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Exam 2 Ch 5-8 Key Terms - Flashcards

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Class:MGT 3303 - MGT OF ORGANIZATIO
Subject:Management
University:Texas State University - San Marcos
Term:Fall 2011
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action plan

Course of action needed to achieve a stated goal.

Analyzers Organizations that allow other organizations to take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best
cascading

Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.

Defenders

Experts at producing and selling narrowly defined products or services.

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goal

Also known as objective; a specific commitment to achieve a measurable result within a stated period of time.

management by objectives (MBO)

Four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.

mission An organization’s purpose or reason for being
mission statement

Statement that expresses the purpose of the organization.

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objective Also known as goal; a specific commitment to achieve a measurable result within a stated period of time
operating plan

Typically designed for a 1-year period, this plan defines how a manager will conduct his or her business based on the action plan; the operating plan identifies clear targets such as revenues, cash flow, and market share.

operational goals Goals that are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
operational planning

Determining how to accomplish specific tasks with available resources within the next 1-week to 1-year period; done by first-line managers.

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planning

Setting goals and deciding how to achieve them. Also, coping with uncertainty by formulating future courses of action to achieve specified results.

planning/control cycle A cycle that has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely, (a) by correcting deviations in the plan being carried out, or (b) by improving future plans.

policy

A standing plan that outlines the general response to a designated problem or situation.

procedure

Also known as standard operating procedure; a standing plan that outlines the response to particular problems or circumstances.

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program A single-use plan encompassing a range of projects or activities.
project

A single-use plan of less scope and complexity than a program.

Prospectors

Managers who develop new products or services and seek out new markets, rather than waiting for things to happen.

Reactors

Managers who make adjustments only when finally forced to by environmental pressures.

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rule

A standing plan that designates specific required action.

single-use plan

Plans developed for activities that are not likely to be repeated in the future; such plans can be either programs or projects.

SMART goal A goal that is Specific, Measurable, Attainable, Results oriented, and has Target dates.

standing plan

Plans developed for activities that occur repeatedly over a period of time; such plans consist of policies, procedures, or rules.

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strategic goals

Goals that are set by and for top management and focus on objectives for the organization as a whole.

strategic planning

Determining what an organization’s long-term goals should be for the next 1–10 years with the resources it expects to have available; done by top management.

tactical goals

Goals that are set by and for middle managers and focus on the actions needed to achieve strategic goals.

tactical planning

Determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years; done by middle management.

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vision

A long-term goal describing what an organization wants to become; it is a clear sense of the future and the actions needed to get there.

vision statement

statement about what the organization should become and where it wants to go strategically

BCG matrix

A means of evaluating strategic business units on the basis of their business growth rates and their share of the market.

business plan

Document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success.

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competitive intelligence

Gaining information about competitors’ activities so that one can anticipate their moves and react appropriately.

contingency planning

Also known as scenario planning and scenario analysis; the creation of alternative hypothetical but equally likely future conditions.

cost-focus strategy

One of Porter’s four competitive strategies; to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

cost-leadership strategy

One of Porter’s four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and targeting the wider market.

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defensive strategy

Also called retrenchment strategy; one of three grand strategies, this strategy involves reduction in the organization’s efforts.

differentiation strategy

One of Porter’s four competitive strategies; offer products or services that are of a unique and superior value compared to those of competitors and to target a wide market.

diversification

Strategy by which a company operates several businesses in order to spread the risk.

environmental scanning

Careful monitoring of an organization’s internal and external environments to detect early signs of opportunities and threats that may influence the firm’s plans.

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execution

As proposed by Larry Bossidy and Ram Charan, execution is not simply tactics, it is a central part of any company’s strategy; it consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.

focused-differentiation strategy

One of Porter’s four competitive strategies; to offer products or services that are of unique and superior value compared with those of competitors and to target a narrow market.

forecast

A projection of the future.

grand strategy

Second step of the strategic-management process; it explains how the organization’s mission is to be accomplished. Three grand strategies are growth, stability, and defensive.

