Middle Managers works at middle level

of the organization and are responsible for

major divisions or departments.
Ex: Business Unit Head (General
Manager, Administrator), Department
Manager (Product Line or Service Manager,
Information Services Manager)
Project Managers manager who is
responsible for a temporary work project
that involves people from various functions
and levels of the organization.
First-line Managers managers who are at
the first or second level of the hierarchy and
are directly responsible for overseeing
groups of production employees.
Ex: Functional Head (Production,
Sales, R&D Supervisor, IT, HRM,
Accounting Supervisor), Team Leaders and
Non-managerial employees (Line jobs, Staff
jobs)
Functional Managers responsible for a
department that performs a single functional
task, such as finance or marketing.
General Mangers - responsible for several
departments that perform different
functions.

Chapter 1
Management the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, leading and controlling
organizational resources.
Planning concerned with defining goals
for future performance and how to attain
them.
Organizing - assigning tasks, grouping
tasks into departments, and allocating
resources.
Leading using influence to motivate
employees to achieve the organizations
goals.
Controlling monitoring employees
activities, keeping the organization on track
toward meeting its goals and making
corrections necessary.
Conceptual cognitive ability to see
organization as a whole
Human managers ability to work with
other people and to work effectively as a
part of a group.

Chapter 2

Technical understanding of and

proficiency in the performance of specific
tasks.

Classical Perspective rational, scientific

approach to management and sought to turn
organization into efficient operating
machines.

Top Managers the one who is at the apex

of the organizational hierarchy and is
responsible for the entire organization.

Subfields of Classical Perspective

Ex: CEO, Corporate/Group Head,

Vice President of Administration

1. Scientific Management
emphasizes scientifically

3. Administrative Principle
focuses on the total organization
rather than the individual worker
and delineates the management
functions of planning,
organizing, commanding,
coordinating, and controlling.
Henri Fayol major contributor
to the administrative principle
approach.
14 Principles of Management
1. Division of Work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6. Subordination of Individual
Interest
7. Remuneration
8. The Degree of Centralization
9. Scalar Chain
10. Order
11. Equity
12. Stability of Tenure of
Personnel
13. Initiative
14. Esprit de Corps
Humanistic Perspective emphasized
understanding human behavior, needs, and
attitudes in the workplace.
Mary Follett and Chester Bernard
early advocates of humanistic approach.
Follett emphasized worker participation
and empowerment, shared goals, and
facilitating rather than controlling
employees.
Bernards contribution include the
acceptance theory of authority

determined changes in
management practices as the
solution to improving labor
productivity.
Frederick Winslow Taylor the father of scientific management
2. Bureaucratic Organization
emphasizes management on an
impersonal, rational basis
through elements clearly defined
authority and responsibility,
formal recordkeeping, and
separation of management and
ownership.
Max Weber introduced most
of the concepts about
bureaucratic organizations.
Characteristics of Bureaucratic
Organizations
1. Division of Labor, with clear
definitions of authority and
responsibility.
2. Positions organized in a
hierarchy of authority.
3. Managers subject to rules and
procedures that will ensure
reliable, predictable behavior.
4. Management separate from
ownership of the
organization.
5. Administrative acts and
decisions are recorded in
writing
6. Personnel selected and
promoted based on technical
qualifications.

decision making, particularly for complex

problems.
Three Subsets of Management Science
Operation Research consists of
mathematical model building and other
applications of quantitative techniques to
managerial problem.
Operations Management refers to
the field of management that specializes in
the physical production of goods and
services.
Information Technology often
reflected in management information
systems designed to provide relevant
information to managers in a timely and
cost-efficient manner.
Quants refers to financial managers and
others who base their decisions on complex
quantitative analysis.
System - a set of interrelated parts that
function as a whole to achieve a common
purpose.
Systems Thinking looking not just at
discrete parts of an organizational situation,
but also at the continually changing
interactions among the parts.
Subsystems parts of a system that depend
on one another for their functioning.
Synergy the whole is greater than the sum
of its parts.
Contingency View tells managers that
what works in one organizational situation
might not work with others.

Human Relations Movement stresses the

satisfaction of employees basic needs as the
key to increased productivity.
Hawthorne Studies important in shaping
ideas concerning how managers should treat
workers.
Human Resources Perspective suggests
that jobs should be designed to meet
peoples higher-level needs by allowing
employees to use their full potential.
Abraham Maslow and Douglas
McGregor best known contributor in
human resource perspective.
-

Abraham Maslow suggested a

hierarchy of needs that starts with
physiological needs and progressed
to safety, belongingness, esteem, and
self-actualization needs.

