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Business Exam 3
Vocabulary and terms from chapters 8-10 from "Contemporary Business"
80
Business
Undergraduate 1
07/13/2010

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Term
management
Definition
process of achieving organizational objectives through people and other resources
Term
top management
Definition
CEO, CFO, and executive vice president
Term
middle management
Definition
general managers, plant managers, division managers and branch managers
Term
supervisory management
Definition
supervisor, section chief, and team leader
Term
technical skills
Definition
manager's ability to understand and use techniques, knowledge, and tools and equipment of a specific discipline or department
Term
human skills
Definition
interpersonal skills that enable managers to work effectively with and through people
Term
conceptual skills
Definition
manager's ability to see the organization as a unified whol and understand how each part of the organization interacts with other parts
Term
planning
Definition
process of anticipating future events and conditions and determining courses of action for achieving organizational objectives
Term
organizing
Definition
means by which managers blend human and material resources through a formal structure of tasks and authority
Term
directing
Definition
guiding and motivating employees to accomplish objectives
Term
controlling
Definition
function of evaluating an organization's performance to determine whether it is accomplishing its objectives
Term
vision
Definition
perception of marketplace needs and the methods an organization can use to satisfy them
Term
strategic planning
Definition
process of determining the primary objectives of an organization and acting/allocating resources to achieve those objectives (top management)
Term
tactical planning
Definition
implementing the activities specified by strategic plans (middle management)
Term
operational planning
Definition
creates detailed standards that guide implementation of tactical plans (supervisory management)
Term
contingency planning
Definition
allows firms to resume operations as quickly and smoothly as possible after a crisis while openly communicating with the public about what happened (primarily top management, but everyone contributes)
Term
mission statement
Definition
written explanation of an organization's business intentions and aims
Term
SWOT analysis
Definition
strengths, weaknesses, opportunities, and threats
Term
objectives
Definition
guideposts by which managers define the organization's desired performance in such areas as profitability, customer service, growth, and employee satisfaction
Term
competitive differentiation
Definition
unique comibnation of a company's abilities and approaches that sets it apart from competitors
Term
decision making
Definition
process of recognizing a problem or opportunity, evaluating alternative solutions, selecting and implementing an alternative, and assessing the results
Term
programmed decision
Definition
simple, common and frequently occurring problems for which solutions have already been determined
Term
nonprogrammed decision
Definition
complex and unique problem or opportunity with important consequences for the organization
Term
leadership
Definition
ability to direct or inspire people to attain organizational goals
Term
autocratic leadership
Definition
a type of leadership that is centered around the boss
Term
democratic leadership
Definition
a type of leadership that involves subordinates in making decisions
Term
empowerment
Definition
a practice in which managers lead employees by sharing power, responsibility, and decision making with them
Term
free-rein leadership
Definition
a type of leadership in which most decisions are left up to subordinates
Term
corporate culture
Definition
organization's system of principles, beliefs, and values
Term
organization
Definition
structured grouping of people working together to achieve common goals
Term
departmentalization
Definition
process of dividing work activities into units within the organization
Term
delegation
Definition
act of assigning work activities to subordinates
Term
span of management
Definition
number of subordinates a manager can supervise effectively
Term
centralization
Definition
retaining decision making at the top of the management hierarchy
Term
decentralization
Definition
locating decisions making at lower levels
Term
chain of command
Definition
set of relationships that indicates who directs which activities and who reports to whom
Term
committee organization
Definition
structure that places authority and responsibility jointly in the hands of a group
Term
matrix structure
Definition
links employees from different parts of the organization to work together on specific projects
Term
line organization
Definition
structure in which employee reports to one supervisor
Term
line personnel
Definition
perform functions that directly affect core operations of company
Term
staff personnel
Definition
perform functions that advice or support line personnel
Term
human resource management
Definition
function of attracting, developing, and retaining enough qualified employees to perform activities necessary to accomplish organizational objectives
Term
on-the-job training
Definition
training during which employees learn to perform tasks under the guidance of an experienced employees
Term
performance appraisal
Definition
evaluation of an employee's job performance that compares actual results with desired outcomes
Term
360-degree performance review
Definition
a process that gathers feedback from a review panel including coworkers, supervisors, team members, subordinates and sometimes customers
Term
wages
Definition
compensation based on an hourly pay rate or the amount of output produced
Term
salaries
Definition
compensation caluclates on a periodic basis, such as weekly or monthly
Term
employee benefits
Definition
rewards such as retirement plans, health insurance, vacation, and tuition reimbursement provided for employees either entirely or in part at the company's expense
Term
401(k) plans
Definition
retirement savings plans to which employees can make pretax contributions
Term
downsizing
Definition
process of reducing the number of employees within a firm by eliminating jobs
Term
outsourcing
Definition
contracting with another business to perform tasks or functions previously handled by internal staff members
Term
Maslow's hierarchy of needs
Definition
theory of motivation according to which people have five levels of needs that they seek to satisfy: physiological, safety, social, esteem, and self-actualization
Term
job enlargement
Definition
job design that expands an employee's responsibilities by increasing the number and variety of tasks assigned to the worker
Term
job enrichment
Definition
change in job duties to increase employees' authority in planning their work, deciding how it should be done and learning new skills
Term
Theory X
Definition
a manager assumes that the employee hates/avoids work and motivates them with $$$ and job security, threaten punishment
Term
Theroy Y
Definition
employee loves/seeks out work
Term
labor union
Definition
group of workers who have banded together to achieve common goals in the areas of wages, hours, and working conditions
Term
collective bargaining
Definition
process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions
Term
mediation
Definition
uses a 3rd party to encourage both sides to continue negotiations; suggests but doesn't decide
Term
arbitration
Definition
uses an impartial 3rd party that makes a binding decision
Term
team
Definition
group of employees who are committed to a common purpose, approach, and set of performance goals
Term
work team
Definition
relatively permanent group of employees with complementary skills who perform the day-to-day work of organizations
Term
problem-solving team
Definition
temporary combination of workers who gather to solve a specific problem and then disband
Term
self-managed team
Definition
work team that has the authority to decide how its members complete their daily tasks
Term
cross-functional team
Definition
team made up of members from different functions, such as production, marketing, and finance
Term
virtual team
Definition
group of dispersed coworkers who use a combination of communications to accomplish an organizatiional task
Term
team level
Definition
average level of ability, experience, personality or any other factor on a team
Term
team diversity
Definition
variances or differences in ability, experience, personality, or any other factor on a team
Term
team cohesiveness
Definition
extent to which team members feel attracted to the team and motivated to remain part of it
Term
team norm
Definition
informal standard of conduct shared by team members that guides their behavior
Term
conflict
Definition
antagonistic interaction in which one party attempts to thwart the intentions/goals of another
Term
cognitive conflict
Definition
problem-related differences of opinion, can strongly improve team performance
Term
affective conflict
Definition
emotional reactions that can occur when disagreements become personal rather than professional
Term
communication
Definition
meaningful exchange of information through messages
Term
low-context cultures
Definition
rely on explicit written and verbal messages
Term
high-context cultures
Definition
not just the message itself, but also on the conditions that surround it
Term
listening
Definition
receiving a message and interpreting its intended meaning by grasping the facts and feelings it conveys
Term
formal communication channel
Definition
carries messages that flow within the chain of command structure defined by an organization
Term
grapevine
Definition
internal information channel that transmits information from unofficial sources
Term
external communication
Definition
meaningful exchange of information through messages transmitted between an organization and its major audiences
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