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Class:Mgmt 5 - MGMT CONTEMP ORGS
Subject:Management
University:University of California - Irvine
Term:Spring 2011
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Bounded rationality

 Herbert Simon’s concept that managers attempt to make rational decisions, but their thinking is constrained by human limitations

Classical management theory

Ideas concerning the management of organizations arising from pioneers such as Taylor, Fayol, Weber, and Mooney and Reiley, together with emerging concepts identified with the scientific management approach

2.    

Closed system

     A system in which there is no interaction of the elements with the outside environment

Contingency approach

  A management theory that emphasizes matching a structured or flexible management style to the organizations environment, its technology, the tasks to be performed and the types of employees

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Division of labor

 The division of work so that each person performs a limited number of tasks (specialized tasks); first used early in the Industrial Revolution

Functions of management

     Basic elements of managements as originally identified by Henri Fayol, consisting of planning, organizing, command, coordination and control

Hawthorne Studies

  A series of research studies at the Hawthorne plant of Western Electric company that focused a spotlight on the importance of the human factor in productivity

Human relations approach  Approach springing from the findings of the Hawthorne Studies focused on the importance of relationships among people in the workplace
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Human Resources approach


    Approach involving a basic belief that people posses and want to make a greater use of their talents and capabilities and that if allowed to do so, performance and satisfaction will increase

Integrative approaches


   Recent approaches to management that include systems theory and contingency approaches and emphasize a consideration of a wide range of factors

Law of the situation Mary Parker Follets emphasis on the need to generate a spirit of cooperation between managers and their subordinates with a  focus on authority (based on a person’s knowledge and experience) that seems appropriate to the circumstances.

Management science (operations research)


  Quantitative or mathematical approaches to managerial problems, especially those requiring specific decisions

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Mechanistic approach

   Highly structures traditional approach, which may be better suited to stable external environments, highly repetitive tasks, and employees with considerable training

Neoclassical management theory Thinking about organized work activity and how to manage that drew from classical theory in its emphasis on study and analysis of the workplace but expanded to include situational and social considerations (communication and cooperation)
Open System

    A system in which there is interaction of the elements with the outside environment

Organic Approach

    A flexible, employees-centered management approach that seems better suited for rapidly changing and complex environments, non-repetitive tasks, and employees with considerable training and competence

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Scientific Management


   Approach developed by Fredrick Taylor focusing on basic principles for improving performance, such as studying jobs by using objective measurements in order to determine the one best way, selecting the best persons for the job, training them in the most efficient methods, and providing sufficient monetary incentive to those performing the work.

Simulation


  A set of techniques in which various potential combinations of variables can be mathematically manipulated in advance of actual decisions to determine the possible effects of changes in one or more variables

System An interconnected set of elements that have orderly interactions that form a unitary whole

Systems Theory The processes involved in how “inputs” get transformed by the organization into “outputs”

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Controlling Regulating work of those for whom a manager is responsible

Directing The process of attempting to influence other people to attain an organization’s objectives.

Management


The process of assembling and using sets of resources in a goal directed manner to accomplish tasks in an organized setting

Organization


     An interconnected set of individuals and groups who attempt to accomplish common goals through differentiated functions and their coordination

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Organizing


     Systematically integrating resources to accomplish tasks

2.     

  

Planning Estimating future conditions and circumstances and making decisions and appropriate courses of action
Behavioral process orientation


   Key distinguishing feature of the OD approach to organizational change that focuses on new forms of behavior and new relationships

Change agent

  An individual responsible for implementing change efforts; can be either internal or external to the organization

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Focus group


     A small group involved in intense discussions of the positive and negative features of products or services

Force field analysis      Uses the concept of equilibrium, a condition that occurs, when the forces for change, the “driving forces,” are balanced by forces opposing change, the “restraining forces,” and results in a relatively steady state.
Intervention


     A set of structured activities or action steps designed to improve an organization

Leading coalition


    A group of supporters who are favorably inclined toward change and can influence others toward change

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Organizational development

1.     

     Approach to organizational change that has a strong behavioral and people orientation, emphasizing planned strategic, long range efforts focusing on people and their interrelationships in organizations.