Douglas McGregor formulated

Theory X and Theory Y, wherein
theory X believes that an average
human being dislikes work and will
avoid it if possible while theory Y
assumes that a human being likes
work.

Behavioral Sciences - draws from

psychology, sociology, and other social
sciences to develop theories about human
behavior and interaction in an organizational
setting.
Management Science also called
quantitative perspective, uses mathematics,
statistical techniques, and computer
technology to facilitate management

General Environment indirectly

influences all organizations within an
industry and includes six dimensions.
6 Dimensions
1. International represents
events originating in foreign
countries, as well as
opportunities for US companies
in other countries.
2. Technological includes
scientific and technological
advances in society.

Total Quality Movement focuses on

managing the total organization to deliver
quality to customers.
W. Edwards Deming father of the
quality movement.
4 elements of TQM
1. Employee Involvement means
that achieving better quality
requires companywide
participation in quality control.
2. Focus on the customers

3. Sociocultural includes
demographic characteristics,
norms, customs, and values of a
population within which the
organization operates.

3. Benchmarking process where

by companies find out how
others do something better than
they do and then try to imitate of
improve it.

4.

1. Continuous Improvement
implementation of small,
incremental improvements in all
areas of the organization on an
ongoing basis.

Economic represents the

general economic health of the
country or region which the
organization operates.

5. Legal-Political includes
government regulations at the
local, state, and the federal
levels, as well as political
activities designed to influence
companys behavior.
6. Natural includes all elements
that occur naturally on Earth.
Task Environment includes sectors that
conduct day-to-day transaction with the
organization and directly influence its basic
operations and performance.
Part of the Task Environment

Chapter 3
Organizational Environment consists of
both general and task environments,
includes all elements existing outside the
boundary of the organization that have the
potential to affect the organization.
Organizational System includes
organizations in all the sectors of the task
and general environments that provide the
resource and information transactions, flow,
and linkages necessary for an organization
to thrive.

Achievement results-oriented
culture that values competitiveness, personal
initiative, and achievement.
Involvement emphasizes an
internal focus on the involvement and
participation of employees to adapt rapidly
to changing needs from the environment.
Consistency values and rewards a
methodical, rational, orderly way of doing
things.
Cultural Leaders define and articulate
important values that are tied to a clear and
compelling mission, which they
communicate widely and uphold through
their actions.

Chapter 4
Globalization refers to the extent to which
trade and investments, information, ideas,
and political corporation flow between
countries.
Multinational Corporation an
organization that receives more than 25% of
its total sales revenues from operation
outside the parent companys home country
and has a number of distinctive managerial
characteristics.
Bottom of the Pyramid proposes that
corporations can alleviate poverty and other
social ills, as well as make significant
profits, by selling to the worlds poor.
Market Entry Strategies various tactics
that managers use to enter foreign countries.
Global Outsourcing also called as
offshoring, means engaging in the

Customers includes people and

organizations that acquire goods or services
from the organization.
Competitors organizations within
the same industry or type of business that
vie for the same set of customers.
Suppliers provide the raw
materials the organization uses to produce
its output.
Labor Market represents the
people available for hire by the organization.
Internal Environment elements within
the organizations boundaries.
Culture set of key values, beliefs,
understandings, and norms shared by
members of an organization.
Symbol an object, act, or event that
conveys meaning to others.
Story a narrative based on true events and
is repeated frequently and shared among
organizational employees.
Hero a figure who exemplifies the deeds,
character, and attributes of a strong culture.
Slogan phrase or sentence that succinctly
expresses a key corporate value.
Ceremonies a planned activity at a special
event that is conducted for the benefit of an
audience.
Types of Corporate Culture
Adaptability is characterized by
values that support the companys ability to
interpret and translate signals from the
environment into new behavior responses.

Political Instability includes events such

as riots, revolutions, or government
upheavals that can affect the operations of
an international company.
Ethnocentrism natural tendency among
people to regard their own culture as
superior to others.
Power Distance degree to which people
accept inequality in power among
institutions, organizations, and people.
Uncertainty Avoidance characterized by
peoples intolerance for uncertainty and
ambiguity and resulting support for beliefs
that promise certainty and conformity.
Individualism refers to a preference for a
loosely knit social framework in which
individuals are expected to take care of
themselves.
Collectivism refers to a preference for a
tightly knit social framework in which
individuals look after one another and
organizations protect their members
interests.
Masculinity a cultural preference for
achievement, heroism, assertiveness, work
centrality, and material success.
Femininity - a cultural preference for
relationships, cooperation, group decision
making, and quality of life.
GLOBE Project Value Dimensions
1. Assertiveness high
assertiveness means a society
encourages toughness and
competitiveness while low

