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Chapter Organization: a group of people that work together to achieve some specific purpose.
Management: is (1) the pursuit of organizational goals efficiently and effectively by (2)
integrating the work of people through (3) planning, organizing, leading and controlling
the organizations resources.
Efficient: to use resources (people, money, raw materials) wisely and cost efficiently.
Effective: to achieve results, to make the right decisions and to successfully carry them
out so that they achieve the organizations goals.
Competitive advantage: is the ability of an organization to produce goods or services
more efficiently than competitors do.
Innovation: finding ways to deliver new or better goods or services.
Four management functions: planning, organizing, leading and controlling.
Planning: is defined as setting goals and deciding how to achieve them.
Organizing: is defined as arranging tasks, people and other resources to accomplish the
work.
Leading: is defined as motivating, directing, and otherwise influencing people to work
hard to achieve the organizations goals.
Controlling: is defined as monitoring performance, comparing it with goals, and taking
corrective actions as needed.
Top managers: make long term decisions about the overall direction of the organization
and establish the objectives, policies, and strategies for it.
Middle managers: implement the policies and plans of top managers above them and
supervise and coordinate the activities of the first-line managers below them.
First-line managers: make short-term operating decisions, directing the daily tasks of
nonmanagerial personnel.
Function manager: is responsible for just one organizational activity.
General Manager: is responsible for several organizational activities.
Interpersonal roles: managers interact with people inside and outside their work units.
o Figurehead role: show visitors around the company, attend employee birthday
parties, and represent ethical guidelines.
o Leadership role: responsible for the actions of subordinates. Training, motivating
and disciplining people.
o Liaison role: develop alliances outside the company to achieve goals
Informational Roles: managers receive and communicate information with other people
inside and outside the organization.
o Monitor role: be constantly alert for useful information no matter where the
source comes from.
o Disseminator role: disseminate important information to employees.
o Spokesperson role: put the best face on the activities of your work unit or
organization to people outside it.
Decisional roles: managers use information to make decisions to solve problems or take
advantage of opportunities.
o Entrepreneur role: initiate and encourage change and innovation
o Disturbance handler role: fixing unexpected problems
o Resource allocator role: setting priorities about the use of resources
o Negotiator role: work with others inside or outside the organization to accomplish
goals.
Entrepreneurship: is the process of taking risks to try to create a new enterprise.
Intrapreneur: is someone who works inside an existing organization who sees
opportunity for a product or service and mobilizes the organizations resources to try to
realize it.
Internal locus of control: the believe that you control your own destiny
Chapter 2
Evidence based management: means translating principles based on best evidence into
organizational practice, bringing rationality to the decision-making process.
Historical perspective of management: includes classical, behavioral and quantitative.
o Classical: finding ways to manage work more efficient.
o Behavioral: emphasized the importance of understanding human behavior and of
motivating employees toward achievement.
o Quantitative: the application to management of quantitative techniques, such as
statistics and computer simulations.
Contemporary perspective of management: includes systems, contingency and quality
management.
o System viewpoint: regards the organization as a system of interrelated parts.
Inputs: are people, money, information, equipment, and materials required
to produce an organization good or service.
Outputs: are the products, services, profits, looses, employee satisfaction
or discontent, and the like that are produced by the organization.
Transformation Process: are the organizations capabilities in management
and technology that are applied to converting inputs into outputs.
Feedback: is information about the reaction of the environment to the
outputs that affects the inputs.
Open system: continually interacts with its environment
Close system: has little interaction with its environment
o Contingency viewpoint: emphasizes that a managers approach should vary
according to the individual and the environmental situation.
o Quality management: Quality refers to the total ability of a product or service to
meet customer needs.
Quality control: is defined as the strategy for minimizing errors by
managing each state of production.
Quality assurance: focuses on the performance of workers, urging
employees to strive for zero defects.
Total quality management: is a comprehensive approach dedicated to
continuous quality improvement, training, and customer satisfaction.
Human capital: the economic or productive potential of the employee knowledge,
experience, and actions.
Social capital: is the economic or productive potential of strong, trusting, and
cooperative relationships.
Chapter 5
Planning: setting goals and deciding how to achieve them.
Defenders: are expert producing and selling narrowly defined products or services.
Prospectors: focus on developing new products or services and in seeking out new
markets, rather than waiting for things to happen.
Analyzers: let other organizations take the risk of product development and marketing
and then imitate what seems to work best.
Reactors: make adjustment only when finally forced to by environmental pressures.
Mission Statement: expresses the purpose or reason for being of an organization.
Vision statement: expresses what the organization should become, where it wants to go
strategically.
Strategic planning: determine what the long-term goals should be for the next 1-5 years
with the resources they expect to have available.
Goal (objective): is a specific commitment to achieve a measurable goal within a stated
period of time.
Action plan: defines the course of action needed to achieve the stated goal.
Operating plan: defines how you will conduct your business based on the action plan; it
identifies clear targets such as revenues, flows, cash and market share.
