TEMO Flashcards
decision making
The process by which managers respond to opportunities and threats by analyzing options and making determinations about specific organizational goals and courses of action.
programmed decision
making
Routine, virtually
automatic decision making
that follows established rules
or guidelines.
nonprogrammed decision
making
Nonroutine decision making that occurs in response to unusual, unpredictable opportunities and threats.
intuition
Feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering, and result in on-the-spot decisions.
reasoned judgment
A decision that requires time and effort and results from careful information gathering, generation of alternatives, and evaluation of alternatives.
classical decision-making
model
A prescriptive approach to decision making based on the assumption that the decision maker can identify and evaluate all possible alternatives and their consequences and rationally choose the most appropriate course of action.
optimum decision
The most appropriate decision in light of what managers believe to be the most desirable consequences for the organization.
administrative model
An approach to decision making that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory rather than optimum decisions.
bounded rationality
Cognitive limitations that
constrain one’s ability to
interpret, process, and act on
information.
risk
The degree of probability
that the possible outcomes
of a particular course of
action will occur.
uncertainty
Unpredictability.
ambiguous information
Information that can be interpreted
in multiple and often
conflicting ways.
satisficing
Searching for and choosing an acceptable, or satisfactory, response to problems and opportunities, rather than trying to make the best decision.
heuristics
Rules of thumb
that simplify decision making
systematic errors
Errors
that people make over and
over and that result in poor
decision making.
prior hypothesis bias
A cognitive bias resulting from the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong.
representativeness bias
A cognitive bias resulting from the tendency to generalize inappropriately from a small sample or from a single vivid event or episode.
illusion of control
source of cognitive bias resulting from the tendency to overestimate one’s own ability to control activities and events.
escalating commitment
A source of cognitive bias resulting from the tendency to commit additional resources to a project even if evidence shows that the project is failing.
groupthink
A pattern of faulty and biased decision making that occurs in groups whose members strive for agreement among themselves at the expense of accurately assessing information relevant to a decision.
devil’s advocacy
Critical analysis of a preferred alternative, made in response to challenges raised by a group member who, playing the role of devil’s advocate, defends unpopular or opposing alternatives for the sake of argument.
dialectical inquiry
Critical analysis of two preferred alternatives in order to find an even better alternative for the organization to adopt.
organizational learning
The process through which managers seek to improve employees’ desire and ability to understand and manage the organization and its task environment.
learning organization
An organization in which managers try to maximize the ability of individuals and groups to think and behave creatively and thus maximize the potential for organizational learning to take place.
creativity
A decision maker’s ability to discover original and novel ideas that lead to feasible alternative courses of action.
production blocking
A loss of productivity in brainstorming sessions due to the unstructured nature of brainstorming.
nominal group technique
A decision-making technique in which group members write down ideas and solutions, read their suggestions to the whole group, and discuss and then rank the alternatives.
delphi technique
A decision-making technique in which group members do not meet face-to-face but respond in writing to questions posed by the group leader.
entrepreneur
An individual who notices opportunities and decides how to mobilize the resources necessary to produce new and improved goods and services.
social entrepreneur
An individual who pursues initiatives and opportunities and mobilizes resources to address social problems and needs in order to improve society and well-being through creative solutions.
intrapreneur
A manager, scientist, or researcher who works inside an organization and notices opportunities to develop new or improved products and better ways to make them.
entrepreneurship
The mobilization of resources to take advantage of an opportunity to provide customers with new or improved goods and services.
product champion
A manager who takes “ownership” of a project and provides the leadership and vision that take a product from the idea stage to the final customer.
skunkworks
A group of intrapreneurs who are deliberately separated from the normal operation of an organization to encourage them to devote all their attention to developing new products.
control systems
Formal target-setting, monitoring, evaluation, and feedback systems that provide managers with information about how well the organization’s strategy and structure are working.
feedforward control
Control that allows managers
to anticipate problems before
they arise.
concurrent control
Control that gives managers immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise.
feedback control
Control that gives managers information about customers’ reactions to goods and services so corrective action can be taken if necessary.
