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Management 210
Definitions for Final Exam
115
Management
Undergraduate 2
12/08/2011

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Term
Parochialism
Definition
viewing the world solely through your own perspectives, leading to an inability to recognize differences between people.
Term
Ethnocentric Attitude
Definition
the parochialistic belief that the best work approaches and practices are those of the home country.
Term
Polycentric Attitude
Definition
the view that the managers in the host country know the best work approaches and practices for running their business.
Term
Geocentric Attitude
Definition
a world-oriented view that focuses on using the best approaches and people from around the globe.
Term
European Union (EU)
Definition
a union of 27 European nations created as a unified economic and trade entity
Term
Nations (ASEAN)
Definition
a trading alliance of 10 Southeast Asian nations.
Term
North American Free Trade Agreement (NAFTA)
Definition
an agreement among the Mexican, Canadian, and U.S. governments in which certain barriers to trade have been eliminated.
Term
World Trade Organization (WTO)
Definition
a global organization of 153 countries that deals with the rules of trade among nations.
Term
International Monetary Fund (IMF)
Definition
an organization of 185 countries that promotes international monetary cooperation and provides advice, loans, and technical assistance.
Term
World Bank Group
Definition
a group of five closely associated institutions that provides financial and technical assistance to developing countries.
Term
Organization for Economic Cooperation and Development (OECD)
Definition
an international economic organization that helps its 30 member countries achieve sustainable economic growth and employment.
Term
Multinational Corporation (MNC)
Definition
a broad term that refers to any and all types of international companies that maintain operations in multiple countries
Term
Multidomestic Corporation
Definition
an MNC that decentralizes management and other decisions to the local country.
Term
Global Company
Definition
an MNC that centralizes management and other decisions in the home country.
Term
Transnational or Borderless Organization
Definition
an MNC in which artificial geographical barriers are eliminated.
Term
Global Sourcing
Definition
purchasing materials or labor from around the world wherever it is cheapest.
Term
Exporting
Definition
making products domestically and selling them abroad.
Term
Importing
Definition
acquiring products made abroad and selling them domestically.
Term
Licensing
Definition
an organization gives another organization the right to make or sell its products using its technology or product specifications.
Term
Franchising
Definition
an organization gives another organization the right to use its name and operating methods.
Term
Strategic Alliance
Definition
a partnership between an organization and one or more foreign company partner(s) in which both share resources and knowledge in developing new products or building production facilities.
Term
Joint Venture
Definition
a specific type of strategic alliance in which the partners agree to form a separate, independent organization for some business purpose.
Term
Foreign Subsidiary
Definition
directly investing in a foreign country by setting up a separate and independent production facility or office.
Term
Free Market Economy
Definition
an economic system in which resources are primarily owned and controlled by the private sector.
Term
Planned Economy
Definition
an economic system in which economic decisions are planned by a central government.
Term
National Culture
Definition
the values and attitudes shared by individuals from a specific country that shape their behavior and beliefs about what is important.
Term
Global Leadership and Organizational Behavior Effectiveness (GLOBE) program
Definition
a research program that studies cross-cultural leadership behaviors.
Term
Cultural Intelligence
Definition
cultural awareness and sensitivity skills.
Term
Global Mind-Set
Definition
attributes that allow a leader to be effective in cross-cultural environments.
Term
Workforce Diversity
Definition
the ways in which people in an organization are different from and similar to one another.
Term
Race
Definition
the biological heritage (including skin color and associated traits) that people use to identify themselves.
Term
Ethnicity
Definition
social traits (such as cultural background or allegiance) that are shared by a human population.
Term
Age
Definition
Both Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 prohibit age discrimination
Term
Gender
Definition
Women (49.8%) and men (50.2%) now each make up almost half of the workforce.
Term
Stereotyping
Definition
judging a person based on a prejudicial perception of a group to which that person belongs.
Term
Discrimination
Definition
when someone acts out their prejudicial attitudes toward people who are the targets of their prejudice
Term
Glass Ceiling
Definition
the invisible barrier that separates women and minorities from top management positions.
Term
Bias
Definition
a tendency or preference toward a particular perspective or ideology.
Term
Prejudice
Definition
a pre-conceived belief, opinion, or judgment toward a person or a group of people.
Term
Disability/Abilities
Definition
The Americans With Disabilities Act of 1990 prohibits discrimination against persons with disabilities.
Term
Religion
Definition
Title VII of the Civil Rights Act prohibits discrimination on the basis of religion.
Term
GLBT: Sexual Orientation and Gender Identity
Definition
U.S. federal law does not prohibit discrimination against employees on the basis of sexual orientation.
Term
Mentoring
Definition
a process whereby an experienced organizational member (a mentor) provides advice and guidance to a less-experienced member (a protégé).
Term
Diversity Skills Training
Definition
specialized training to educate employees about the importance of diversity and to teach them skills for working in a diverse workplace.
