classical organization theory An early approach to management units.

that focused on how organizations can be structured most planning The process of determining an organization's desired
effectively to meet their goals. future position and the best means of getting there.
contingency perspective Suggests that, in most organizations, productivity An indicator of how much an organization is creating
situations and outcomes are contingent on, or influenced by, other relative to its inputs.
variables. quality The total set of features and characteristics of a product or
Hawthorne studies Conducted between 1927 and 1932, these service that determine its ability to satisfy stated or implied needs.
studies led to some of the first discoveries of the importance of social responsibility An organization's social responsibility is its
human behavior in organizations. obligation to protect and contribute to the social environment in
human relations Movement based on the assumption that which it functions.
employee satisfaction is a key determinant of performance. It technical skills The skills necessary to accomplish specific tasks
marked the beginning of organizational behavior. within the organization.
interactionalism Suggests that individuals and situations interact technology The mechanical and intellectual processes used to
continuously to determine individuals' behavior. transform inputs into products and services.
organizational behavior The study of human behavior in
organizational settings, the interface between human behavior and assimilation The process through which a minority group learns
the organization, and the organization itself. the ways of the dominant group. In organizations, this means that
scientific management One of the first approaches to when people of different types and backgrounds are hired, the
management. It focused on the efficiency of individual workers organization attempts to mold them to fit the existing
and assumed that employees are motivated by money. organizational culture.
system A set of interrelated elements functioning as a whole. collectivism The extent to which people emphasize the good of
Theory X Concept described by Douglas McGregor indicating an the group or society.
approach to management that takes a negative and pessimistic individualism The extent to which people place primary value on
view of workers. themselves.
Theory Y Concept described by Douglas McGregor reflecting an long-term orientation Focused on the future.
approach to management that takes a positive and optimistic masculinity The extent to which the dominant values in a society
perspective on workers. emphasize aggressiveness and the acquisition of money and
material goods, rather than concern for people, relationships
competitive strategy An outline of how a business intends to among people, and the overall quality of life.
compete with other firms in the same industry. multicultural organization The multicultural organization has six
conceptual skills Used to think in the abstract. characteristics: pluralism, full structural integration, full integration
controlling The process of monitoring and correcting the actions of informal networks, an absence of prejudice and discrimination,
of the organization and its members to keep them directed toward equal identification among employees with organizational goals for
their goals. majority and minority groups, and low levels of intergroup conflict.
decision-making roles There are four basic decision-making pluralistic organization An organization that has diverse
roles: the entrepreneur, the disturbance handler, the resource membership and takes steps to fully involve all people who differ
allocator, and the negotiator. from the dominant group.
diagnostic skills Used to understand cause-and-effect power distance The extent to which less powerful persons accept
relationships and to recognize the optimal solutions to problems. the unequal distribution of power.
downsizing The process of purposely becoming smaller by prejudices Judgments about others that reinforce beliefs about
reducing the size of the workforce or shedding divisions or superiority and inferiority.
businesses. primary dimensions of diversity Factors that are either inborn or
ethics An individual's personal beliefs about what is right and exert extraordinary influence on early socialization: age, ethnicity,
wrong or good and bad. gender, physical abilities, race, and sexual orientation.
informational roles The monitor, the disseminator, and the secondary dimensions of diversity Factors that are important to
spokesperson. us as individuals and to some extent define us to others but are
interpersonal roles There are three important interpersonal roles: less permanent and can be adapted or changed: educational
the figurehead, the leader, and the liaison. background, geographic location, income, marital status, military
interpersonal skills Used to communicate with, understand, and experience, parental status, religious beliefs, and work
motivate individuals and groups. experience.
leading The process of getting the organization's members to short-term orientation Focused on the past or present.
work together toward the organization's goals. stereotypes Rigid judgments about others that ignore the specific
organizing The process of designing jobs, grouping jobs into person and the current situation. Acceptance of stereotypes can
units, and establishing patterns of authority between jobs and lead to the dangerous process of prejudice toward others.
uncertainty avoidance The extent to which people prefer to be in job satisfaction The extent to which a person is gratified or
clear and unambiguous situations. fulfilled by his or her work.
valuing diversity Means putting an end to the assumption that locus of control The extent to which people believe their
everyone who is not a member of the dominant group must circumstances are a function of their own actions versus external
assimilate. The first step is to recognize that diversity exists in factors beyond their control.
organizations so that we can begin to manage it. Machiavellianism A personality trait. People who possess this
workforce diversity The similarities and differences in such trait behave to gain power and to control the behavior of others.
