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264 Cards in this Set
- Front
- Back
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Globalization
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trend of the world economy toward becoming a more interdependent system
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Global village
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the "shrinking" of time and space as air travel and electronic media have made it easier for the people of the globe to communicate with one another
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E-commerce
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(electronic commerce); the buying and selling of products and services through computer networks
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Global economy
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the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets
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Multinational corporation
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(multinational enterprise) a business firm with operations in several countries
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Multinational organization
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a non-profit organization with operations in several countries
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Ethnocentric managers
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believe that their native country, culture, language and behavior are superior to all others
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Parochialism
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a narrow view in which people see things solely through their own perspective
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Polycentric managers
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the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone
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Geocentric managers
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accept that there are differences and similarities between home and foreign personnel and practices
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Expatriate manager
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a manager living or working in a foreign country
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Maquiladoras
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manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens
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Outsourcing
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defined as using suppliers outside the company to provide goods and services
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Global outsourcing
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using suppliers outside the U.S. to provide labor, goods, or services
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Importing
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a company buys good outside the country and resells them domestically
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Exporting
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a company produces goods domestically and sells them outside the country
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Countertrading
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bartering goods for goods
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Licensing
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a company allows a foreign company to pay it a fee to make or distribute the first company's product or service
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Franchising
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a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name
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Joint venture
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(strategic alliance) when a U.S. firm joins with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country
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Wholly-owned subsidiary
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a foreign subsidiary that is totally owned and controlled by an organization
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Greenfield venture
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a foreign subsidiary that the owning organization has built from scratch
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Free-market economy
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the production of goods and services is controlled by private enterprise and the interaction of the forces of supply and demand
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Command economy
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the government owns businesses and regulates the amounts, types, and prices of goods and services
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Mixed economy
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most of the important industries are owned by the government, but others are controlled by private enterprise
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Privatization
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state-owned businesses are sold off to private enterprise
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Developed countries
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those with a high-level of economic development and generally high average level of income among citizens
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Less-developed countries
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nations with low economic development and low average incomes
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Infrastructure
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the physical facilities of a country that form the basis for the level of economic development
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Exchange rate
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the rate at which one country's currency can be exchanged for another's
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Democratic government
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relies on free elections and representative assemblies
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Totalitarian government
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ruled by a dictator, a single political party, or a special-membership group
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Political risk
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the risk that political changes can cause the loss of a company's assets or impair its foreign operations
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Expropriation
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a government's seizure of a foreign company's assets
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Foreign Corrupt Practices Act
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makes it illegal for employees of U.S. companies to bribe political decision makers in foreign nations
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Free trade
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the movement of goods and services among nations without political or economic obstruction
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Trade protectionism
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the use of government regulations to limit the import of goods and services
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Tariff
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a trade barrier in the form of a customs duty or tax levied mainly on imports
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Import quota
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a trade barrier in the form of a limit on the numbers of a product that can be imported
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Dumping
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the practice of a foreign company's exporting products abroad at a lower price than the price in the home market in order to drive down the price of the domestic product
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Embargo
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a complete ban on the import or export os certain products
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World Trade Organization (WTO)
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designed to monitor and enforce trade agreements
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World Bank
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to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunication
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International Monetary Fund (IMF)
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designed to assist in smoothing the flow of money between nations
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Trading bloc
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a group of nations within a geographical region that have agreed to remove trade barriers with one another
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North American Free Trade Agreement (NAFTA)
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a trading bloc consisting of the U.S., Canada, and Mexico
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European Union (EU)
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consists of 25 trading partners in Europe
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Asia-Pacific Economic Cooperation (APEC)
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a group of 21 Pacific Rim countries whose purpose is to improve economic and political ties
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Mercosur
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largest trade bloc in Latin America with 4 core members (Argentina, Brazil, Paraguay, and Uruguay) and 2 associate members (Chile and Bolivia)
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Most forward nation
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a condition where a country grants other countries favorable trading treatment such as the reduction of import duties
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Culture
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a shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people
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Low-context culture
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shared meanings are primarily derived from written and spoken words
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High-context culture
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people rely heavily on situational clues for meaning when communicating with others
