MGT503 IMP notes

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authority : the formal and legitimate right of a manager to make decisions, issue
orders, and allocate resources to achieve organizational goals.

behavioral a method that focuses on people as individuals with needs (also known
management as the human relations movement).
theory: :

compensation: all work-related payments, including wages, commissions, insurance,

: and other benefits.

continuous a system that produces goods by continuously feeding raw materials

process: : through highly automated technology.

control: : the systematic process of regulating organization activities to make them

consistent with the expectations established in plans, targets, and
standards of performance.

concurrent method of regulation applied to processes as they are happening.

control: :

cost- system that focuses on keeping costs as low as possible through efficient
leadership operations and tight controls.
strategy: :

crisis an unexpected problem that has the potential to lead to disaster if not
problem: : resolved quickly and appropriately.

cross- groups of experts in various specialties (or functions) who work together
functional on solutions to organizational problems.
teams: :

decentralized firms that consciously attempt to spread authority to the lowest

organizations: possible levels.
:

demographics: measurements of various characteristics of the people and social

: groups who make up a society.

development a series of steps that can help employees acquire skills to reach long-
plans: : term goals, such as job promotions.

division of see work specialization.

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labor: :

financial formal investigations to ensure that procedures, policies, laws, and ethical
audits: : guidelines are followed in the handling and reporting of financial
activities.

financial the relationship between specific figures on an organization's financial

ratio statements; helps explain the significance of those figures.
analysis: :

first-line the lowest level of management.

management:
:

flexiplace: see telecommuting.

:

force-field a technique to implement change by determining which forces drive

analysis: : change and which forces resist it.

functional authority to make decisions about specific activities undertaken by

authority: : personnel in other departments.

job a type of job re-design that increases the variety of tasks a position
enlargement: includes (also known as horizontal job loading).
:

job process in which one full-time job is split between two or more persons
sharing: : (also known as twinning).

joint a business relationship formed between a domestic and foreign firm.

venture: :

kaizen: : a Japanese term used in the business setting to mean incremental,

continuous improvement.

leading: : establishing and influencing others to follow a specific direction.

learning firms that utilize people, values, and systems to continuously change
organizations: and improve performance based on the lessons of experience.
:

legitimate vested authority stemming from a formal management position in an

power: : organization.
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licensure contract that grants one firm the right to make or sell another company's
agreement: products.
:

line a manager's right to direct the work of his or her employees and make
authority: : decisions without consulting others.

liquidity measurements of an organization's ability to generate cash.

ratios: :

manager: : a person responsible for the work performance of one or more other
persons.

quality: : reflects the degree to which a goods or services meet the demands and
requirements of the marketplace.

quantitative using quantitative techniques, such as statistics, information models, and

approach: : computer simulations, to improve decision making.

queuing a rationale that helps allocate services or workstations to minimize

theory: : customer waiting and service cost.

quotas: : government regulations that limit the import of specific products within
the year.

recruitment: activities an organization uses to attract a pool of viable candidates.

:

reengineering: redesigning processes requiring input from every employee in the

: company to achieve dramatic improvements in cost, quality, service,
and speed.

referent influence that results from leadership characteristics that command

power: : identification, respect, and admiration from subordinates (also known as
charismatic power).

resources: : the people, information, facilities, infrastructure, machinery, equipment,

supplies, and finances at an organization's disposal.

risk: : the environment that exists when a manager must make a decision
without complete information.

rule: : an explicit statement that tells a supervisor what he or she can and cannot
do.
satisfice: : the making of the best decision possible with the information, resources,
and time available.

scalar a system that demonstrates a clearly defined line of authority in the

principle: : organization that includes all employees.

simulation: a broad term indicating any type of activity that attempts to imitate an
: existing system or situation in a simplified manner.

situational see contingency theory.

theory: :

small-batch manufacturing of a variety of custom, made-to-order products.

production:
:

social see grapevine.

network: :

strategic revision that takes place when a company changes its tactics (strategy) —
change: : possibly even its mission statement — to achieve current goals.

strategic an outline of steps designed with the goals of the entire organization as a
plan: : whole in mind, rather than with the goals of specific divisions or
departments.

structural variation that occurs when a company changes its procedures, policies,
change: : and rules, and as a result, its organizational structure.

