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Definitions Covered After Exam.pdf

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Matthew Archibald

Definitions Covered After Exam Chapter 7 Decision Making Process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity Formulation Process involving identifying a problem or opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affect the problem or opportunity Problem A gap between existing and desired performance Opportunity Change to achieve a more desirable state than the current one Solution Process involving generating alternatives, selecting preferred solution, and implementing the decided course of action Programmed Decision Routine response to a simple or regularly occurring problem Nonprogrammer decision Decision about a problem that is either poorly defined or novel Standard Operating Established procedure for Procedure (SOP) action used for programmed decisions that specifics exactly what should be done Gresham’s law of planning Tendency for managers to let programmed activities overshadow nonprogrammed activities Rational Model 7 step model of decision making that represents earliest attempt to model decision processes Subjectively expected utility A model of decision making that model asserts that managers choose the alternative that they believe maximizes the desired outcome Bounded rationality model Descriptive model of decision making recognizing that people are limited in their capacity to full assess a problem and usually rely on shortcuts and approximations to arrive at a decision that they are comfortable with Satisficing Tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than pushing them further for an alternative that produces the best results Retrospective Decision Model A decision making model that focuses on how decision makers attempt to rationalize their choices after they are made Perceptual distortion Highlighting the positive features of the implicit favourite over the alternative Intuitive decision making Primarily subconscious process of identifying a decision and selecting a preferred alternative Ease of recall Making a judgement based upon the most recent events or the most vivid in our memory Retrievability Decision-making bias where judgements rely on the memory structures of an individual Presumed associatiations Assumption that two events are likely to co-occur based on the recollection of similar associations Insensitivity to base rates Tendency to disregard information that suggests the likelihood of a particular outcome in the presence of other information Insensivity to sample size Tendency to not consider sample size when using information taken from a sample within a given population Misconception of change Expectation that small sets of randomly assembled objects or sequences should appear random Regression to the mean Overlooking the fact that extreme events or characteristics are exceptional cases that will likely revert back to historic averages over time Conjunction fallacy Tendency for people to assume that co-occurring events are more likely to occur than if they were independent of each other or grouped with other events Anchoring Using in an initial value received from prior experience or any external information source and given it disproportionate weight setting a final value Escalation of commitment Tendeny to exhibit greater levels of commitment to a decision as time passes and invesments are made in the decision, even after significant evidence emerges indicating the original decision was correct Prospective rationally Belief that future courses of action are rational and correct Devil’s advocate Group member whose role is to challenge the majority position Structured debate Process to improve problem formulation that includes using a devil’s advocate, multiple advocacy and dialectical inquiry Multiple advocacy Process to improve decision making by assigning several group members to represent the opinions of various constituencies that might have an interest in the decision Dialectical inquiry Process to improve decision making assigning a group the role of questioning the underlying assumptions associated with the formulation of a problem Brainstorming Process of generating many creative solutions without evaluating their merit Nominal group technique Process of having group members record their proposed solutions, and independently rank solutions until a clearly favoured solution emerges Delphi technique Decision making technique that never allows decision participants to meet face to face but identifies a problem and asks for solutions using a questionnaire Chapter 8 Objectives End states or targets that company managers aim for Plans Means by which managers hope to hit desired targets Planning Decision making process that focuses on the future of an organization and how it will achieve its goals Strategic plans Focus on the broad future of the organization and incorporate both external environmental demands and internal resources into manager’s actions Tactical plans Plans that translate strategic plans into specific goals for specific parts of the organization Operational plans Plans that translate tactical plans into specific goals and actions for small units of the organization and focus on the near term Contingency Plans Plans that identify key factors that could affect the desired results and specify what actions will be taken if key events change Benchmarking Investigation of the best results among competitors and noncompetitors and the practices that lead to those results Budgets Used to quantify and allocate resources to specific activities Capital expenditure budget Specifies the amount of money to be spent on specific items that have long-term use and require significant amounts of money to acquire Expense budget Includes all primary activities on which a unit or organization plans to spend money and the amount allocated to each for the upcoming year Proposed budget Provides a plan for how much money is needed and is submitted to a superior or budget review committee Approved budget Specifies what the manager is actually authorized to spend money on and how much Incremental budgeting Where managers use the approach approved budget of the previous year and then present arguments for why the upcoming budget should be more or less Zero base budgeting Assumes that all allocations of approach funds must be justified from zero each year Chapter 9 Organization chart Illustrates the company’s structure and show employees where they it into the firm’s operations Organization structure Specification of the jobs to be done within a business ad how these jobs relate to one another Chain of Command Reporting relationships within the company Job specialization Process of identifying the specific jobs that need to be done and designating the people will perform them Departmentalization Process of grouping jobs into logical units Profit centre Separate company unit responsible for its own costs and profits Functional Departmentalization to functions departmentalization or activities Customer Departmentalization according departmentalization to the types