POM Glossary Term
POM Glossary Term
POM Glossary Term
Controlling Is concerned with monitoring employees’ activities, keeping the organization on track
toward meeting its goals and making corrections as necessary.
First-line A manager who is at the first or second level of the hierarchy and is directly responsible
manager for overseeing a group of production employees.
Functional A manager responsible for a department that performs a single functional task, such as
manager finance or marketing.
General
A manager responsible for several departments that perform different functions.
manager
Human skill A manager’s ability to work with and through other people and to work effectively as
part of a group.
Management The attainment of organizational goals in an effective and efficient manner through
planning, organizing, leading, and controlling organizational resources.
Middle A manager who works at the middle level of the organization and is responsible for a
manager major division or department.
Performance The organization’s ability to attain its goals by using resources in an efficient and
effective manner.
Planning The management function concerned with defining goals for future performance and
how to attain them.
Project A manager who is responsible for a specific work project that involves people from
manager various functions and levels of the organization.
Technical skill The understanding of and proficiency in the performance of specific tasks.
Top manager A manager who is at the top of the organizational hierarchy and is responsible for the
entire organization.
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Glossary
Chapter 2
Administrative A subfield of the classical perspective that focuses on the total organization rather than
principles the individual worker and delineates the management functions of planning,
approach organizing, commanding, coordinating, and controlling.
Behavioral
Draws from psychology, sociology, and other social sciences to develop theories about
sciences
human behavior and interaction in an organizational setting.
approach
Classical Takes a rational, scientific approach to management and seeks to turn organizations
perspective into efficient operating machines.
Contingency Tells managers that what works in one organizational situation might not work in
view others.
Customer
relationship Systems that use information technology to keep in close touch with customers, collect
management and manage large amounts of customer data, and provide superior customer value.
(CRM)
Economic
Affects the availability, production, and distribution of a society’s resources.
force
Hawthorne A series of research efforts that was important in shaping ideas concerning how
studies managers should treat workers.
Human
Stresses the satisfaction of employees’ basic needs as the key to increased
relations
productivity.
movement
Human
Suggests that jobs should be designed to meet people’s higher-level needs by allowing
resources
employees to use their full potential.
perspective
Humanistic
Emphasizes understanding human behavior, needs, and attitudes in the workplace.
perspective
Information
The hardware, software, telecommunications, database management, and other
technology
technologies used to store, process, and distribute information.
(IT)
Intranet An internal communications system that uses the technology and standards of the
Internet but is accessible only to people within the organization.
Knowledge The process of systematically gather knowledge, making it widely available throughout
management the organization, and fostering a culture of learning.
Operations The field of management that uses various tools and techniques to ensure that goods
management and services are produced efficiently and delivered successfully to customers or clients.
Political force Relates to the influence of political and legal institutions on people and organizations.
Quants Refers to financial managers and others who make decisions based primarily on
complex quantitative analysis.
Social forces Aspects of a society that guide and influence relationships among people, such as their
values, needs, and standards of behavior.
Social media Include online community pages, social media sites, microblogging platforms, and
programs company online forums that enable managers to interact electronically with
employees, customers, partners, and other stakeholders.
Subsystems Parts of a system that depend on one another for their functioning.
Supply chain Managing the sequence of suppliers and purchasers, covering all stages of processing
management from obtaining raw materials to distributing finished goods to consumers.
Synergy A concept that says that the whole is greater than the sum of its parts.
System A set of interrelated parts that function as a whole to achieve a common purpose.
Systems Looking not just at discrete parts of an organizational situation, but also at the
thinking continually changing interactions among the parts.
Total quality
management Focuses on managing the total organization to deliver quality to customers.
(TQM)
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Glossary
Chapter 7
Contingency Identifies important factors in the environment and defines a range of alternative
planning responses to be taken in the case of emergencies, setbacks, or unexpected
conditions.
Decentralized An approach where top executives or planning experts work with managers in
planning major divisions or departments to develop their own goals and plans.
Management
An approach that focuses people on the methods and processes used to attain
by means
results, rather than on the results themselves.
(MBM)
Management
A method whereby managers and employees define goals for every department,
by objectives
project, and person and use them to monitor subsequent performance.
(MBO)
Mission A broadly stated definition of the organization’s basic business scope and
statement operations that distinguishes it from similar types of organizations.
