Principles of Management
by Mason Carpenter, Talya Bauer, Berrin Erdogan - Adapted by: Stephen H. Courtright
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Chapter 1: Introduction to Principles of Management
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Chapter 1: Introduction to Principles of Management
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Chapter 1: Introduction to Principles of Management
- management
- The art of getting things done through the efforts of other people.
- principles of management
- The means by which you actually manage, that is, get things done through others.
- empowerment
- The process of enabling or authorizing an individual to think, behave, take action, and control work and decision making in autonomous ways.
- environmental scanning
- The act of analyzing the critical external contingencies facing an organization in terms of economic conditions, competitors, and customers.
- strategic planning
- The process of analyzing competitive opportunities and threats, as well as the strengths and weaknesses of the organization, and then determining how to position the organization to compete effectively in its environment.
- tactical planning
- Intermediate-range planning that is designed to develop relatively concrete and specific means to implement the strategic plan.
- operational planning
- Assumes the existence of goals and objectives and specifies ways to achieve them.
- organizational design
- The matching of organizational form, such as structure, reporting relationships, and information technology, with the organization’s strategy.
- job design
- The process of putting together various elements to form a job, bearing in mind organizational and individual worker requirements.
- job enrichment
- A job redesign technique that allows workers more control over how they perform their own tasks.
- teamwork
- Cooperative effort by the members of a group or team to achieve a common goal.
Chapter 2: Developing Mission, Vision, and Values
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Chapter 2: Developing Mission, Vision, and Values
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Chapter 2: Developing Mission, Vision, and Values
- mission statement
- A statement of purpose, describing who the company is and what it does.
- values
- Shared principles, standards, and goals.
- vision statement
- A future-oriented declaration of the organization’s purpose and aspirations.
- values statement
- A written statement that reaffirms or states outright the organization’s values that might not be evident in the mission or vision statements.
- BHAG
- A big, hairy, audacious goal.
- BHAG,
- A big, hairy, audacious goal.
Chapter 3: Strategizing
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Chapter 3: Strategizing
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Chapter 3: Strategizing
- strategic management
- What an organization does to achieve its mission and vision.
- strategic management process
- A comprehensive and ongoing management process aimed at formulating and implementing effective strategies; it is a way of approaching business opportunities and challenges such that the firm achieves its vision and mission.
- strategy formulation
- Synonymous with business planning and strategic planning. The set of processes involved in creating or determining the strategies of the organization; it focuses on the content of strategies.
- strategy implementation
- The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved.
- corporate strategy
- The set of strategic alternatives that an organization chooses from as it manages its operations simultaneously across several industries and several markets.
- synergy
- The interaction of two or more activities, creating a combined effect greater than the sum of their individual efforts.
- diversification
- The number of different businesses that an organization is engaged in and the extent to which these businesses are related to one another.
- business strategy
- The set of strategic alternatives that an organization chooses from as it conducts business in a particular industry or market.
- SWOT analysis
- An assessment of strengths, weaknesses, opportunities, and threats.
- sustainable competitive advantage
- A competitive advantage that will exist after all attempts at strategic imitation have ceased.
- strategic focus
- When an organization is clear about its mission and vision and has a coherent, well-articulated strategy for achieving those.
- overall cost-leadership strategy
- A strategy in which an organization attempts to gain a competitive advantage by reducing its costs below the costs of competing firms.
- differentiation
- The strategy where competitive advantage is based on superior products or service.
- differentiation strategy
- A strategy in which an organization seeks to distinguish itself from competitors through the perceived quality of its products or services.
- focus strategy
- A strategy in which an organization concentrates on a specific regional market, product line, or group of buyers in combination with its pursuit of either an overall cost leadership or differentiation strategy.
- operational excellence strategy
- Where the strategy emphasizes superb operations and execution.
- product leadership strategy
- Where the strategy emphasizes innovation and brand-based marketing.
