Business Flashcards
External environments
all events Outside a company that have the potential to influence or affect it
Environmental change
the rate at which a company’s general and specific environments change
Stable environment
an environment in which the rate of change is slow
Dynamic environment
an environment in which the rate of change is fast
Punctuated equilibrium theory
a theory according to which companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolution), and ending with a return to stability (new equilibrium)
Environmental complexity
the number of external factors in the environment that affect organizations
Simple environment
an environment with few environmental factors
Complex environment
an environment with many environmental factors
Resource scarcity
the shortage of critical organizational resources in an organization’s external environment
Uncertainty
extent to which managers can understand or predict which environmental changes and trends will
affect their businesses
General environment
the economic, technological, sociocultural, and political
trends that indirectly affect all organizations
Specific environment
the customers, competitors, suppliers, industry regulations,
and advocacy groups that are unique to an industry and directly affect how a company does business
Business confidence
indices that show managers’ level of confidence about future business growth Technology the knowledge, tools, and
techniques used to transform input into
output
Management
getting work done through
others
Efficiency
getting work done with a
minimum of effort, expense, or waste
Effectiveness
accomplishing tasks that
help fulfil organizational objectives
Planning
determining organizational
goals and a means of achieving them
Organizing
establishing 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 toward goal achievement and taking corrective
action when needed
Top managers
executives responsible for
the overall direction of the organization
Middle managers
managers responsible for setting objectives consisternt with top
management’s goals and for planning and implementing subunit strategies for achieving these objectives
Front-line managers
managers who train and supervise the performance of
nonmanagerial employees who are directly responsible for producing the company’s
products or services
Team leaders
managers responsible
for facilitating team activities toward
accomplishing a goal
Figurehead role
the interpersonal
role managers play when they perform
ceremonial duties
Leader role
the interpersonal role
managers play when they motivate and encourage workers to accomplish
organizational objectives