structured familiar, straightforward, and clear difficulties with respect to the

problems: : information needed to resolve them.

tactical steps detailing the actions needed to achieve the organization's larger
plan: : strategic plan.

tariffs: : taxes placed on imports and/or exports in response to a political event.

interpersonal real-time, face-to-face, or voice-to-voice conversation that allows

communication: immediate feedback.
:

intrapreneurship: organizational culture that allows employees flexibility and

: authority in pursuing and developing new ideas.

job a study that determines all tasks and qualifications needed for each
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analysis: : position.

job a written statement of a job's requirements, processes, and rationale.

description:
:

job a type of job re-design that not only includes an increased variety of
enrichment: tasks, but also provides the employee with more responsibility and
: authority (also known as vertical job loading).

job temporarily assigning employees to different job, or tasks to different

rotation: : people, on a rotating basis.

team organizational design that places separate functions into a group

structure: : according to one overall objective.

technology: the knowledge, machinery, work procedures, and materials that transform
: inputs into outputs.

telecommuting: a work arrangement that allows at least a portion of scheduled work

: hours to be completed outside of the office, with work at home as one
of the options (also known as flexiplace).

Total a philosophy that states that uniform commitment to quality in all areas
Quality of the organization promotes a culture that meets consumers'
Management perceptions of quality.
(TQM): :

twinning: : see job sharing

unity of principle that states that an employee should have one and only one
command: supervisor to whom he or she is directly responsible.
:

unstructured difficulties that involve ambiguities and information deficiencies and

problems: : often occur as new or unexpected situations.

validity: : proof that the relationship between a selection device and some relevant
job criterion exists.

vertical job see job enrichment.

loading: :

vision: : the ability of the leader to bind people together with an idea.
wholly- a foreign firm owned outright, or with a controlling interest, by an out-of-
owned country firm.
subsidiary:
:

work the degree to which organizational tasks are divided into separate jobs
specialization: (also known as the division of labor).
:

zero a program that emphasizes doing it right the first time.

defects: :

brainstorming: an idea-generating process that encourages the development of

: alternatives while withholding criticism of those alternatives.

bureaucracy: a form of organization based on logic, order, and legitimate use of

: formal authority.

decision a diagram that analyzes hiring, marketing, investment, equipment

tree: : purchases, pricing, and similar decisions. Decision trees assign
probabilities to each possible outcome and calculate payoffs for each
decision path.

delegation: the downward transfer of authority from a manager to a subordinate.

:

embargo: : a prohibition on trade in a particular area.

empowerment: giving individuals an organization autonomy.

:

expectancy a motivational theory stating that the three factors that influence behavior
theory: : are the value of the reward, the relationship of the reward to performance,
and the effort required for performance

expert a leader's special knowledge or skills regarding the tasks performed by

power: : followers.

exporting: : selling of an organization's products to a foreign broker or agent.

feedforward method used to identify and prevent defects and deviations from
controls: : standards.

grapevine: the informal communications network within an organization (also

: known as social network and informal channels).
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horizontal see job enlargement.

job
loading: :

human see behavioral management theory.

relations
movement:
:

incentive links compensation and performance by paying employees for actual

pay: : results, not for seniority or hours worked.

income a report that presents the difference between an organization's income and
statement: : expenses to determine whether the firm operated at a profit or loss over a
specified time.

informal see grapevine.

channels: :

network an operating process that relies on other organizations to perform critical

structure: : functions on a contractual basis.

open a method in which an individual or organization must interact with

system: : various and constantly changing components in both the external and
internal environments.

operational specific, measurable results expected from first-level managers, work

goals: : groups, and individuals.

organizational a significant change that affects an entire company.

change: :

organizational a pictorial display of the official lines of authority and communication

chart: : within an organization.

organizational the byproduct of organizational culture; it is the barometer for

climate: : determining the morale of the employees.

organizational an organization's personality.

culture: :

organizational the creation or change of an organization's structure, the configuration

design: : and interrelationships of positions and departments.

organizational a plan that focuses on changing an entire organization by changing

development processes and organizational culture.
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(OD): :

organizing: the process of establishing the orderly use of resources by assigning and
: coordinating tasks.

orientation: a socialization process designed to provide necessary information to new

