and speed.
influence that results from leadership characteristics that command identification, respect, and admiration from subordinates (also known as charismatic power).
Charismatic power: see referent power.
the people, information, facilities, infrastructure, machinery, equipment, supplies, and finances at an organization's disposal.
the authority to reward others.
the environment that exists when a manager must make a decision without complete information.
an explicit statement that tells a supervisor what he or she can and cannot do.
the making of the best decision possible with the information, resources, and time available.
a system that demonstrates a clearly defined line of authority in the organization that includes all employees.
the tendency to single out for attention those aspects of a situation or person that reinforce or appear consistent with one's existing beliefs, values, or needs.
a belief that a manager can, through his or her behavior, create a situation where subordinates act in ways that confirm his or her original expectations.
a broad term indicating any type of activity that attempts to imitate an existing system or situation in a simplified manner.
manufacturing of a variety of custom, made-to-order products.
revision that takes place when a company changes its tactics (strategy) - possibly even its mission statement - to achieve current goals.
an outline of steps designed with the goals of the entire organization as a whole in mind, rather than with the goals of specific divisions or departments.
variation that occurs when a company changes its procedures, policies, and rules, and as a result, its organizational structure.
familiar, straightforward, and clear difficulties with respect to the information needed to resolve them.
steps detailing the actions needed to achieve the organization's larger strategic plan.
taxes placed on imports and/or exports in response to a political event.
organizational design that places separate functions into a group according to one overall objective.
the knowledge, machinery, work procedures, and materials that transform inputs into outputs.
a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office, with work at home as one of the options (also known as flexiplace).
flexiplace: see telecommuting.
Total Quality Management (TQM)
a philosophy that states that uniform commitment to quality in all areas of the organization promotes a culture that meets consumers' perceptions of quality.
Unity of Command
principle that states that an employee should have one and only one supervisor to whom he or she is directly responsible.
difficulties that involve ambiguities and information deficiencies and often occur as new or unexpected situations.
proof that the relationship between a selection device and some relevant job criterion exists.
the ability of the leader to bind people together with an idea.
a foreign firm owned outright, or with a controlling interest, by an out-of-country firm.
the degree to which organizational tasks are divided into separate jobs (also known as the division of labor).
division of labor: see work specialization.
a program that emphasizes doing it right the first time.