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growth strategy

One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.

organizational opportunities

The environmental factors that the organization may exploit for competitive advantage.

organizational strengths

The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

organizational threats

The environmental factors that hinder an organization’s achieving a competitive advantage.

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organizational weaknesses
Porter’s four competitive strategies

 (1) Cost-leadership, (2) differentiation, (3) cost-focus, (4) focused differentiation. The first two strategies focus on wide markets, the last two on narrow markets.

Porter’s model for industry analysis

Model proposed by Michael Porter for determining competitiveness within a particular industry; suggests that business-level strategies originate in five primary competitive forces in a firm’s environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.

related diversification

Strategy by which an organization under one ownership operates separate businesses that are related to one another.

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scenario analysis

The creation of alternative hypothetical but equally likely future conditions.

scenario planning

The creation of alternative hypothetical but equally likely future conditions.

single-product strategy

Strategy by which a company makes and sells only one product within its market.

stability strategy One of three grand strategies, this strategy involves little or no significant change.
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strategic control

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.

strategic management

A five-step process that involves managers from all parts of the organization in the formulation and implementation of strategies and strategic goals: establish the mission and the vision; establish the grand strategy; formulate the strategic plans; carry out the strategic plans; maintain strategic control.

strategic positioning

Strategy that, according to Michael Porter, attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

strategy

A large-scale action plan that sets the direction for an organization.

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strategy formulation

The process of choosing among different strategies and altering them to best fit the organization’s needs.

strategy implementation

The execution of strategic plans.

SWOT analysis

The search for the Strengths, Weaknesses, Opportunities, and Threats that affect an organization.

Synergy

Situation in which the economic value of separate, related businesses under one ownership and management is greater than the businesses are worth separately.

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trend analysis

A hypothetical extension of a past series of events into the future.

unrelated diversification

operating several businesses that are not related to one another under one ownership

nonrational models of decision making

Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions.

opportunities

Situations that present possibilities for exceeding existing goals.

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panic Situation in which a manager reacts frantically to get rid of a problem that he or she cannot deal with realistically.
participative management (PM)

The process of involving employees in (1) setting goals, (2) making decisions, (3) solving problems, and (4) making changes in the organization.

predictive modeling

Data-mining technique used to predict future behavior and anticipate the consequences of change.

problems

Difficulties that inhibit the achievement of goals.

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rational model of decision making

Also called the classical model; the style of decision making that explains how managers should make decisions; it assumes that managers will make logical decisions that will be the optimum in furthering the organization’s best interests.

relaxed avoidance

The situation in which a manager decides to take no action in the belief that there will be no great negative consequences.

relaxed change

The situation in which a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.

representativeness bias

The tendency to generalize from a small sample or a single event.

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risk propensity

Willingness to gamble or to undertake risk for the possibility of gaining an increased payoff.

satisficing model

One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal.

sunk-cost bias

biased way of thinking in which managers add up all the money already spent on a project and conclude it is too costly then abandon it.

anchoring and adjustment bias

The tendency to make decisions based on an initial figure.

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availability bias

Tendency of managers to use information readily available from memory to make judgments; they tend to give more weight to recent events.

bounded rationality

One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints.

brainstorming

Technique used to help groups generate multiple ideas and alternatives for solving problems; individuals in a group meet and review a problem to be solved, then silently generate ideas, which are collected and later analyzed.

confirmation bias

Biased way of thinking in which people seek information to support their point of view and discount data that does not.

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consensus

General agreement; group solidarity.

deciding to decide

A manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps.

decision

A choice made from among available alternatives.

decision making

The process of identifying and choosing alternative courses of action.

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decision-making style

A style that reflects the combination of how an individual perceives and responds to information.

decision tree

Graph of decisions and their possible consequences, used to create a plan to reach a goal.

defensive avoidance

When a manager cannot find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences.