Organizational learning


   Exhibited by an organization that is skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

Organizational renewal


     A concept of organizational change that proposes a goal of flexibility and capability for continual change

Process redesign (reengineering)


     Involves a fundamental redesign of business processes to achieve dramatic improvements

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T-group


 

     A group of individuals participating in organizational development sessions away from the workplace; also called a basic skills training group

Ethical Dilemma

Having to make a choice between two competing but arguable valid options.

Ethical Lapse

  Decision that is contrary to an individual’s stated beliefs and policies of the company.

Utilitarian Approach

Focuses on the consequences of an action, Action that results in the greatest good

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Moral Rights Approach

Focuses on examination of the moral standing of actions independent of their consequences. Choose the action that conforms with moral principles and provides positive consequences.

Universal Approach

Choosing a course of action that you believe can apply to all people under all situations. Choose a course of action that you believe can apply to all people under all situations and that you would also want applied to yourself.

Justice approach

focuses on how equitably the costs and benefits of actions are distributed.

Distributive Justice

the equitable distribution of rewards and punishment, based on performance

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Procedural Justice

   ensuring that those affected by managerial decisions consent to the decision making process and that the process is administered impartially.

Compensatory Justice

If distributive and procedural justice fail, those hurt by the inequitable distribution of rewards are compensated. Affirmative Action

Moral Intensity

the degree to which people see an issue as an ethical one.

Magnitude of Consequences

the anticipated level of impact of the outcome of a given action

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Social consensus

The extent to which members of a society agree that an act is either good or bad

Probability of effect

the moral intensity of an issue rises and falls depending on how likely  people think the consequences are

Temporal Immediacy A function of the interval between the time the action occurs and the onset of its consequences
Proximity

the physical, psychological and emotional closeness the decision maker feels to those affected by the decision.

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Concentration of effect

  The extent to which consequences are focused on a few individuals or dispersed across many.

Efficiency Perspective

The concept that a manager’s responsibility is to maximize profits for the owners of the business.

Externality

An indirect or unintended consequence imposed on society that may not be understood or anticipated

Socially responsible

to maximize the return to the shareholders

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Limited Liability

 a privilege granted to corporations by society, not by shareholders.

 

Stakeholders An individual or group who has an interest in and is affected by the actions of an organization.
Defenders

 Fight efforts that they see as resulting in greater restriction and regulation of their ability to maximize profits, seeking legal loopholes and operate at the edge of the law.



Accommodators Less aggressive in fighting restrictions and regulations, but only change when legally compelled to do so. Tends to obey the letter of law.
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Reactors

Makes changes when they feel pressure from constituencies is sufficient such that nonresponsiveness could have a negative economic impact on the firm.

Anticipators

believe that they are obligated to a variety of stakeholders- customers, employees, shareholders, etc..not to harm them independent of lawas or pressures that restrict or regulate their actions. Avoid Law and avoid harming constituencies.


Strategic Corporate Social Responsibility Perspective a three criteria model that can help managers focus on social areas where there is the highest possibility of creating shared value for the business and society. Inside Approach, Outside in approach, Outside out approach.
Code of ethical conduct

a formal settlement that outlines types of behavior that are and are not acceptable



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Whistle blower an employee who discloses illegal or unethical conduct on the part of others in the organization
Foreign Corrupt Practices Act (FCPA)

a law prohibiting employees of U.S. firms from corrupting the actions of foreign officials, politicians, or candidates for office.

Collectivism

1

     The extent to which identity is a function of the group to which an individual belongs (e.g. families, firm members, community members, etc.) and the extent to which group members are expected to look after each other

2.     


Cross-border acquisition    Acquisitions of local firms made by foreign firms to enter a new international market
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Cultural context

1.

 The degree to which a situation influences behavior or perception o the appropriateness of behaviors



3.   

Culture     A learned set of assumptions values and beliefs that members of a group have accepted and that affect on human behavior
Exporting

   Manufacturing products in a firm’s home country and shipping them to a foreign market

Gender focus

1.     

    The extent to which people in a country value masculine or feminine traits

2.     


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Global mind set      A set of cognitive attributes that allows an individual (manages) to influence individuals, groups, and organization from diverse sociocultural institutional environments
Globalization


    The flow of goods, and services, capital (money) and knowledge across country borders

2.   

3.   

Globally focused organization      An organization that invests the primary authority for major strategic decisions in the home office
High-context culture

Cultures where people pay close attention to the situation and its various elements

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Individualism


     The extent to which peoples’ identities are self oriented to take care of themselves and their immediate families

2.    

