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CLEP Principles of Management
Study Guide for CLEP exam
93
Management
Not Applicable
09/20/2005

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Term
Management
Definition
The process of achieving organizational objectives through the use of people and other resources (capital, land and equipment)
Term
The Father of Scientific Management
Definition
Frederick Taylor (1856-1915) Published "Principles of Scientific Management"
Term
The Hawthorne Experiments (Elton Mayo)
Definition
AT&T's Western Electric Hawthorne Plant was chosen as the lab to test if better lighting (provided by GE light bulbs) would increase productivity.
Term
Decision-making process steps
Definition
  1. Define the problem
  2. Identify limiting factors
  3. Develop potential alternatives
  4. Implement the decision
  5. Establish an evaluation and control system
Term
Intrinsic Reward (Reinforcement)
Definition
Motivating events which occur as a natural part of the learning experience

Example: Personal Development as a reward for the experience of doing some work
Term
Delphi Technique
Definition
A technique in which the members of a group are intentionally separated and given the same problem. They return their solutions to the leader, the solutions are pooled, and the group members rate the ideas.
Term
Operational Goal
Definition
A specific goal with quantifiable results.

Example: "produce 10,000 units each day"
Term
Payback analysis
Definition
Tool for determining when an object (a business expense) will pay for itself
Term
Henry Fayol (1841-1925)
Definition
Another founding member of the classical management school, described five functions of management as:
1) to forecast and plan
2) to organize
3) to command
4) to coordinate
5) to control
Also created the 14 Principles of Management (Organization)
Term
Max Weber (1864-1920)
Definition
Described the ideal character of bureaucracy -- adding a structural component to the classical management school.
According to Weber, bureaucratic organizations were defined by such features as hierarchy of control, specialization of function, centralization of information and control, and formal rules, policies and procedures.
Term
Types of Authority
Definition
  • Line Authority
  • Staff Authority
  • Team Authority
Term
"14 Principles of Management" (of Organization
Definition
Henry Fayol
  1. Specialization of labor
  2. Authority
  3. Discipline
  4. Unity of command
  5. Unity of direction
  6. Subordination of Individual Interests
  7. Remuneration
  8. Centralization
  9. Scalar Chain (line of authority)
  10. Order
  11. Equity
  12. Personnel Tenure
  13. Initiative
  14. Esprit de corps
Term
Product Development
Definition
  • Creation of new products
  • Improvement of existing products
  • Alteration of old products
Term
Negotiation
Definition
When two parties agree to work in a cooperative manner to resolve a labor dispute
Term
Informal Organization
Definition
Emphasizes personal relationships
Term
Organic Structure (vs. Mechanistic Structure) in Organizational Theory
Definition
Best for companies that make individual, one-of-a-kind products
Term
Mechanistic Structure (vs. Organic Structure) in Organizational Theory
Definition
  • Individual specialization
  • Simple integrating mechanisms
  • Centralization
  • Standardization
  • Much written communication
  • Informal status in org based on size of empire
  • Organization is a network of positions,corresponding to tasks.
Typically each person corresponds to one task
Term
Frederick Herzberg
Definition
contributed to human relations and motivation two theories of motivation as follows:
  • Hygiene Theory
  • Motivation
Term
Frederick Herzberg "Hygiene Theory"
Definition
The hygiene factors include
  • the company,
  • its policies and its administration,
  • the kind of supervision which people receive while on the job,
  • working conditions
  • interpersonal relations,
  • salary,
  • status, and
  • security.
Term
Frederick Herzberg "Motivation"
Definition
The second part of Herzbergs' motivation theory involves what people actually do on the job. The motivators are
  • achievement,
  • recognition,
  • growth / advancement and
  • interest in the job.
These factors result from internal generators in employees, yielding motivation rather than movement.
Term
Abraham Maslow's Hierarchy of Needs motivational model
Definition
  • Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc.
  • Safety needs - protection from elements, security, order, law, limits, stability, etc.
  • Belongingness and Love needs - work group, family, affection, relationships, etc.
  • Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc.
  • Self-Actualization needs - realising personal potential, self-fulfillment, seeking personal growth and peak experiences.
Term
Organization's Grapevine
Definition
An informal and an integral part of a company's communication process, where person-to-person communication distributes information.
Term
A company's "Balance Sheet"
Definition
A quantitative summary of a company's financial condition at a specific point in time, including assets, liabilities and net worth.
Term
W. Edwards Deming
Definition
Creator of the "Fourteen Points" system for achieving Total Quality Management (TQM) [image]
Term
Leadership
Definition
The ability to garner the respect and cooperation of employees to achieve an organization's goals
Term
Referent Power
Definition
Is invested by employees in a leader whom they admire and wish to emulate