Delphi technique

A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion.

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diagnosis

Analysis of underlying causes.

electronic brainstorming

Technique in which members of a group come together over a computer network to generate ideas and alternatives.

escalation of commitment bias When decision makers increase their commitment to a project despite negative information about it.

ethics officer

A person trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.

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goal displacement

The primary goal is subsumed to a secondary goal.

groupthink

A cohesive group’s blind unwillingness to consider alternatives. This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.

heuristics

Strategies that simplify the process of making decisions.

intuition

Making a choice without the use of conscious thought or logical inference.

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incremental model one type of non-rational decision making; managers take small, short term steps to alleviate a problem
Analytics

term used for sophisticated forms of business data analysis, such as portfolio analysis or time-series forecast.

adaptive perspective

Perspective of organizational culture that assumes that the most effective cultures help organizations anticipate and adapt to environmental change.

adhocracy culture Type of organizational culture that has an external focus and values flexibility
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authority

The right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

birth stage

nonbureaucratic stage, the stage in which the organization is created.

centralized authority

Organizational structure in which important decisions are made by upper managers—power is concentrated at the top.

clan culture

Type of organizational culture that has an internal focus and values flexibility rather than stability and control.

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common purpose

A goal that unifies employees or members and gives everyone an understanding of the organization’s reason for being.

contingency design

The process of fitting the organization to its environment.

coordinated effort

The coordination of individual efforts into a group or organization-wide effort.

customer divisions

Divisional structures in which activities are grouped around common customers or clients.

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decentralized authority

Organizational structure in which important decisions are made by middle-level and supervisory-level managers—power is delegated throughout the organization.

delegation

The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

differentiation

The tendency of the parts of an organization to disperse and fragment.

division of labor

Also known as work specialization; arrangement of having discrete parts of a task done by different people. The work is divided into particular tasks assigned to particular workers.

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divisional structure

The third type of organizational structure, whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions.

enacted values

Values and norms actually exhibited in the organization.

espoused values Explicitly stated values and norms preferred by an organization
fit perspective

Perspective of organizational culture that assumes that an organization’s culture must align, or fit, with its business or strategic context.

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functional structure

The second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups.

geographic divisions

Divisional structures in which activities are grouped around defined regional locations.

hero

A person whose accomplishments embody the values of the organization.

hierarchy culture Type of organizational culture that has an internal focus and values stability and control over flexibility
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hierarchy of authority

Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time.

integration

The tendency of the parts of an organization to draw together to achieve a common purpose.

line managers

Managers who have the authority to make decisions and usually have people reporting to them.

market culture

Type of organizational culture that has a strong external focus and values stability and control.

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matrix structure

Fourth type of organizational structure, which combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal.

maturity stage

A stage when the organization becomes very bureaucratic, large, and mechanistic. Also the third stage in the product life cycle; period in which the product starts to fall out of favor, and sales and profits fall off.

mechanistic organization

Organization in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

midlife stage

A period of growth evolving into stability when the organization becomes bureaucratic.

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modular structure

Seventh type of organizational structure, in which a firm assembles product chunks, or modules, provided by outside contractors.

network structure

Sixth type of organizational structure, whereby a central core is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization.

organic organization

Organization in which authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

organization

A group of people who work together to achieve some specific purpose. A system of consciously coordinated activities or forces of two or more people.

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organization chart

Box-and-lines illustration of the formal relationships of positions of authority and the organization’s official positions or work specializations.

organizational culture

Sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members.

organizational life cycle

Four-stage cycle with a natural sequence of stages: birth, youth, midlife, and maturity.

organizational structure

A formal system of task and reporting relationships that coordinate and motivates an organization’s members so that they can work together to achieve the organization’s goals.