characteristics as age, gender, ethnic heritage, physical abilities negative affectivity People who possess this trait are generally
and disabilities, race, and sexual orientation among the downbeat and pessimistic, see things in a negative way, and
employees of organizations. seem to be in a bad mood.
negative emotionality Characterized by moodiness and
absenteeism Failure to show up for work. insecurity; those who have little negative emotionality are better
affect A person's feelings toward something. able to withstand stress.
agreeableness A person's ability to get along with others. openness The capacity to entertain new ideas and to change as a
attitudes A person's complexes of beliefs and feelings about result of new information.
specific ideas, situations, or other people. organizational citizenship The extent to which a person's
attribution theory Suggests that we attribute causes to behavior behavior makes a positive overall contribution to the organization.
based on observations of certain characteristics of that behavior. organizational commitment A person's identification with and
Employees observe their own behavior, determine whether it is a attachment to an organization.
response to external or internal factors, and shape their future perception The set of processes by which an individual becomes
motivated behavior accordingly. aware of and interprets information about the environment.
authoritarianism The belief that power and status differences are performance behaviors The total set of work-related behaviors
appropriate within hierarchical social systems such as that the organization expects the individual to display.
organizations. personality The relatively stable set of psychological attributes
"big five" personality traits A set of fundamental traits that are that distinguish one person from another.
especially relevant to organizations. person-job fit The extent to which the contributions made by the
cognition The knowledge a person presumes to have about individual match the inducements offered by the organization.
something. positive affectivity People who possess this trait are upbeat and
cognitive dissonance The anxiety a person experiences when optimistic, have an overall sense of well-being, and see things in a
he or she simultaneously possesses two sets of knowledge or positive light.
perceptions that are contradictory or incongruent. preparation Usually the first stage in the creative process. It
conscientiousness The number of goals on which a person includes education and formal training.
focuses. psychological contract A person's set of expectations regarding
contributions An individual's contributions to an organization what he or she will contribute to the organization and what the
include such things as effort, skills, ability, time, and loyalty. organization, in return, will provide to the individual.
creativity A person's ability to generate new ideas or to conceive risk propensity The degree to which a person is willing to take
of new perspectives on existing ideas. chances and make risky decisions.
dysfunctional behaviors Those that detract from organizational selective perception The process of screening out information
performance. that we are uncomfortable with or that contradicts our beliefs.
extraversion The quality of being comfortable with relationships; self-efficacy The extent to which we believe we can accomplish
the opposite extreme, introversion, is characterized by more social our goals even if we failed to do so in the past.
discomfort. self-esteem The extent to which a person believes he or she is a
incubation A period of less intense conscious concentration worthwhile and deserving individual.
during which a creative person lets the knowledge and ideas stereotyping The process of categorizing or labeling people on
acquired during preparation mature and develop. the basis of a single attribute.
individual differences Personal attributes that vary from one turnover When people quit their jobs.
person to another. verification The final stage of the creative process where the
inducements The tangible and intangible rewards provided by validity or truthfulness of the insight is determined.
organizations to individuals. workplace behavior The pattern of action by the members of an
insight The stage in the creative process when all the scattered organization that directly or indirectly influences organizational
thoughts and ideas that were maturing during incubation come effectiveness.
together to produce a breakthrough.
intention A component of an attitude that guides a person's dual-structure theory Identifies motivation factors, which affect
behavior. satisfaction, and hygiene factors, which affect dissatisfaction.
ERG theory Describes existence, relatedness, and growth reward or desirable consequence that follows that behavior.
needs. fixed-interval reinforcement Provides reinforcement on a fixed
hierarchy of needs theory Maslow's hierarchy that assumes time schedule.
human needs are arranged in a hierarchy of importance. fixed-ratio reinforcement Provides reinforcement after a fixed
human relations approach Suggested that favorable employee number of behaviors.
attitudes result in motivation to work hard. inequity The belief that we are being treated unfairly in relation to
hygiene factors These factors are extrinsic to the work itself. others.
They include factors such as pay and job security. learning A relatively permanent change in behavior or behavioral
motivation The set of forces that lead people to behave in potential resulting from direct or indirect experience.
particular ways. negative reinforcement (avoidance) The opportunity to avoid or
motivation factors These factors are intrinsic to the work itself. escape from an unpleasant circumstance after exhibiting behavior.