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Hofstede model of four cultural dimensions
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identified four dimensions along which national cultures can be placed: individualism, power distance, uncertainty avoidance, and masculinity
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GLOBE project
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a massive and ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes
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Monochronic time
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a preference for doing one thing at a time
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Polychronic time
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preference for doing more than one thing at a time
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Planning
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setting goals and deciding how to achieve them; coping with uncertainty by formulating future courses of action to achieve specified results
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State uncertainty
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the environment is considered unpredictable
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Effect uncertainty
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the effects of environmental changes are unpredictable
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Response uncertainty
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consequences of a decision are uncertain
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Defenders
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experts at producing and selling narrowly defined products and services
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Prospectors
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focus on developing new products or services and in seeking out new markets, rather than waiting for new things to happen
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Analyzers
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let other organizations take risks of product development and marketing and then imitate what seems to work best
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Reactors
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make adjustments only when finally forced to by environmental pressures
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Mission
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a company's purpose or reason for being
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Mission statement
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expresses the purpose of the organization
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Vision
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a long-term describing "what" an organization wants to become
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Vision statement
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expresseswhat the organization should become
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Strategic planning
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determining an organization's long-term goals should be (1-5 years)
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Tactical planning
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determining what contributions one's departments or similar work units can make their given resources during the next months (6-24 months)
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Operational planning
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determining how to accomplish specific tasks with available resources (1-52 weeks)
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Goal/Objective
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a specific commitment to achieve a measurable result within a stated period of time
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Means-end chain
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in the chain of management, the accomplishment of low-level goals is the means leading to the accomplishment of high-level goals or ends
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Strategic goals
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set by and fro top management and focus on objectives for the organization as a whole
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Tactical goals
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set by and for middle managers and focus on the actions needed to acheive strategic goals
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Operational goals
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set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals
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Action plan
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defines the course of action needed to achieve the stated goal
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Operating plan
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typically designed for a 1-year period; defines how you will conduct your business based on the action plan; identifies clear targets such as revenues, cash flow, and market share
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Standing plans
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plans developed for activities that occur repeatedly over a period of time
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Policy
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standing plan that outlines the general response to a designated problem or situation
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Procedure
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standing plan that outlines the response to particular problems or curcumstances
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Rule
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standing plan that designates specific required action
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Single-use plans
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plans developed for activities that are not likely to be repeated in the future
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Program
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single-use plan encompassing a range of projects or activities
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Project
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single-use plan of less scope and complexity than a program
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SMART goal
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Specific, Measurable, Attainable, Results-Oriented, and has Target dates
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Planning/control cycle
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2 planning steps and 2 control steps:
1) Make the plan 2) Carry out the plan 3) Control the direction by comparing results with the plan 4) Control the direction by taking corrective action |
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Management by objectives
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4-step process in which managers and employees set joint objectives, managers develop action plans, managers and employees periodically review employee performance, and the manager makes a performance appraisal and rewards employees according to results
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Cascading
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objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization
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Project planning
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preparation of single-use plans or projects
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Project management
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achieving a set of goals through planning, scheduling, and maintaining progress of the activities that comprise the project
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Skunkworks
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term given to a project team whose members are separated from the normal operation of an organization and asked to produce a new, innovative product
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Project life cycle
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four stages from start to finish: definition, planning, execution, and closing
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Strategy
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large-scale action plan that sets the direction for an organization
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Strategic management
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process that involves managers from all parts of the organization in the formulation and implementation of strategies and strategic goals
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Strategic positioning
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attempts to achieve sustainable competitive advantage by preserving what is distinct about a company
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Grand strategy
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after an assessment of current organizational performance, explains how the organization's mission is to be accomplished
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Growth strategy
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a grand strategy that involves expansion
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Stability strategy
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grand strategy that involves little or no significant change
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Defensive strategy
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grand strategy that involves reduction in the organization's efforts
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Strategy formulation
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the process of choosing among different strategies and altering them to best fit the organization
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Strategy implementation
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putting strategic plans into effect
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Strategic control
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consists of monitoring the execution of strategy and making adjustments
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SWOT analysis
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a search for strengths, weaknesses, opportunities, and threats affecting an organization
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Organizational strengths
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skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission
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Organizational weaknesses