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product divisions

Divisional structures in which activities are grouped around similar products or services.

responsibility

The obligation one has to perform the assigned tasks.

rites and rituals

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in an organization’s life.

simple structure

The first type of organizational structure, whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization.

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span of control (management)

The number of people reporting directly to a given manager.

staff personnel
story

A narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value.

strength perspective

Perspective of organizational culture that assumes that the strength of a corporate culture is related to a firm’s long-term financial performance.

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symbol

An object, act, quality, or event that conveys meaning to others.

team-based structure

Fifth type of organizational structure, whereby teams or workgroups, either temporary or permanent, are used to improve horizontal relations and solve problems throughout the organization.

unity of command

Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands.

youth stage

the stage in which the organization is in a pre-bureaucratic phase, one of growth and expansion 

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accountability

describes expectation that managers must report and justify work results to the managers above them

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 action plan

Course of action needed to achieve a stated goal.

 AnalyzersOrganizations that allow other organizations to take the risks of product development and marketing and then imitate (or perhaps slightly improve on) what seems to work best
 cascading

Objectives are structured in a unified hierarchy, becoming more specific at lower levels of the organization.

 Defenders

Experts at producing and selling narrowly defined products or services.

 goal

Also known as objective; a specific commitment to achieve a measurable result within a stated period of time.

 management by objectives (MBO)

Four-step process in which (1) managers and employees jointly set objectives for the employee, (2) managers develop action plans, (3) managers and employees periodically review the employee’s performance, and (4) the manager makes a performance appraisal and rewards the employee according to results.

 missionAn organization’s purpose or reason for being
 mission statement

Statement that expresses the purpose of the organization.

 objectiveAlso known as goal; a specific commitment to achieve a measurable result within a stated period of time
 operating plan

Typically designed for a 1-year period, this plan defines how a manager will conduct his or her business based on the action plan; the operating plan identifies clear targets such as revenues, cash flow, and market share.

 operational goalsGoals that are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals.
 operational planning

Determining how to accomplish specific tasks with available resources within the next 1-week to 1-year period; done by first-line managers.

 planning

Setting goals and deciding how to achieve them. Also, coping with uncertainty by formulating future courses of action to achieve specified results.

 planning/control cycleA cycle that has two planning steps (1 and 2) and two control steps (3 and 4), as follows: (1) Make the plan. (2) Carry out the plan. (3) Control the direction by comparing results with the plan. (4) Control the direction by taking corrective action in two ways—namely, (a) by correcting deviations in the plan being carried out, or (b) by improving future plans.

 policy

A standing plan that outlines the general response to a designated problem or situation.

 procedure

Also known as standard operating procedure; a standing plan that outlines the response to particular problems or circumstances.

 programA single-use plan encompassing a range of projects or activities.
 project

A single-use plan of less scope and complexity than a program.

 Prospectors

Managers who develop new products or services and seek out new markets, rather than waiting for things to happen.

 Reactors

Managers who make adjustments only when finally forced to by environmental pressures.

 rule

A standing plan that designates specific required action.

 single-use plan

Plans developed for activities that are not likely to be repeated in the future; such plans can be either programs or projects.

 SMART goalA goal that is Specific, Measurable, Attainable, Results oriented, and has Target dates.

 standing plan

Plans developed for activities that occur repeatedly over a period of time; such plans consist of policies, procedures, or rules.

 strategic goals

Goals that are set by and for top management and focus on objectives for the organization as a whole.

 strategic planning

Determining what an organization’s long-term goals should be for the next 1–10 years with the resources it expects to have available; done by top management.

 tactical goals

Goals that are set by and for middle managers and focus on the actions needed to achieve strategic goals.

 tactical planning

Determining what contributions departments or similar work units can make with their given resources during the next 6 months to 2 years; done by middle management.

 vision

A long-term goal describing what an organization wants to become; it is a clear sense of the future and the actions needed to get there.

 vision statement

statement about what the organization should become and where it wants to go strategically