operating budget
A budget that states how managers intend to use organizational resources to achieve organizational goals.
management by objectives
MBO
A goal-setting process in which a manager and each of his or her subordinates negotiate specific goals and objectives for the subordinate to achieve and then periodically evaluate the extent to which the subordinate is achieving those goals.
bureaucratic control
Control of behavior by means
of a comprehensive system of
rules and standard operating
procedures.
clan control
The control exerted on individuals and groups in an organization by shared values, norms, standards of behavior, and expectations.
organizational change
The movement of an organization away from its present state and toward some preferred future state to increase its efficiency and effectiveness.
evolutionary change
Change that is gradual, incremental,
and narrowly focused.
revolutionary change
Change that is rapid, dramatic,
and broadly focused.
top-down change
A fast, revolutionary approach to change in which top managers identify what needs to be changed and then move quickly to implement the changes throughout the organization.
bottom-up change
A gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change.
benchmarking
The process of comparing one company’s performance on specific dimensions with the performance of other highperforming organizations.
global organization
An
organization that operates
and competes in more than
one country.
global environment
The set of global forces and conditions that operates beyond an organization’s boundaries but affects a manager’s ability to acquire and utilize resources.
task environment
The set of forces and conditions that originates with suppliers, distributors, customers, and competitors and affects an organization’s ability to obtain inputs and dispose of its outputs. These forces and conditions influence managers daily.
general environment
The wide-ranging global, economic, technological, sociocultural, demographic, political, and legal forces that affect an organization and its task environment.
suppliers
Individuals and organizations that provide an organization with the input resources it needs to produce goods and services.
global outsourcing
The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design.
distributors
Organizations
that help other organizations
sell their goods or services to
customers.
customers
Individuals and
groups that buy the goods
and services an organization
produces.
competitors
Organizations that produce goods and services that are similar to a particular organization’s goods and services.
potential competitors
Organizations that presently
are not in a task environment
but could enter if they so
choose.
barriers to entry
Factors that make it difficult and costly for an organization to enter a particular task environment or industry.
economies of scale
Cost
advantages associated with
large operations.
brand loyalty
Customers’
preference for the products of
organizations currently existing
in the task environment.
economic forces
Interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.
technology
The combination of skills and equipment that managers use in designing, producing, and distributing goods and services.
technological forces
Outcomes of changes in the
technology managers use to
design, produce, or distribute
goods and services.
sociocultural forces
Pressures emanating from the social structure of a country or society or from the national culture.
social structure
The traditional
system of relationships
established between people
and groups in a society.
national culture
The set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society.
demographic forces
Outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.
political and legal forces
Outcomes of changes in laws and regulations, such as deregulation of industries, privatization of organizations, and increased emphasis on environmental protection.
globalization
The set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar.
tariff
A tax that a government
imposes on imported or,
occasionally, exported goods.
free-trade doctrine
The idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources.
values
Ideas about what a
society believes to be good,
right, desirable, or beautiful.
norms
Unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organization.
mores
Norms that are considered
to be central to the
functioning of society and to
social life.
folkways
The routine social
conventions of everyday life.
individualism
A worldview that values individual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather than by their social background.
collectivism
A worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group.
power distance
The degree to which societies accept the idea that inequalities in the power and wellbeing of their citizens are due to differences in individuals’ physical and intellectual capabilities and heritage.
achievement orientation
A worldview that values
assertiveness, performance,
success, and competition.
nurturing orientation
A worldview that values the quality of life, warm personal friendships, and services and care for the weak.
uncertainty avoidance
The degree to which societies
are willing to tolerate uncertainty
and risk.
long-term orientation
A
worldview that values thrift
and persistence in achieving
goals.
short-term orientation
A
worldview that values personal
stability or happiness
and living for the present.
planning
Identifying and selecting appropriate goals and courses of action; one of the four principal tasks of management.
strategy
A cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals.
mission statement
A broad declaration of an organization’s purpose that identifies the organization’s products and customers and distinguishes the organization from its competitors.
corporate-level plan
Top management’s decisions pertaining to the organization’s mission, overall strategy, and structure.
