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320 terms

Principles of Management Final Exam

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