The leader or manager with referent power is the one that others refer to owing to goodwill and mutual respect. It comes from a successful track record over a period of time involving common interests between individuals.
Term
Initiative Managers
Definition
Initiative Managers possess the leadership traits of being ambitious and perseverant self-starters
Term
Supervisor
Definition
The first management position to which most employees will be promoted is 'Supervisor'
Term
Henry Mintzberg
Definition
Three managerial roles:
  • Informational
  • Interpersonal
  • Decisional
[image]
Term
Synergy
Definition
The ability of a system to total more than the sum of its parts
Term
Standards
Definition
Organizations implement "Standards" so that employees will maintain a certain level of quality in their work
Term
When organizations mandate that managers adhere to company policy when making decisions
Definition
The result is that decisions are more consistent from manager to manager
Term
ISO 9000 Certification
Definition
Companies that wish to compete as world-class organizations should acquire
an ISO 9000 Certification as demonstration of their maintenance of a high level of quality
Term
Reengineering
Definition
In a dynamic, fast-paced environment, the most efficient way of bringing about improvement in quality is via "Reengineering"
Term
An effective goal
Definition
An "Effective Goal" should not be difficult to achieve
Term
Responsibility
Definition
The obligation that an employee assumes when accepting an assigned task is called Responsibility
Term
A Team
Definition
A group of people who work together cooperatively in an effort to achieve a common organizational objective is known as a Team
Term
A Functional Team
Definition
A functional team is composed of employees from a number of hierarchical levels.

Functional teams also are more productive because they don't overlap areas of responsibility.
Term
Job Description
Definition
A written explanation of the tasks that constitute a job and the way in which these tasks should be performed
Term
Mary Parker Follett
Definition
Emphasized:
  • organizations establishing common goals for employees
  • employee participation in decision making
  • the importance of people over techniques
  • the need for ethics and leadership
[image]
Term
Smoothing (as a strategy for managing conflict)
Definition
Involves playing down differences among parties
Term
Frederick Taylor
Definition
[image] Frederick Taylor (1856-1915) Published "Principles of Scientific Management" which became "Taylorism"
  • Develop a "science" for every job, including rules motion, standardized work implements, and proper working conditions.
  • Carefully select workers with the right abilities for the job
  • Carefully train these workers to do the job, and give them proper incentives to cooperate with the job science
  • Support these workers by planning their work and by smoothing the way as they go about their jobs.
Link
Term
Email in the workplace
Definition
Business e-mails should be concise.
Term
Blake - Mouton Grid
Definition
The relative emphasis that a manager gives to each of two concerns: getting the work done and the people involved determines the productivity of working relationships.
Link
Term
Organizational Development
Definition
Is a plan to make major changes to the processes and culture of an entire

organization
Term
Larry Greiner's organizational development theory
Definition
Stages of growth:
  • Creativity
  • Direction
  • Delegation
  • Control
Term
Coercive Power
Definition
Need definition... send to mail@valarezo.com
Term
Critical Path
Definition
According to the Program Evaluation and Review Technique (PERT) process, the Critical Path is the set of dependent tasks that together take the longest time to complete
Term
Bonus
Definition
If an employee receives additional financial compensation beyond a salary
Term
Staffing
Definition
Staffing involves the recruiting, selection, training, appraising, development and compensation of employees.
Term
Company policy
Definition
Company policy is the set of rules and regulations to which employees must adhere when making decisions and performing other job-related activities
Term
National Labor Relations Act
Definition
According to the National Labor Relations Act, it is permissible for a union to bargain collectively for workers through representatives of their own choosing
Term
Behavioral management theory
Definition
The behavioral school of management focuses on the human-based elements of work, believing that increased understanding of such behaviors as group interaction, motivation and conflict resolution will lead to increased productivity.
Term
Customer-focused quality school of management
Definition
The customer-focused quality school of management strives to continuously improve performance to deliver high quality goods or services to the marketplace
Term
Boundary spanning
Definition
Boundary spanning is a means by which managers can monitor the internal and external environments affecting the organization. It is an information-gathering process focused on developments that could affect the organization
Term
Embargo
Definition
An embargo, or blockage, is a situation where trade to a particular region or country is prohibited
Term
Team leaders' tools for measuring the effectiveness of the team
Definition
Personal Outputs - Such as team member commitment

Performance Outputs - Such as service contracts sold, overtime hours invested, products designed and advertisements generated
Term
Groupthink
Definition
Groupthink is the phenomenon of group members going along with the opinion of the group.