Operational A specific, measurable result that is expected from departments, work groups, and
goal individuals.
Operational Specifies the action steps toward achieving operational goals and supports tactical
plan activities.
Plan A blueprint specifying the resource allocations, schedules, and other actions
necessary for attaining goals.
Scenario An approach where managers look at trends and discontinuities and imagine
building possible alternative futures to build a framework within which unexpected future
events can be managed.
Single-use A plan that is developed to achieve a set of goals that is unlikely to be repeated in
plan the future.
Standing plan An ongoing plan used to provide guidance for tasks that occur repeatedly in the
organization.
Strategic
Action steps by which an organization intends to attain strategic goals.
plan
Strategy map A visual representation of the key drivers of an organization’s success, showing the
cause-and-effect relationship among goals and plans.
Stretch goal A reasonable yet highly ambitious and compelling goal that energizes people and
inspires excellence.
Tactical goal The outcome that major divisions and departments must achieve for an
organization to reach its overall goals.
Tactical plan Designed to help execute major strategic plans and to accomplish a specific part of
a company’s strategy.
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Glossary
Chapter 8
BCG matrix A concept developed by the Boston Consulting Group (BCG) that evaluates
strategic business units with respect to two dimensions—business growth rate
and market share—and classifies them as cash cows, stars, question marks, or
dogs.
Business-level
Pertains to each business unit or product line within the organization.
strategy
Competitive Refers to what sets the organization apart from others and provides it with a
advantage distinctive edge in the marketplace.
Core
Something that the organization does particularly well in comparison to others.
competence
Corporate- Pertains to the organization as a whole and the combination of business units and
level strategy products that make it up.
Cost
A strategy with which managers aggressively seek efficient facilities, cut costs, and
leadership
use tight cost controls to be more efficient than others in the industry.
strategy
Differentiation A strategy with which managers seek to distinguish the organization’s products
strategy and services from those of others in the industry.
Focus strategy A strategy where managers use either a differentiation or a cost leadership
approach, but they concentrate on a specific regional market or buyer group.
Functional- Pertains to the major functional departments within each business unit, such as
level strategy manufacturing, marketing, and research and development.
Globalization A strategy where product design and advertising are standardized throughout the
strategy world.
Multidomestic Means that competition in each country is handled independently, and product
strategy design and advertising are modified to suit the specific needs of individual
countries.
Portfolio Pertains to the mix of SBUs and product lines that fit together in a logical way to
strategy provide synergy and competitive advantage.
Related Moving into a new business that is related to the corporation’s existing business
diversification activities.
Strategic A division of the organization that has a unique business, mission, product or
business unit service line, competitors, and markets relative to other units of the same
(SBU) organization.
Strategic Refers to the set of decisions and actions used to formulate and implement
management strategies that will provide a competitively superior fit between an organization
and its environment so as to achieve organizational goals.
Strategy A plan of action that describes resource allocation and activities for dealing with
the environment, achieving a competitive advantage, and attaining goals.
Strategy The stage of strategic management that involves the use of managerial and
execution organizational tools to direct resources toward achieving strategic outcomes.
Strategy The stage of strategic management that includes the planning and decision
formulation making that lead to the establishment of the organization’s goals and a specific
strategic plan.
Transnational A strategy that combines global coordination to attain efficiency with local
strategy flexibility to meet needs in different countries.
Unrelated
Refers to expanding into totally new lines of business.
diversification
Vertical A strategy of expanding into businesses that either provide the supplies needed to
integration make products or distribute and sell the company’s products.
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Glossary
Chapter 9
Administrative A decision-making model that includes the concepts of bounded rationality and
model satisficing and describes how managers make decisions in situations that are
characterized by uncertainty and ambiguity.
Bounded Means that people have the time and cognitive ability to process only a limited
rationality amount of information on which to base decisions.
Brainstorming A technique that uses a face-to-face group to spontaneously suggest a broad
range of alternatives for making a decision.
Certainty A situation in which all the information the decision maker needs is fully
available.
Classical model A decision-making model based on the assumption that managers should make
logical decisions that are economically sensible and in the organization’s best
economic interest.
Coalition An informal alliance among managers who support a specific goal or solution.
Decision making The process of identifying problems and opportunities and then resolving them.
Decision styles Differences among people with respect to how they perceive problems and
make choices.
Descriptive An approach that describes how managers actually make decisions, rather than
how they should make decisions according to a theoretical model.