 

3.     


Institutional environment   The country’s rules, policies, and enforcement processes that influence individuals and organizations behaviors that operate within the country boundaries
Licensing      Arrangements establishing how to allow a local firm in the new market to manufacture and distribute a firms product
Low-context culture


     Cultures where contextual variables have much less impact on the determination of appropriate behaviors

2.  


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Power distance

 The extent to which people accept power and authority differences among people

Region-country focus When the primary authority to determine competitive strategy rests with the management of the international subsidiary based in a region of the world or a specific country
Strategic alliance


    Cooperative arrangements between two firms in which they agree to share resources to accomplish a mutually desirable goal

Swift trust


     the rapid development of trust in teams with positive and reciprocal communications about the team’s task activities

2.   


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Transnational organization      An organization that strives to be simultaneously centralized and decentralized
Uncertainty avoidance      When cultures differ in the extent to which they need things to be clear or ambiguous
Virtual team


     Terms that rely on electronically mediated communication

2.     


Wholly owned subsidiary      Direct investments establish a business in a foreign market in which the local firm owns and controls 100% of the business
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Bounded rationality (administrative) model

     A model that assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information-processing capabilities than they possess

2.     


Brainstorming   A process of generating many creative solutions without evaluating merit
Cross-functional team


    A work group composed of employers from different departments, such as finance, marketing, operations, and human resources to work together on problem solving

Decision-making


    A process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity

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Decision Making Process

 Step 1- identify problem/ opportunity

 Step 2- Develop objectives & criteria

  Step 3- Generate alternatives, past and new solutions

  Step 4- Analyze alternatives, (minimally acceptable results, feasibility, best results)

 Step 5- Select Alternative

 Step 6- Implement decision  (source, sequence, resources, delegation of tasks)

 Step 7- Evaluate results

Delphi’s Technique


  A decision-making technique that never allows decision participant s to meet face-to-face but identities a problem and offers solutions using a questionnaire
Devil’s advocate        A group member whose role is to challenge the majority position



Dialectical inquiry  A process to improve decision making by assigning a group member (or members) the role of questioning the underlying assumptions associated with the formulation of the problem
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Escalating commitment

2. 

The tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant information emerges indicating that the original decision was incorrect

Formulation A process involving identifying a problem opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affecting the problem or opportunity
Gresham's law of planning

The tendency for managers to let programmed activities overshadow non programmed actvites

Groupthink A mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action
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Heuristic

that guides the search for alternatives into areas that have a high probability for yielding success   

Intuitive decision making The primarily subconscious process of identifying a decision and selecting a preferred alternative

2.     


Multiple advocacy A process to improve decision making by assigning several group members to represent the opinions of various constituencies that might have an interest in the decision
Nominal group technique A process of having group members record their proposed solutions, summarize all proposed solutions and independently rank solutions until a clearly favored solution emerges

    



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Nonprogrammed decision A decision about a problem that is either poorly defined or novel
Opportunity A chance to achieve a more desirable state than the current needs

2.     

Perception A way one sees a situation based on experiences, personality, and current needs
Perceptual distortion Highlighting the positive features of the implicit favorite over the alternative
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Problem  A gap between existing and desired performance





Programmed decision A standard response to a simple or routine problem
Prospective rationality A belief that future courses of action are rational and correct
Rational (classical) model A seven-step model of decision making that represents the earliest attempt to model decision processes
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Retrospective decision(implicit favorite) model A decision making model that focuses on how decision makers attempt to rationalize their choices after they are made

2

 

Satisficing The  tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results



2

Solution A process involving generating alternatives, selecting the preferred solution and implementing the decided course of action
Standard operation procedure (SOP) Established procedure for action used for programmed decisions that specifies exactly what should be done
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Structured debate A process to improve problem formulation that includes the processes of devil’s advocate, multiple advocacy, and dialectical inquiry  


 

Subjectively expected utility (SEU) model A model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome 
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 Bounded rationality

 Herbert Simon’s concept that managers attempt to make rational decisions, but their thinking is constrained by human limitations

 Classical management theory

Ideas concerning the management of organizations arising from pioneers such as Taylor, Fayol, Weber, and Mooney and Reiley, together with emerging concepts identified with the scientific management approach

2.    