international division of labor so as to obtain

the cheapest sources of labor and supplies,
regardless the country.
Exporting a market entry strategy in
which a company maintains production
facilities within its home country and
transfers products for sale in foreign
countries.
Licensing - a market entry strategy in which
a corporation (the licensor) in one country
makes certain resources available to
companies in another country (the licensee).
Franchising a form of licensing in which
a company provide its foreign franchises
with a complete package of materials and
services.
Direct Investing a market entry strategy
in which the organization is directly
involved in managing its production
facilities in a foreign country.
Joint Venture a market entry strategy in
which an organization shares costs and risks
with another firm in a foreign country to
build a facility, develop new products, or set
up a sales and distribution network.
Wholly owned foreign affiliate a foreign
subsidiary over which an organization has
complete control.
Greenfield Venture a company builds a
subsidiary from scratch in a foreign country.
Political Risk refers to a companys risk
of loss on assets, earning power, or
managerial control due to politically based
events or actions by host governments.

5 Approaches in Ethics
1. Utilitarian says that ethical choice
is the one that produces the greatest
good for the greatest number.

assertiveness means that people

value tenderness and concern for
others.

2. Individualism contends that acts

are moral when they promote the
individuals long-term interests.

2. Future Orientation refers to

the extent to which a society
encourages and rewards planning
for the future over the short-term
results and quick gratification.

3. Moral-Rights asserts that human

beings have fundamental rights and
liberties that cannot be taken away
by an individuals decisions.

3. Gender Differentiation refers

to the extent to which a society
maximizes gender role
differences.

4. Justice holds that moral decisions

must be based on equity, fairness and
impartiality.
Types of Justice Approach
a. Distributive requires
that different treatment of
people not be based on
arbitrary characteristics.
b. Procedural holds that
rules should be clearly
stated and consistently
and impartially enforced.
c. Compensatory argues
that individuals should be
compensated for the cost
of injuries by the party
responsible.

1. Performance Orientation a
society with a high performance
orientation places huge emphasis
on the performance and rewards
people for performance
improvements and excellence. A
low performance orientation
means people pay more attention
to loyalty, belongingness, and
background.

Practical sidesteps debates about

what is right, good, or just, and based
on prevailing standards of the
profession and the larger society,
taking the interests of all
stakeholders into account.

3 Levels of Personal Moral Development

2. Humane Orientation degree

to which a society encourages
and rewards people for being
fair, altruistic, generous, and
caring.

Chapter 5
Ethics code of moral principles and values
that governs the behavior of a person or
group with respect to what is right or wrong.
Ethical Dilemma a situation in which all
alternative choices or behaviors have
potentially negative consequences.

Chapter 6
Entrepreneurship process of initiating a
business, organizing the necessary
resources, and assuming the associated risks
and rewards.
5 Types of Small Business Owners
1. Idealists rewarded by chance to
work on something new and creative
2. Optimizers get personal
satisfaction from being business
owners.
3. Hard workers thrive on the
challenge of building a larger, more
profitable business.
4. Jugglers high-energy people who
enjoy handling every detail of their
own businesses.
5. Sustainers enjoy chance to
balance work and personal life.
Characteristics of Entrepreneurs

Autonomy

Entrepreneurial Struggle

Power and Influence

High-Energy

Self-confidence

Need to achieve means that

entrepreneurs are motivated to excel
and pick situations in which success
is likely.

Pre-conventional follows rules to

avoid punishment.
Conventional Lives up to
expectations of others.
Post-conventional follows selfchosen principles of justice and right.
Corporate Social Responsibility refers to
the obligation of organizational managers to
make choices and take actions that will
enhance the welfare and interests of society,
as well as the organization.
Stakeholders refers to any group or
person within or outside the organization
that has some type of investment or interests
in the organizations performance.
Stakeholder mapping provides a
systematic way to identify the expectations,
needs, importance, and relative power of
various stakeholders.
Sustainability refers to economic
development that generates wealth and
meets the needs of current population while
preserving society and the environment for
the needs of future generations.
Code of Ethics a formal statement of the
organizations values regarding ethics and
social issues.
Ethics Committee a group of executives
charged with overseeing company ethics by
ruling on questionable issues and
disciplining violators.
Whistle-blowing employee disclosure of
illegal, unethical, or illegitimate practices on
the employers part.