Devil’s advocate A person who is assigned the role of challenging the assumptions and assertions
made by the group to prevent premature consensus.
Diagnosis The step in which managers analyze underlying causal factors associated with
the decision situation.
Escalating Refers to continuing to invest time and money in a decision despite evidence
commitment that it is failing.
Groupthink The tendency of people in groups to suppress contrary opinions in a desire for
harmony.
Nonprogramme A decision made in response to a situation that is unique, is poorly defined and
d decision largely unstructured, and has important consequences for the organization.
Normative Means that it defines how a manager should make logical decisions and
provides guidelines for reaching an ideal outcome.
Programmed A decision made in response to a situation that has occurred often enough to
decision enable managers to develop decision rules that can be applied in the future.
Risk Means that a decision has clear-cut goals and good information is available, but
the future outcomes associated with each alternative are subject to chance.
Risk propensity The willingness to undertake risk with the opportunity of gaining an increased
payoff.
Satisficing Refers to choosing the first alternative that satisfies minimal decision criteria,
regardless of whether better solutions are presumed to exist.
Uncertainty Occurs when managers know which goals they want to achieve, but information
about alternatives and future events is incomplete.
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Glossary
Chapter 10
Chain of command An unbroken line of authority that links all individuals in the
organization and specifies who reports to whom.
Matrix approach A structural approach that uses both functional and divisional
chains of command simultaneously, in the same part of the
organization.
Responsibility The duty to perform the task or activity that one has been
assigned.
Top leader In a matrix structure, the person who oversees both the
product and the functional chains of command and is
responsible for the entire matrix.
Work specialization The degree to which organizational tasks are subdivided into
individual jobs. Sometimes called division of labor.
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Glossary
Chapter 11
Ambidextrous Incorporating structures and processes that are appropriate for both the creative
approach impulse and the systematic implementation of innovations.
Change agent An organization development (OD) specialist who contracts with an organization
to help managers facilitate change.
Changing The “intervention” stage of organization development (OD), when change agents
teach people new behaviors and skills and guide them in using them in the
workplace.
Creativity The generation of novel ideas that may meet perceived needs or respond to
opportunities for the organization.
Culture
A major shift in the norms, values, and mindset of an entire organization.
change
Force-field A technique for determining which forces drive a proposed change and which
analysis forces restrain it.
Horizontal Means that several departments, such as marketing, research, and manufacturing,
linkage model work closely together to develop new products.
Idea champion A person who sees the need for change and is passionately committed to making it
happen.
Idea incubator An organizational program that provides a safe harbor where employees can
generate and develop ideas without interference from company bureaucracy or
politics.
Inventory The goods the organization keeps on hand for use in the production process up to
the point of selling the final products to customers.
Just-in-time
An inventory control system that schedules materials to arrive precisely when they
(JIT) inventory
are needed on a production line.
system
Large-group An organization development (OD) approach that brings together people from
intervention different parts of the organization (and often including outside stakeholders) to
discuss problems or opportunities and plan for change.
Need for
A disparity between actual and desired performance.
change
New-venture A unit separate from the mainstream organization that is responsible for initiating
team and developing innovations.
Open A process where people search for and commercialize innovative ideas beyond the
innovation boundaries of the organization.
Organization A planned, systematic process of change that uses behavioral science techniques
development to improve an organization’s health and effectiveness through its ability to cope
(OD) with environmental changes, improve internal relationships, and increase learning
and problem-solving capabilities.
Organizational
The adoption of a new idea or behavior by an organization.
change
Refreezing The stage of organization development (OD) where people have incorporated
new values, attitudes, and behaviors into their everyday work and the changes
become institutionalized in the culture.
Skunkworks A separate informal, highly autonomous, and often secretive group that focuses
on breakthrough ideas.
Survey Where organization development (OD) change agents survey employees to gather
feedback their opinions regarding corporate values, leadership, participation, cohesiveness,
and other aspects of the organization, then meet with small groups to share the
results and brainstorm solutions to problems identified by the results.
Unfreezing The stage of organization development (OD) in which people are made aware of
problems and the need for change.
Chapter 12
Glossary
Chapter 12
360-degree Uses multiple raters, including self-rating, to appraise employee performance and
feedback guide development.
Affirmative Requires that employers take positive steps to guarantee equal employment
action opportunities for people within protected groups.