 Closed system

     A system in which there is no interaction of the elements with the outside environment

 Contingency approach

  A management theory that emphasizes matching a structured or flexible management style to the organizations environment, its technology, the tasks to be performed and the types of employees

 Division of labor

 The division of work so that each person performs a limited number of tasks (specialized tasks); first used early in the Industrial Revolution

 Functions of management

     Basic elements of managements as originally identified by Henri Fayol, consisting of planning, organizing, command, coordination and control

 Hawthorne Studies

  A series of research studies at the Hawthorne plant of Western Electric company that focused a spotlight on the importance of the human factor in productivity

 Human relations approach Approach springing from the findings of the Hawthorne Studies focused on the importance of relationships among people in the workplace
 Human Resources approach


    Approach involving a basic belief that people posses and want to make a greater use of their talents and capabilities and that if allowed to do so, performance and satisfaction will increase

 Integrative approaches


   Recent approaches to management that include systems theory and contingency approaches and emphasize a consideration of a wide range of factors

 Law of the situationMary Parker Follets emphasis on the need to generate a spirit of cooperation between managers and their subordinates with a  focus on authority (based on a person’s knowledge and experience) that seems appropriate to the circumstances.

 Management science (operations research)


  Quantitative or mathematical approaches to managerial problems, especially those requiring specific decisions

 Mechanistic approach

   Highly structures traditional approach, which may be better suited to stable external environments, highly repetitive tasks, and employees with considerable training

 Neoclassical management theoryThinking about organized work activity and how to manage that drew from classical theory in its emphasis on study and analysis of the workplace but expanded to include situational and social considerations (communication and cooperation)
 Open System

    A system in which there is interaction of the elements with the outside environment

 Organic Approach

    A flexible, employees-centered management approach that seems better suited for rapidly changing and complex environments, non-repetitive tasks, and employees with considerable training and competence

 Scientific Management


   Approach developed by Fredrick Taylor focusing on basic principles for improving performance, such as studying jobs by using objective measurements in order to determine the one best way, selecting the best persons for the job, training them in the most efficient methods, and providing sufficient monetary incentive to those performing the work.

 Simulation


  A set of techniques in which various potential combinations of variables can be mathematically manipulated in advance of actual decisions to determine the possible effects of changes in one or more variables

 SystemAn interconnected set of elements that have orderly interactions that form a unitary whole

 Systems TheoryThe processes involved in how “inputs” get transformed by the organization into “outputs”

 ControllingRegulating work of those for whom a manager is responsible

 DirectingThe process of attempting to influence other people to attain an organization’s objectives.

 Management


The process of assembling and using sets of resources in a goal directed manner to accomplish tasks in an organized setting

 Organization


     An interconnected set of individuals and groups who attempt to accomplish common goals through differentiated functions and their coordination

 Organizing


     Systematically integrating resources to accomplish tasks

2.     

  

 Planning Estimating future conditions and circumstances and making decisions and appropriate courses of action
 Behavioral process orientation


   Key distinguishing feature of the OD approach to organizational change that focuses on new forms of behavior and new relationships

 Change agent

  An individual responsible for implementing change efforts; can be either internal or external to the organization

 Focus group


     A small group involved in intense discussions of the positive and negative features of products or services

 Force field analysis     Uses the concept of equilibrium, a condition that occurs, when the forces for change, the “driving forces,” are balanced by forces opposing change, the “restraining forces,” and results in a relatively steady state.
 Intervention


     A set of structured activities or action steps designed to improve an organization

 Leading coalition


    A group of supporters who are favorably inclined toward change and can influence others toward change

 Organizational development

1.     

     Approach to organizational change that has a strong behavioral and people orientation, emphasizing planned strategic, long range efforts focusing on people and their interrelationships in organizations.

 Organizational learning


   Exhibited by an organization that is skilled at creating, acquiring and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights

 Organizational renewal


     A concept of organizational change that proposes a goal of flexibility and capability for continual change

 Process redesign (reengineering)


     Involves a fundamental redesign of business processes to achieve dramatic improvements

 T-group


 

     A group of individuals participating in organizational development sessions away from the workplace; also called a basic skills training group

 Ethical Dilemma

Having to make a choice between two competing but arguable valid options.

 Ethical Lapse

  Decision that is contrary to an individual’s stated beliefs and policies of the company.