corporate-level strategy
A plan that indicates in which
industries and national markets
an organization intends
to compete.
business-level plan
Divisional managers’ decisions pertaining to divisions’ longterm goals, overall strategy, and structure.
business-level strategy
A plan that indicates how a division intends to compete against its rivals in an industry.
functional-level plan
Functional managers’ decisions pertaining to the goals that they propose to pursue to help the division attain its business-level goals.
functional-level strategy
A plan of action to improve the ability of each of an organization’s functions to perform its task-specific activities in ways that add value to an organization’s goods and services.
time horizon
The intended
duration of a plan.
strategic leadership
The ability of the CEO and top managers to convey a compelling vision of what they want the organization to achieve to their subordinates.
strategy formulation
The development of a set of corporate, business, and functional strategies that allow an organization to accomplish its mission and achieve its goals.
SWOT analysis
A planning exercise in which managers identify organizational strengths (S) and weaknesses (W) and environmental opportunities (O) and threats (T).
hypercompetition
Permanent, ongoing, intense competition brought about in an industry by advancing technology or changing customer tastes.
low-cost strategy
Driving
the organization’s costs down
below the costs of its rivals.
differentiation strategy
Distinguishing an organization’s products from the products of competitors on dimensions such as product design, quality, or after-sales service.
focused low-cost strategy
Serving only one segment of
the overall market and trying
to be the lowest-cost organization
serving that segment.
focused differentiation strategy
Serving only one segment of the overall market and trying to be the most differentiated organization serving that segment.
concentration on a single
industry
Reinvesting a company’s
profits to strengthen
its competitive position in its
current industry.
vertical integration
Expanding a company’s operations either backward into an industry that produces inputs for its products or forward into an industry that uses, distributes, or sells its products.
diversification
Expanding a company’s business operations into a new industry in order to produce new kinds of valuable goods or services.
related diversification
Entering a new business or industry to create a competitive advantage in one or more of an organization’s existing divisions or businesses.
synergy
Performance gains
that result when individuals
and departments coordinate
their actions.
unrelated diversification
Entering a new industry or buying a company in a new industry that is not related in any way to an organization’s current businesses or industries.
global strategy
Selling the same standardized product and using the same basic marketing approach in each national market.
multidomestic strategy
Customizing products and
marketing strategies to specific
national conditions
exporting
Making products
at home and selling them
abroad.
importing
Selling products
at home that are made
abroad.
licensing
Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee.
franchising
Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits.
strategic alliance
An agreement in which managers pool or share their organization’s resources and knowhow with a foreign company, and the two organizations share the rewards and risks of starting a new venture.
joint venture
A strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.
wholly owned foreign
subsidiary
Production operations
established in a foreign
country independent of any
local direct involvement.
group
Two or more people
who interact with each other
to accomplish certain goals or
meet certain needs.
team
A group whose members
work intensely with one
another to achieve a specific
common goal or objective.
synergy
Performance gains
that result when individuals
and departments coordinate
their actions.
formal group
A group
that managers establish to
achieve organizational goals.
informal group
A group that managers or nonmanagerial employees form to help achieve their own goals or meet their own needs.
top management team
A group composed of the CEO, the president, and the heads of the most important departments.
research and development
team
A team whose
members have the expertise
and experience needed to
develop new products.
command group
A group composed of subordinates who report to the same supervisor; also called department or unit.
task force
A committee of managers or nonmanagerial employees from various departments or divisions who meet to solve a specific, mutual problem; also called an ad hoc committee.
self-managed work
team
A group of employees who supervise their own activities and monitor the quality of the goods and services they provide.
virtual team
A team whose members rarely or never meet face-to-face but, rather, interact by using various forms of information technology such as e-mail, computer networks, telephone, fax, and videoconferences.
friendship group
An informal group composed of employees who enjoy one another’s company and socialize with one another.
interest group
An informal group composed of employees seeking to achieve a common goal related to their membership in an organization.
division of labor
Splitting
the work to be performed into
particular tasks and assigning
tasks to individual workers.
task interdependence
The degree to which the work performed by one member of a group influences the work performed by other members.
