EXAM 1 (Chapter 1-6) Flashcards
organizational heroes
people celebrated for their qualities and achievements within an organization
Corporate-level strategy
the overall organizational strategy that addresses the question, “What business or businesses are we in or should we be in?”
controlling
monitoring progress toward goal achievement and taking corrective action when needed
Management by objectives
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
nominal group technique
a decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group
Single-use plans
plans that cover unique, one-time-only events
focus strategy
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
disturbance handler role
the decisional role managers play when they respond to severe pressures and problems that demand immediate action
principle of religious injunctions
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
evaluation apprehension
fear of what others will think of your ideas
Direct competition
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
proactive strategy
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
Decision criteria
the standards used to guide judgments and decisions
principle of utilitarian benefits
an ethical principle that holds that you should never take any action that does not result in greater good for society
Ethical responsibility
a company’s social responsibility not to violate accepted principles of right and wrong when conducting its business
preconventional level of moral development
the first level of moral development, in which people make decisions based on selfish reasons
spokesperson role
the informational role managers play when they share information with people outside their departments or companies
Ethical behavior
behavior that conforms to a society’s accepted principles of right and wrong
ethical intensity
the degree of concern people have about an ethical issue
Delphi technique
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
Bargaining power of suppliers
a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs
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
behavioral substitution
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
Cognitive maps
graphic depictions of how managers believe environmental factors relate to possible organizational actions
Political deviance
using one’s influence to harm others in the company
opportunistic behavior
a transaction in which one party in the relationship benefits at the expense of the other
Goal commitment
the determination to achieve a goal
stability strategy
a strategy that focuses on improving the way in which the company sells the same products or services to the same customers
Motivation to manage
an assessment of how enthusiastic employees are about managing the work of others
Whistle-blowing
reporting others’ ethics violations to management or legal authorities
open systems
systems that can sustain themselves only by interacting with their environments, on which they depend for their survival
stable environments
an environment in which the rate of change is slow
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
scientific management
thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job
Organizing
deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom
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
bureaucracy
the exercise of control on the basis of knowledge, expertise, or experience
monitor role
the informational role managers play when they scan their environment for information
retrenchment strategy
a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business
Social responsiveness
a company’s strategy to respond to stakeholders’ economic, legal, ethical, or discretionary expectations concerning social responsibility
Planning
choosing a goal and developing a strategy to achieve that goal
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
action plan
a plan that lists the specific steps, people, resources, and time period needed to attain a goal
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
Decision making
the process of choosing a solution from available alternatives
maximize
choosing the best alternative
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
resource allocator role
the decisional role managers play when they decide who gets what resources and in what amounts
disseminator role
the informational role managers play when they share information with others in their departments or companies
Social responsibility
a business’s obligation to pursue policies, make decisions, and take actions that benefit society
Discretionary responsibilities
the social roles that a company fulfills beyond its economic, legal, and ethical responsibilities
liaison role
the interpersonal role managers play when they deal with people outside their units
Personality-based integrity tests
a written test that indirectly estimates job applicants’ honesty by measuring psychological traits, such as dependability and conscientiousness
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
Analyzers
companies using an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors
Valuable resources
a resource that allows companies to improve efficiency and effectiveness
Tactical plans
plans created and implemented by middle managers that direct behavior, efforts, and attention over the next six months to two years
Environmental change
the rate at which a company’s general and specific environments change
slack resources
a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities
Proximal goals
short-term goals or subgoals
economic responsibility
a company’s social responsibility to make a profit by producing a valued product or service
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
response
a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit
distinctive competence
what a company can make, do, or perform better than its competitors
nonsubstitutable resources
a resource that produces value or competitive advantage and has no equivalent substitutes or replacements
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
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
satisficing
choosing a “good-enough” alternative
standing plans
plans used repeatedly to handle frequently recurring events
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
Environmental complexity
the number and the intensity of external factors in the environment that affect organizations
Employee shrinkage
employee theft of company merchandise
complex environments
an environment with many environmental factors
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
Gantt chart
a graphical chart that shows which tasks must be completed at which times in order to complete a project or task
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
Advocacy groups
concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
Closed systems
systems that can sustain themselves without interacting with their environments
Primary stakeholders
any group on which an organization relies for its long-term survival
entrepreneur role
the decisional role managers play when they adapt themselves, their subordinates, and their units to change
Planning
determining organizational goals and a means for achieving them
negotiator role
the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises
Legal responsibility
a company’s social responsibility to obey society’s laws and regulations
Technical skills
the specialized procedures, techniques, and knowledge required to get the job done
Core capabilities
the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs
postconventional level of moral development
the third level of moral development, in which people make decisions based on internalized principles
External environments
all events outside a company that have the potential to influence or affect it
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
Efficiency
getting work done with a minimum of effort, expense, or waste
conventional level of moral development
the second level of moral development, in which people make decisions that conform to societal expectation
options-based planning
maintaining planning flexibility by making small, simultaneous investments in many alternative plans
devil’s advocacy
a decision-making method in which an individual or a subgroup is assigned the role of critic
Human skills
the ability to work well with others
Proximity of effect
the social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions
shareholder model
a view of social responsibility that holds that an organization’s overriding goal should be profit maximization for the benefit of shareholders
principle of individual rights
an ethical principle that holds that you should never take any action that infringes on others’ agreed-upon rights
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
effectiveness
accomplishing tasks that help fulfill organizational objectives
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
Procedures
standing plans that indicate the specific steps that should be taken in response to a particular event
dynamic environments
an environment in which the rate of change is fast
Budgeting
quantitative planning through which managers decide how to allocate available money to best accomplish company goals