Application A selection device that collects information about the applicant's education,
form previous work experience, and other background characteristics.
Assessment Used to select individuals with high managerial potential based on their
center performance on a series of simulated managerial tasks.
Behaviorally
anchored A performance evaluation technique that relates an employee's performance to
rating scale specific job-related incidents.
(BARS)
Compensation All monetary payments and all nonmonetary goods or benefits used to reward
employees.
Contingent A person who works for an organization, but not on a permanent or full-time
worker basis, including temporary placements, independent contractors, freelancers, and
part-time employees.
Corporate An in-house training and development facility that offers broad-based learning
university opportunities for employees.
Discrimination (1) Making hiring and promotion decisions based on criteria that are not job-
relevant. (2) When someone acts out their negative attitudes toward people who
are the targets of their prejudice.
E-business Any business that takes place by digital processes over a computer network
rather than in physical space.
Exit interview An interview conducted with departing employees to determine reasons for their
departure and learn about potential problems in the organization.
Halo effect Occurs when a manager gives an employee the same rating on all dimensions of
the job, even though performance may be good on some dimensions and poor on
others.
Human capital The economic value of the combined knowledge, experience, skills, and
capabilities of employees.
Human
resource The design and application of formal systems to ensure the effective and efficient
management use of human talent to accomplish organization goals.
(HRM)
Human
The forecasting of human resource needs and the projected matching of
resource
individuals with anticipated job vacancies.
planning
Job analysis The systematic process of gathering and interpreting information about the
essential duties, tasks, and responsibilities of a job.
Job description A concise summary of the specific tasks and responsibilities of a position.
Job evaluation The process of determining the value of jobs within an organization through an
examination of job content.
Job Outlines the knowledge, skills, education, physical abilities, and other
specification characteristics needed to perform a specific job adequately.
Matching A human resources approach in which the organization and the individual
model attempt to match each other's needs, interests, and values.
Nondirective An interview where the interviewer asks broad, open-ended questions and
interview permits the applicant to talk freely with minimal interruption, in an attempt to
bring to light information, attitudes, and behavioral characteristics that might be
concealed when answering structured questions.
Panel interview An interview in which the candidate meets with several interviewers who take
turns asking questions.
Realistic job Gives applicants all pertinent and realistic information, both positive and
preview negative, about a job and the organization.
Recruiting Activities or practices that define the desired characteristics of applicants for
specific jobs. Sometimes called talent acquisition.
Rightsizing Reducing the company's workforce intentionally to the point where the number
of employees is deemed right for the company's current situation. Also called
downsizing.
Selection The process of assessing the skills, abilities, and other attributes of applicants in
an attempt to determine the fit between the job and each applicant's
characteristics.
Social learning Using social media tools to network and learn informally.
Stereotyping A performance evaluation error that occurs when a manager places an employee
into a class or category based on one or a few traits or characteristics.
Structured An interview that uses a set of standardized questions that are asked of every
interview applicant so comparisons can be made easily.
Wage and A survey that shows what other organizations pay incumbents in jobs that match
salary survey a sample of key jobs selected by the organization.
Work sample A test given to applicants for frontline positions to evaluate their performance in
test completing simulated tasks that are a part of the job.
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Glossary
Chapter 13
Cultural
The ability to interact effectively with people of different cultures.
competence
Employee A group based on social identity, such as gender or race, and organized by
affinity group employees to focus on concerns of employees from that group.
Ethnorelativism The belief that groups and cultures are inherently equal.
Glass ceiling An invisible barrier that separates women and minorities from senior
management positions.
Inclusion The degree to which an employee feels like an esteemed member of a group in
which his or her uniqueness is highly appreciated.
Monoculture A culture that accepts only one way of doing things and one set of values and
beliefs.
Multicultural A team that is made up of members from diverse national, racial, ethnic, and
team cultural backgrounds.
Prejudice The tendency to view people who are different as being deficient.
Stereotype Occurs when a person who, when engaged in a task, is aware of a stereotype
threat about his or her identity group suggesting that he or she will not perform well on
that task.
Chapter 14
Glossary
Chapter 14
Attitude A cognitive and affective evaluation that predisposes a person to act in a certain
way.
Authoritarianism The belief that power and status differences should exist within an organization.