Crowdfunding a way of raising capital

that involves getting small amount of money
from a large number of investors, usually
using social media or the Internet.

Tolerance for Ambiguity is the

psychological characteristic that
allows a person to be untroubled by
disorder and uncertainty.

Franchising an arrangement by which the

owner of a product allows others to purchase
the right to distribute the product or service
with help from the owner.

Social Entrepreneur an entrepreneurial

leader who is committed to both good
business and changing the world for the
better.

Business Incubators help start-up

companies by connecting them with a range
of experts and mentors who nurture them,
thus increasing their likelihood of success.

Business Plan a document specifying the

details of the business.

Chapter 7
Goal a desired future state that the
organization wants to realize.
Plan a blueprint specifying the resource
allocation, schedules, and other actions
necessary for attaining goals.
Levels of Goals and Plans
1. Mission Statement a broadly
stated definition of the organizations
basic business scope and operations
that distinguishes it from similar
types of organizations.
a. Mission the organizations
reason for existence.
2a. Strategic Goals broad statements
of where the organization wants to be in
the future and pertain to the organization
as a whole rather than to specific
divisions or departments.
2b. Strategic Plan the actions steps by
which an organization intends to attain in
strategic goals.

Sole Proprietorship an unincorporated

for-profit business owned by an individual.
Partnership formed when two or more
people choose to own an unincorporated
business.
Corporation an artificial entity created by
the state and existing apart from its owners.
Debt Financing involves borrowing
money, such as from friends, family, or a
bank, that has to be repaid at a later date in
order to start a business.
Angel Financing occurs when a wealthy
individual who believes in the idea for a
start-up provides personal funds and advice
to help the business get started.
Equity Financing consists of funds that
are invested in exchange for ownership in
the company.
Venture capital firm a group of
companies or individuals that invests money
in new or expanding businesses for
ownership and potential profits.

Single-use Plans plans that are developed

to achieve a set of goals that are unlikely to
be repeated in the future.
Standing Plans ongoing plans that are
used to provide guidance for tasks that occur
repeatedly in the organization.
Contingency Planning identifies
important factors in the environment and
defines range of alternative responses to be
taken in the case of emergencies, setbacks,
or unexpected conditions.
Scenario Building involves look at
current trends and discontinuities and
visualizing future possibilities.
Decentralized planning means that top
executives or planning experts work with
managers in major divisions or departments
to develop their own goals and plans.
Stretch Goals reasonable yet highly
ambitious and compelling goals that
energize people and inspire excellence.
Intelligence Team a cross-functional
group of people who work together to gain a
deep understanding of a specific competitive
issue and offer insight and recommendations
for planning.

Chapter 8
Strategic Management refers to the set of
decisions and actions used to formulate and
implement strategies that will provide a
competitively superior between the
organization and its environment so as to
achieve organizational goals.

3a. Tactical Goals outcomes that

major divisions and departments must
achieve for the organization to reach its
overall goals.
3b. Tactical Plans designed to help
execute major strategic plans and to
accomplish a specific part of the
companys strategy.
4a. Operational Goals specific,
measurable results that are expected
from departments, work groups, and
individuals.
4b. Operational Plans specify the
action steps toward achieving
operational goals and support tactical
activities.
Organization Planning Process
1. Develop a Plan
2. Translate the Plan
3. Plan Operations
4. Execute the Plan
5. Monitor and Learn
Strategy Map a visual presentation of the
key drivers of an organizations success.
Management by objectives a system
whereby managers and employees define
goals for every departments, project, and
person and use them to monitor subsequent
performance.
4 Steps in MBO
1. Set Goals
2. Develop Action Plans
3. Review Progress
4. Appraise overall performance

Strategic business unit - a division of the

organization that has a unique business,
mission, product or service line,
competitors, and markets relative to other
units of the same organization.
BCG Matrix a concept developed by the
Boston Consulting Group that evaluates
SBUs with respect to two dimensions;
business growth rate and market share.
4 Categories for Corporate Portfolio
1. Star has a large market share in a
rapidly growing industry.
2. Cash Cows exists in a slowgrowth industry but has a large
market shares.
3. Question Mark exists in a rapidly
growing industry but only has a
small market shares
4. Dog has a small market share in a
slow-growth industry.
Diversification strategy of moving into
new lines of business.
Related Diversification means moving
into a new business.
Unrelated Diversification refers to
expanding into totally new lines of business.
Vertical Integration expanding into
business that either provide the supplies
needed to make products or distribute and
sell the companys products.
Porters Competitive Strategies