- customer intimacy strategy
- Where the strategy emphasizes customer attention and customer service.
- PESTEL
- Stands for the political, economic, social, technological, environmental, and legal dimensions of an organization’s external environment.
- industry
- A group of firms producing products that are close substitutes.
- industry microenvironment
- Consists of stakeholder groups that a firm has regular dealings with.
Chapter 4: Goals and Objectives
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Chapter 4: Goals and Objectives
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Chapter 4: Goals and Objectives
- goals
- Outcome statements that define what an organization is trying to accomplish, both programmatically and organizationally.
- objectives
- Very precise, time-based, and measurable actions that support the completion of a goal.
- measures
- The actual metrics used to gauge performance on objectives.
Chapter 5: Decision Making
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Chapter 5: Decision Making
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Chapter 5: Decision Making
- decision making
- Making choices among alternative courses of action, including inaction.
- programmed decisions
- Decisions that occur frequently enough that we develop an automated response to them.
- decision rules
- Automated responses used to make programmed decisions.
- nonprogrammed decisions
- Unique, nonroutine, and important decisions that require conscious thinking, information gathering, and careful consideration of alternatives.
- rational decision-making model
- A decision making model which describes the series of steps that decision makers should consider if their goal is to maximize their outcome.
- analysis paralysis
- A decision-making process where more and more time is spent on gathering information and thinking about it but no decisions actually get made.
- bounded rationality model
- A model that recognizes the limitations of decision-making processes. According to this model, individuals knowingly limit their options to a manageable set and choose the best alternative without conducting an exhaustive search for alternatives.
- satisficing
- Accepting the first alternative that meets minimum criteria.
- intuitive decision-making model
- Arriving at decisions without conscious reasoning. The model argues that in a given situation, experts making decisions scan the environment for cues to recognize patterns.
- creativity
- The generation of new ideas.
- problem identification
- The step in which the need for problem solving becomes apparent.
- immersion
- The step where the decision maker thinks about the problem consciously and gathers information.
- incubation
- The step when the decision maker sets the problem aside and does not think about it for a while.
- illumination
- The insight moment, when the solution to the problem becomes apparent.
- verification and application
- The stage when the decision maker consciously verifies the feasibility of the solution and implements the decision.
- fluency
- The number of ideas a person is able to generate.
- flexibility
- How different the ideas are from one another. If decision makers are able to generate several unique solutions to a problem, they are high on flexibility.
- originality
- How unique a person’s ideas are.
- brainstorming
- A process of generating ideas that follows a set of guidelines, which includes no criticism of ideas during the process, the idea that no suggestion is too crazy, and building on other ideas (piggybacking).
- idea quotas
- A set number of ideas a group must reach before they are done with brainstorming.
- wildstorming
- A variation of brainstorming where the group focuses on ideas that are impossible and then imagines what would need to happen to make them possible.
- overconfidence bias
- When individuals overestimate their ability to predict future events.
- hindsight bias
- The opposite of overconfidence bias as it occurs when a person, looking at the past, judges that a mistake that was made should have been recognized as a mistake at the time.
- anchoring
- The tendency for individuals to rely too heavily on a single piece of information.
- framing bias
- The tendency of decision makers to be influenced by the way that problems are framed.
- escalation of commitment
- When individuals continue on a failing course of action after information reveals this may be a poor path to follow.
- social loafing
- The tendency of individuals to put in less effort when working in a group context.
- groupthink
- A group pressure phenomenon that increases the risk of the group making flawed decisions by allowing reductions in mental efficiency, reality testing, and moral judgment.
- Nominal Group Technique
- A technique designed to help with group decision making by ensuring that all members participate fully.
- Delphi Technique
- A group process that uses written responses to a series of questionnaires instead of physically bringing individuals together to make a decision.
- majority rule
- A decision-making rule where each member of the group is given a single vote and the option that receives the greatest number of votes is selected.