: employees and welcome them into the organization.

performance a formal, structured system designed to measure an employee's job

appraisal: : performance against designated standards.

philosophy a manager's set of personal beliefs and values about people and work.
of
management:
:

plan: : a blueprint for goal achievement that specifies the necessary resource
allocations, schedules, tasks, and other actions.

planned the deliberate structuring of operations and behaviors in anticipation of

change: : environmental forces.

planning: : the act of determining the organization's goals and defining the means for
achieving them.

privacy legal rights of employees regarding who has access to information about
laws: : their work history and job performance.

procedure: a set of step-by-step directions that explain how activities or tasks are to
: be carried out.

process rationales that attempt to explain how workers select behavioral actions
theories: : to meet their needs and determine their choices.

profitability measurements of an organization's ability to generate profits.

ratios: :

acceptance principle that emphasizes the willingness of subordinates to accept those

theory of with authority to act.
management
:

accountability the answering for one's actions and accepting the consequences
:
affirmative a plan that requires employers to make an extra effort to hire and promote
action : people who belong to a protected group

boundary the process of gathering information from the external environment to

spanning: : identify current or likely events and determine how those events will
affect the organization.

centralized authority is concentrated at the top of the organization.

organization:
:

chain of a line of authority that links all persons in an organization and defines
command: who reports to whom.
:

classical the branch of classical management theory that emphasizes the flow of
adminsitrative: information in organizations.
:

classical a theory, developed during the Industrial Revolution, that proposes "one
management best way" to perform tasks. Classical management theory developed into
theory: : two separate branches: the classical scientific school and the classical
administrative school.

closed an organization that interacts little with its external or outside

system: : environment.

coercive authority to punish or recommend punishment.

power: :

communication: the exchange of ideas, messages, or information, by speech, signals,

: or writing.

contingency this principle examines the fit between the leader and the situation and
theory: : provides guidelines for managers to achieve an effective fit (also known
as situational theory).

differentiation a plan whereby a company attempts to set the organization's products

strategy: : or services apart form those of other companies.

charismatic see referent power.

power: :

classical a branch of the school of classical management theory, whose emphasis

scientific: : is on increasing productivity and efficiency.
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competitive any aspect of an organization that distinguishes it from its competitors in

advantage: a positive way.
:

condition situation that occurs when the decision maker has perfect knowledge of
of all the information needed to make a decision.
certainty: :

content identifies physical or psychological conditions that act as stimuli for

theory: : human behavior.

contingency development of alternative courses of action that can be implemented if

planning: : and when the original plan proves inadequate because of changing
circumstances.

employee legally required or voluntary compensation provided to employees in

benefits: : addition to their salaries.

financial reports that provide management with information to monitor financial

statements: resources.
:

flextime: : an employment alternative that allows employees to decide, within a

certain range, when to begin and end each work day.

formal the hierarchical arrangement of tasks and people within an organization.

structure: :

functional an organizational design that groups positions into departments on the

structure: : basis of the specialized activities of the business.

functional work groups that perform specific organizational functions with members
teams: : from several vertical levels of the hierarchy.

management: the process of administering and coordinating resources effectively,

: efficiently, and in an effort to achieve the goals of the organization.

management collects, organizes, and distributes data in such a way that the
information information meets managers' needs.
systems:
(MIS) :

mass a system used to manufacture a large number of uniform products in an

production: assembly line.
:
means-end the effective design of organizational goals that encourages the
chain: : accomplishment of low-level goals as a way of achieving high-level
goals.

mechanistic a highly bureaucratic organizational method, with centralized authority,

structure: : detailed rules and procedures, a clear-cut division of labor, narrow span
of controls, and formal coordination.

mission a document that describes what an organization stands for and why it
statement : exists.

motion research designed to isolate the best possible method of performing a

study: : given job.

multinational organizations operating facilities in one or more countries.

corporations
(MNC) : :

need a construct of motivation based upon physical or psychological

theory: : conditions that act as stimuli for human behavior.

nonverbal actions, gestures, and other aspects of physical appearance that can
communication: be a powerful means of transmitting messages (also known as body
: language).

ongoing see continuing plans.

plans: :

operational developed by a first level supervisor as the means to achieve operational

plan: : objectives in support of tactical plans.

organic a management system founded on cooperation and knowledge-based

structure: : authority.

organization: a group of individuals who work together to accomplish a common

: goal.

reward the authority to reward others.

power: :

selective the tendency to single out for attention those aspects of a situation or
perception: person that reinforce or appear consistent with one's existing beliefs,
: values, or needs.

self- a belief that a manager can, through his or her behavior, create a situation
fulfilling where subordinates act in ways that confirm his or her original
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prophecy: : expectations.