pooled task interdependence
The task interdependence that exists when group members make separate and independent contributions to group performance.
sequential task interdependence
The task interdependence that exists when group members must perform specific tasks in a predetermined order.
reciprocal task interdependence
The task interdependence that exists when the work performed by each group member is fully dependent on the work performed by other group members.
group role
A set of behaviors and tasks that a member of a group is expected to perform because of his or her position in the group.
role making
Taking the initiative
to modify an assigned
role by assuming additional
responsibilities.
group norms
Shared guidelines
or rules for behavior that
most group members follow.
group cohesiveness
The
degree to which members are
attracted to or loyal to their
group.
social loafing
The tendency of individuals to put forth less effort when they work in groups than when they work alone.
motivation
Psychological forces that determine the direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence.
intrinsically motivated behavior
Behavior that is
performed for its own sake.
extrinsically motivated
behavior
Behavior that is
performed to acquire material
or social rewards or to avoid
punishment.
prosocially motivated
behavior
Behavior that is
performed to benefit or help
others.
outcome
Anything a
person gets from a job or
organization.
input
Anything a person
contributes to his or her job or
organization.
expectancy theory
The theory that motivation will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes.
expectancy
In expectancy theory, a perception about the extent to which effort results in a certain level of performance.
instrumentality
In expectancy theory, a perception about the extent to which performance results in the attainment of outcomes.
valence
In expectancy theory, how desirable each of the outcomes available from a job or organization is to a person.
need
A requirement or
necessity for survival and
well-being.
need theories
Theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs.
Maslow’s hierarchy of
needs
An arrangement of five basic needs that, according to Maslow, motivate behavior. Maslow proposed that the lowest level of unmet needs is the prime motivator and that only one level of needs is motivational at a time.
Alderfer’s ERG theory
The theory that three universal needs—for existence, relatedness, and growth—constitute a hierarchy of needs and motivate behavior. Alderfer proposed that needs at more than one level can be motivational at the same time.
Herzberg’s motivatorhygiene
theory
A need theory that distinguishes between motivator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivation and job satisfaction to be high.
need for achievement
The extent to which an individual has a strong desire to perform challenging tasks well and to meet personal standards for excellence.
need for affiliation
The extent to which an individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him or her get along with each other.
need for power
The extent
to which an individual desires
to control or influence others.
equity theory
A theory of motivation that focuses on people’s perceptions of the fairness of their work outcomes relative to their work inputs.
equity
The justice, impartiality,
and fairness to which all
organizational members are
entitled.
inequity
Lack of fairness.
underpayment inequity
The inequity that exists when a person perceives that his or her own outcome–input ratio is less than the ratio of a referent.
overpayment inequity
The inequity that exists when a person perceives that his or her own outcome–input ratio is greater than the ratio of a referent.
distributive justice
A
person’s perception of the
fairness of the distribution of
outcomes in an organization
procedural justice
A person’s perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization.
interpersonal justice
A person’s perception of the fairness of the interpersonal treatment he or she receives from whoever distributes outcomes to him or her.
informational justice
A person’s perception of the extent to which his or her manager provides explanations for decisions and the procedures used to arrive at them.
goal-setting theory
A theory that focuses on identifying the types of goals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects.
learning theories
Theories that focus on increasing employee motivation and performance by linking the outcomes that employees receive to the performance of desired behaviors and the attainment of goals.
learning
A relatively permanent
change in knowledge
or behavior that results from
practice or experience.
operant conditioning
theory
The theory that people learn to perform behaviors that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences.
positive reinforcement
Giving people outcomes they
desire when they perform
organizationally functional
behaviors.
negative reinforcement
Eliminating or removing undesired
outcomes when people
perform organizationally functional
behaviors.
extinction
Curtailing the
performance of dysfunctional
behaviors by eliminating
whatever is reinforcing them.
punishment
Administering
an undesired or negative consequence
when dysfunctional
behavior occurs.
organizational behavior
modification (OB MOD)
The systematic application of operant conditioning techniques to promote the performance of organizationally functional behaviors and discourage the performance of dysfunctional behaviors.