 BCG matrix

A means of evaluating strategic business units on the basis of their business growth rates and their share of the market.

 business plan

Document that outlines a proposed firm’s goals, the strategy for achieving them, and the standards for measuring success.

 competitive intelligence

Gaining information about competitors’ activities so that one can anticipate their moves and react appropriately.

 contingency planning

Also known as scenario planning and scenario analysis; the creation of alternative hypothetical but equally likely future conditions.

 cost-focus strategy

One of Porter’s four competitive strategies; to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market.

 cost-leadership strategy

One of Porter’s four competitive strategies; keeping the costs, and hence prices, of a product or service below those of competitors and targeting the wider market.

 defensive strategy

Also called retrenchment strategy; one of three grand strategies, this strategy involves reduction in the organization’s efforts.

 differentiation strategy

One of Porter’s four competitive strategies; offer products or services that are of a unique and superior value compared to those of competitors and to target a wide market.

 diversification

Strategy by which a company operates several businesses in order to spread the risk.

 environmental scanning

Careful monitoring of an organization’s internal and external environments to detect early signs of opportunities and threats that may influence the firm’s plans.

 execution

As proposed by Larry Bossidy and Ram Charan, execution is not simply tactics, it is a central part of any company’s strategy; it consists of using questioning, analysis, and follow-through in order to mesh strategy with reality, align people with goals, and achieve results promised.

 focused-differentiation strategy

One of Porter’s four competitive strategies; to offer products or services that are of unique and superior value compared with those of competitors and to target a narrow market.

 forecast

A projection of the future.

 grand strategy

Second step of the strategic-management process; it explains how the organization’s mission is to be accomplished. Three grand strategies are growth, stability, and defensive.

 growth strategy

One of three grand strategies, this strategy involves expansion—as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served.

 organizational opportunities

The environmental factors that the organization may exploit for competitive advantage.

 organizational strengths

The skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its mission.

 organizational threats

The environmental factors that hinder an organization’s achieving a competitive advantage.

 organizational weaknesses
 Porter’s four competitive strategies

 (1) Cost-leadership, (2) differentiation, (3) cost-focus, (4) focused differentiation. The first two strategies focus on wide markets, the last two on narrow markets.

 Porter’s model for industry analysis

Model proposed by Michael Porter for determining competitiveness within a particular industry; suggests that business-level strategies originate in five primary competitive forces in a firm’s environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors.

 related diversification

Strategy by which an organization under one ownership operates separate businesses that are related to one another.

 scenario analysis

The creation of alternative hypothetical but equally likely future conditions.

 scenario planning

The creation of alternative hypothetical but equally likely future conditions.

 single-product strategy

Strategy by which a company makes and sells only one product within its market.

 stability strategyOne of three grand strategies, this strategy involves little or no significant change.
 strategic control

Monitoring performance to ensure that strategic plans are being implemented and taking corrective action as needed.

 strategic management

A five-step process that involves managers from all parts of the organization in the formulation and implementation of strategies and strategic goals: establish the mission and the vision; establish the grand strategy; formulate the strategic plans; carry out the strategic plans; maintain strategic control.

 strategic positioning

Strategy that, according to Michael Porter, attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company.

 strategy

A large-scale action plan that sets the direction for an organization.

 strategy formulation

The process of choosing among different strategies and altering them to best fit the organization’s needs.

 strategy implementation

The execution of strategic plans.

 SWOT analysis

The search for the Strengths, Weaknesses, Opportunities, and Threats that affect an organization.