Strategy the plan of action that describes

resource allocation and activities for dealing
with the environment, achieving a
competitive advantage, and attaining goals.
Competitive Advantage refers to what
sets the organization apart from others and
provides it with a distinctive edge in the
marketplace.
Core Competence is something that the
organization does particularly well in
comparison to others.
Corporate-level Strategy pertains to the
organization as a whole and the combination
of business units and products that make it
up.
Business-level strategy pertains to each
business unit or product line within the
organization.
Functional-level strategy pertains to the
major functional departments within each
business unit.
Strategy formulation the stage of
strategic management that includes the
planning and decision making that lead to
the establishment of the organizations goals
and a specific strategic plan.
SWOT Analysis an audit or careful
examination of strengths, weaknesses,
opportunities, and threats that affect
organizational performance.
Portfolio Strategy pertains to the mix of
SBUs and product lines that fit together in a
logical way to provide synergy and
competitive advantage.

Non-programmed Decision one made in

response to a situation that is unique, is
poorly defined and largely unstructured, and
has important consequences for the
organization.
Certainty a situation in which all the
information the decision maker needs is
fully available.
Risk means that a decision has clear-cut
goals and good information is available, but
the future outcomes associated with each
alternative are subject to chance.
Uncertainty occurs when managers know
which goals they want to achieve, but
information about alternatives and future
events is incomplete.
Ambiguity a condition in which the goals
to be achieved or the problem to be solved is
unclear, alternatives are difficult to define,
and information about outcomes is
unavailable.
Decision-Making Models
1. Classical Model based on the
assumption that managers should
make logical decisions that are
economically sensible and in the
organizations best economic
interest.
-

This model is normative, which

defines how a manager should make
logical decisions and provide
guidelines for reaching an ideal
outcome.

Differentiation a strategy with

which managers seek to distinguish the
organizations products and services from
those of others in the industry.
Cost Leadership a strategy with
which managers aggressively seek efficient
facilities, cut costs, and use tight cost
controls to be more efficient than others in
the industry.
Focus a strategy in which the
organization concentrates on a specific
regional market or buyer group.
Globalization Strategy product design
and advertising are standardized throughout
the world.
Multi-domestic Strategy means that
competition in each country is handled
independently.
Transnational - a strategy that combines
global coordination to attain efficiency with
local flexibility to meet needs in different
countries.

Chapter 9
Decision Making - the process of
identifying problems and opportunities and
then resolving them.
Decision a choice made from available
alternatives.
Programmed Decision one made in
response to a situation that has occurred
often enough to enable managers to develop
decision rules that can be applied in the
future.

Six Steps in Managerial Decision-Making

Process

Administrative Model includes

the concepts of bounded rationality
and satisficing and describes how
managers should make decisions in
situations that are characterized by
uncertainty and ambiguity.

This model is descriptive, which is

an approach that describes how
managers actually make decisions.

1. Recognition of Decision
Requirement
2. Diagnosis and Analysis of
Causes
3. Development of Alternatives
4. Selection of Desired
Alternatives

a. Bounded Rationality
people have the time and
cognitive ability to process
only a limited amount of
information on which to base
decisions.

5. Implementation of Chosen
Alternative
6. Evaluation and Feedback

b. Satisficing choosing the

first alternative that satisfies
minimal decision criteria,
regardless of whether better
solutions are presumed to
exist.

Chapter 10
Organizing refers to the deployment of
organizational resources to achieve strategic
goals.
Organization Structure defined as the
framework in which the organization defines
how tasks are divided, resources are
deployed, and departments are coordinated.

c. Intuition quick
comprehension of a decision
situation based on past
experience but without
conscious thought.

Organization Chart the visual

presentation of an organizations structure.
Work Specialization also called as
division of labor, is the degree to which
organizational tasks are subdivided into
individual jobs.
Chain of Command an unbroken line of
authority that links all individuals in the
organization and specifies who reports to
whom.

Political Model useful for making

nonprogrammed decisions when
conditions are uncertain, information
is limited, and there are manager
conflicts about what goals to pursue.
d. Coalition an informal
alliance among managers
who support a specific goal.

Approaches to Departmentalization
1. Functional groups employees into
departments based on their skills.
2. Divisional groups employees and
departments based on similar
organizational outputs.
3. Matrix uses both functional and
divisional chains of command
simultaneously, in the same part of
the organization.
a. Two-boss employees
employees that report to two
supervisors simultaneously.
b. Matrix boss a functional
and product supervisor
responsible for one side of
the matrix.
a. Top Leader oversees both
the product and functional
chains of command and is
responsible for the entire
matrix.