- consensus
- A decision-making rule that groups may use when the goal is to gain support for an idea or plan of action. This decision-making rule is inclusive, participatory, cooperative, and democratic.
- group decision support systems
- Interactive computer-based systems that are able to combine communication and decision technologies to help groups make better decisions.
- knowledge management systems
- Systems for managing knowledge in organizations, supporting creation, capture, storage, and dissemination of information.
- decision trees
- Diagrams where answers to yes or no questions lead decision makers to address additional questions until they reach the end of the tree.
Chapter 6: Organizational Structure and Change
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Chapter 6: Organizational Structure and Change
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Chapter 6: Organizational Structure and Change
- organizational structure
- How individual and team work within an organization are coordinated.
- centralization
- The degree to which decision-making authority is concentrated at higher levels in an organization.
- formalization
- The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated.
- tall structures
- Organizations with several layers of management between frontline employees and the top level.
- flat structures
- Organizations with few layers, often with large numbers of employees reporting to a single manager.
- functional structures
- Structures in which jobs are grouped based on similarity in functions.
- divisional structures
- When departments represent the unique products, services, customers, or geographic locations the company is serving.
- mechanistic structures
- Those structures that resemble a bureaucracy and are highly formalized and centralized.
- organic structures
- Those structures that are flexible and decentralized with low levels of formalization where communication lines are more fluid and flexible.
- matrix organizations
- Organizations that cross a traditional functional structure with a product structure. Specifically, employees reporting to department managers are also pooled together to form project or product teams.
- boundaryless organization
- An organization that eliminates traditional barriers between departments as well as barriers between the organization and the external environment.
- modular organization
- An organization where all the nonessential functions are outsourced.
- strategic alliances
- A form of boundaryless design where two or more companies find an area of collaboration and combine their efforts to create a partnership that is beneficial for all parties.
- learning organization
- One where acquiring knowledge and changing behavior as a result of the newly acquired knowledge is part of an organization’s design.
Chapter 7: Managing Groups and Teams
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Chapter 7: Managing Groups and Teams
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Chapter 7: Managing Groups and Teams
- norms
- Shared expectations about how things operate within a group or team.
- team contract
- A contract that includes agreements on established ground rules, goals, and roles.
Chapter 8: Organizational Culture
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Chapter 8: Organizational Culture
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Chapter 8: Organizational Culture
- organizational culture
- A system of shared assumptions, values, and beliefs showing people what is appropriate and inappropriate behavior.
- assumptions
- Beliefs about human nature and reality that are taken for granted.
- values
- Shared principles, standards, and goals.
- artifacts
- The visible and tangible elements of culture.
- innovative cultures
- Cultures that are flexible, adaptable, and experiment with new ideas.
- aggressive cultures
- Cultures that value competitiveness and outperforming competitors.
- outcome-oriented cultures
- Cultures that emphasize achievement, results, and action.
- stable cultures
- Predictable, rule-oriented, and bureaucratic.
- people-oriented cultures
- Cultures that value fairness, supportiveness, and respecting individual rights.
- team-oriented cultures
- Cultures that are collaborative and emphasize cooperation among employees.
- detail-oriented cultures
- Cultures that emphasize precision and paying attention to details.
- strong culture
- A culture that is shared by organizational members.
- subculture
- A set of values unique to a limited cross section of the organization.
- counterculture
- Shared values and beliefs that are in direct opposition to the values of the broader organizational culture.
- onboarding
- The process through which new employees learn the attitudes, knowledge, skills, and behaviors required to function effectively within an organization.
- formal orientation program
- A program used to indoctrinate new employees to the company culture, as well as introducing them to their new jobs and colleagues.
- mentor
- A trusted person who provides an employee with advice and support regarding career-related matters.
- mission statement
- A statement of purpose, describing who the company is and what it does.
- rituals
- Repetitive activities within an organization that have symbolic meaning.
- at-will employment doctrine
- A doctrine of American law that defines an employment relationship in which either party can break the relationship with no liability, provided there was no express contract for a definite term governing the employment relationship and that the employer does not belong to a collective bargaining unit (i.e., a union).