 Utilitarian Approach

Focuses on the consequences of an action, Action that results in the greatest good

 Moral Rights Approach

Focuses on examination of the moral standing of actions independent of their consequences. Choose the action that conforms with moral principles and provides positive consequences.

 Universal Approach

Choosing a course of action that you believe can apply to all people under all situations. Choose a course of action that you believe can apply to all people under all situations and that you would also want applied to yourself.

 Justice approach

focuses on how equitably the costs and benefits of actions are distributed.

 Distributive Justice

the equitable distribution of rewards and punishment, based on performance

 Procedural Justice

   ensuring that those affected by managerial decisions consent to the decision making process and that the process is administered impartially.

 Compensatory Justice

If distributive and procedural justice fail, those hurt by the inequitable distribution of rewards are compensated. Affirmative Action

 Moral Intensity

the degree to which people see an issue as an ethical one.

 Magnitude of Consequences

the anticipated level of impact of the outcome of a given action

 Social consensus

The extent to which members of a society agree that an act is either good or bad

 Probability of effect

the moral intensity of an issue rises and falls depending on how likely  people think the consequences are

 Temporal Immediacy A function of the interval between the time the action occurs and the onset of its consequences
 Proximity

the physical, psychological and emotional closeness the decision maker feels to those affected by the decision.

 Concentration of effect

  The extent to which consequences are focused on a few individuals or dispersed across many.

 Efficiency Perspective

The concept that a manager’s responsibility is to maximize profits for the owners of the business.

 Externality

An indirect or unintended consequence imposed on society that may not be understood or anticipated

 Socially responsible

to maximize the return to the shareholders

 Limited Liability

 a privilege granted to corporations by society, not by shareholders.

 

 StakeholdersAn individual or group who has an interest in and is affected by the actions of an organization.
 Defenders

 Fight efforts that they see as resulting in greater restriction and regulation of their ability to maximize profits, seeking legal loopholes and operate at the edge of the law.



 AccommodatorsLess aggressive in fighting restrictions and regulations, but only change when legally compelled to do so. Tends to obey the letter of law.
 Reactors

Makes changes when they feel pressure from constituencies is sufficient such that nonresponsiveness could have a negative economic impact on the firm.

 Anticipators

believe that they are obligated to a variety of stakeholders- customers, employees, shareholders, etc..not to harm them independent of lawas or pressures that restrict or regulate their actions. Avoid Law and avoid harming constituencies.


 Strategic Corporate Social Responsibility Perspectivea three criteria model that can help managers focus on social areas where there is the highest possibility of creating shared value for the business and society. Inside Approach, Outside in approach, Outside out approach.
 Code of ethical conduct

a formal settlement that outlines types of behavior that are and are not acceptable



 Whistle bloweran employee who discloses illegal or unethical conduct on the part of others in the organization
 Foreign Corrupt Practices Act (FCPA)

a law prohibiting employees of U.S. firms from corrupting the actions of foreign officials, politicians, or candidates for office.

 Collectivism

1

     The extent to which identity is a function of the group to which an individual belongs (e.g. families, firm members, community members, etc.) and the extent to which group members are expected to look after each other

2.     


 Cross-border acquisition   Acquisitions of local firms made by foreign firms to enter a new international market
 Cultural context

1.

 The degree to which a situation influences behavior or perception o the appropriateness of behaviors



3.   

 Culture    A learned set of assumptions values and beliefs that members of a group have accepted and that affect on human behavior
 Exporting

   Manufacturing products in a firm’s home country and shipping them to a foreign market

 Gender focus

1.     

    The extent to which people in a country value masculine or feminine traits

2.     


 Global mind set     A set of cognitive attributes that allows an individual (manages) to influence individuals, groups, and organization from diverse sociocultural institutional environments
 Globalization


    The flow of goods, and services, capital (money) and knowledge across country borders

2.   

3.   

 Globally focused organization     An organization that invests the primary authority for major strategic decisions in the home office
 High-context culture

Cultures where people pay close attention to the situation and its various elements

 Individualism


     The extent to which peoples’ identities are self oriented to take care of themselves and their immediate families

2.    

 

3.     


 Institutional environment  The country’s rules, policies, and enforcement processes that influence individuals and organizations behaviors that operate within the country boundaries
 Licensing     Arrangements establishing how to allow a local firm in the new market to manufacture and distribute a firms product
 Low-context culture


     Cultures where contextual variables have much less impact on the determination of appropriate behaviors

2.  