Authority the formal and legitimate right

of a manager to make decisions, issue
orders, and allocate resources to achieve
outcomes desired by the organization.
Accountability people with authority and
responsibility are subject to reporting and
justifying task outcomes to those above
them in the chain of command.
Responsibility the duty to perform the
task or activity that one has been assigned.
Delegation transferring of authority and
responsibility to positions below them.
Line Authority formal power to direct
and control immediate subordinates.
Staff Authority right to advise, counsel,
and recommend in the managers area of
expertise.
Span of Management number of
employees reporting to a supervisor.
Tall Structure overall narrow span of
management and a relatively large number
of hierarchal levels.

1. Team-based the entire

organization is made up of horizontal
teams that coordinate their activities
and work directly with customers to
accomplish organizational goals.

Flat Structure overall broad span of

management and a relatively few number of
hierarchal levels.

2. Virtual Network the organization

subcontracts most of its major
functions to separate companies and
coordinates their activities from a
small headquarters organization.

Centralization decision authority is

located near top organizational levels.

Cross-functional teams group of

employees from various functional

Decentralization decision authority is

pushed down to lower organizational levels.

Departmentalization basis for grouping

individual positions into departments and
departments into the total organization.

Disruptive Innovation innovations in

products, services, or processes that
radically change competition in an industry.
Ambidextrous Approach means
incorporating structures and processes that
are appropriate for both the creative impulse
and the systematic implementation of
innovations.
Product Change a change in the
organizations product or services.
Technology Change a change in
production processes.
Creativity the generation of novel ideas
that may meet perceived needs or respond to
opportunities for the organization.
Idea Incubator organizational program
that provides a safe harbor where employees
can generate and develop ideas without
interference from company bureaucracy.
Open Innovation extending the search for
and commercialization of new ideas beyond
the boundaries of the organization.
Idea Champion a person who sees the
need for change and is passionately
committed to making it happen.
Roles in Organizational Change
1. Inventor comes up with a new
idea and understands its technical
value but has neither the ability nor
the interest to promote it for
acceptance within the organization.
2. Champion believes in the idea,
confronts the organizational realities

departments that meet as a team to resolve

mutual problems.
Permanent Teams group of employees
from all functional areas permanently
assigned to focus on a specific task.
Modular Approach a manufacturing
company uses outside suppliers to provide
entire chunks of a product, which are then
assembled into a final product by a handful
of workers.
Coordination refers to the managerial
task of adjusting and synchronizing the
diverse activities among different
individuals and departments.
Collaboration joint effort between people
from two or more departments to produce
outcomes that meet a common goal.
Task Force a temporary team or
committee formed to solve a specific shortterm problem involving several departments.
Reengineering refers to the radical design
of business processes to achieve dramatic
improvements in cost, quality, service, and
speed.
Relational Coordination refers to
frequent horizontal coordination and
communication carried out through ongoing
relationships of shared goals, shared
knowledge, and mutual respect.

Chapter 11
Organizational Change adoption of new
idea or behavior by an organization.

2. Changing occurs when individuals

experiment with new behavior and
learn new skills to be used in the
workplace.
3. Refreezing people have
incorporated the new values into
their everyday work and the changes
become institutionalized in the
culture.
Resistance to Change
1. Self-Interest
2. Lack of Understanding and Trust
3. Uncertainty
4. Different Assessments and Goals
Force-field analysis a technique for
determining which forces drive a proposed
change and which forces restrain it.
Driving Forces can be thought of as
problems or opportunities that provide
motivation for change within the
organization.
Restraining Forces various barriers to
change.
Implementation Tactics
1. Communication and Education
used when solid information about
the change is needed by users and
other who may resist
implementation.

of costs and benefits, and gains the

political and financial support
needed to bring it to reality.
3. Sponsor high-level manager who
approves the idea, protects the idea,
and removes organizational barriers
to acceptance.
4. Critics counterbalances the zeal of
the champion by challenging the
concept and providing a reality test
against hard-nosed criteria.
New-venture Team a unit separate from
the mainstream organization that is
responsible for initiating and developing
innovations.
Skunkworks a separate informal, highly
autonomous, and often secretive group that
focuses on breakthrough ideas.
New-venture Funds provides financial
resources from which individuals or team
can draw to develop new ideas.
People Change change in the attitudes,
and behaviors of the employees.
Culture Change major shift in the norms,
values, and mindset of the organization.
Organization Development a planned,
systematic process of change that uses
behavioral science techniques to improve an
organizations health.
OD Steps
1. Unfreezing stage in which people
are made aware of problems and the
need for change.