- situational interview
- A job interview where candidates are asked in-depth questions about specific job situations in the past or future.
Chapter 9: The Essentials of Control
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Chapter 9: The Essentials of Control
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Chapter 9: The Essentials of Control
- organizational control
- The process by which an organization influences its subunits and members to behave in ways that lead to the attainment of organizational goals and objectives.
- strategic control
- The process by which an organization tracks the strategy as it is being implemented, detecting any problem areas or potential problem areas that might suggest that the strategy is incorrect, and making any necessary adjustments.
- operational control
- A process concerned with executing the strategy.
- feedforward controls
- The active monitoring of problems in a way that provides their timely prevention, rather than after-the-fact reaction.
- concurrent controls
- Processes that entail monitoring and adjusting ongoing activities.
- feedback controls
- Processes that involve the gathering of information about a completed activity, evaluating that information, and taking steps to improve the similar activities in the future.
- outcome controls
- Processes that are generally preferable when just one or two performance measures (say, return on investment or return on assets) are good gauges of a business’s health.
- behavioral controls
- The direct evaluation of managerial and employee decision making, not of the results of managerial decisions.
- financial control
- The management of a firm’s costs and expenses to control them in relation to budgeted amounts.
- nonfinancial controls
- Processes that track aspects of the organization that aren’t immediately financial in nature but are expected to lead to positive financial performance outcomes.
Chapter 10: Leading People and Organizations
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Chapter 10: Leading People and Organizations
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- Section 1: Who Is a Leader? Trait Approaches to Leadership
- Section 2: What Do Leaders Do? Behavioral Approaches to Leadership
- Section 3: What Is the Role of the Context? Contingency Approaches to Leadership
- Section 4: Contemporary Approaches to Leadership
- Section 5: Developing Your Leadership Skills
Chapter 10: Leading People and Organizations
- leadership
- The act of influencing others toward a goal.
- formal leaders
- Those who hold a position of authority and may utilize the power that comes from their position, as well as their personal power to influence others.
- informal leaders
- Those without a formal position of authority within the organization but demonstrate leadership by influencing those around them through personal forms of power.
- task-oriented leader behaviors
- Behaviors involving structuring the roles of subordinates, providing them with instructions and behaving in ways that will increase the performance of the group. (Also called initiating structure.)
- people-oriented leader behaviors
- Behaviors that include showing concern for employee feelings and treating employees with respect. (Also called consideration.)
- authoritarian decision making
- When leaders make the decision alone without necessarily involving employees in the decision-making process.
- democratic decision making
- Making choices among alternative courses of action, including inaction.
- laissez-faire decision making
- When leaders leave employees alone to make the decision. The leader provides minimum guidance and involvement in the decision.
- path-goal theory of leadership
- Theory stating that a leader’s main job is to motivate employees with the beliefs that (1) their effort will lead to high performance, (2) their high performance will be rewarded, and (3) the rewards they will receive are valuable to them.
- directive leaders
- Those leaders who provide specific directions to their employees.
- supportive leaders
- Those leaders who provide emotional support to employees.
- participative leaders
- Those leaders who make sure that employees are involved in making important decisions.
- achievement-oriented leaders
- Those leaders who set goals for employees and encourage them to reach their goals.
- transformational leaders
- Those leaders who lead employees by aligning employee goals with the leader’s goals.
- transactional leaders
- Those leaders who ensure that employees demonstrate the right behaviors because the leader provides resources in exchange.
- charisma
- Behaviors leaders demonstrate that create confidence, commitment, and admiration to the leader.
- inspirational motivation
- When leaders come up with a vision that is inspiring to others.
- intellectual stimulation
- When leaders challenge organizational norms and status quo and encourage employees to think creatively and work harder.
- individualized consideration
- When leaders show personal care and concern for the well-being of their followers.