They include factors such as achievement and recognition. organizational behavior modification (OB mod) The application
motive A factor that determines a person's choice of one course of reinforcement theory to people in organizational settings.
of behavior from among several possibilities. outcome Anything that results from performing a particular
need Anything an individual requires or wants. behavior.
need for achievement The desire to accomplish a task or goal performance-to-outcome expectancy An individual's perception
more effectively than in the past. of the probability that performance will lead to certain outcomes.
need for affiliation The need for human companionship. positive reinforcement A reward or other desirable consequence
need for power The desire to control the resources in one's that a person receives after exhibiting behavior.
environment. process-based perspectives These perspectives focus on how
need theories of motivation These theories assume that need people behave in their efforts to satisfy their needs.
deficiencies cause behavior. punishment An unpleasant, or aversive, consequence that results
primary needs The basic physical requirements necessary to from behavior.
sustain life. reinforcement The consequences of behavior.
scientific management One of the first approaches to reinforcement discrimination The process of recognizing
management. It focused on the efficiency of individual workers differences between behavior and reinforcement in different
and assumed that employees are motivated by money. settings.
secondary needs The requirements learned from the reinforcement generalization The process through which a
environment and culture in which the person lives. person extends recognition of similar or identical behavior-
reinforcement relationships to different settings.
attribution theory Suggests that we attribute causes to behavior reinforcement theory This theory is based on the idea that
based on observations of certain characteristics of that behavior. behavior is a function of its consequences.
Employees observe their own behavior, determine whether it is a schedules of reinforcement Indicate when or how often
response to external or internal factors, and shape their future managers should reinforce certain behaviors.
motivated behavior accordingly. social learning Occurs when people observe the behaviors of
avoidance (negative reinforcement) The opportunity to avoid or others, recognize their consequences, and alter their own
escape from an unpleasant circumstance after exhibiting behavior. behavior as a result.
Avoidance occurs when the interacting parties' goals are valence The degree of attractiveness or unattractiveness a
incompatible and the interaction between groups is relatively particular outcome has for a person.
unimportant to the attainment of the goals. variable-interval reinforcement Varies the amount of time
classical conditioning A simple form of learning that links a between reinforcements.
conditioned response with an unconditioned stimulus. variable-ratio reinforcement Varies the number of behaviors
continuous reinforcement With this type of reinforcement, between reinforcements.
behavior is rewarded every time it occurs.
effort-to-performance expectancy A person's perception of the compressed work week A situation in which employees work a
probability that effort will lead to performance. full forty-hour week in fewer than the traditional five days.
equity The belief that we are being treated fairly in relation to empowerment The process of enabling workers to set their own
others. work goals, make decisions, and solve problems within their
equity theory Focuses on people's desire to be treated with what sphere of responsibility and authority.
they perceive as equity and to avoid perceived inequity. flexible work schedules (flextime) These schedules give
expectancy theory Suggests that people are motivated by how employees more personal control over the hours they work each
much they want something and the likelihood they perceive of day.
getting it. job characteristics approach Focuses on the motivational
extinction Decreases the frequency of behavior by eliminating a attributes of jobs.
job characteristics theory Identifies three critical psychological manager concerning what and how a job is to be done such that
states: experienced meaningfulness of the work, experienced both parties know what is expected and how success is defined
responsibility for work outcomes, and knowledge of results. and measured.
job design How organizations define and structure jobs. perquisites Special privileges awarded to selected members of
job enlargement Involves giving workers more tasks to perform. an organization, usually top managers.
job enrichment Entails giving workers more tasks to perform and reward system The system that consists of all organizational
more control over how to perform them. components, including people, processes, rules and procedures,
job rotation Systematically moving workers from one job to and decision-making activities, involved in allocating
another in an attempt to minimize monotony and boredom. compensation and benefits to employees in exchange for their
job sharing A situation in which two or more part-time employees contributions to the organization.
share one full-time job. self-efficacy The extent to which we believe we can accomplish
job specialization Advocated by scientific management. It can our goals even if we failed to do so in the past.
help improve efficiency, but it can also promote monotony and surface value The objective meaning or worth a reward has to an
boredom. employee.
participation The process of giving employees a voice in making symbolic value The subjective and personal meaning or worth a
decisions about their own work. reward has to an employee.
