EXAM 1 (Chapter 1-6) Flashcards
1
Q
organizational heroes
A
people celebrated for their qualities and achievements within an organization
2
Q
Corporate-level strategy
A
the overall organizational strategy that addresses the question, “What business or businesses are we in or should we be in?”
3
Q
controlling
A
monitoring progress toward goal achievement and taking corrective action when needed
4
Q
Management by objectives
A
a four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment
5
Q
nominal group technique
A
a decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group
6
Q
Single-use plans
A
plans that cover unique, one-time-only events
7
Q
focus strategy
A
the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment
8
Q
disturbance handler role
A
the decisional role managers play when they respond to severe pressures and problems that demand immediate action
9
Q
principle of religious injunctions
A
an ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community
10
Q
evaluation apprehension
A
fear of what others will think of your ideas
11
Q
Direct competition
A
the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other’s strategic actions
12
Q
proactive strategy
A
a social responsiveness strategy in which a company anticipates a problem before it occurs and does more than society expects to take responsibility for and address the problem
13
Q
Decision criteria
A
the standards used to guide judgments and decisions
14
Q
principle of utilitarian benefits
A
an ethical principle that holds that you should never take any action that does not result in greater good for society
15
Q
Ethical responsibility
A
a company’s social responsibility not to violate accepted principles of right and wrong when conducting its business
16
Q
preconventional level of moral development
A
the first level of moral development, in which people make decisions based on selfish reasons
17
Q
spokesperson role
A
the informational role managers play when they share information with people outside their departments or companies
18
Q
Ethical behavior
A
behavior that conforms to a society’s accepted principles of right and wrong
19
Q
ethical intensity
A
the degree of concern people have about an ethical issue
20
Q
Delphi technique
A
a decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue
21
Q
Bargaining power of suppliers
A
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs
22
Q
specific environment
A
the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business
23
Q
behavioral substitution
A
the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture
24
Q
Cognitive maps
A
graphic depictions of how managers believe environmental factors relate to possible organizational actions
25
Political deviance
using one’s influence to harm others in the company
26
opportunistic behavior
a transaction in which one party in the relationship benefits at the expense of the other
27
Goal commitment
the determination to achieve a goal
28
stability strategy
a strategy that focuses on improving the way in which the company sells the same products or services to the same customers
29
Motivation to manage
an assessment of how enthusiastic employees are about managing the work of others
30
Whistle-blowing
reporting others’ ethics violations to management or legal authorities
31
open systems
systems that can sustain themselves only by interacting with their environments, on which they depend for their survival
32
stable environments
an environment in which the rate of change is slow
33
media advocacy
an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage
34
scientific management
thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job
35
Organizing
deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom
36
strategic plans
overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years
37
bureaucracy
the exercise of control on the basis of knowledge, expertise, or experience
38
monitor role
the informational role managers play when they scan their environment for information
39
retrenchment strategy
a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
40
Social responsiveness
a company’s strategy to respond to stakeholders’ economic, legal, ethical, or discretionary expectations concerning social responsibility
41
Planning
choosing a goal and developing a strategy to achieve that goal
42
punctuated equilibrium theory
the theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium
43
action plan
a plan that lists the specific steps, people, resources, and time period needed to attain a goal
44
shadow-strategy task force
a committee within a company that analyzes the company’s own weaknesses to determine how competitors could exploit them for competitive advantage
45
Decision making
the process of choosing a solution from available alternatives
46
maximize
choosing the best alternative
47
Behavioral addition
the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create
48
resource allocator role
the decisional role managers play when they decide who gets what resources and in what amounts
49
disseminator role
the informational role managers play when they share information with others in their departments or companies
50
Social responsibility
a business’s obligation to pursue policies, make decisions, and take actions that benefit society
51
Discretionary responsibilities
the social roles that a company fulfills beyond its economic, legal, and ethical responsibilities
52
liaison role
the interpersonal role managers play when they deal with people outside their units
53
Personality-based integrity tests
a written test that indirectly estimates job applicants’ honesty by measuring psychological traits, such as dependability and conscientiousness
54
Secondary stakeholders
any group that can influence or be influenced by a company and can affect public perceptions about the company’s socially responsible behavior
55
Analyzers
companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors
56
Valuable resources
a resource that allows companies to improve efficiency and effectiveness
57
Tactical plans
plans created and implemented by middle managers that direct behavior, efforts, and attention over the next six months to two years
58
Environmental change
the rate at which a company’s general and specific environments change
59
slack resources
a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities
60
Proximal goals
short-term goals or subgoals
61
economic responsibility
a company’s social responsibility to make a profit by producing a valued product or service
62
Differentiation
the positioning strategy of providing a product or service that is sufficiently different from competitors’ offerings that customers are willing to pay a premium price for it
63
response
a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit
64
distinctive competence
what a company can make, do, or perform better than its competitors
65
nonsubstitutable resources
a resource that produces value or competitive advantage and has no equivalent substitutes or replacements
66
Strategic reference points
the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage
67
contingency approach
holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place
68
satisficing
choosing a “good-enough” alternative
69
standing plans
plans used repeatedly to handle frequently recurring events
70
Supplier dependence
the degree to which a company relies on a supplier because of the importance of the supplier’s product to the company and the difficulty of finding other sources of that product
71
Environmental complexity
the number and the intensity of external factors in the environment that affect organizations
72
Employee shrinkage
employee theft of company merchandise
73
complex environments
an environment with many environmental factors
74
visible artifacts
visible signs of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks, such as stock options, personal parking spaces, or the private company dining room
75