Term
multicultural teams the pro’s
Definition
Multicultural teams perform much better (or much worse) than monocultural teams
Well managed heterogeneous teams regularly outperform homogeneous teams
A mix of profiles allows for a balance of roles for better overall performance
Multicultural teams perform much better in identifying problem perspectives and generating alternatives
Term
The Calm Waters Metaphor
Definition
Lewin’s description of the change process as a break in the organization’s equilibrium state.
Unfreezing the status quo
Changing to a new state
Refreezing to make the change permanent
Term
White-Water Rapids Metaphor
Definition
The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.
Term
White-Water Rapids Metaphor
Definition
The lack of environmental stability and predictability requires that managers and organizations continually adapt (manage change actively) to survive.
Term
Organizational Change
Definition
any alterations in the people, structure, or technology of an organization.
Term
Change Agents
Definition
persons who act as catalysts and assume the responsibility for managing the change process.
Term
Types of Change Agents
Definition
Managers: internal entrepreneurs
Nonmanagers: change specialists
Outside consultants: change implementation experts
Term
Types of Change
Definition
Structure
Changing an organization’s structural components or its structural design
Technology
Adopting new equipment, tools, or operating methods that displace old skills and require new ones
Automation - replacing certain tasks done by people with machines
Computerization
People
Changing attitudes, expectations, perceptions, and behaviors of the workforce
Term
Organizational Development (OD)
Definition
techniques or programs to change people and the nature and quality of interpersonal work relationships.
Term
Global OD
Definition
OD techniques that work for U.S. organizations may be inappropriate in other countries and cultures.
Term
Why People Resist Change
Definition
The ambiguity and uncertainty that change introduces
The comfort of old habits
A concern over personal loss of status, money, authority, friendships, and personal convenience
The perception that change is incompatible with the goals and interest of the organization
Term
Conditions that facilitate cultural change:
Definition
The occurrence of a dramatic crisis
Leadership changing hands
A young, flexible, and small organization
A weak organizational culture
Term
Stress
Definition
the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities.
Term
Stressors
Definition
factors that cause stress.
Term
Role Conflicts
Definition
work expectations that are hard to satisfy.
Term
Role Overload
Definition
having more work to accomplish than time permits.
Term
Role Ambiguity
Definition
when role expectations are not clearly understood.
Term
Type A personality
Definition
people who have a chronic sense of urgency and an excessive competitive drive.
Term
Type B personality
Definition
people who are relaxed and easygoing and accept change easily.
Term
Creativity
Definition
the ability to combine ideas in a unique way or to make an unusual association.
Term
Innovation
Definition
turning the outcomes of the creative process into useful products, services, or work methods.
Term
Idea Champions
Definition
individuals who actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.
Term
Structural Variables
Definition
Adopt an organic structure
Make available plentiful resources
Engage in frequent inter-unit communication
Minimize extreme time pressures on creative activities
Provide explicit support for creativity
Term
Cultural Variables
Definition
Accept ambiguity
Tolerate the impractical
Have low external controls
Tolerate risk taking
Tolerate conflict
Focus on ends rather than means
Develop an open-system focus
Provide positive feedback
Term
Human Resource Variables
Definition
Actively promote training and development to keep employees’ skills current
Offer high job security to encourage risk taking
Encourage individuals to be “champions” of change
Term
Power
Definition
The capacity that A has to influence the behavior of B so that B acts in accordance with A’s wishes
Exists as a potential or fully actualized influence over a dependent relationship
Term
Dependency
Definition
B’s relationship to A when A possesses something that B requires
The greater B's dependence, the more power A has
Term
Leadership
Definition
Focuses on goal achievement
Requires goal compatibility with followers
Focuses influence downward
Term
Power
Definition
Used as a means for achieving goals
Requires follower dependency
Used to gain lateral and upward influence
Term
Formal Power
Definition
Established by an individual’s position in an organization
Three bases:
Coercive Power
A power base dependent on fear of negative results
Reward Power
Compliance achieved based on the ability to distribute rewards that others view as valuable
Legitimate Power
The formal authority to control and use resources based on a person’s position in the formal hierarchy
Term
Bases of Power: Personal Power
Definition
Power that comes from an individual’s unique characteristics – these are the most effective
Expert Power
Influence based on special skills or knowledge
Referent Power
Influence based on possession by an individual of desirable resources or personal traits
Term
The General Dependency Postulate
Definition
The greater B’s dependency on A, the greater the power A has over B
Possession/control of scarce organizational resources that others need makes a manager powerful
Access to optional resources (e.g., multiple suppliers) reduces the resource holder’s power
Term
Dependency increases when resources are:
Definition
Important
Scarce
Nonsubstitutable
Term
Power Tactics
Definition
Term
Factors Influencing Power Tactics
Definition
Choice and effectiveness of influence tactics are moderated by:
Sequencing of tactics
Softer to harder tactics work best
Political skill of the user
The culture of the organization
Culture affects user’s choice of tactic
Term
Sexual Harassment:
Definition
Any unwanted activity of a sexual nature that affects an individual’s employment and creates a hostile work environment
Overt actions, like unwanted touching, are relatively easy to spot
Subtle actions, like jokes or looks, can cross over the line into harassment
Sexual harassment isn’t about sex – it is about abusing an unequal power relationship
Harassment can damage the well-being of the individual, work group, and organization
Term
Managerial Actions to Prevent Sexual Harassment
Definition
Make sure a policy against it is in place.