Telecommuting A work arrangement in which employees spend 360-degree feedback Performance management system in which
part of their time working off-site. people receive performance feedback from those on all sides of
them in the organization: their boss, their colleagues and peers,
benefits An important form of indirect compensation. and their own subordinates.
compensation package The total array of money (wages, salary, total quality management (TQM) A form of management that
commission, incentives, benefits, perquisites, and awards) focuses on the customer, an environment of trust and openness,
provided by the organization to an employee. working in teams, breaking down internal organizational barriers,
continuous improvement Perspective suggesting that team leadership and coaching, shared power, and continuous
performance should constantly be enhanced. improvement. Use of this approach often involves fundamental
flexible reward system Allows employees to choose the changes in the organization's culture.
combination of benefits that best suits their needs.
goal A desirable objective. burnout A general feeling of exhaustion that develops when an
goal acceptance The extent to which a person accepts a goal as individual simultaneously experiences too much pressure and has
his or her own. too few sources of satisfaction.
goal commitment The extent to which a person is personally distress The unpleasant stress that accompanies negative
interested in reaching a goal. events.
goal difficulty The extent to which a goal is challenging and eustress The pleasurable stress that accompanies positive
requires effort. events.
goal specificity The clarity and precision of a goal. general adaptation syndrome (GAS) Identifies three stages of
incentive systems Plans in which employees can earn additional response to a stressor: alarm, resistance, and exhaustion.
compensation in return for certain types of performance. hardiness A person's ability to cope with stress.
job analysis The process of systematically gathering information interpersonal demands Stressors associated with group
about specific jobs to use in developing a performance pressures, leadership, and personality conflicts.
measurement system, to write job or position descriptions, and to life change Any meaningful change in a person's personal or
develop equitable pay systems. work situation; too many life changes can lead to health
learning organization An organization that works to facilitate the problems.
lifelong learning and personal development of all of its employees life trauma Any upheaval in an individual's life that alters his or
while continually transforming itself to respond to changing her attitudes, emotions, or behaviors.
demands and needs. optimism The extent to which a person sees life in relatively
management by objectives (MBO) A collaborative goal-setting positive or negative terms.
process through which organizational goals cascade down organizational stressors Factors in the workplace that can cause
throughout the organization. stress. physical demands Stressors associated with the job's
performance measurement (performance appraisal) The physical setting, such as the adequacy of temperature and lighting
process by which someone (1) evaluates an employee's work and the physical requirements the job makes on the employee.
behaviors by measurement and comparison with previously role A set of expected behaviors associated with a particular
established standards, (2) documents the results, and (3) position in a group or organization.
communicates the results to the employee. role ambiguity Arises when a role is unclear.
performance plan An understanding between an employee and a role conflict Occurs when the messages and cues constituting a
role are clear but contradictory or mutually exclusive. medium The channel or path through which the message is
role demands Stressors associated with the role a person is transmitted.
expected to play. noise Any disturbance in the communication process that
role overload Occurs when expectations for the role exceed the interferes with or distorts communication.
individual's capabilities. receiver The individual, group, or organization that perceives the
stress A person's adaptive response to a stimulus that places encoded symbols; the receiver may or may not decode them and
excessive psychological or physical demands on that person. try to understand the intended message.
task demands Stressors associated with the specific job a person semantics The study of language forms.
performs. source The individual, group, or organization interested in
type A People who are extremely competitive, highly committed to communicating something to another party.
work, and have a strong sense of time urgency. transmission The process through which the symbols that
type B People who are less competitive, less committed to work, represent a message are sent to the receiver.
and have a weaker sense of time urgency. verification The feedback portion of communication in which the
work-life relationships The interrelationships between a person's receiver sends a message to the source indicating receipt of the
work life and personal life. message and the degree to which he or she understood the
message.
all-channel network In this type of network, all members wheel network In this type of network, information flows between
communicate with all other members. the person at the end of each spoke and the person in the middle.
chain network In this type of network, each member
communicates with the person above and below, except for the accommodation Occurs when the parties' goals are compatible
individuals on each end who communicate with only one person. and the interaction between groups is relatively unimportant to the
channel noise A disturbance in communication that is primarily a goals' attainment.
function of the medium. affinity group Collections of employees from the same level in
circle network In this type of network, each member the organization who meet on a regular basis to share information,
communicates with the people on both sides but with no one else. capture emerging opportunities, and solve problems.
communication The social process in which two or more parties avoidance (negative reinforcement) The opportunity to avoid or
exchange information and share meaning. escape from an unpleasant circumstance after exhibiting behavior.
communication networks Networks that form spontaneously and Avoidance occurs when the interacting parties' goals are
naturally as the interactions among workers continue over time. incompatible and the interaction between groups is relatively
cosmopolite Links the organization to the external environment unimportant to the attainment of the goals.
and may also be an opinion leader in the group. collaboration Occurs when the interaction between groups is
decoding The process by which the receiver of the message very important to goal attainment and the goals are compatible.
interprets its meaning. command group A relatively permanent, formal group with
encoding The process by which the message is translated from functional reporting relationships; usually included in the
an idea or thought into transmittable symbols. organization chart.