social learning theory
A theory that takes into account how learning and motivation are influenced by people’s thoughts and beliefs and their observations of other people’s behavior.
vicarious learning
Learning that occurs when the learner becomes motivated to perform a behavior by watching another person performing it and being reinforced for doing so; also called observational learning.
self-reinforcer
Any desired or attractive outcome or reward that a person gives to himself or herself for good performance.
self-efficacy
A person’s
belief about his or her ability
to perform a behavior
successfully.
merit pay plan
A compensation
plan that bases pay on
performance.
employee stock option
A financial instrument that entitles the bearer to buy shares of an organization’s stock at a certain price during a certain period or under certain conditions.
leadership
The process by which an individual exerts influence over other people and inspires, motivates, and directs their activities to help achieve group or organizational goals.
leader
An individual who is
able to exert influence over
other people to help achieve
group or organizational goals.
servant leader
A leader
who has a strong desire to
serve and work for the benefit
of others.
legitimate power
The
authority that a manager has
by virtue of his or her position
in an organization’s hierarchy.
reward power
The ability
of a manager to give or withhold
tangible and intangible
rewards.
coercive power
The
ability of a manager to
punish others.
expert power
Power that is
based on the special knowledge,
skills, and expertise
that a leader possesses.
referent power
Power that
comes from subordinates’
and coworkers’ respect,
admiration, and loyalty.
empowerment
The
expansion of employees’
knowledge, tasks, and decision-
making responsibilities.
consideration
Behavior
indicating that a manager
trusts, respects, and cares
about subordinates.
initiating structure
Behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.
relationship-oriented
leaders
Leaders whose primary concern is to develop good relationships with their subordinates and to be liked by them.
task-oriented
leaders
Leaders whose
primary concern is to ensure
that subordinates perform at
a high level.
leader–member
relations
The extent to which followers like, trust, and are loyal to their leader; a determinant of how favorable a situation is for leading.
task structure
The extent to which the work to be performed is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it; a determinant of how favorable a situation is for leading.
position power
The amount of legitimate, reward, and coercive power that a leader has by virtue of his or her position in an organization; a determinant of how favorable a situation is for leading.
path–goal theory
A contingency model of leadership proposing that leaders can motivate subordinates by identifying their desired outcomes, rewarding them for high performance and the attainment of work goals with these desired outcomes, and clarifying for them the paths leading to the attainment of work goals.
leadership substitute
A characteristic of a subordinate or of a situation or context that acts in place of the influence of a leader and makes leadership unnecessary.
transformational
leadership
Leadership that makes subordinates aware of the importance of their jobs and performance to the organization and aware of their own needs for personal growth and that motivates subordinates to work for the good of the organization.
charismatic leader
An enthusiastic, self-confident leader who is able to clearly communicate his or her vision of how good things could be.
intellectual stimulation
Behavior a leader engages in to make followers aware of problems and view these problems in new ways, consistent with the leader’s vision.
developmental
consideration
Behavior a leader engages in to support and encourage followers and help them develop and grow on the job.
transactional leadership
Leadership that motivates subordinates by rewarding them for high performance and reprimanding them for low performance.
human resource
management (HRM)
Activities that managers engage in to attract and retain employees and to ensure that they perform at a high level and contribute to the accomplishment of organizational goals.
strategic human resource
management
The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization’s strategy and goals.
equal employment opportunity
EEO
The equal right of all citizens to the opportunity to obtain employment regardless of their gender, age, race, country of origin, religion, or disabilities.
recruitment
Activities that managers engage in to develop a pool of qualified candidates for open positions.
selection
The process that managers use to determine the relative qualifications of job applicants and their potential for performing well in a particular job.
human resource planning
Activities that managers
engage in to forecast their
current and future needs for
human resources.
outsource
To use outside
suppliers and manufacturers
to produce goods and
services.
job analysis
Identifying the tasks, duties, and responsibilities that make up a job and the knowledge, skills, and abilities needed to perform the job.
lateral move
A job change
that entails no major changes
in responsibility or authority
levels.