Big Five
Dimensions that describe an individual’s extroversion, agreeableness,
personality
conscientiousness, emotional stability, and openness to experience.
factors
Cognitive A psychological discomfort that occurs when two attitudes or an attitude and a
dissonance behavior conflict.
Emotion A mental state that arises spontaneously rather than through conscious effort
and is often accompanied by physiological changes.
Locus of control Defines whether an individual places the primary responsibility for his successes
and failures within himself or on outside forces.
Machiavellianis A tendency to direct one’s behavior toward the acquisition of power and the
m manipulation of other people for personal gain.
Organizational Work behavior that goes beyond job requirements and contributes as needed to
citizenship the organization’s success.
Organizational
Loyalty to and engagement with one’s work organization.
commitment
Perception The cognitive process that people use to make sense out of the environment by
selecting, organizing, and interpreting information.
Perceptual An error in perceptual judgment that results from inaccuracies in any part of the
distortion perception process.
Personality The set of characteristics that underlie a relatively stable pattern of behavior in
response to ideas, objects, or people in the environment.
Role ambiguity Uncertainty about what behaviors are expected of a person in a particular role.
Role conflict Incompatible demands of different roles, such as the demands of a manager’s
superiors conflicting with those of the manager’s subordinates.
Self-awareness Being conscious of the internal aspects of one’s nature, such as personality
traits, beliefs, emotions, attitudes, and perceptions, and appreciating how your
patterns affect other people.
Self-efficacy An individual’s strong belief that he or she can successfully accomplish a specific
task or outcome.
Self- The ability to engage in self-regulating thoughts and behavior to accomplish all
management your tasks and handle difficult or challenging situations.
Self-serving bias The tendency to overestimate the contribution of internal factors to one’s
successes and the contribution of external factors to one’s failures.
Type B behavior A behavior pattern that reflects few of the Type A characteristics and includes a
more balanced, relaxed approach to life.
Chapter 15
Glossary
Chapter 15
Authentic Leadership by individuals who know and understand themselves, who espouse
leadership and act consistent with higher-order ethical values, and who empower and -
inspire others with their openness and authenticity.
Charismatic A leader who has the ability to inspire and motivate people to transcend their
leader expected performance, even to the point of personal sacrifice.
Coercive power Power that stems from the authority to punish or recommend punishment.
Conformist A follower who participates actively in the organization but does not use critical
thinking skills.
Contingency A model of leadership that describes the relationship between leadership styles
approach and specific situations.
Critical thinking Thinking independently and being mindful of the effect of one’s behavior on
achieving goals.
Effective
A critical, independent thinker who actively participates in the organization.
follower
Expert power Power that results from a leader’s special knowledge or skill in the tasks
performed by subordinates.
Humility Being unpretentious and modest rather than arrogant and prideful.
Influence The effect a person’s actions have on the attitudes, values, beliefs, or behavior
of others.
Initiating Describes the extent to which a leader is task oriented and directs subordinates’
structure work activities toward goal accomplishment.
Leadership The ability to influence people toward the attainment of organizational goals.
Leadership grid A two-dimensional leadership model that measures the leader’s concern for
people and concern for production to categorize the leader in one of five
different leadership styles.
Legitimate Power that stems from a manager’s formal position in an organization and the
power authority granted by that position.
Neutralizer A situational variable that counteracts a leadership style and prevents the
leader from displaying certain behaviors.
Passive follower A person who exhibits neither critical independent thinking nor active
participation.
Referent power Power that results from characteristics that command subordinates’
identification with, respect and admiration for, and desire to emulate the
leader.
Reward power Power that results from the authority to bestow rewards.
Servant leader A leader who serves others by working to fulfill followers’ needs and goals, as
well as to achieve the organization’s larger mission.
Situational A leadership model that links the leader’s behavioral style with the readiness
model level of followers.
Strengths Natural talents and abilities that have been supported and reinforced with
learned knowledge and skills.
Substitute for
A situational variable that makes a leadership style redundant or unnecessary.
leadership
Transactional A leader who clarifies subordinates’ roles and task requirements, initiates
leader structure, provides rewards, and displays consideration for followers.
Transformationa A leader distinguished by a special ability to bring about innovation and change
l leader by creating an inspiring vision, shaping values, building relationships, and
providing meaning for followers.
Uncritical Failing to consider the possibilities beyond what one is told, accepting others’
thinking ideas without thinking.