feedback The process in which the receiver returns a message to communication and decision-making The stage of group
the sender that indicates receipt of the message. development where members discuss their feelings more openly
fidelity The degree of correspondence between the message and agree on group goals and individual roles in the group.
intended by the source and the message understood by the competition Occurs when the goals are incompatible and the
receiver. interactions between groups are important to meeting goals.
gatekeeper An individual who has a strategic position in the compromise Occurs when the interaction is moderately important
network that allows him or her to control information moving in to meeting goals and the goals are neither completely compatible
either direction through a channel. nor completely incompatible.
grapevine An informal system of communication that coexists conflict A disagreement among parties. It has both positive and
with the formal system. negative characteristics.
isolate Individual who tends to work alone and to interact and conflict resolution Occurs when a manager resolves a conflict
communicate little with others. that has become harmful or serious.
isolated dyad Two people who tend to work alone and to interact conflict stimulation The creation and constructive use of conflict
and communicate little with others. by a manager.
jargon The specialized or technical language of a trade, control and organization The stage of group development where
profession, or social group. the group is mature; members work together and are flexible,
liaison An individual who serves as a bridge between groups, adaptive, and self-correcting.
tying groups together and facilitating the communication flow formal group Formed by an organization to do its work.
needed to integrate group activities. friendship group A group that is relatively permanent and
informal and draws its benefits from the social relationships accountable.
among its members. virtual teams Teams that work together by computer and other
goal compatibility The extent to which the goals of more than electronic communication utilities; members move in and out of
one person or group can be achieved at the same time. meetings and the team itself as the situation dictates.
group Two or more people who interact with one another such work teams Include all the people working in an area, are
that each person influences and is influenced by each other relatively permanent, and do the daily work, making decisions
person. regarding how the work of the team is done.
group cohesiveness The extent to which a group is committed to
staying together. behavioral approach Approach to leadership that tries to identify
group composition The degree of similarity or difference among behaviors that differentiated effec-tive leaders from nonleaders. It
group members on factors important to the group's work. uses rules of thumb, suboptimizing, and satisficing in making
group performance factors Composition, size, norms, and decisions.
cohesiveness. They affect the success of the group in fulfilling its consideration behavior Involves being concerned with
goals. subordinates' feelings and respecting subordinates' ideas.
group size The number of members of the group; it affects the employee-centered leader behavior Involves attempting to build
number of resources available to perform the task. effective work groups with high performance goals.
groupthink Occurs when a group's overriding concern is a Hersey and Blanchard model Identifies different combinations of
unanimous decision rather than critical analysis of alternatives. leadership presumed to work best with different levels of
informal group A group that is established by its members. organizational maturity on the part of followers.
interest group A group that is relatively temporary and informal initiating-structure behavior Involves clearly defining the leader-
and is organized around a common activity or interest of its subordinate roles so that subordinates know what is expected of
members. them.
linking role A position for a person or group that serves to job-centered leader behavior Involves paying close attention to
coordinate the activities of two or more organizational groups. the work of subordinates, explaining work procedures, and
motivation and productivity The stage of group development in demonstrating a strong interest in performance.
which members cooperate, help each other, and work toward leader-member exchange (LMX) This model of leadership
accomplishing tasks. stresses the fact that leaders develop unique working relationships
mutual acceptance The stage of group development that is with each of their subordinates.
characterized by members sharing information about themselves leadership Both a process and a property. As a process,
and getting to know each other. leadership involves the use of noncoercive influence. As a
norm A standard against which the appropriateness of a behavior property, leadership is the set of characteristics attributed to
is judged. someone who is perceived to use influence successfully.
social loafing The tendency of some members of groups to put Leadership Grid Evaluates leadership behavior along two
forth less effort in a group than they would when working alone. dimensions, concern for production and concern for people, and
superordinate goal An organizational goal that is more important suggests that effective leadership styles include high levels of both
to the well-being of the organization and its members than the behaviors.
more specific goals of interacting parties. least-preferred coworker (LPC scale) Presumes to measure a
task group A relatively temporary, formal group established to do leader's motivation.
a specific task. LPC theory of leadership Suggests that a leader's effectiveness
depends on the situation.
management teams Consist of managers from various areas; Michigan leadership studies These studies defined job-centered
they coordinate work teams. and employee-centered leadership as opposite ends of a single
problem-solving teams Temporary teams established to attack leadership continuum.
specific problems in the Ohio State leadership studies These studies defined leader
workplace. consideration and initiating-structure behaviors as independent
product development teams Combinations of work teams and dimensions of leadership.