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drawbacks that hinder an organization in creating strategies in pursuit of its mission
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Organizational opportunities
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environmental factors that the organization may exploit for competitive advantage
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Organizational threats
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environmental factors that hinder an organization's achieving a competitive advantage
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Forecast
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vision or projection of the future
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Trend analysis
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hypothetical extension of a past series of events into the future
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Contingency planning/scenario analysis
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creation of alternative hypothetical but equally likely future conditions
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Porter's model for industry analysis
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business level strategies originate in five primary competitive forces in the firm's environment:
1) Threats of new entrants 2) Bargaining power of suppliers 3) Bargaining power of buyers 4) Threats of substitute products or services 5) Rivalry among competitors |
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Porter's four competitive strategies
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1) Cost-leadership
2) Differentiation 3) Cost-focus 4) Focused-differentiation |
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Cost-leadership strategy
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to keep the costs of a product or service below those of competitors and to target a wide market
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Differentiation strategy
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offer products or services that are of unique and superior value compared to those of competitors but to target a wide market
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Cost-focus strategy
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to keep the costs of a product or service down and to target a narrow market
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Focused-differentiation strategy
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offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market
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Product life cycle
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a model that graphs the four stages a product or service goes through during the "life" of its marketability
1) Introduction 2) Growth 3) Maturity 4) Decline |
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Introduction stage
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stage in the product life cycle in which a new product is introduced into the marketplace
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Growth stage
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most profitable stage where the customer demand increases, sales grow, and competitors may enter the market
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Maturity stage
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period in which product starts to fall out of favor and profits begin to fall off
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Decline stage
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period on which the product falls out of favor and the organization withdraws from the marketplace
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Single-product strategy
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a company makes and sells only one product within its market
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Diversification
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operating several businesses in order to spread the risk
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Unrelated diversification
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operating several businesses under one ownership that are not related to one another
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Related diversification
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an organization under one ownership operates separate businesses that are related to one another
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Competitive intelligence
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gaining information about ones' competitors' activities so that you can anticipate their moves and react appropriately
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Synergy
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economic value of separate, related businesses under own ownership and management is greater together than businesses are worth separately
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Execution
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consists of using questioning, analysis and follow-through in order to mesh strategy with reality, align people with goals, and achieve promised results
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Decision
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a choice made from among available alternatives
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Decision making
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the process of identifying and choosing alternative courses of action
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Programmed decisions
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repetitive and routine
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Nonprogrammed decisions
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those that occur under nonroutine, unfamiliar circumstances
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Risk propensity
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the willingness to gamble or undertake risk for the possibility of gaining an increased payoff
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Decision-making style
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reflects the combination of how an individual perceives and responds to information
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Rational model of decision making
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explains how managers should make decisions; assumes managers will make logical decisions that will be the optimum in furthering the organizations best interests
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Problems
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difficulties that inhibit the achievement of goals
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Opportunities
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situations that present possibilities for exceeding existing goals
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Diagnosis
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analyzing underlying causes
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Nonrational models of decision making
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explain how managers make decisions; assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions
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Bounded rationality
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suggests that the ability of decision makers to be rational is limited by numerous constraints
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Satisficing model
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managers seek alternatives until they find one that is satisfactory, not optimal
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Incremental model
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managers take small, short-term steps to alleviate a problem
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Knowledge management
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the development of an organizational culture that encourages continuous learning and sharing of knowledge and information among employees
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Explicit knowledge
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information that can easily be put into words, graphics, and numbers and shared with others
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Tacit knowledge
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individual-based, intuitive, and acquired through experience
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Analytics
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term used for sophisticated forms of business data analysis
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Predictive modeling
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a data mining technique used to predict future behavior and anticipate the consequences of change
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Ethics officer
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someone trained about matters of ethics in the workplace
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Decision tree
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graph of decisions and their possible consequences; used to create a plan to reach a goal
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Groupthink
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occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation
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Goal displacement
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occurs when the primary goal is subsumed by a secondary goal
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Participative management
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the process of involving employees in setting goals, making decisions, solving problems, and making changes in the organization
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Consensus
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when the members are able to express their opinions and reach agreement to support the final decision
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Brainstorming
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a technique used to help groups generate multiple ideas and alternatives for solving problems
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Electronic brainstorming
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members of a group come together over a computer network to generate ideas and alternatives
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Nominal group