Vision An attractive, ideal future that is credible yet not readily attainable.
Chapter 16
Glossary
Chapter 16
Behavior The set of techniques by which reinforcement theory is used to modify human
modification behavior.
Content
Theories that emphasize the needs that motivate people.
theories
E?P
The expectancy that putting effort into a given task will lead to high performance.
expectancy
Engagement An emotional and mental state in which employees enjoy their work, contribute
enthusiastically to meeting goals, and feel a sense of belonging and commitment
to the organization.
Equity When the ratio of one person’s outcomes to inputs equals that of another’s.
Equity theory A theory that focuses on individuals’ perceptions of how fairly they are treated
relative to others.
ERG theory A modification of the needs hierarchy that proposes three categories of needs:
existence, relatedness, and growth.
Expectancy Proposes that motivation depends on individuals’ expectations about their ability
theory to perform tasks and receive desired rewards.
Extrinsic A reward given by another person, such as a manager, including pay increases,
reward promotions, and praise.
Frustration- Suggests that failure to meet a high-order need may cause a regression to an
regression already satisfied lower-order need; thus, people may move down as well as up the
principle needs hierarchy.
Goal-setting A theory that proposes that specific, challenging goals increase motivation and
theory performance when the goals are accepted by subordinates and these
subordinates receive feedback to indicate their progress toward goal
achievement.
Hierarchy of A theory proposed by Abraham Maslow saying that people are motivated by five
needs theory categories of needs—physiological, safety, belongingness, esteem, and self-
actualization—that exist in a hierarchical order.
Hygiene Factors that focus on lower-level needs and consider the presence or absence of
factors job dissatisfiers, including working conditions, pay, and company policies.
Intrinsic The satisfaction that a person receives in the process of performing a particular
reward action.
Job
A model of job design that considers core job dimensions, individuals’ critical
characteristics
psychological states, and employee growth-need strength.
model
Job design Refers to applying motivational theories to the structure of work to improve
motivation, productivity, and satisfaction.
Law of effect Asserts that positively reinforced behavior tends to be repeated, and unreinforced
or negatively reinforced behavior tends to be inhibited.
Making The idea that the single most important factor that can boost motivation, positive
progress emotions, and perceptions during a workday is making progress toward
principle meaningful goals.
Motivation The arousal of enthusiasm and persistence to pursue a certain course of action.
P?O
The expectancy that high performance of a task will lead to the desired outcome.
expectancy
Process A set of theories, including goal-setting theory, equity theory, and expectancy
theories theory, which explains how people select behaviors with which to meet their
needs and determine whether their choices were successful.
Reinforcement A theory based on the relationship between a given behavior and its
theory consequences.
Social learning A theory that proposes that an individual’s motivation can result not just from
theory direct experience of rewards and punishments but also from thoughts, beliefs,
and observations of other people’s behavior.
Thriving A workforce in which people are satisfied, productive, and engaged in creating the
workforce future for themselves and their organization.
Vicarious Learning that occurs when an individual sees others perform certain behaviors and
learning get rewarded for them.
Work redesign Altering jobs to increase both the quality of employees’ work experience and their
productivity.
Chapter 17
Glossary
Chapter 17
Channel The medium by which a message is sent, such as a phone call, blog, or text
message.
Communication The process by which information is exchanged and understood by two or more
people.
Downward
Messages sent from top management down to subordinates.
communication
Feedback Occurs when the receiver responds to the sender’s communication with a return
message.
Horizontal The lateral or diagonal exchange of messages among peers or coworkers and
communication includes team communication.
Listening The skill of grasping both facts and feelings to interpret a message’s genuine
meaning.
Nonverbal Communicating through actions, gestures, facial expressions, and behavior rather
communication than through words.
Open Sharing all types of information throughout the organization and across
communication functional and hierarchical boundaries.
Personal
Channels that exist outside formally authorized channels and connect people
communication
across boundaries for sharing information and accomplishing tasks.
channels
Personal The acquisition and cultivation of personal relationships that cross departmental,
networking hierarchical, and even organizational boundaries.
Social media A group of Internet-based applications that allow the creation and exchange of
user-generated content.
Strategic Dialogue across boundaries and hierarchical levels about the team or
conversation organization’s vision, critical strategic themes, and the values that help achieve
important goals.
Upward Messages that flow from the lower to the higher levels in the organization’s
communication hierarchy.