 Power distance

 The extent to which people accept power and authority differences among people

 Region-country focusWhen the primary authority to determine competitive strategy rests with the management of the international subsidiary based in a region of the world or a specific country
 Strategic alliance


    Cooperative arrangements between two firms in which they agree to share resources to accomplish a mutually desirable goal

 Swift trust


     the rapid development of trust in teams with positive and reciprocal communications about the team’s task activities

2.   


 Transnational organization     An organization that strives to be simultaneously centralized and decentralized
 Uncertainty avoidance     When cultures differ in the extent to which they need things to be clear or ambiguous
 Virtual team


     Terms that rely on electronically mediated communication

2.     


 Wholly owned subsidiary     Direct investments establish a business in a foreign market in which the local firm owns and controls 100% of the business
 Bounded rationality (administrative) model

     A model that assumes that people usually settle for acceptable rather than maximum options because the decisions they confront typically demand greater information-processing capabilities than they possess

2.     


 Brainstorming  A process of generating many creative solutions without evaluating merit
 Cross-functional team


    A work group composed of employers from different departments, such as finance, marketing, operations, and human resources to work together on problem solving

 Decision-making


    A process of specifying the nature of a particular problem or opportunity and selecting among available alternatives to solve a problem or capture an opportunity

 Decision Making Process

 Step 1- identify problem/ opportunity

 Step 2- Develop objectives & criteria

  Step 3- Generate alternatives, past and new solutions

  Step 4- Analyze alternatives, (minimally acceptable results, feasibility, best results)

 Step 5- Select Alternative

 Step 6- Implement decision  (source, sequence, resources, delegation of tasks)

 Step 7- Evaluate results

 Delphi’s Technique


  A decision-making technique that never allows decision participant s to meet face-to-face but identities a problem and offers solutions using a questionnaire
 Devil’s advocate       A group member whose role is to challenge the majority position



 Dialectical inquiry A process to improve decision making by assigning a group member (or members) the role of questioning the underlying assumptions associated with the formulation of the problem
 Escalating commitment

2. 

The tendency to exhibit greater levels of commitment to a decision as time passes and investments are made in the decision, even after significant information emerges indicating that the original decision was incorrect

 FormulationA process involving identifying a problem opportunity, acquiring information, developing desired performance expectations, and diagnosing the causes and relationships among factors affecting the problem or opportunity
 Gresham's law of planning

The tendency for managers to let programmed activities overshadow non programmed actvites

 Groupthink A mode of thinking in which pursuit of agreement among members becomes so dominant that it overrides a realistic appraisal of alternative courses of action
 Heuristic

that guides the search for alternatives into areas that have a high probability for yielding success   

 Intuitive decision makingThe primarily subconscious process of identifying a decision and selecting a preferred alternative

2.     


 Multiple advocacyA process to improve decision making by assigning several group members to represent the opinions of various constituencies that might have an interest in the decision
 Nominal group techniqueA process of having group members record their proposed solutions, summarize all proposed solutions and independently rank solutions until a clearly favored solution emerges

    



 Nonprogrammed decisionA decision about a problem that is either poorly defined or novel
 OpportunityA chance to achieve a more desirable state than the current needs

2.     

 PerceptionA way one sees a situation based on experiences, personality, and current needs
 Perceptual distortionHighlighting the positive features of the implicit favorite over the alternative
 Problem A gap between existing and desired performance





 Programmed decision A standard response to a simple or routine problem
 Prospective rationalityA belief that future courses of action are rational and correct
 Rational (classical) modelA seven-step model of decision making that represents the earliest attempt to model decision processes
 Retrospective decision(implicit favorite) modelA decision making model that focuses on how decision makers attempt to rationalize their choices after they are made

2

 

 SatisficingThe  tendency for decision makers to accept the first alternative that meets their minimally acceptable requirements rather than push further for an alternative that produces the best results



2

 Solution A process involving generating alternatives, selecting the preferred solution and implementing the decided course of action
 Standard operation procedure (SOP) Established procedure for action used for programmed decisions that specifies exactly what should be done
 Structured debateA process to improve problem formulation that includes the processes of devil’s advocate, multiple advocacy, and dialectical inquiry  


 

 Subjectively expected utility (SEU) modelA model of decision making that asserts that managers choose the alternative that they subjectively believe maximizes the desired outcome