- contingent rewards
- Rewarding employees for their accomplishments.
- active management by exception
- Leaving employees alone but at the same time proactively predicting potential problems and preventing them from occurring.
- passive management by exception
- Leaving employees alone but then coming to the rescue if anything goes wrong.
- trust
- The belief that the other party will show integrity, fairness, and predictability in one’s actions toward the other.
- high-quality LMX relationship
- A high-quality, trust-based relationship between a leader and a follower.
- low-quality LMX relationship
- A situation where the leader and the employee have lower levels of trust, liking, and respect toward each other.
- servant leadership
- A leadership approach which defines the leader’s role as serving the needs of others.
- authentic leadership approach
- Effective leaders who stay true to themselves.
Chapter 11: Motivating Employees
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Chapter 11: Motivating Employees
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Chapter 11: Motivating Employees
- motivation
- This is defined as “the intention of achieving a goal, leading to goal-directed behavior.”
- ability
- The characteristic of having the skills and knowledge required to perform the job.
- physiological needs
- The need for air, food, and water.
- safety needs
- The need to be safe from danger, pain, or an uncertain future.
- social needs
- The need to bond with other human beings, to be loved, and to form lasting attachments with them.
- esteem needs
- The desire to be respected by one’s peers, feeling important, and being appreciated.
- self-actualization
- The quality of “becoming all you are capable of becoming.”
- existence
- This need corresponds to Maslow’s physiological and safety needs.
- relatedness
- This need corresponds to social needs.
- growth
- This need refers to Maslow’s esteem and self-actualization.
- hygiene factors
- The factors that include company policies, supervision, working conditions, salary, safety, and security on the job.
- motivators
- The factors that are intrinsic to the job, such as achievement, recognition, interesting work, increased responsibilities, advancement, and growth opportunities.
- need for achievement
- Having a strong need to be successful.
- high need for affiliation
- The need to be liked and accepted by others.
- need for power
- The desire to influence others and control their environment.
- referent
- A person we compare ourselves to in equity theory.
- equity sensitivity
- A personality trait that explains different reactions to inequity.
- benevolents
- Individuals who give without waiting to receive much in return.
- entitleds
- Individuals who expect to receive a lot without giving much in return.
- distributive justice
- The degree to which the outcomes received from the organization are fair.
- procedural justice
- The degree to which fair decision-making procedures are used to arrive at a decision.
- interactional justice
- The degree to which people are treated with respect, kindness, and dignity in interpersonal interactions.
- expectancy
- The extent to which a person believes that high levels of effort will lead to outcomes of interest such as performance or success.
- instrumentality
- The degree to which the person believes that performance is related to secondary outcomes such as rewards.
- valence
- The value of the rewards awaiting the person as a result of performance.
- positive reinforcement
- Reinforcement that involves making sure that behavior is met with positive consequences.
- negative reinforcement
- Reinforcement that involves removal of unpleasant outcomes once desired behavior is demonstrated.
- extinction
- The removal of rewards following negative behavior.
- punishment
- The presentation of negative consequences following unwanted behaviors.
- continuous schedule
- A schedule in which reinforcers follow all instances of positive behavior.
- fixed ratio schedule
- A schedule in which reinforcers reward every nth time the right behavior is demonstrated.
- fixed interval schedule
- A schedule in which reinforcers reward after a specified period of time.
- variable ratio
- A schedule that involves providing the reinforcement on a random pattern.
- OB Mod
- A systematic application of reinforcement theory to modify employee behaviors in the workplace.
- job specialization
- Breaking down tasks to their simplest components and assigning them to employees so that each person would perform few tasks in a repetitive manner.
- job rotation
- Moving employees from job to job at regular intervals.
- job enlargement
- Expanding the tasks performed by employees to add more variety.
- job enrichment
- A job redesign technique that allows workers more control over how they perform their own tasks.
- job characteristics model
- A model that describes five core job dimensions leading to three critical psychological states, which lead to work-related outcomes.