Ensure that employees will not encounter retaliation if they file a complaint.
Investigate every complaint and include the human resource and legal departments.
Make sure offenders are disciplined or terminated.
Set up in-house seminars and training.
Term
Political Behavior
Definition
Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization
Term
The Reality of Politics
Definition
Politics is a natural result of resource scarcity
Limited resources lead to competition and political behaviors
Judgments on quality of resource distribution differ markedly based on the observer’s perception
“Blaming others” or “fixing responsibility”
“Covering your rear” or “documenting decisions”
“Perfectionist” or “attentive to detail”
Most decisions are made under ambiguous conditions
Lack of an objective standard encourages political maneuvering of subjective reality
Term
Types of defensive behaviors
Definition
Avoiding Action
Overconforming, buck passing, playing dumb, stalling
Avoiding Blame
Bluffing, playing safe, justifying, scapegoating
Avoiding Change
Prevention, self-protection
Term
Impression Management (IM)
Definition
The process by which individuals attempt to control the impression others form of them
IM Techniques
Conformity
Excuses
Apologies
Self-Promotion
Flattery
Favors
Association
Term
IM Effectiveness
Definition
Job Interview Success
IM does work and most people use it
Self-promotion techniques are important
Ingratiation is of secondary importance
Performance Evaluations
Ingratiation is positively related to ratings
Self-promotion tends to backfire
Term
Controlling
Definition
the process of monitoring, comparing, and correcting work performance.
Term
The Purpose of Control
Definition
To ensure that activities are completed in ways that lead to the accomplishment of organizational goals.
Term
Why Is Control Important?
Definition
As the final link in management functions:
Planning
Controls let managers know whether their goals and plans are on target and what future actions to take.
Empowering employees
Control systems provide managers with information and feedback on employee performance.
Protecting the workplace
Controls enhance physical security and help minimize workplace disruptions.
Term
Control process
Definition
a three-step process of measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards.
Term
The Process of Control
Definition
Measuring actual performance
Comparing actual performance against a standard
Taking action to correct deviations or inadequate standards
Term
Sources of Information (How)
Definition
Personal observation
Statistical reports
Oral reports
Written reports
Term
Control Criteria (What)
Definition
Employees
Satisfaction
Turnover
Absenteeism
Budgets
Costs
Output
Sales
Term
Range of variation
Definition
the acceptable parameters of variance between actual performance and the standard.
Term
Immediate corrective action
Definition
corrective action that corrects problems at once in order to get performance back on track.
Term
Basic corrective action
Definition
corrective action that looks at how and why performance deviated before correcting the source of deviation.
Term
Performance
Definition
the end result of an activity.
Term
Organizational performance
Definition
the accumulated results of all the organization’s work activities.
Term
Productivity
Definition
the amount of goods or services produced divided by the inputs needed to generate that output.
Term
Organizational effectiveness
Definition
a measure of how appropriate organizational goals are and how well those goals are being met.
Term
Feed forward control
Definition
control that takes place before a work activity is done.
Term
Concurrent control
Definition
control that takes place while a work activity is in progress.
Term
Management by walking around
Definition
a term used to describe when a manager is out in the work area interacting directly with employees.
Term
Feedback control
Definition
control that takes place after a work activity is done.
Term
Financial Controls
Definition
Traditional Controls
Ratio analysis
Liquidity
Leverage
Activity
Profitability
Budget Analysis
Quantitative standards
Deviations
Term
Balanced scorecard
Definition
a performance measurement tool that examines more than just the financial perspective.
Term
Measures a company’s performance in four areas:
Definition
Financial
Customer
Internal processes
People/innovation/growth assets
Term
Management information system (MIS)
Definition
a system used to provide management with needed information on a regular basis.
Term
Data
Definition
an unorganized collection of raw, unanalyzed facts (e.g., an unsorted list of customer names).
Term
Information
Definition
data that has been analyzed and organized such that it has value and relevance to managers.
Term
Benchmarking
Definition
the search for the best practices among competitors or non-competitors that lead to their superior performance.
Term
Benchmark
Definition
the standard of excellence to measure and compare against.
Term
Employee theft
Definition
any unauthorized taking of company property by employees for their personal use.
Term
Service profit chain
Definition
the service sequence from employees to customers to profit.
Term
Corporate governance
Definition
the system used to govern a corporation so that the interests of corporate owners are protected.
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