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generates ideas and evaluates solutions by writing down as many ideas as possible
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Delphi group
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physically dispersed experts who fill out questionnaires to anonymously generate ideas; judgments are combined and averaged to achieve a consensus
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Relaxed avoidance
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manager decides to take no action in the belief that there will be no great negative consequences
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Relaxed changes
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a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk
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Defensive avoidance
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manager can't find a good solution and follows by procrastinating, passing the buck, or denying the risk of any negative consequences
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Panic
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manager is so frantic to get rid of the problem that he or she can't deal with the situation realistically
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Deciding to decide
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manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps
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Heuristics
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strategies that simplify the process of making decisions
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Availability bias
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managers use information readily available from memory to make judgments
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Confirmation bias
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when people seek information to support their point of view and discount data that do not
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Representativeness bias
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the tendency to generalize from a small sample or a single event
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Sunk cost bias
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when managers add up all the money already spent on a project and conclude it is too costly to simply abandon it
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Anchoring and adjustment bias
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tendency to make decisions based on an initial figure
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Escalation of commitment bias
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decision makers increase their commitment to a project despite negative information about it
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Organizational culture
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system of shared beliefs and values that develops within an organization and guides the behavior of its members
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Symbol
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an object, act, quality, or event that conveys meaning to others
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Story
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a narrative based on true events, which is repeated - and sometimes embellished - to emphasize a particular value
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Hero
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a person whose accomplishments embody the value of the organization
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Rites and rituals
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activities and ceremonies that celebrate important accomplishments and occasions in the organization's life
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Strength perspective
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assumes that the strength of a corporate culture is related to a firm's long-term financial performance
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Fit perspective
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assumes that an organization's culture must align with its business or strategic context
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Adaptive perspective
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assumes that the most effective cultures help organizations anticipate and adapt to environmental changes
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Organization
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a system of consciously coordinated activities or forces of two or more people
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Organization chart
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box and lines illustration showing the formal lines of authority ad the organization's official positions or work specializations
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Common purpose
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unifies employees or members and gives everyone an understanding of the organization's reason for being
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Coordinated effort
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the coordination of individual efforts into a group or organization-wide effort
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Division of labor
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arrangement of having discrete parts of a task done by different people
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Hierarchy of authority
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a control mechanism for making sure the right people do the right things at the right time
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Unity of command
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an employee should report to no more than one manager
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Span of control
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refers to the number of people reporting directly to a given manager
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Authority
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refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources
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Accountability
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managers must report and justify work results to the managers above them
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Responsibility
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the obligation you have to perform the tasks assigned to you
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Delegation
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the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
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Line managers
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have authority to make decisions and usually have people reporting to them
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Staff personnel
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have authority functions; provide advice, recommendations, and research to line managers
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Centralized authority
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important decisions are made by higher-level managers
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Decentralized authority
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important decisions are made by middle-level and supervisory-level managers
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Simple structure
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authority centralized in a single person, a flat hierarchy, few rules, and low work specialization
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Functional structure
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people with similar occupational specialties are put together in formal groups
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Divisional structure
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people with diverse occupational specialities are put together in formal groups by similar products, services, customers, or geographic regions
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Product divisions
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group activities around similar products or services
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Customer divisions
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group activities around common customers or clients
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Geographic divisions
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group activities around defined regional locations
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Conglomerate structure
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groups divisions or business units around similar businesses or industries
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Hybrid structure
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an organization uses functional and divisional structures in different parts of the same organization
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Matrix structure
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an organization combines functional and divisional chains of commands in a grid so that there are 2 command structures - vertical ad horizontal
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Team-based structure
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teams or workgroups are used to improve horizontal relations and solve problems throughout the organization
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Network structure
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the organization has a central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization
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Contingency design
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process of fitting the organization to its environment is called
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Mechanistic organization
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authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
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Organic organization
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authority is decentralized, there are fewer rules and procedures and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
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Differentiation
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the tendency of the parts of an organization to disperse and fragment
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Integration