problem-solving teams that create new designs for products or path-goal theory of leadership Suggests that effective leaders
services that will satisfy customer needs. clarify the paths (behaviors) that will lead to desired rewards
quality circles Small groups of employees from the same work (goals).
area who regularly meet to discuss and recommend solutions to trait approach This approach attempted to identify stable and
workplace problems. enduring character traits that differentiated effective leaders from
team A small number of people with complementary skills who are nonleaders.
committed to a common purpose, common performance goals, Vroom's decision tree approach to leadership This model
and approach for which they hold themselves mutually
attempts to prescribe how much participation subordinates should perceptions that are contradictory or incongruent.
be allowed in making decisions. conflict model A very personal approach to decision making
because it deals with the personal conflicts that people experience
charisma A form of interpersonal attraction that inspires support in particularly difficult decision situations.
and acceptance from others. contingency plans Alternative actions to take if the primary
charismatic leadership A type of influence based on the leader's course of action is unexpectedly disrupted or rendered
personal charisma. inappropriate.
coercive power The extent to which a person has the ability to decision making The process of choosing from among several
punish or physically or psychologically harm someone else. alternatives.
expert power The extent to which a person controls information decision rule A statement that tells a decision maker which
that is valuable to someone else. alternative to choose based on the characteristics of the decision
impression management A direct and intentional effort by situation.
someone to enhance his or her own image in the eyes of others. defensive avoidance Entails making no changes in present
influence The ability to affect the perceptions, attitudes, or activities and avoiding any further contact with associated issues
behaviors of others. because there appears to be no hope of finding a better solution.
leadership substitutes Individual, task, and organizational Delphi technique A method of systematically gathering
characteristics that tend to outweigh the leader's ability to affect judgments of experts for use in developing forecasts.
subordinates' satisfaction and performance. escalation of commitment The tendency to persist in an
legitimate power Power that is granted by virtue of one's position ineffective course of action when evidence reveals that the project
in the organization. cannot succeed.
organizational politics Activities carried out by people to acquire, ethics An individual's personal beliefs about what is right and
enhance, and use power and other resources to obtain their wrong or good and bad.
desired outcomes. group polarization The tendency for a group's average
personal power Resides in the person, regardless of the position postdiscussion attitudes to be more extreme than its average
he or she fills. prediscussion attitudes.
position power Resides in the position, regardless of who is filling groupthink Occurs when a group's overriding concern is a
that position. unanimous decision rather than critical analysis of alternatives.
power The potential ability of a person or group to exercise hypervigilance A frantic, superficial pursuit of some satisficing
control over another person or group. strategy.
referent power Exists when one person wants to be like or negotiation The process in which two or more parties (people or
imitates someone else. groups) reach agreement even though they have different
reward power The extent to which a person controls rewards that preferences.
another person values. nominal group technique Technique in which group members
superleadership Occurs when a leader gradually and follow a generate-discussion-vote cycle until they reach an
purposefully turns over power, appropriate decision.
responsibility, and control to a self-managing work group. nonprogrammed decision A decision that recurs infrequently
transformational leadership The set of abilities that allows the and for which there is no previously established decision rule.
leader to recognize the need for change, to create a vision to practical approach The approach to decision making that
guide that change, and to execute that change effectively. combines the steps of the rational approach with the conditions in
behavioral approach Approach to leadership that tries to identify the behavioral approach to create a more realistic process for
behaviors that differentiated effec-tive leaders from nonleaders. It making decisions in organizations.
uses rules of thumb, suboptimizing, and satisficing in making PRAM model This model guides the negotiator through the four
decisions. steps of planning for agreement, building relationships, reaching
bounded rationality The idea that decision makers cannot deal agreements, and maintaining relationships.
with information about all the aspects and alternatives pertaining problem solving A form of decision making in which the issue is
to a problem and therefore choose to tackle some meaningful unique and alternatives must be developed and evaluated without
subset of it. the aid of a programmed decision rule.
brainstorming A technique used in the idea-generation phase of programmed decision A decision that recurs often enough for a
decision making that assists in the development of numerous decision rule to be developed.
alternative courses of action. rationaldecision-making approach A systematic, step-by-step
certainty Condition under which the manager knows the process for making decisions.
outcomes of each alternative. risk Condition under which the decision maker cannot know with
cognitive dissonance The anxiety a person experiences when certainty what the outcome of a given action will be but has
he or she simultaneously possesses two sets of knowledge or enough information to estimate the probabilities of various
outcomes. organization.
satisficing Examining alternatives only until a solution that meets organization structure The system of task, reporting, and
minimal requirements is found. authority relationships within which the organization does its work.