realistic job preview
RJP
An honest assessment
of the advantages and
disadvantages of a job and
organization.
reliability
The degree to
which a tool or test measures
the same thing each time it
is used.
validity
The degree to which
a tool or test measures what
it purports to measure.
training
Teaching organizational members how to perform their current jobs and helping them acquire the knowledge and skills they need to be effective performers.
development
Building the knowledge and skills of organizational members so they are prepared to take on new responsibilities and challenges.
needs assessment
An assessment of which employees need training or development and what type of skills or knowledge they need to acquire.
on-the-job training
Training
that takes place in the
work setting as employees
perform their job tasks.
performance appraisal
The evaluation of employees’
job performance and contributions
to their organization.
performance feedback
The process through which managers share performance appraisal information with subordinates, give subordinates an opportunity to reflect on their own performance, and develop, with subordinates, plans for the future.
objective appraisal
An
appraisal that is based on
facts and is likely to be
numerical.
subjective appraisal
An
appraisal that is based on
perceptions of traits, behaviors,
or results.
360-degree appraisal
A performance appraisal by peers, subordinates, superiors, and sometimes clients who are in a position to evaluate a manager’s performance.
formal appraisal
An appraisal conducted at a set time during the year and based on performance dimensions and measures that were specified in advance.
informal appraisal
An
unscheduled appraisal of
ongoing progress and areas
for improvement.
pay level
The relative position of an organization’s pay incentives in comparison with those of other organizations in the same industry employing similar kinds of workers.
pay structure
The arrangement of jobs into categories reflecting their relative importance to the organization and its goals, levels of skill required, and other characteristics.
cafeteria-style benefit
plan
A plan from which
employees can choose the
benefits they want
labor relations
The activities managers engage in to ensure that they have effective working relationships with the labor unions that represent their employees’ interests.
collective bargaining
Negotiations between labor unions and managers to resolve conflicts and disputes about issues such as working hours, wages, benefits, working conditions, and job security.
organizational architecture
The organizational structure, control systems, culture, and human resource management systems that together determine how efficiently and effectively organizational resources are used.
organizational structure
A formal system of task and reporting relationships that coordinates and motivates organizational members so they work together to achieve an organization’s goals.
organizational design
The process by which managers make specific organizing choices that result in a particular kind of organizational structure.
job design
The process by
which managers decide how
to divide tasks into specific
jobs.
job simplification
The process
of reducing the number
of tasks that each worker
performs.
job enlargement
Increasing
the number of different
tasks in a given job by changing
the division of labor.
job enrichment
Increasing
the degree of responsibility
a worker has over his or her
job.
functional structure
An organizational structure composed of all the departments that an organization requires to produce its goods or services.
divisional structure
An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer.
product structure
An organizational structure in which each product line or business is handled by a selfcontained division.
geographic structure
An organizational structure in which each region of a country or area of the world is served by a self-contained division.
market structure
An organizational structure in which each kind of customer is served by a self-contained division; also called customer structure.
matrix structure
An organizational structure that simultaneously groups people and resources by function and by product.
cross-functional team
A group of managers brought together from different departments to perform organizational tasks.
product team structure
An organizational structure in which employees are permanently assigned to a crossfunctional team and report only to the product team manager or to one of his or her direct subordinates.
authority
The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.
hierarchy of authority
An
organization’s chain of command,
specifying the relative
authority of each manager.
span of control
span of control
line manager
Someone in the direct line or chain of command who has formal authority over people and resources at lower levels.
staff manager
Someone
responsible for managing a
specialist function, such as
finance or marketing.
decentralizing authority
Giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources.
integrating mechanisms
Organizing tools that managers can use to increase communication and coordination among functions and divisions.
task force
A committee of managers from various functions or divisions who meet to solve a specific, mutual problem; also called ad hoc committee.
organizational culture
The shared set of beliefs, expectations, values, and norms that influence how members of an organization relate to one another and cooperate to achieve the organization’s goals.
organizational ethics
The moral values, beliefs, and rules that establish the appropriate way for an organization and its members to deal with each other and with people outside the organization.