Environmental scanning
searching the environment for important events or issues that might affect an organization
organizational stories
stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
Recovery
the strategic actions taken after retrenchment to return to a growth strategy
Simple environments
an environment with few environmental factors
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
Character of the rivalry
a measure of the intensity of competitive behavior between companies in an industry
C-type conflict
disagreement that focuses on problem- and issue-related differences of opinion
Personal aggression
hostile or aggressive behavior toward others
relative comparisons
a process in which each decision criterion is compared directly with every other criterion
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
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
Top managers
executives responsible for the overall direction of the organization
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
figurehead role
the interpersonal role managers play when they perform ceremonial duties
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
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
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
related diversification
creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures
leader role
the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives
a-type conflict
disagreement that focuses on individuals or personal issues
general environment
the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations
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
Probability of effect
the chance that something will happen that results in harm to others
attack
a competitive move designed to reduce a rival’s market share or profits
reactive strategy
a social responsiveness strategy in which a company does less than society expects
Suppliers
companies that provide material, human, financial, and informational resources to other companies
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
Middle managers
responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving these objectives
problem
a gap between a desired state and an existing state
Business confidence indices
indices that show managers’ level of confidence about future business growth
S.M.A.R.T. goals
goals that are specific, measurable, attainable, realistic, and timely
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
Core firms
the central companies in a strategic group
Market commonality
the degree to which two companies have overlapping products, services, or customers in multiple markets
Stars
a company with a large share of a fast-growing market
Motion study
breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive
soldiering
when workers deliberately slow their pace or restrict their work output
dogs
a company with a small share of a slow-growing market
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
Management
getting work done through others
Synergy
when two or more subsystems working together can produce more than they can working apart
Bargaining power of buyers
a measure of the influence that customers have on a firm’s prices
situational analysis
an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment
Portfolio strategy
a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines
Brainstorming
a decision-making method in which group members build on each others’ ideas to generate as many alternative solutions as possible
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
Technology
the knowledge, tools, and techniques used to transform inputs into outputs
Industry-level strategy
a corporate strategy that addresses the question, “How should we compete in this industry?”
Team leaders
managers responsible for facilitating team activities toward goal accomplishment
Resource similarity
the extent to which a competitor has similar amounts and kinds of resources
acquisitions
the purchase of a company by another company
Company mission
a company’s purpose or reason for existing
leading
inspiring and motivating workers to work hard to achieve organizational goals
Imperfectly imitable resources
a resource that is impossible or extremely costly or difficult for other firms to duplicate
Ethics
the set of moral principles or values that defines right and wrong for a person or group
Social consensus
agreement on whether behavior is bad or good
Competitors
companies in the same industry that sell similar products or services to customers
Secondary firms
the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms
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
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
Cash cows
a company with a large share of a slow-growing market
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
Question marks
a company with a small share of a fast-growing market
production deviance
unethical behavior that hurts the quality and quantity of work produced
growth strategy
a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business
competitive advantage
providing greater value for customers than competitors can
Stakeholders
persons or groups with a stake, or legitimate interest, in a company’s actions
Rational decision making
a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions
competitive inertia
a reluctance to change strategies or competitive practices that have been successful in the past
threat of substitute products or services
a measure of the ease with which customers can find substitutes for an industry’s products or services
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
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
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
Resource scarcity
the abundance or shortage of critical organizational resources in an organization’s external environment
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
relationship behavior
the establishment of mutually beneficial, long-term exchanges between buyers and suppliers
unrelated diversification
creating or acquiring companies in completely unrelated businesses
absolute comparisons
a process in which each decision criterion is compared to a standard or ranked on its own merits
system
a set of interrelated elements or parts that function as a whole
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
Strategic dissonance
a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy
Time study
timing how long it takes good workers to complete each part of their jobs
organization
a system of consciously coordinated activities or forces created by two or more people
internal environment
the events and trends inside an organization that affect management, employees, and organizational culture
competitive analysis
a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
Temporal immediacy
the time between an act and the consequences the act produces
defensive strategy
a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations
rate buster
a group member whose work pace is significantly faster than the normal pace in his or her group
consistent organizational cultures
a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes
organizational culture
the values, beliefs, and attitudes shared by organizational members
strategic group
a group of companies within an industry against which top managers compare, evaluate, and benchmark strategic threats and opportunities
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
Property deviance
unethical behavior aimed at the organization’s property or products
Magnitude of consequences
the total harm or benefit derived from an ethical decision
Policies
standing plans that indicate the general course of action that should be taken in response to a particular event or situation
Workplace deviance
unethical behavior that violates organizational norms about right and wrong
reactors
companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur
sustainable competitive advantage
a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate
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
purpose statement
a statement of a company’s purpose or reason for existing
uncertainty
extent to which managers can understand or predict which environmental changes and trends will affect their businesses
rare resources
a resource that is not controlled or possessed by many competing firms
product boycott
an advocacy group tactic that involves protesting a company’s actions by persuading consumers not to purchase its product or service
concentration of effect
the total harm or benefit that an act produces on the average person
industry regulation
regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
subsystems
smaller systems that operate within the context of a larger system
distal goals
long-term or primary goals
Firm-level strategy
a corporate strategy that addresses the question, “How should we compete against a particular firm?”
Groupthink
a barrier to good decision making caused by pressure within the group for members to agree with each other
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
SEPTE
Four components of the environment
Socialcutural Economy Technology Political/legal trends Ecological