self-reactions Comparisons of alternatives with internalized moral organizational goals Objectives that management seeks to
standards. achieve in pursuing the firm's purpose.
suboptimizing Knowingly accepting less than the best possible responsibility An obligation to do something with the expectation
outcome to avoid unintended negative effects on other aspects of of achieving some act or output.
the organization. span of control The number of people who report to a manager.
uncertainty Condition under which the decision maker lacks
enough information to estimate the probability of possible adhocracy This structure is typically found in young organizations
outcomes. in highly technical fields. Within it, decision making is spread
unconflicted adherence Continuing with current activities if doing throughout the organization, power resides with the experts,
so does not entail serious risks. horizontal and vertical specialization exists, and there is little
unconflicted change Involves making changes in present formalization.
activities if doing so presents no serious risks. autonomous work groups Groups used to integrate an
vigilant information processing Involves thoroughly organization's technical and social systems for the benefit of large
investigating all possible alternatives, weighing their costs and systems.
benefits before making a decision, and developing contingency contingency approach An approach to organization design
plans. where the desired outcomes for the organization can be achieved
in several ways.
acceptance theory of authority The theory that the manager's divisionalized form This structure is typical of old, very large
authority depends on the subordinate's acceptance of the organizations. Within it, the organization is divided according to
manager's right to give directives and to expect compliance with the different markets served. Horizontal and vertical specialization
them. exists between divisions and headquarters, decision making is
administrative hierarchy The system of reporting relationships in divided between headquarters and divisions, and outputs are
the organization, from the lowest to the highest managerial levels. standardized.
authority Power that has been legitimized within a particular environmental complexity The number of environmental
social context. components that impinge on organizational decision making.
centralization A structural policy in which decision-making environmental dynamism The degree to which environmental
authority is concentrated at the top of the organizational components that impinge on organizational decision making
hierarchy. change.
configuration An organization's shape, which reflects the division environmental uncertainty Exists when managers have little
of labor and the means of coordinating the divided tasks. information about environmental events and their impact on the
delegation The transfer to others of authority to make decisions organization.
and use organizational resources. general environment The broad set of dimensions and factors
departmentalization The manner in which divided tasks are within which the organization operates, including political-legal,
combined and allocated to work groups. sociocultural, technological, economic, and international factors.
division of labor The way the organization's work is divided into machine bureaucracy This structure is typical of large, well-
different jobs to be done by different people. established organizations. Work is highly specialized and
formalization The degree to which rules and procedures shape formalized, and decision making is usually concentrated at the
the jobs and activities of employees. top.
human organization Rensis Likert's approach that is based on matrix design Combines two different designs to gain the benefits
supportive relationships, participation, and overlapping work of each; typically combined are a product or project
groups. departmentalization scheme and a functional structure.
ideal bureaucracy Weber's model that is characterized by a mechanistic structure This structure is primarily hierarchical.
hierarchy of authority and a system of rules and procedures Within it, interactions and communications are typically vertical,
designed to create an optimally effective system for large instructions come from the boss, knowledge is concentrated at the
organizations. top, and loyalty and obedience are required to sustain
management functions Set forth by Henri Fayol; they include membership.
planning, organizing, command, coordination, and control. open system A system that interacts with its environment.
organization A group of people working together to attain organic structure This structure is set up like a network. Within it,
common goals. interactions and communications are horizontal, knowledge
organization chart A diagram showing all people, positions, resides wherever it is most useful to the organization, and
reporting relationships, and lines of formal communication in the membership requires a commitment to the organization's tasks.
organizational downsizing A popular trend aimed at reducing intrapreneurship Entrepreneurial activity that takes place within
the size of corporate staff and middle management to reduce the context of a large corporation.
costs. organization climate Current situations in an organization and
organizational environment Everything outside an organization. the linkages among work groups, employees, and work
It includes all elements, people, other organizations, economic performance.
factors, objects, and events that lie outside the boundaries of the organization culture The set of values that helps the
organization. organization's employees understand which actions are
organizational technology The mechanical and intellectual considered acceptable and which unacceptable.
processes that transform inputs into outputs. organizational socialization The process through which
professional bureaucracy This structure is characterized by employees learn about the firm's culture and pass their knowledge
horizontal specialization by professional area of expertise, little and understanding on to others.
formalization, and decentralized decision making. procedural justice The extent to which the dynamics of an
reengineering The radical redesign of organizational processes organization's decision-making processes are judged to be fair by
to achieve major gains in cost, time, and provision of services. those most affected by them.