of customers likely to buy a given product Product departmentalization Dividing an organization according to the specific product or service being created Geographic Departmentalization according departmentalization to the area of the country or world supplied Process departmentalization Departmentalization according to the production process used to create a good or service Responsibility Duty to perform an assigned task Authority Power to make the decisions necessary to complete the task Delegation Assignment of a task, a responsibility, or authority by a manger or subordinate Accountability Liability of subordinates for accomplishing tasks assigned by managers Centralized organization Top managers retain most decision making rights for themselves Decentralized organization Lower and middle level managers are allowed to make significant decisions Flat organization structure Organization with relatively few layers of management Tall organizational structure An organization with many layers of management Span of control Number of people managed by one manager Downsizing Planned reduction in the scope of an organization’s activity Line of authority Authority that flows up and down the chain of command Line departments Departments directly linked to the production and sales of specific products Staff authority Based on technical expertise and involves advising line managers about decisions Committee and team Authority granted to committees authority or work teams that play central roles in the firms daily operations Functional structure Various units in the organization are formed based on the functions that must be carried out to reach organization goals Divisional structure Divides the organization into several divisions, each of which operates as semi-autonomous unit and profit centre Project organization Involves forming at team of specialists from different functional areas of the organization to work on a specific project Matrix organization Variation of project structure in which the project managers and the regular line managers share authority Internal organization Organizational structures that structures are designed to help a company succeed in international markets. International departments, international divisions, or an integrated global organization are all variations of the international organizational structure Boundaryless organization Traditional boundaries and structures are minimized or eliminated altogether Team organization Relies almost exclusively on project-type teams, with little or no underlying functional hierarchy Virtual organization Company with little or no formal structure, which exists only in response to its own needs Learning organization Works to integrate continuous employee learning and development Informal organization Everyday social interactions among employees that transcend formal jobs and job interrelationships Grapevine Informal communication network that runs through the entire organization Chapter 10 Culture Learned set of assumptions, values, and behaviours that have been accepted as successful enough to be passed on to newcomers Artifacts Visible manifestations of a culture such as its art clothing, food, architecture and customs Values Enduring beliefs that specific conduct or end states are personally or socially preferred to others Assumptions Beliefs about fundamental aspects of life Theory X managers Assume the average human being has inherent dislike of work and will avoid it if possible Theory Y managers Assume that work is a natural as play or rest Power distance Extent to which people accept power and authority differences among people Individualism Extent to which people base their identities on themselves and are expected to take Collectivism Extent to which identity is a function of the group to which an individual belongs Masculine societies Value activities focused on success money and possessions Feminine societies Value activities focused on caring for others and enhancing the quality of life Short term orientation Societies that focus on immediate results and those that focus on developing relationships without expecting immediate results Strong vs. Cultural values Degree to which the cultural values are shared by organization members Subculture Where values are deeply held but not widely shared Core value Value that is widely shared and deeply held Rituals Symbolic communication of an organization culture Culture context Degree to which a situation influences behaviour or perception of appropriateness Accounting Comprehensive system for collecting, analyzing and communicating financial information Bookkeeping Recording accounting transactions Controller Individual who managers all the firm’s accounting activities Audit An accountant’s examination of a company’s financial records to determine whether it is used proper procedures to prepare its financial reports Chapter 12 Employee behaviour Pattern of actions by the members of an organization that directly or indirectly influence the organization’s effectiveness Performance behaviours Pattern of actions by the members of an organization that directly or indirectly influence the organization’s effectiveness Organizational citizenship Behaviours that provide positive benefits to the organization in indirect way Counterproductive Behaviours that detract from behaviours organizational performance Abseentism Occurs when an employee does not show up for work Turnover % of an organization’s workforce that leaves and must be replaced Individual differences Physically psychological and emotional attributes that vary from one person to another and that make each person unique Personality Relatively stable set of psychological attributes that distinguishes one person from another Emotional intelligence Extent to which people possess social skills, are self-aware can manager their emotions can motivate themselves and can express empathy for others Attitude Reflection of our beliefs and feelings about specific ideas, situations or other people Job satisfaction Degree of enjoyment that people derive from performing their jobs Organizational commitment An individual’s identification with the organization and its mission Psychological contract Set of expectations held by an employee concerning what he or she will contribute to an organization and what the organization will provide the employee in return Personal-job fit Extent to which a person’s contributions and the organization’s inducement match one another Motivation Set of forces that causes, focus, and sustain workers’ behaviour Classical theory of motivation Workers are motivated solely by money Scientific management Analyzing jobs in order to find more efficient ways to perform them Hawthorne effect Tendency for workers’ productivity to increase when they feel they are receiving special attention from management Human relations Interactions between employers and employees and their attitudes toward one another Two-factor theory Theory of human relations developed by Frederick Herzberg that identifies factors that must be present for employees to be satisfied with their jobs and factors that, if increased, lead