- skill variety
- The extent to which the job requires the person to use multiple high-level skills.
- task identity
- The degree to which the person is in charge of completing an identifiable piece of work from start to finish.
- task significance
- The degree to which the person’s job substantially affects other people’s work, health, or well-being.
- autonomy
- The degree to which the person has the freedom to decide how to perform one’s tasks.
- feedback
- The degree to which the person learns how effective he or she is being at work.
- SMART
- A goal that is specific, measurable, achievable, realistic, and timely.
Chapter 12: Communication in Organizations
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Chapter 12: Communication in Organizations
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Chapter 12: Communication in Organizations
- encoding
- The translation of ideas into words.
- medium
- The way that a Sender’s Message is conveyed.
- receiver
- The person who a Message is intended to reach.
- decoding
- The process of assigning meaning to a received Message.
- noise
- Anything that interferes with or distorts the Message being transformed.
- filtering
- The distortion or withholding of information to manage a person’s reactions.
- selective perception
- The personal filtering of what we see and hear to suit our own needs.
- information overload
- This occurs when the information processing demands on an individual’s time to perform interactions and internal calculations exceed the supply or capacity of time available for such processing.
- grapevine
- The informal gossip network within a given organization.
- semantics
- The meanings of words and the study of meaning in communication.
- jargon
- A specific set of acronyms or words unique to a specific group or profession.
- active listening
- Giving full attention to what other people are saying.
There are no key terms for this page.
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Citation Information
APA Format:Erdogan, Berrin., Bauer, Talya., and Carpenter, Mason., Principles of Management. Retrieved May 16, 2012 from http://www.flatworldknowledge.com/node/37972 .
MLA Format:Erdogan, Berrin, Bauer, Talya, , and Mason Carpenter. Principles of Management. 1969 . Flat World Knowledge. 16 May, 2012. <http://www.flatworldknowledge.com/node/37972> .
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Adopt this book for your course
Thank you for your interest in adopting this book for your class. It is NOT YET PUBLISHED. When it is, you will click this button and:
Fill out a short adoption form. When you submit it, we will generate (and send to you) a URL that is unique to your class. That is where your students will go to get their free online book, or to purchase affordable alternatives.
You will also be able to print out this adoption form and bring it to the bookstore so that they can order and sell copies locally of the softcover print version.
This book is not yet customizable. Customization of this book will be limited to rearranging and deleting chapters. Changing equations and editing the Q and A sections will not be permitted; furthermore, changes to the chapter order will not be reflected in the corresponding Solutions Manual.
You must log in as an educator to customize textbooks.
Existing educator? Log in here.
New user? Sign up here for free, and give it a try.
Features:
Drag-and-drop chapters into a new table of contents that suits your syllabus. Resequence and delete down to the section level!
Even better: Annotate content at the paragraph level, giving you fine grained control over the content to suit your exact needs.
Another benefit: No more being forced to switch to new editions. Ever. You move to new editions when you have time and when you see merit. Not when we do.
This book is not yet published. When it does, our customization features let you:
Drag-and-drop chapters into a new table of contents that suits your syllabus. Resequence and delete down to the section level!
Even better: Annotate content at the paragraph level, giving you fine grained control over the content to suit your exact needs.
Another benefit: No more being forced to switch to new editions. Ever. You move to new editions when you have time and when you see merit. Not when we do.
Your book has already been saved for print.
You typically should not customize your book further. If your bookstore or students have already ordered the book they will not see your future changes.
If you choose to make further customizations you can do so by choosing 'customize' for this book from My Flatworld
This book does not have any Educator Supplements
Only approved educators have access to the supplements for this textbook. Please note: Educator access is manually approved within approximately 48 business hours after your registration.
If you already have an account and have been approved as an educator, then please login.
Are you a new user? Sign up for free.
You can also feel free to contact us regarding this matter.
© 2012 Flat World Knowledge, Inc.
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