Policy: is a standing plan that outlines the general response to a designated problem or
situation.
Procedure: is a standing plan that outlines the response to particular problems or
circumstances.
Rule: is a standing plan that designates specific required actions.
Program: is a single-use plan encompassing a range of project or activities.
Project: a single-use plan of less scope and complexity than a program.
Smart goal: is a specific, measurable, attainable, result-oriented, and target dates (time
specific) goal.
Planning control cycle: (1) make the plan, (2) carry out the plan, (3) compare results
with the expectations (4) correcting deviations or improve future plans
Project planning: the preparation of single-use plans, or projects.
Chapter 13
Group: is defined as two or more freely interacting individuals who share collective
norms, share collective goals, and have common identity.
Team: is defined as a small group of people with complementary skills who are
committed to a common purpose, performance goals, and approach for which they told
themselves mutually accountable.
Forming: is the process of getting oriented and getting acquainted.
Storming: is characterized by the emergence of individual personalities and roles and
conflicts within the group.
Norming: conflicts are resolve, close relationships develop, and unity and harmony
emerge.
Performing: members concentrate on solving problems and completing the assigned
task.
Adjourning: members prepare for disbandment.
Role: is a socially determined expectation of how an individual should behave in a
specific position.
Norms: are general guidelines or rules of behavior that most groups or team members
follow.
Chapter 14
Leadership: is the ability to influence employees to voluntarily pursue organizational
goals.
Legitimate power: influencing behavior because of ones formal position. Results from
managers formal position within the organization.
Reward power: influencing behavior by promising or giving rewards. Results from
managers authority to reward their subordinates.
Coercive power: influencing behavior by threatening or giving punishment. Results from
managers to punish their subordinates.
Expert power: influencing behavior because of ones expertise. It is power resulting
from ones specialized information or expertise on a particular subject.
Referent power: influencing behavior because of ones personal attraction. Results from
the ability to persuade others by dint their personality, attitudes or background.
Trait approach: attempt to identify distinctive characteristics that account for the
effectiveness of leaders.
Behavioral approach: attempt to determine the distinctive styles used by effective
leaders.
Contingency approach: Effective leadership behavior depends on situation at hand.
Full-range approach: leadership behavior varies along a full range of leadership styles,
from take-no-responsibility leadership at one extreme, through transactional leadership,
to transformational leadership at other extreme.
o Transactional leadership: focuses on clarifying employees roles and task
requirements and providing rewards and punishments contingent on performance.
o Transformational leadership: transforms employees to pursue organizational goals
over self-interests.
Path-goal leadership model: holds that the effective leader makes available to followers
desirable rewards in the work place and increases motivation by clarifying the paths, or
behavior, that will help them achieve those goals and providing them with support.
Situational leadership theory: leadership behavior reflects how leaders should adjust
their leadership style according to the readiness of the followers.
Additional perspectives:
o Leader-member exchange: emphasizes that leaders have different sorts of
relationships with different subordinates.
o Shared leadership: is a simultaneous, ongoing, mutual influence process in which
people share responsibility for leading.
o Servant leaders: focus on providing increased services to others rather than to
themselves.
o E-leadership: can involve one-to-one, one-to-many, within-group and betweengroup and collective interactions via information technology.
Chapter 16
Controlling: is defined as monitoring performance, comparing it with goals, and taking
corrective actions as needed.
Control standard: is the desired performance level for a given goal.
Management by exception: states that managers should be informed of a situation only
if data show a significant deviation from standards.
Balance scorecard: give managers a fast but comprehensive view of the organization via
four indicators (1) customer satisfactions (2) internal process (3) innovation and
improvement activities and (4) financial measures.
Financial perspective: how do we look to shareholders?
Customer perspective: how do customers see us?
Internal business perspective: what must we excel at?
Innovative and learning perspective: can we continue to improve and create value?
Strategic control: is monitoring performance to ensure that strategic plans are being
implemented and taking corrective action as needed.
Tactical control: is monitoring performance to ensure that tactical plans are being
implemented and taking corrective action as needed.
Operational control: is monitoring performance to ensure that operational plans are
being implemented and taking corrective action as needed.
Bureaucratic control: is an approach to organizational control that is characterized by
use of rules, regulations, and formal authority to guide performance.
Decentralized control: is an approach to organizational control that is characterized by
informal and organic structural arrangements.
Budget: a formal financial projection.
Financial statement: a summary of some aspects of an organizations financial status.
Balance sheet: summarizes an organizations overall financial worth at a specific point in
time.
Income statement: summarizes an organizations financial results over a specified period
of time.
Ratio analysis: the practice of evaluating financial ratios to determine an organizations
financial health.
Audits: formal verifications of an organizations financial and operational systems.
PDCA cycle: Plan, Do, Check, Act.
Total quality management: is defined as a comprehensive approach dedicated to
continuously quality improvement, training, and customer satisfaction.
Six Sigma: is a rigorous statistical analysis process that reduces defects in manufacturing
and service-related processes.