 Synergy

Situation in which the economic value of separate, related businesses under one ownership and management is greater than the businesses are worth separately.

 trend analysis

A hypothetical extension of a past series of events into the future.

 unrelated diversification

operating several businesses that are not related to one another under one ownership

 nonrational models of decision making

Models of decision-making style that explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimum decisions.

 opportunities

Situations that present possibilities for exceeding existing goals.

 panicSituation in which a manager reacts frantically to get rid of a problem that he or she cannot deal with realistically.
 participative management (PM)

The process of involving employees in (1) setting goals, (2) making decisions, (3) solving problems, and (4) making changes in the organization.

 predictive modeling

Data-mining technique used to predict future behavior and anticipate the consequences of change.

 problems

Difficulties that inhibit the achievement of goals.

 rational model of decision making

Also called the classical model; the style of decision making that explains how managers should make decisions; it assumes that managers will make logical decisions that will be the optimum in furthering the organization’s best interests.

 relaxed avoidance

The situation in which a manager decides to take no action in the belief that there will be no great negative consequences.

 relaxed change

The situation in which a manager realizes that complete inaction will have negative consequences but opts for the first available alternative that involves low risk.

 representativeness bias

The tendency to generalize from a small sample or a single event.

 risk propensity

Willingness to gamble or to undertake risk for the possibility of gaining an increased payoff.

 satisficing model

One type of nonrational decision-making model; managers seek alternatives until they find one that is satisfactory, not optimal.

 sunk-cost bias

biased way of thinking in which managers add up all the money already spent on a project and conclude it is too costly then abandon it.

 anchoring and adjustment bias

The tendency to make decisions based on an initial figure.

 availability bias

Tendency of managers to use information readily available from memory to make judgments; they tend to give more weight to recent events.

 bounded rationality

One type of nonrational decision making; the ability of decision makers to be rational is limited by numerous constraints.

 brainstorming

Technique used to help groups generate multiple ideas and alternatives for solving problems; individuals in a group meet and review a problem to be solved, then silently generate ideas, which are collected and later analyzed.

 confirmation bias

Biased way of thinking in which people seek information to support their point of view and discount data that does not.

 consensus

General agreement; group solidarity.

 deciding to decide

A manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps.

 decision

A choice made from among available alternatives.

 decision making

The process of identifying and choosing alternative courses of action.

 decision-making style

A style that reflects the combination of how an individual perceives and responds to information.

 decision tree

Graph of decisions and their possible consequences, used to create a plan to reach a goal.

 defensive avoidance

When a manager cannot find a good solution and follows by (a) procrastinating, (b) passing the buck, or (c) denying the risk of any negative consequences.

 Delphi technique

A group process that uses physically dispersed experts who fill out questionnaires to anonymously generate ideas; the judgments are combined and in effect averaged to achieve a consensus of expert opinion.

 diagnosis

Analysis of underlying causes.

 electronic brainstorming

Technique in which members of a group come together over a computer network to generate ideas and alternatives.

 escalation of commitment biasWhen decision makers increase their commitment to a project despite negative information about it.

 ethics officer

A person trained about matters of ethics in the workplace, particularly about resolving ethical dilemmas.

 goal displacement

The primary goal is subsumed to a secondary goal.

 groupthink

A cohesive group’s blind unwillingness to consider alternatives. This occurs when group members strive for agreement among themselves for the sake of unanimity and avoid accurately assessing the decision situation.

 heuristics

Strategies that simplify the process of making decisions.

 intuition

Making a choice without the use of conscious thought or logical inference.

 incremental modelone type of non-rational decision making; managers take small, short term steps to alleviate a problem
 Analytics

term used for sophisticated forms of business data analysis, such as portfolio analysis or time-series forecast.

 adaptive perspective

Perspective of organizational culture that assumes that the most effective cultures help organizations anticipate and adapt to environmental change.

 adhocracy cultureType of organizational culture that has an external focus and values flexibility
 authority

The right to perform or command; also, the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

 birth stage

nonbureaucratic stage, the stage in which the organization is created.

 centralized authority

Organizational structure in which important decisions are made by upper managers—power is concentrated at the top.

 clan culture

Type of organizational culture that has an internal focus and values flexibility rather than stability and control.

 common purpose

A goal that unifies employees or members and gives everyone an understanding of the organization’s reason for being.

