Chapter 2 Flashcards
Stakeholders
People who have an interest, claim, or stake in an organization, in what it does, and in how well it performs
Inducements
Rewards such as money, power, and organizational status
Contributions
The skills, knowledge and expertise that organizations require of their members during task performance.
Authority
The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources
Chain of command
The system of hierarchical reporting relationships in an organization
Hierarchy
A classification of people according to authority and rank
Line role
Managers who have direct responsibility for the productions of goods and services
Staff role
Managers who are in charge of a specific organizational function such as sales or R&D
Top-Management Team
A group of managers who report to the CEO and COO and help the CEO set the company’s strategy and its long-term objectives
Corporate managers
The members of the top-management team whose responsibility is to set strategy for the corporation as a whole
Divisional managers
Managers who set policy only for the division they head
Functional managers
Managers who are responsible for developing the functional skills and capabilities that collectively provide the core competences that give the organization its competitive advantage
Agency problem
A problem in determining managerial accountability that arises when delegating authority to managers.
Self-dealing
Managers who take advantage of their position in an organization to act in ways to further their own self-interest
Governance mechanisms
The forms of control that align the interests of principal and agent so both parties have the incentive to work together to maximize organizational effectiveness