rethinking Looking at organization design in totally different ways, radical innovation A major breakthrough that changes or creates
perhaps even abandoning the classic view of the organization as a whole industries.
pyramid. socialization The process through which individuals become
simple structure This structure is typical of relatively small or new social beings.
organizations and has little specialization or formalization. Within strategic values The basic beliefs about an organization's
this structure, power and decision making are concentrated in the environment that shape its strategy.
chief executive. systems innovation Creates a new functionality by assembling
social subsystem Includes the interpersonal relationships that parts in new ways.
develop among people in organizations. Type Z firm This type of firm is committed to retaining employees;
sociotechnical systems approach An approach to organization evaluates workers' performance based on both qualitative and
design that views the organization as an open system structured quantitative information; emphasizes broad career paths;
to integrate the technical and social subsystems into a single exercises control through informal, implicit mechanisms; requires
management system. that decision making occur in groups and be based on full
strategy The plans and actions necessary to achieve information sharing and consensus; expects individuals to take
organizational goals. responsibility for decisions; and emphasizes concern for people.
structural imperatives The three structural imperatives,
environment, technology, and size, are the three primary change agent A person responsible for managing a change
determinants of organization structure. effort.
system A set of interrelated elements functioning as a whole. organization development The process of planned change and
task environment This environment includes specific improvement of the organization through application of knowledge
organizations, groups, and individuals that influence the of the behavioral sciences.
organization. overdetermination Occurs because numerous organizational
technical (task) subsystem The means by which inputs are systems are in place to ensure that employees and systems
transformed into outputs. behave as expected to maintain stability.
universal approach An approach to organization design where quality of work life The extent to which workers can satisfy
prescriptions or propositions are designed to work in any important personal needs through their experiences in the
circumstance. organization.
virtual organization A temporary alliance between two or more refreezing The process of making new behaviors relatively
organizations that band together to undertake a specific venture. permanent and resistant to further change.
structural change A systemwide organization development
cultural values The values that employees need to have and act involving a major restructuring of the organization or instituting
on for the organization to act on the strategic values. programs such as quality of work life.
empowerment The process of enabling workers to set their own transition management The process of systematically planning,
work goals, make decisions, and solve problems within their organizing, and implementing change.
sphere of responsibility and authority. unfreezing The process by which people become aware of the
incremental innovation Continues the technical improvement need for change.
and extends the applications of radical and systems innovations.
innovation The process of creating and doing new things that are applied research Conducted to solve particular problems or
introduced into the marketplace as products, processes, or answer specific questions.
services. basic research Involves discovering new knowledge rather than
solving specific problems.
case study An in-depth analysis of one setting.
field experiment Similar to a laboratory experiment but is
conducted in a real organization.
field survey Typically relies on a questionnaire distributed to a
sample of people selected from a larger population.
laboratory experiment Involves creating an artificial setting
similar to a real work situation to allow control over almost every
possible factor in that setting.
reliability The extent to which a measure is consistent over time.
research design The set of procedures used to test the predicted
relationships among natural phenomena.
scientific research The systematic investigation of hypothesized
propositions about the relationships among natural phenomena.
validity The extent to which a measure actually reflects what it
was intended to measure.
career A perceived sequence of attitudes and behaviors
associated with work-related experiences and activities over a
person's life span.
career pathing The identification of a certain sequence of jobs in
a career that represents a progression through the organization.
career planning Process in which individuals evaluate their
abilities and interests, consider alternative career opportunities,
establish career goals, and plan practical development activities.
career stages The periods in which an individual's work life is
characterized by specific needs, concerns, tasks, and activities.
career management The process of implementing organizational
career planning.
entry stage (exploration stage) Characterized by self-
examination, role tryouts, and occupational exploration.
establishment stage(settling-down stage) Stage in which the
individual gets more recognition for improvement.
exit (withdrawal) stage Characterized by a pattern of decreasing
performance as individuals prepare to move on or retire.
human resource planning Forecasting the organization's human
resource needs, developing replacement charts (charts showing
planned succession of personnel for all levels of the organization),
and preparing inventories of the skills and abilities individuals
need to move within the organization.
job hopping Occurs when an individual makes fewer adjustments
within the organization and moves to different organizations to
advance his or her career.
mastery stage The stage where individuals develop a stronger
attachment to their organizations and lose some career flexibility;
performance may vary.
mentoring Occurs when an older, more experienced person helps
a younger employee grow and advance by providing advice,
support, and encouragement.
occupation A group of jobs that are similar with respect to the
type of tasks and training involved.
trial stage (socialization stage) Stage in which individuals more
specifically explore jobs and performance begins to improve.