 contingency design

The process of fitting the organization to its environment.

 coordinated effort

The coordination of individual efforts into a group or organization-wide effort.

 customer divisions

Divisional structures in which activities are grouped around common customers or clients.

 decentralized authority

Organizational structure in which important decisions are made by middle-level and supervisory-level managers—power is delegated throughout the organization.

 delegation

The process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

 differentiation

The tendency of the parts of an organization to disperse and fragment.

 division of labor

Also known as work specialization; arrangement of having discrete parts of a task done by different people. The work is divided into particular tasks assigned to particular workers.

 divisional structure

The third type of organizational structure, whereby people with diverse occupational specialties are put together in formal groups according to products and/or services, customers and/or clients, or geographic regions.

 enacted values

Values and norms actually exhibited in the organization.

 espoused valuesExplicitly stated values and norms preferred by an organization
 fit perspective

Perspective of organizational culture that assumes that an organization’s culture must align, or fit, with its business or strategic context.

 functional structure

The second type of organizational structure, whereby people with similar occupational specialties are put together in formal groups.

 geographic divisions

Divisional structures in which activities are grouped around defined regional locations.

 hero

A person whose accomplishments embody the values of the organization.

 hierarchy cultureType of organizational culture that has an internal focus and values stability and control over flexibility
 hierarchy of authority

Also known as chain of command; a control mechanism for making sure the right people do the right things at the right time.

 integration

The tendency of the parts of an organization to draw together to achieve a common purpose.

 line managers

Managers who have the authority to make decisions and usually have people reporting to them.

 market culture

Type of organizational culture that has a strong external focus and values stability and control.

 matrix structure

Fourth type of organizational structure, which combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal.

 maturity stage

A stage when the organization becomes very bureaucratic, large, and mechanistic. Also the third stage in the product life cycle; period in which the product starts to fall out of favor, and sales and profits fall off.

 mechanistic organization

Organization in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

 midlife stage

A period of growth evolving into stability when the organization becomes bureaucratic.

 modular structure

Seventh type of organizational structure, in which a firm assembles product chunks, or modules, provided by outside contractors.

 network structure

Sixth type of organizational structure, whereby a central core is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization.

 organic organization

Organization in which authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

 organization

A group of people who work together to achieve some specific purpose. A system of consciously coordinated activities or forces of two or more people.

 organization chart

Box-and-lines illustration of the formal relationships of positions of authority and the organization’s official positions or work specializations.

 organizational culture

Sometimes called corporate culture; system of shared beliefs and values that develops within an organization and guides the behavior of its members.

 organizational life cycle

Four-stage cycle with a natural sequence of stages: birth, youth, midlife, and maturity.

 organizational structure

A formal system of task and reporting relationships that coordinate and motivates an organization’s members so that they can work together to achieve the organization’s goals.

 product divisions

Divisional structures in which activities are grouped around similar products or services.

 responsibility

The obligation one has to perform the assigned tasks.

 rites and rituals

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in an organization’s life.

 simple structure

The first type of organizational structure, whereby an organization has authority centralized in a single person, as well as a flat hierarchy, few rules, and low work specialization.

 span of control (management)

The number of people reporting directly to a given manager.

 staff personnel 
 story

A narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value.

 strength perspective

Perspective of organizational culture that assumes that the strength of a corporate culture is related to a firm’s long-term financial performance.

 symbol

An object, act, quality, or event that conveys meaning to others.

 team-based structure

Fifth type of organizational structure, whereby teams or workgroups, either temporary or permanent, are used to improve horizontal relations and solve problems throughout the organization.

 unity of command

Principle that stresses an employee should report to no more than one manager in order to avoid conflicting priorities and demands.

 youth stage

the stage in which the organization is in a pre-bureaucratic phase, one of growth and expansion 

 accountability

describes expectation that managers must report and justify work results to the managers above them

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