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the tendency of the parts of an organization to draw together to achieve a common purpose
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Organizational size
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usually measured by the number of full-time employees
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Technology
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consists of all the tools and ideas for transforming materials, data, or labour into goods or services
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Small-batch technology
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often the least complex technology; goods are custom-made to customer specifications in small quantities
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Large-batch technology
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mass-production, assembly-line technology
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Continuous-process technology
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highly routinized technology in which machines do all the work
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Organizational life cycle
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has a natural sequence of stages: birth, youth, midlife, and maturity
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Birth stage
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nonbureaucreatic stage, the stage in which the organization is created
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Youth stage
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organization is the prebureaucratic stage, a stage of growth and expansion
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Midlife stage
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organization becomes bureaucratic, a period of growth evolving into stability
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Maturity stage
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organization becomes very bureaucratic, large and mechanistic
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Paradigms
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generally accepted ways of viewing the world
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Human resource management
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the activities managers perform to plan for, attract, develop, and retain an effective workforce
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Strategic human resources planning
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developing a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs
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Job analysis
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to determine, by observation and analysis, the basic elements of a job
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Job description
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summarizes what the holder of the job does and how or why they do it
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Job specification
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describes the minimum qualifications a person must have to perform the job successfully
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Human resource inventory
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report listing your organization's employees by name, education, training, languages, ad other important information
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National Labor Relations Board
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enforces procedures whereby employees may vote to have a union and for collective bargaining
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Collective bargaining
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consists of negotiations between management and employees about disputes over compensation, benefits, working conditions, and job security
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Fair Labor Standards Act
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established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage
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Equal Employment Opportunity Commission
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has the job of enforcing antidiscrimination and other employment-related laws
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Discrimination
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when people are hired or promoted for reasons not relevant to the job
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Affirmative action
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focuses on achieving equality of opportunity within an organization
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Sexual harassment
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consists of unwanted sexual attention that creates an adverse work environment
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Recruiting
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process of locating and attracting qualified applicants for jobs open in the organization
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Internal recruiting
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making people already employed by the organization aware of job openings
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Job posting
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placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization's intranet
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External recruiting
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attracting job applicants from outside the organization
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Realistic job preview
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gives the candidate a picture of both positive and negative features of the job and the organization before he or she is hired
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Selection process
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the screening of job applicants to hire the best candidate
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Unstructured interview
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involves asking probing questions to find out what the applicant is like
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Structured interview
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asking each applicant the same questions and comparing their responses to a standardized set of answers
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Situational interview
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interviewer focuses on hypothetical situations
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Behavioral-description interview
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interviewer explores what applicants have actually done in the past
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Employment tests
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legally considered to consist of any procedure used in the employment selection decision process
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Assessment center
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management candidates participate in activities for a few days while being assessed by evaluators
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Reliability
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the degree to which a test measures the same thing consistently
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Validity
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test measures what it purports t measure and is free of bias
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Orientation
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helping the newcomer fit smoothly into the job and the organization
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Training
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refers to educating technical and operational employees in how to better do their current job
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Development
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educating professionals and managers in the skills they need to do their jobs in the future
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Computer-assisted instruction
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computers are used to provide additional help or to reduce instructional time
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Performance appraisal
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assessing an employee's performance and providing him or her with feedback
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Objective appraisals
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based on facts and are often numerical
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Subjective appraisals
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based on a manager's perceptions of an employee's traits or behaviors
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Behaviorally anchored rating scale
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rates employee gradations in performance according to scales of specific behaviors
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360-degree assessment
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employees are appraised not only by their managerial superiors, but also by peers, subordinates, and sometimes clients
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Forced ranking performance review systems
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all employees within a business unit are ranked against one another, and grades are distributed along some kind of bell curve
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Formal appraisals
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conducted at specific times throughout the year and based on performance measures that have been established in advance
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Informal appraisals
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conducted on a unscheduled basis and consist of less rigorous indications of employee performance
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Compensation
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3 parts: wages, incentives, and benefits
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Base pay
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basic wage or salary paid employees in exchange for doing their jobs
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benefits
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additional nonmonetary forms of compensation
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