Complete List of Terms and Definitions for BU Exam 3 (ch. 7-10)

Terms Definitions
Informal organization The system of relationships and lines of authority that develops spontaneously as employees meet and form power centers that is, the human side of the organization that does not appear on any organization chart
Time-motion studies Studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each tasks
Departmentalization The dividing of organizational functions into separate units
Hawthorne effect The tendency for people to behave differently when they know they're being studied
Goals The broad, long-term accomplishments an organization wishes to attain
Departmentalization Process of setting up individual departments to do specialized tasks
Conceptual skills Skills that involve the ability to picture the organization as a whole and the relationship among its various parts
Job enlargement A job enrichment strategy that involves combining a series of tasks into one challenging and interesting assignment
Free-rein leadership Leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives
Operational planning The process of setting work standards and schedules necessary to implement the company's tactical objectives
Directing Telling employees what to do to meet the goals and objectives of the organization
Job rotation A job enrichment strategy that involves moving employees from one job to another
Hierarchy A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible for that person
Technical skills Skills that involve the ability to perform tasks in a specific discipline or department
Organizational (or corporate) culture Widely shared values within an organization that provide unity and cooperation to achieve common goals
Management The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
Planning A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
Benchmarking Comparing an organization's practices, processes, and products against the world's best
Real time The present moment or the actual time in which something takes place
Participative (democratic) leadership Leadership style that consists of managers and employees working together to make decisions
Inverted organization An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart
Maslow's hierarchy of needs Theory of motivation based on unmet human needs from basic physiological needs to safety, social, and esteem needs to self actualization needs
Flat organization structure An organization structure that had few layers of management and a broad span of control
Principle of motion Theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementry motions
Division of labor Determining what work needs to be done and then dividing up the tasks
Economies of scale The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase
Extrinsic reward Something given to you by someone else as recognition for good work; extrinsic rewards include pay increases, praise, and promotions
Hygiene factors In Herzberg's theory of motivating factors, job factors that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased
Internal customers Individuals and units within the firm that receive services from other individuals or units
Enabling Giving workers the education and tools they need to make decisions
Decision making Choosing among two or more alternative
Equity theory The idea that employees try to maintain equity between inputs and outputs compared to others in similar positions
Leading Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives
Centralized authority An organization structure in which decision making authority is maintained at the top level of management at the company's headquarters
Networking Using communications technology and other means to link organizations and allow them to work together on common objectives
Contingency planning The process of preparing alternative courses of action that may be used if the primary plans don't achieve the organization's objectives
Intrinsic reward The personal satisfaction you feel when you perform well and complete goals
Management by objective (MBO) A system of goal setting and implementation that involves a cycle of discussion, review, and evaluation or objectives among top and middle-level managers, supervisors, and employees
Mission statement An outline of the fundamental purposes of an organization
Organization chart A visual device that shows relationships among people and divides the organization's work. It shows who is accountable for the completion of specific work and who reports to whom
Objectives Specific, short-term statements detailing how to achieve the organization's goals
Knowledge management Finding the right information, keeping the information in a readily accessible place, and making the information known to everyone in the firm
Virtual corporation A temporary networked organization made up of replaceable firms that join and leave as needed
Restructuring Redesigning an organization so that it can more effectively and efficiently serve its customers
Organizing A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives
Hybrid forms A combination of departmentalization techniques
Controlling A management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
Tall organization structure An organizational structure in which the pyramidical organization chart would be quite tall because of the various levels of management
Job specialization Dividing tasks into smaller jobs
Core competencies Those functions that the organization can do as well as or better than any other organization in the world
PMI Listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third column
Motivators In Herzberg's theory of motivating factors, job factors that cause employees to be productive and that give them satisfaction
Vision An encompassing explanation of why the organization exists and where it's trying to head
Line personnel Employees who are part of the chain of command that is responsible for achieving organizational goals
Expectancy theory Victor Vroom's theory that the amount of effort employees exert of a specific task depends on their expectations of the outcome
Human relations skills Skills that involve communication and motivation, the enable managers to work through and well with people
Decentralized authority An organization structure in which decision making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be
Reinforcement theory Theory that positive and negative reinforcers motivate a person to behave in certain ways
Chain of command The line of authority that moves from the top of a hierarchy to the lowest level
Line organizations An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor
Transparency A concept that describes a company being so open to other companies working with it that the once-solid barriers between them become see-through and electronic information is shared as if the companies were one
Strategic planning The process of determining the major goals of the organization and the policies and strategies for obtaining and resources to achieve those goals
Problem solving The process of solving the everyday problems that occur. Less formal than decision making and usually calls for quicker action
Tactical planning The process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done
Job enrichment A motivational strategy that involves combining a series of tasks into one challenging and interesting assignment
Top management Highest level of management, consisting of the president and other key company executives who develop strategic plans
Bureaucracy An organization with many layers of managers who set rules and regulations and oversee all decisions
Cross-functional self-managed teams Groups of employees from different departments who work together on a long-term basis
Staffing A management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives
Matrix style organizations An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure
Brainstorming Coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
Staff personnel Employees who advise and assist line personnel in meeting their goals
Span of control The optimum number of subordinates a manager supervises or should supervise
Middle management Level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
External customers Dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
SWOT analysis A planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats
Supervisory management Managers who are directly responsible for supervising workers and evaluating their daily performance
Autocratic leadership Leadership style that involves making managerial decisions without consulting others
Goal-setting theory The idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions
Formal organization The structure that details lines of responsibility, authority, and position, that is, the structure shown on organization charts
Scientific management Studying workers to find the most efficient ways of doing things and then teaching people those techniques