Management Workshop Glossary: Key Terms & Concepts
Management Workshop Glossary
Key Terms and Concepts
Management
The process of designing and maintaining an internal environment in which a group of individuals can work together to meet specific objectives efficiently. Coordinated activities to direct and control an organization.
System
A set of interrelated and interacting elements.
Management System
Allows for setting policies and objectives, and provides a framework for achieving them.
Organizations
Systems of human cooperation and coordination within defined limits, working together to pursue established goals and objectives.
Goal
Formulations that set the desired future state that an organization strives to achieve.
Effectiveness
The extent to which planned activities are realized and results are achieved.
Efficiency
The relationship between results and the resources used to achieve them.
Diplomacy
Managing international relations through negotiation and ambassadors.
Paradiplomacy
Relationships and external connections at the regional level, extending beyond national borders, within a framework of communication and cooperation.
Globalization
The creation of ICT has enabled the birth of globalization, driven by technological advancements and the rapid transfer of information.
Competitive Strategy
According to Porter, these are offensive or defensive actions taken by a company to create a defensible position within an industry, considering the five competitive forces (new entrants, existing competitors, supplier power, buyer power, and substitute products).
ICT (Information and Communications Technology)
The use of computers to store, process, and disseminate information for various purposes.
RI (International Relations)
A multidisciplinary field that studies the interaction between states and the functioning of international systems as a whole, encompassing aspects such as international political economy.
Digital Divide
The inequality between nations that have access to technology and infrastructure, and those that do not, including disparities within nations regarding internet access and digital literacy.
Invisible Continent
As described by Kenichi Ohmae, this concept, emerging with the launch of Microsoft Windows version 1 by Bill Gates in 1985, encompasses four dimensions: visible, borderless, cyber, and high-multiplier. These dimensions represent the interconnected and dynamic nature of the global economy.
Innovation
Gary Hamel argues that in the new economy, benefits accrue to a distinguished business model encompassing: A) Basic Strategy, B) Statistical Resources, C) Value Network, and D) Customer Interface. These elements are interconnected and contribute to a company’s overall success.
Wheel of Innovation
According to Gary Hamel, this model supports innovation by distinguishing between process and capacity.
Strategic Map
Developed by Kaplan and Norton, this balanced scorecard perspective focuses on learning, process, customer, and finance, translating strategy into aligned action.
KPI (Key Performance Indicator)
A metric that helps monitor progress towards a performance target.
BSC (Balanced Scorecard)
An integrated and balanced strategic measurement system that provides a current and future direction for the company, translating vision into action through a set of indicators grouped into four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.
WCC (Weekly Control Cycle)
A display board showcasing variables affecting profitability, helping managers monitor target compliance and enabling proactive decision-making (e.g., expenditures, sales, costs, productivity, training, customer satisfaction).
Administration
The process of getting things done through planning, organization, delegation, integration of personnel, direction, and control, creating and maintaining an environment where individuals can thrive.
Leadership
Characteristics of an individual that generate commitment and credibility, inspiring those around them. A leader utilizes their abilities, direction, actions, and opinions effectively.
Technology
The application of scientific knowledge and practical tasks organized by ordered systems that include people, organizations, living organisms, and machines.
Competitive Advantage
A distinct feature that allows a company to outperform competitors and achieve success. These advantages are often categorized as price, quality, or time-based.
Comparative Advantage
The relative difference in costs between countries in producing a good or service.
Model
An abstract representation of a real-world system, designed for a specific purpose, highlighting relevant aspects at an appropriate level of detail.
Value Network
A fast, flexible, and customer-centric network. It connects high-performing entities with customers and suppliers through information flows, focusing on meeting actual demand. This dynamic system resembles the traditional supply chain but prioritizes value creation for all stakeholders.
Process
A series of activities or events that occur in a specific sequence to achieve a predetermined goal.
Competitiveness
The ability to generate increased production or consumer satisfaction at the lowest possible cost, driven by productivity.
Productivity
The ratio between output from a production or service system and the resources used to obtain it. It can also be defined as the ratio between results and the time taken to achieve them.
Planning
Actions taken to develop plans and projects of various types. The planning process involves a series of steps, utilizing different expressions and tools.
Centralization
The process of concentrating decision-making authority at the highest levels of an organizational hierarchy.
Decentralization
The transfer of power and decision-making to peripheral units of an organization.
To Undertake
A planned and purposeful act of thought, driven towards clear objectives. It is a functional and creative act of the human mind, involving the conception, incubation, and proactive execution of ideas.
Control
The process of measuring performance and taking corrective actions to ensure that organizational objectives and plans are achieved.
Quality
An inherent property of something that allows for comparison with similar entities.
Motivation
The driving force within an individual that compels them to pursue a particular means of satisfying a need, leading to increased effort and action.
Address
Coordinating the efforts of subordinates to achieve organizational goals through cooperation, motivation, and supervision.
Leadership (Alternative Definition)
An attempt to exert interpersonal influence through communication to achieve one or more goals. Leadership involves influencing others, such as employees or followers, who are willing to accept the leader’s guidance.
Leader
The process of influencing and supporting others to work enthusiastically towards common goals. It involves initiative, management, convening, promoting, encouraging, motivating, and evaluating a group or team.
Manager
A descriptive term for certain executives in a business context. It can also be a formal title, with responsibilities varying across industries.
Strategy (Alternative Definition)
Maintaining a unique advantage over competitors requires sustained effort. Business strategy involves the long-term management of this differentiation, creating a unique and valuable position through a distinct set of activities.
Invisible Continent (Detailed Explanation)
A dynamic and interconnected global landscape with four dimensions: 1) Visible – traditional business activities; 2) Unlimited – a borderless world of capital flow; 3) Cyber – technology and communication transforming interactions; 4) High-multiplier – financial leverage in the new economy. These forces create a complex interplay between businesses and nations.
Globalization (Detailed Explanation)
Primarily an economic process characterized by the increasing integration of national economies into a single global market. While often associated with international organizations like the WTO, IMF, and World Bank, globalization is largely an autonomous and spontaneous process driven by economic growth, technological advancements, and human connectivity.
BSC (Alternative Definition)
An integrated and balanced approach to strategic measurement, providing current and future direction for a company by translating vision into action through a set of indicators grouped into four perspectives. It aims to complement traditional financial indicators with non-financial measures.
Profitability
The ratio between capital invested and the net benefits generated by that investment.
Differences Between Management and Administration
Administration focuses on effectively managing activities, efforts, and resources for organizational survival and growth. Managing service quality involves administrative efficiency and objective fulfillment.
Competitive Advantage (Alternative Definition)
A differentiating factor that allows a company to gain a competitive edge and outperform rivals. These advantages are often classified as price-based, quality-based, or time-based.
Comparative Advantage (Alternative Definition)
The relative cost advantage one country has over another in producing goods or services.