employees to work harder Expectancy theory Theory that people are motivated to work toward rewards that they want and that they believe they have a reasonable change of obtaining Equity theory Theory that people compare 1 what they contribute to their job with what they get in return And 2 their input/output ratio with that of others employees Reinforcement Controlling and modifying employee behaviour through the use of systematic rewards and punishments for specific behaviours Goal setting theory Theory that people perform better when they set specific, quantified, time-framed goals SMART goals Goals that are specific, measurable, agreed upon, realistic, and time framed and which are most likely to result in increased employee performance Management by objectives System of collaborative goal setting that extends from the top of an organization to its bottom Participate management and Method of increasing empowerment employees’ job satisfaction by giving them a voice in how they do their jobs and how the company is management Wikis Websites that allow employees to add content whenever they want on issues that are of interest to the business Quality Circle A technique used to encourage participative management, whereby group of employees meet regularly to consider solutions for problems in their problems in their work area Job enrichment A method of increasing employees’ job satisfaction by extending or adding motivating factors such as responsibility or growth Job redesign Method of increasing employees’ job satisfaction by improving the worker Flexitime Method of increasing employees job satisfaction by allowing them some choice in the hours they work Compressed workweek Employees work fewer days per week but more hours on the days they do work Telecommuting Allowing employees to do all or some of their work away from the office Work-sharing Method of increasing employee job satisfaction by allowing two people to share one job satisfaction by allowing two people to share job Leadership Processes and behaviours used by managers to motivate, inspire, and influence subordinates to work toward certain goals Trait approach That focuses on identifying the traits that would differentiate leaders form non leaders Task oriented Form of leader behaviour in which the manager focuses on how tasks should be performed in order to achieve important goals Employee oriented Form of leader behaviour in which the manager focuses on the satisfaction, motivation, and well-being of employees Autocratic style Form of leader behaviour in which the manger issues order and expects them to be obeyed without question Democratic style Form of leader behaviour in which the manager requests input from subordinates before making decisions but retains final decision-making power Free-rein style Form of leader behaviour in which the manger serves as an adviser to subordinates who are given a lot of discretion when making decisions Situational approach Approach that emerged during the 1960s and assumed that appropriate leader behaviour varied from one situation to another Transformational leadership Set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute that change effectively Transactional leadership Routine, regimented activities that focus on maintaining stability of operations Charismatic leadership Type of influence based on the leader’s personal charisma Strategic leadership Leader’s ability to understand the complexities of both the organization and its environment in order to lead change in the organization, which will enhance its competitiveness Ethical leadership Leader behaviour that reflect high ethical standards Virtual leadership The carrying out of leadership activities when the leaders does not have a regular personal contact with followers Chapter 13 Encoding Act of constructing a message Deciding The act of interpreting a message. Noise Potential interference with the transmission or decoding of a message Media richness Different media classified as rich or lean based on their capacity to facilitate shared meaning Downward communication Messages sent from higher levels organization levels to lower levels Upward communication Messages sent from lower organizational levels to higher levels Lateral communication Messages sent across essentially equivalent levels of an organization Informal communication Routes are not pre-specified by channels the organization but that develop through typical and customary activities of people at work Communication networks Identifiable patters of communication within and between organizations, whether using formal or informal channels Networking Process of developing regular patterns of communication with a particular individuals or groups to send and receive information Selective perception Process of screening out some parts of an intended message because they contradict our beliefs or desires Frames of reference Existing sets of attitude that provide quick ways of sending complex messages Ethnocentrism Belief in the superiority and importance of one’s own group Stereotyping Tendency to oversimplify and generalize about groups of people Cultural distance Overall difference between two cultures basic characteristics such as language, level of economic development, and traditions and customs Empathy Ability to put yourself in someone else’s place and to understand his or feelings, situation, and motives Gatekeeper Individuals who are at the communication interface between separate organizations or between different units within an organization Negotiation Process of conferring to arrive at an agreement between different parties, each with their own interests and preferences Interests In negotiation, a party’ concerns and desires- in other words, what they want Collaboration A part of negotiation in which parties work together to attack and solve a problem Chapter 14 ROI Return on investment. A measure of profitability obtained by diving net income by total amount of assets invested ROE (return on equity) An alternative for ROI Liquidity Measure of how well a unit can meet its short-term cash requirements Leverage Ratio of total debt to total assets Efficiency Ration of amount of sales to total cost of inventory Breakeven point Amount of a product that must be sold to cover a firm’s fixed and variable costs Budgetary control Type of tactical control based on responsibility for meeting financial targets and evaluating how well those targets have been met Supervisory structure A type of tactical control based on reporting levels in an organization Human resources and A type of tactical control based procedures on the organization’s overall approach to using its human resources Bureaucratic control An approach to tactical control that stresses adherence to rules and regulations and is imposed by others Commitment control An approach to tactical control that emphasizes consensus and shared responsibility for meeting goals Operational control Assessment and regulation of the specific activities and methods an organization used to produce goods and services Pre-control A type of operational control that focuses o
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