perform work from home or another remote

location.
Human resource planning forecasting of
human resource needs and the projected
matching of individuals with anticipated job
vacancies.
Recruiting activities or practices that
define the desired characteristics of
applicants for specific jobs.
Job analysis systematic process of
gathering and interpreting information about
the essential duties, tasks, and
responsibilities of a job.
On-the-job training an experienced
employee is asked to take a new employee
under his or her wing and show the
newcomer how to perform job duties.
Social Learning using social media tools
to network and learn informally.
Corporate University in-house training
and development facility that offers broadbased learning opportunities for employees.
Performance appraisal process of
observing and evaluating an employees
performance, recording the assessment, and
providing feedback.
360-degree feedback process that uses
multiple raters, including self-rating, as a
way to increase awareness of weaknesses
and strengths and guide employee
development.
Stereotyping performance evaluation
error that occurs when a manager places an
employee into a class or category.

2. Participation involves users and

potential resisters in designing the
change.
3. Negotiation a more formal means
of achieving cooperation.
4. Coercion means that managers use
formal power to force employees to
change.
5. Top Management Support
symbolizes to all employees that the
change is important in the
organization.

Chapter 12
Human Resource Management refers to
the design and application of formals
systems to ensure effective and efficient use
of human talent to accomplish
organizational goals.
Human Capital economic value of the
combined knowledge, experience, skills, and
capabilities of employees.
Strategic Human Resource Management
1. Find the Right People
2. Manage Talent
3. Maintain an effective workforce
Contingent Workers people who work
for an organization, but not on a permanent
or full-time basis.
Telecommuting means using computers
and telecommunications equipment to

Inclusion degree to which an employee

feels like an esteemed member of a group in
which his or her uniqueness is highly
appreciated.
Diversity of perspective achieved when a
manager creates a heterogeneous team made
up of individuals with diverse backgrounds
and skill sets.
Managing Diversity creating a climate in
which the potential advantages of diversity
for organizational performance are
maximized while the potential disadvantages
are minimized.
Prejudice tendency to view people who
are different as being deficient.
Discrimination occurs when someone
acts out their negative attitudes towards
people who are the targets of their prejudice.
Stereotype rigid, exaggerated, irrational
belief associated with a group of people.
Stereotype Threat occurs when a person
who, when engaged in a task, is aware of a
stereotype about his or her identity group
suggesting that he or she will not perform
well on that task.
Monoculture culture that accepts only one
way of doing things and one set of values
and beliefs.
Ethno-relativism belief that groups and
subcultures are inherently equal.
Pluralism an environment in which the
organization accommodates several
subcultures.

Halo effect occurs when a manager gives

an employees the same rating on all
dimensions of the job, even though
performance may be good on some
dimensions and poor on others.
Behaviorally Anchored Rating Scale a
performance evaluation technique that
relates an employees performance to
specific job-related incidents.
Compensation all monetary payments and
all non-monetary goods or benefits used to
reward employees.
Job Evaluation process of determining
the value of jobs within an organization
through an examination of job content.
Wage and salary surveys shows what
other organizations pay incumbents in jobs
that match a sample of key jobs selected by
the organization.
Pay-for-Performance also called
incentive pay means tying at least a portion
of compensation to employee effort and
performance.
Rightsizing also called downsizing, refers
to reducing companys workforce
intentionally to the point where the number
of employees is deemed right for the
companys current situation.
Exit Interview interview conducted with
departing employees to determine reasons
for their departure.

Chapter 13
Diversity all the ways in which employees
differ.

Employee affinity groups are based on

social identity and are organized by
employees to focus on concerns of
employees from that group.

Chapter 14
Self-efficacy individuals strong belief that
he or she can successfully accomplish a
specific task.
Self-confidence general assurance in ones
own ideas, judgement, and capabilities.
Self-awareness being conscious of the
internal aspects of ones nature and
appreciating how your patterns affect other
people.
Attitude cognitive and affective
evaluation that predisposes a person to act in
a certain way.
Job Satisfaction a positive attitude toward
ones job.
Organizational Commitment loyalty and
engagement with ones work organization.
Organizational Citizenship work
behavior that goes beyond job requirements
and contributes as needed to the
organizations success.
Cognitive Dissonance a psychological
discomfort that occurs when two attitudes or
an attitude and a behavior conflict.
Perception cognitive process that people
use to make sense out of the environment by
selecting, organizing, and interpreting
information.