Question: Who are Managers?

Answer: A manager is someone who works with and through other people by
coordinating their work activities in order to accomplish organizational
goals.

Question: What do managers do?

Answer: We can focus on following five categorization schemes while making
mind what do managers do: Traditionally, a manager’s job has been
classified according to the following four functions i.e.: Planning:
determining organizational goals and the means for achieving them
Organizing: deciding where decisions will be made, who will do what
jobs and tasks, and who will work for whom Leading: inspiring and
motivating workers to work hard to achieve organizational goals
Controlling: monitoring progress towards goal achievement and taking
corrective action when needed Good managers are those who assure
themselves to perform these functions

Question: What is an Organization?

Answer: An entity where two or more persons work together to achieve a goal or a
common purpose is called Organization.

Question: What are the four major approaches to the study of management?
Answer: The four major approaches to the study of management are scientific,
general administrative, quantitative, and organizational behavior. Each is
correct and makes an important contribution to our overall understanding
of management.

Question: Discuss the three important themes in the definition of entrepreneurship?

Answer: First, is the pursuit of opportunities, because entrepreneurship is about
pursuing environmental trends and changes that no one else has seen or
paid attention to. Second, is innovation, because entrepreneurship
involves changing, revolutionizing, transforming, and introducing
products or services or new ways of doing business. Third, is growth,
because entrepreneurs are not content to stay small or to stay the same in
size.

Question: What are the functions of management in the hirarachy?

Answer: A number of aspects of the management process differ within the
hierarchy. The importance of each of the functions of management differs
from one managerial level to another. a. Planning tends to be more
important for top-level managers. b. Organizing tends to be more
important for both top and middle-level managers. c. Leading is more
important for first-line managers. d. Controlling is important among all
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levels of the hierarchy.

Question: What is scientific management?

Answer: Scientific management is defined as the use of the scientific method to
define the “one best way” for a job to be done.

Question: Quantitative Approach to Management:

Answer: The quantitative approach involves the use of quantitative techniques to
improve decision making. This approach has also been labeled operations
research of management science. It includes applications of statistics,
optimization models, information models, and computer simulations

Question: What is total quality management?

Answer: Total quality management is a philosophy of management that is driven
by customer needs and expectations and focuses on continual
improvement in work processes

Question: What is objective of total qulity management(TQM)?

Answer: The objective of TQM is to create an organization committed to
continuous improvement

Question: What is system?

Answer: A system is a set of interrelated and interdependent parts arranged in a
manner that produces a unified whole.

Question: Describe Frederick W. Taylor’s contributions to scientific management?

Answer: Frederick Taylor defined four principles of management—develop a
science for each element of an individual’s work; scientifically select,
train, teach, and develop each worker; cooperate with workers to ensure
that all work is done in accordance with the principles of science; and
divide work and responsibility almost equally between management and
workers.

Question: Explain Frank and Lillian Gilbreth’s contributions to scientific

management?
Answer: Frank and Lillian Gilbreth studied work arrangements to eliminate
wasteful hand and body motions. They also experimented with the design
and use of proper tools and equipment for optimizing work performance.

Question: What is organizational behavior?

Answer: Organizational behavior is the field of study concerned with the actions
or behavior of people at work.

Question: How is globalization affecting the way managers do their jobs?

Answer: Management is no longer constrained by national borders, and managers
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in organizations of all sizes and types around the world are faced with the
opportunities and challenges of operating in a global market.

Question: What is social responsibility?

Answer: Social responsibility is an obligation, beyond that required by the law and
economics, for a firm to pursue long-term goals that are good for society

Question: What are two opposing views of social responsibility?

Answer: There are two opposing views of what social responsibility is. 1. The
classical view is the view that management’s only social responsibility is
to maximize profits. 2. The socioeconomic view is the view that
management’s social responsibility goes well beyond the making of
profits to include protecting and improving society’s welfare.