Gantt chart
a graphical chart that shows which tasks must be completed at which times in order to complete a project or task
76
BCG matrix
a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation’s businesses by growth rate and relative market share and helps managers decide how to invest corporate funds
77
Advocacy groups
concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
78
Closed systems
systems that can sustain themselves without interacting with their environments
79
Primary stakeholders
any group on which an organization relies for its long-term survival
80
entrepreneur role
the decisional role managers play when they adapt themselves, their subordinates, and their units to change
81
Planning
determining organizational goals and a means for achieving them
82
negotiator role
the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises
83
Legal responsibility
a company’s social responsibility to obey society’s laws and regulations
84
Technical skills
the specialized procedures, techniques, and knowledge required to get the job done
85
Core capabilities
the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs
86
postconventional level of moral development
the third level of moral development, in which people make decisions based on internalized principles
87
External environments
all events outside a company that have the potential to influence or affect it
88
principle of distributive justice
an ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, the unemployed
89
Efficiency
getting work done with a minimum of effort, expense, or waste
90
conventional level of moral development
the second level of moral development, in which people make decisions that conform to societal expectation
91
options-based planning
maintaining planning flexibility by making small, simultaneous investments in many alternative plans
92
devil’s advocacy
a decision-making method in which an individual or a subgroup is assigned the role of critic
93
Human skills
the ability to work well with others
94
Proximity of effect
the social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions
95
shareholder model
a view of social responsibility that holds that an organization’s overriding goal should be profit maximization for the benefit of shareholders
96
principle of individual rights
an ethical principle that holds that you should never take any action that infringes on others’ agreed-upon rights
97
principle of government requirements
an ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard
98
effectiveness
accomplishing tasks that help fulfill organizational objectives
99
threat of new entrants
a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry
100
Procedures
standing plans that indicate the specific steps that should be taken in response to a particular event
101
dynamic environments
an environment in which the rate of change is fast
102
Budgeting
quantitative planning through which managers decide how to allocate available money to best accomplish company goals
103
Environmental scanning
searching the environment for important events or issues that might affect an organization
104
organizational stories
stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
105
Recovery
the strategic actions taken after retrenchment to return to a growth strategy
106
Simple environments
an environment with few environmental factors
107
electronic brainstorming
a decision-making method in which group members use computers to build on each others’ ideas and generate as many alternative solutions as possible
108
Character of the rivalry
a measure of the intensity of competitive behavior between companies in an industry
109
C-type conflict
disagreement that focuses on problem- and issue-related differences of opinion
110
Personal aggression
hostile or aggressive behavior toward others
111
relative comparisons
a process in which each decision criterion is compared directly with every other criterion
112
principle of long-term self-interest
an ethical principle that holds that you should never take any action that is not in your or your organization’s long-term self-interest
113
compromise
an approach to dealing with conflict in which both parties give up some of what they want in order to reach agreement on a plan to reduce or settle the conflict
114
Top managers
executives responsible for the overall direction of the organization
115
Rules and regulations
standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event
116
figurehead role
the interpersonal role managers play when they perform ceremonial duties
117
Cost leadership
the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry
118
integrative conflict resolution
an approach to dealing with conflict in which both parties indicate their preferences and then work together to find an alternative that meets the needs of both
119
dialectical inquiry
a decision-making method in which decision makers state the assumptions of a proposed solution (a thesis) and generate a solution that is the opposite (antithesis) of that solution
120
related diversification
creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures
121
leader role
the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives
122
a-type conflict
disagreement that focuses on individuals or personal issues
123
general environment
the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations
124
First-line managers
responsible for training and supervising the performance of nonmanagerial employees who are directly responsible for producing the company’s products or services
125
Probability of effect
the chance that something will happen that results in harm to others
126
attack
a competitive move designed to reduce a rival’s market share or profits
127
reactive strategy
a social responsiveness strategy in which a company does less than society expects
128
Suppliers
companies that provide material, human, financial, and informational resources to other companies
129
operational plans
day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization’s products and services over a thirty-day to six-month period
130
Middle managers
responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving these objectives
131
problem
a gap between a desired state and an existing state
132
Business confidence indices
indices that show managers’ level of confidence about future business growth
133
S.M.A.R.T. goals
goals that are specific, measurable, attainable, realistic, and timely
134
Defenders
companies using an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers
135
Core firms
the central companies in a strategic group
136
Market commonality
the degree to which two companies have overlapping products, services, or customers in multiple markets
137
Stars
a company with a large share of a fast-growing market
138
Motion study
breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive
139
soldiering
when workers deliberately slow their pace or restrict their work output
140
dogs
a company with a small share of a slow-growing market
141
stakeholder model
a theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders
142
Management
getting work done through others
143
Synergy
when two or more subsystems working together can produce more than they can working apart
144
Bargaining power of buyers
a measure of the influence that customers have on a firm’s prices
145
situational analysis
an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment
146
Portfolio strategy
a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines
147
Brainstorming
a decision-making method in which group members build on each others’ ideas to generate as many alternative solutions as possible
148
strategic objective
a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame
149
Technology
the knowledge, tools, and techniques used to transform inputs into outputs
150
Industry-level strategy
a corporate strategy that addresses the question, “How should we compete in this industry?”