When groupthink occurs, it is likely that not all of the best possible options are being brought to the table.
Term
Douglas McGregor
Definition
Douglas McGregor, a behavioral management theorist, created the concept of the "Theory X" manager and "Theory Y" manager. According to McGregor, the Theory X manager sees employees as being essentially irresponsible, untrustworthy and lazy, whereas the Theory Y manager sees employees as being responsible, trustworthy and motivated.
Term
Isabel Myers and Katherine Briggs
Definition
Isabel Myers and Katherine Briggs developed a model regarding the differences in the way that people make decisions. Isabel Myers and her mother, Katharine Briggs, developed the Myers-Briggs Type Indicator (MBTI) based on psychologist Carl Jung's studies on psychological type.
Term
Unity of command
Definition
The unity of command principle states that each employee must be accountable to one and only one supervisor
Term
Job Enrichment
Definition
Redesigning a job so that the position includes a greater variety of tasks, and is invested with greater responsibility and authority is known as job enrichment.
Term
Empowerment
Definition
Empowerment gives employees autonomy and authority to accomplish certain tasks. When employees become empowered, they require less monitoring as they have more license to make decisions on their own
Term
Career Development
Definition
A program that coordinates an organization's employment needs with its employees' career plans is known as career development
Term
Global Strategic Partnership
Definition
A global strategic partnership is a multinational approach in which two partnered firms make a long-term commitment to come up with major products expected to dominate international markets. A global strategic partnership only utilizes one product marketing strategy for all markets
Term
Operational Plan
Definition
Operational plans directly support the tactical plans designed by middle-level managers.
First-level managers, such as team leaders and supervisors, enact operational plans as a means by which to achieve their job responsibilities.
Term
Cost Leadership Strategy
Definition
A cost leadership strategy strives to keep operating costs low by being efficient and maintaining tight controls. A company utilizing such a strategy endeavors to manufacture a product that is already on the market more cost effectively.
Term
Twinning
Definition
Twinning is another name for job sharing, a situation in which two or more employees split a single job.
Term
Manager's Span of Control
Definition
A manager's span of control refers specifically to the number of employees who report directly to the manager.
Term
Creativity (as a phase of organizational growth according to Larry Greiner)
Definition
The creativity phase is dominated by an organization's founders and their focus on creating a product and a market for that product.

As the organization grows, the founders start to get overburdened with management responsibilities and begin to have leadership conflicts with employees.
Term
Cliques
Definition
Cliques are exclusive groups of individuals that naturally form in an organization; they are part of the informal organization.
Term
Refreezing
Definition
The final stage in an organization's change process that involves reinforcement of new behaviors is known as refreezing.

The processes that precede it are the unfreezing and changing phases.
Term
Unfreezing
Definition
Unfreezing is the stage in an organization's change process that involves an awareness of the need for a change and the obstacles that will be involved with it.
Term
Force-field analysis
Definition
Force-field analysis is a technique that implements change by isolating those forces that drive the change and those that resist it. It sees the change process as that which effectively overcomes an organization's existing condition known as the status quo
Term
Coercive power
Definition
Coercive power stems from the authority to punish in ways such as demoting or firing employees.
Term
Concurrent control
Definition
Concurrent controls monitor performances while they are occurring to ensure that they are meeting standards.
Term
Mediation (as a form of conflict resolution)
Definition
A mediation is characterized by a third party being invited to facilitate a resolution of a dispute.

When that third party is actually empowered to decide how the dispute will be resolved, it is called arbitration.
Term
Liquidity ratio
Definition
A liquidity ratio demonstrates a company's ability to generate cash.
Term
Activity ratio
Definition
An activity ratio measures how efficiently a company operates.
Term
Profitability ratio
Definition
A profitability ratio demonstrates a company's ability to generate profits.
Term
Debt ratio
Definition
A debt ratio measures a company's ability to pay its debts
Term
Marketing ratio
Definition
A marketing ratio measures market shares, sales quotas and profitability.
Term
People-centered changes
Definition
People-centered changes involve adjustments to employee attitudes and behaviors and improvements to skill levels or performance.

Such changes usually call for motivational leadership, solid communication, group encounters and professional development.
Term
MIS
Definition
Management Information Systems

Management information systems (MIS) collect, organize and distribute data in a way that the information produced is useful and relevant to a manager.
Term
Entropy
Definition
Entropy is a system's tendency to go toward inefficiency if left to its own devices
Term
An Open System (as relates to change)
Definition
An organization that both affects and is affected by constant change on a regular basis can be described as an open system. An open system interacts with its environment and receives feedback from it, whereas a closed system does not.
Term
Resister (in regards to change)
Definition
A resister is a force of change directed toward inhibiting the solving of an organization's problem.
Term
Impoverished Leadership Style (from the Blake-Mouton managerial grid model)
Definition
The impoverished leadership style is characterized by low-level concern with both people and production. Its primary aim is to create as few problems for managers as possible.
Term
Authoritarian Leadership (from the Blake-Mouton managerial grid model)
Definition
The authoritarian leadership style is known for low-level concern with people and high-level concern with production
Term
'Classifying' error of perception
Definition
Classifying is assuming something about someone because he or she is a member of a particular group.
Term
Pygmalion effect
Definition
The Pygmalion effect is the notion of the self-fulfilling prophecy, whereby individuals will act accordingly with what another's expectations of them are.
Term
Feedforward
Definition
Feedforward controls are preliminary controls that aim to prevent problems with below-standard performance before they happen.
Term
Job enlargement
Definition
Job enlargement is the redesigning of a job such that the position includes a greater variety of tasks but no additional responsibilities.
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