Chapter 18
Glossary
Chapter 18
Adjourning The stage during which members of temporary teams prepare for the team’s
disbanding.
Conflict Antagonistic interaction in which one party attempts to block the intentions or
goals of another.
Distributive A competitive and adversarial approach in which each party strives to get as much
negotiation as it can, usually at the expense of the other party.
Forming The stage of team development involving a period of orientation and getting
acquainted.
Free rider A person who benefits from team membership but does not make a
proportionate contribution to the team’s work.
Functional A team composed of a manager and his or her subordinates in the formal chain of
team command.
Global team A group made up of employees who come from different countries and whose
activities span multiple countries.
Manufacturing
An organization that produces physical goods.
organization
Norming The stage of development in which conflicts are resolved and team harmony and
unity emerge.
Performing The stage of development in which team members focus on problem solving and
accomplishing the team’s assigned task.
Relationship Conflict that results from interpersonal incompatibility that creates tension and
conflict personal animosity among people.
Self-managed A team that consists of multiskilled employees who rotate jobs to produce an
team entire product or service, often led by an elected team member.
Social An entrepreneurial leader who is committed to both good business and changing
entrepreneur the world for the better.
Socioemotiona A team role in which an individual provides support for team members’ emotional
l role needs and helps strengthen social unity.
Special- A team created outside the formal structure to undertake a project of special
purpose team importance, such as developing a new product.
Task conflict Conflict that results from disagreements about the goals to be achieved or the
content of the tasks to be performed.
Task specialist A team role in which an individual devotes personal time and energy to helping
role the team accomplish its activities and reach its goal.
Team A unit of two or more people who interact and coordinate their work to
accomplish a goal to which they are committed and hold themselves mutually
accountable.
Team The extent to which team members are attracted to the team and motivated to
cohesiveness remain a part of it.
Team norm An informal standard of conduct that is shared by team members and guides their
behavior.
Chapter 19
Glossary
Chapter 19
Activity ratio Measures the organization’s internal performance with respect to key activities
defined by management.
Balance sheet Shows the firm’s financial position with respect to assets and liabilities at a specific
point in time.
Benchmarking The continuous process of measuring products, services, and practices against
major competitors or industry leaders.
Bottom-up Involves lower-level managers anticipating their department’s budget needs and
budgeting passing them up to top management for approval.
Capital budget A budget that plans and reports investments in major assets to be depreciated
over several years.
Cash budget A budget that estimates receipts and expenditures of money on a daily or weekly
basis to ensure that an organization has sufficient cash to meet its obligations.
Corporate Refers to the framework of systems, rules, and practices by which an organization
governance ensures accountability, fairness, and transparency in the firm’s relationships with
stakeholders.
Decentralized A situation where the organization fosters compliance with organizational goals
control through the use of organizational culture, group norms, and a focus on goals
rather than rules and procedures.
Expense A budget that outlines the anticipated and actual expenses for a responsibility
budget center.
Hierarchical Involves monitoring and influencing employee behavior through the use of rules,
control policies, hierarchy of authority, written documentation, reward systems, and other
formal mechanisms.
Income
Summarizes the firm’s financial performance for a given time interval.
statement
Liquidity ratio Indicates the organization’s ability to meet its current debt obligations.
Open-book Allows employees to see for themselves the financial condition of the organization
management and encourages them to think and act like business owners.
Organizational The systematic process through which managers regulate organizational activities
control to meet planned goals and standards of performance.
Profitability Describes the firm’s profits relative to a source of profits, such as sales or assets.
ratio
Quality circle A total quality management (TQM) technique that involves a group of 6 to 12
volunteer employees who meet regularly to discuss and solve problems affecting
the quality of their work.
Quality Involves assigning dedicated personnel within a particular functional area of the
partnering business to identify opportunities for quality improvements throughout the work
process.
Responsibility Any organizational department or unit under the supervision of a single person
center who is responsible for its activity.
Revenue
A budget that lists forecasted and actual revenues of the organization.
budget
Six Sigma A quality control approach that emphasizes a relentless pursuit of higher quality
and lower costs.
Top-down Means that the budgeted amounts for the coming year are literally imposed on
budgeting middle- and lower-level managers.
Zero-based An approach to planning and decision making that requires a complete justification
budgeting for every line item in a budget, instead of carrying forward a prior budget and -
applying a percentage change.