Question: What is E-business?

Answer: E-business (electronic business) is a comprehensive term describing the
way an organization does its work by using electronic (Internet-based)
linkages with its key constituencies (employees, managers, customers,
suppliers, and partners) in order to efficiently and effectively achieve its
goals.

Question: Compare and contrast national culture and organizational culture?

Answer: Like organizational culture, national culture is shared by all or most
inhabitants of a country and shapes their behavior and the way they see
the world. Organizational and national cultures differ in that national
culture has a greater effect on employees than does organizational
cul¬ture

Question: What is Management?

Answer: Simply speaking, management is what managers do. However, this
simple statement doesn’t tell us much. We define management as the
process of coordinating and integrating work activities so that they are
completed efficiently and effectively with and through other people.

Question: What is mega-enviornment?

Answer: The mega-environment, or general environment as it is sometimes called,
is that segment of the external environment that reflects the broad
conditions and trends in the societies within which an organization
operates.

Question: what is task environment?

Answer: The task environment is that segment of the external environment made
up of specific outside elements (usually organizations) with which an
organization interfaces in the course of conducting its business

Question: what are the different ways for employees to learn an organization’s
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culture?
Answer: Employees “learn” an organization’s culture in different ways. 1.
Organizational stories are one way that employees learn the culture.
These stories typically involve a narrative of significant events or people.
2. Rituals are repetitive sequences of activities that express and reinforce
the key values of the organization, what goals are most important, which
people are important.

Question: In which areas psychologists help industry according to Hugo

Munsterbeg ?
Answer: He argued that psychologists could help industry in three major areas: a.
Finding ways to identify individuals best suited to particular jobs. b.
Identifying the psychological conditions for optimum efficiency. c.
Finding ways to influence individual behavior to be congruent with
management’s objectives

Question: What are the assumptions of Maslow’s need theory?

Answer: Abraham Maslow (1908-1970) developed a theory of motivation that was
based on three assumptions about human nature. a. Human beings have
needs that are never completely satisfied. b. Human behavior is aimed at
satisfying the needs that are yet unsatisfied at a given point in time. c.
Needs fit into a somewhat predictable hierarchy ranging from basic,
lower-level needs to higher-level needs: 1) Physiological (lowest) 2)
Safety 3) Belongingness or social 4) Esteem Self-actualization (highest
and NOT achieved by everyone)

Question: What is Globalization?

Answer: Organizational operations no longer stop at geographic borders.
Managers in all types and sizes of organizations are faced with the
opportunities and challenges of globalization.

Question: Why we use quantitative approach to management?

Answer: The quantitative approach involves the use of quantitative techniques to
improve decision making. This approach has also been labeled operations
research of management science. It includes applications of statistics,
optimization models, information models, and computer simulations

Question: How many branches of quantitative management?

Answer: There are three main branches in the Quantitative Management
Viewpoint: management science, operations management, and
management information systems Management science (or operations
research as it has been called) is an approach aimed at increasing decision
effectiveness through the use of sophisticated mathematical models and
statistical methods. This is NOT a term to be used synonymously with
either the term “Scientific Management” described earlier featuring
Taylor and others or “The Science of Management,” a term that usually
refers broadly, to a deliberate, rational approach to management issues.
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Operations Management is the function or field of expertise that is

primarily responsible for the production and delivery of an organization’s
products and services. Management information systems (MIS) is the
name often given to the field of management that focuses on designing
and implementing computer-based information systems for use by
management

Question: Who are early advocates?

Answer: Four people stand out as early advocates of the OB approach. These
include Robert Owen Hugo Munsterberg, Mary Parker Follett, and
Chester Barnard.

Question: What reflects the Hawthorne Studies?

Answer: 1. In the first set of studies, no correlation was found between changes in
lighting conditions and individual work performance. In fact,
performance nearly always went up with any change—brighter or
darker—in illumination. 2. In the second set of studies, the concept of the
Hawthorne effect emerged. The Hawthorne effect refers to the possibility
that individuals singled out for a study may improve their performance
simply because of the added attention they receive from the researchers,
rather than because of any specific factors being tested in the study. 3.
The third set of studies centered on group production norms and
individual motivation.