Organizational Management: Concepts, Processes, and Tools

Reward: give or withhold rewards (salaries, bonuses)

Coercive: force compliance by means of emotional, physical threat, or psychologically (can lower their pay, it cannot work if they are not afraid)

Referent: personal power that accrues to someone based on identification, imitation, loyalty, or charisma.

Expert: derived from possession of information or expertise (solving something easily or quickly)

Charisma: interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader.

Charismatic leader: assumes that charisma is an individual characteristic of a leader

Strategic leadership: capability to understand the complexities of the organization and its environment, lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment.

Controller: position in the organization that helps line managers with their control activities.

Financial budget: sources and uses of cash. Cash income or expenditures monthly, weekly, daily, costs of major assets. Balance sheet, cash flow, capital expenditure.

Operating budget: anticipated expenses. Profit expense, sales or revenue. (planning operations in financial terms)

Non-monetary budget: hours of direct budget, number of units to be produced, labor, space, production. (planned operations in non-financial terms)

Strategic control: control aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals. Focuses on how effectively the organization’s strategies are succeeding in helping the organization meet its goals.

International strategic controls: focuses on whether to manage the global organization from a centralized or decentralized perspective.

Centralization: creates more control and coordination

Decentralization: fosters adaptability and innovation.

Bureaucratic control: form of organizational control characterized by formal and mechanistic structure arrangements.

Decentralized controls: approach to organizational control characterized by informal and organic structural arrangements.

TPS: application of information processing for basic day-to-day business transactions.

DSS: interactive system that locates and presents information needed to support the decision-making process.

ESS: quick reference, easy-access application of information systems, specifically designed for instant access by upper-level managers.

Team: interdependent group of workers that function as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities. Types: Self-managed, cross-functional, high-performance teams.

Role ambiguity: occurs when the sent role is unclear and the individual does not know what is expected from him.

Role conflict: when messages and cues comprising the sent role are clear but contradictory or mutually exclusive.

Role overload: when role expectations exceed an individual’s capacities.

Conflict: disagreement among two or more individuals or groups.

Socialization: norm conformity that occurs when a person makes the transition from being an outsider to being an insider in the organization.

Cohesiveness: extent to which members are loyal and committed to the group. The degree of mutual attractiveness within the group.

Negotiation: process in which two or more people or groups reach agreement on an issue even though they have different preferences regarding that issue.

Effective communication: received message is as close as possible in meaning to the message intended.

Data vs. information: Data is a raw fact and figures reflecting a single aspect of reality while information is data presented in a way or form that has meaning.

Oral communication: face-to-face, group discussion, phone calls, and other situations in which the spoken word is used to express meaning. Disadvantage: inaccuracy, no time for thought, consideration, no permanent record.

MISs: information system that supports an organization’s managers by providing daily reports, schedules, plans, and budgets.

Vertical communication: flows up and down the organization along formal reporting lines, between managers and their superiors and subordinates, may involve several different levels of the organization.

Horizontal: flows laterally, involves colleagues and peers at the same level of the organization and may involve individuals from different organizational units.

Artificial intelligence (AI): construction of computer systems, hardware, and software, to imitate human behavior to perform, learn.

Grapevine: informal communication network among people in an organization.

Audits: independent appraisal of an organization’s accounting, financial, and operational systems.

Organizational barriers: semantics, status or power differences, different perceptions, noise, overload, and language differences.

Intranet: communication network similar to the internet but operating within the boundaries of a single organization.