151
Team leaders
managers responsible for facilitating team activities toward goal accomplishment
152
Resource similarity
the extent to which a competitor has similar amounts and kinds of resources
153
acquisitions
the purchase of a company by another company
154
Company mission
a company’s purpose or reason for existing
155
leading
inspiring and motivating workers to work hard to achieve organizational goals
156
Imperfectly imitable resources
a resource that is impossible or extremely costly or difficult for other firms to duplicate
157
Ethics
the set of moral principles or values that defines right and wrong for a person or group
158
Social consensus
agreement on whether behavior is bad or good
159
Competitors
companies in the same industry that sell similar products or services to customers
160
Secondary firms
the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms
161
Buyer dependence
the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products
162
Conceptual skills
the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment
163
Cash cows
a company with a large share of a slow-growing market
164
Prospectors
companies using an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market
165
Question marks
a company with a small share of a fast-growing market
166
production deviance
unethical behavior that hurts the quality and quantity of work produced
167
growth strategy
a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
168
competitive advantage
providing greater value for customers than competitors can
169
Stakeholders
persons or groups with a stake, or legitimate interest, in a company’s actions
170
Rational decision making
a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
171
competitive inertia
a reluctance to change strategies or competitive practices that have been successful in the past
172
threat of substitute products or services
a measure of the ease with which customers can find substitutes for an industry’s products or services
173
diversification
a strategy for reducing risk by buying a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio
174
domination
an approach to dealing with conflict in which one party satisfies its desires and objectives at the expense of the other party’s desires and objectives
175
production blocking
a disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea
176
Resource scarcity
the abundance or shortage of critical organizational resources in an organization’s external environment
177
principle of personal virtue
an ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV
178
relationship behavior
the establishment of mutually beneficial, long-term exchanges between buyers and suppliers
179
unrelated diversification
creating or acquiring companies in completely unrelated businesses
180
absolute comparisons
a process in which each decision criterion is compared to a standard or ranked on its own merits
181
system
a set of interrelated elements or parts that function as a whole
182
grand strategy
a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use
183
Strategic dissonance
a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy
184
Time study
timing how long it takes good workers to complete each part of their jobs
185
organization
a system of consciously coordinated activities or forces created by two or more people
186
internal environment
the events and trends inside an organization that affect management, employees, and organizational culture
187
competitive analysis
a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
188
Temporal immediacy
the time between an act and the consequences the act produces
189
defensive strategy
a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations
190
rate buster
a group member whose work pace is significantly faster than the normal pace in his or her group
191
consistent organizational cultures
a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes
192
organizational culture
the values, beliefs, and attitudes shared by organizational members
193
strategic group
a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities
194
public communications
an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group’s message out
195
Property deviance
unethical behavior aimed at the organization’s property or products
196
Magnitude of consequences
the total harm or benefit derived from an ethical decision
197
Policies
standing plans that indicate the general course of action that should be taken in response to a particular event or situation
198
Workplace deviance
unethical behavior that violates organizational norms about right and wrong
199
reactors
companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur
200
sustainable competitive advantage
a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
201
Overt integrity tests
a written test that estimates job applicants’ honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors
202
purpose statement
a statement of a company’s purpose or reason for existing
203
uncertainty
extent to which managers can understand or predict which environmental changes and trends will affect their businesses
204
rare resources
a resource that is not controlled or possessed by many competing firms
205
product boycott
an advocacy group tactic that involves protesting a company’s actions by persuading consumers not to purchase its product or service
206
concentration of effect
the total harm or benefit that an act produces on the average person
207
industry regulation
regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
208
subsystems
smaller systems that operate within the context of a larger system
209
distal goals
long-term or primary goals
210
Firm-level strategy
a corporate strategy that addresses the question, “How should we compete against a particular firm?”
211
Groupthink
a barrier to good decision making caused by pressure within the group for members to agree with each other
212
accommodative strategy
a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem
213
SEPTE
Four components of the environment
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Socialcutural
Economy
Technology
Political/legal trends
Ecological
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