Glass Ceiling an invisible barrier that

separates women and minorities from senior
management positions.
Cultural Competence ability to interact
effectively with people of different cultures.
Forms of Sexual Harassment
1. Generalized involves sexual
remarks and actions not intended to
lead to sexual activity.
2. Inappropriate/offensive causes
discomfort in a coworker.
3. Solicitation with promise of
reward treads a fine line as an
attempt to purchase sex.
4. Coercion with threat of
punishment the harasser coerces a
coworker into sexual activity by
using threat of power.
5. Sexual Crimes and misdemeanors
highest level of sexual harassment,
these act would be considered
felonies or misdemeanors.
Chief Diversity Officer role is to
spearhead diversity efforts and cultivate
working environments that help women and
minorities flourish.
Mentor higher-ranking senior of the
organization who is committed to provide
upward mobility and support to a protgs
professional career.
Multicultural teams made up of members
diverse national, racial, ethnic, and cultural
backgrounds.

5. Openness to experience degree to

which a person has a broad range of
interests.
Personality set of characteristics that
underlie a relatively stable pattern of
behavior.
Locus of Control whether an individual
places the primary responsibility for his
successes and failures within himself or on
outside forces.
Authoritarianism belief that power and
status differences should exist within an
organization.
Machiavellianism tendency to direct
ones behavior toward the acquisition of
power.
Emotion mental state that arises
spontaneously.
4 Basic Components of EQ
1. Self-awareness being aware of
what you are feeling.
2. Self-management ability to
control disruptive or harmful
emotions and balance ones mood.
3. Social Awareness ability to
understand others and practice
empathy.
1. Relationship Management ability
to connect to others, build positive
relationships, respond to the
emotions of others, and influence
others.

Perceptual Distortions errors in

perceptual judgement that result from
inaccuracies in any part of the perception
process.
Halo effect occurs when a perceiver
develops an overall impression of a person
or situation based on one characteristic,
either favorable or unfavorable.
Attributions judgements about what
caused a persons behavior.
Fundamental Attribution error tendency
to underestimate the influence of external
factors on another persons behavior and to
overestimate the influence of internal
factors.
Self-serving bias tendency to
overestimate the contribution of internal
factors to ones successes and the
contribution of external factor to ones
failures.
Big Five Personality Factors
1. Extroversion degree to which a
person is outgoing with interpersonal
relationships.
2. Agreeableness degree to which a
person is able to get along with other
by being understanding.
3. Conscientiousness - degree to which
a person is focused on a few goals.
4. Emotional stability degree to
which a person is calm.

Humility - being
unpretentious and modest.

1. Servant Leader - leader who

serves other by working to fulfil
followers needs and goals, as
well as to achieve the
organizations larger mission.
2. Authentic Leadership leadership by individuals who
know and understand themselves.
3. Interactive leadership leadership style characterized by
values such as inclusion,
collaboration, relationship
building, and caring.
Traits - distinguishing personal
characteristics.
Strengths - natural talents and abilities that
have been supported and reinforced with
learned knowledge.
Leadership Grid - two-dimensional
leadership model that measures the leaders
concern for people and concern for
production.
1. Team Management - most effective
style and recommended for leaders
because organization members work
together to accomplish tasks.
2. Country Club - primary emphasis is
given to people rather than to work
outputs.
3. Authority-Compliance - occurs when
efficiency in operations is the dominant
orientation.

Stress physiological and emotional

response to stimuli that place physical or
psychological demand on an individual.
Type A behavior includes extreme
competitiveness, impatience, aggressiveness
and devotion to work.
Type B behavior includes more balanced,
relaxed approach to life.
Combat Stress
1. Seek and destroy key sources of
stress.
2. Find meaning and support
3. Meditate and manage your energy
4. Find work-life balance
Role ambiguity uncertainty about what
behavior are expected for a person in a
particular role.
Role conflict incompatible demands of
different roles.

Chapter 15
Leadership - the ability to influence people
toward the attainment of organizational
goals.
4 Approaches in Leadership
1. Level 5 - characterized by an
almost complete lack of ego
(humility), coupled with a fierce
resolve to do what is best for the
organization (will).

Transformational Leader - distinguished

by a special ability to bring innovation and
change.
Transactional Leader - clarifies
subordinates roles and task requirements,
initiates structure, provides rewards, and
displays consideration for followers.
Critical Thinking - thinking independently
and being mindful of the effects of ones
behavior on achieving goals.
Uncritical Thinking - failing to consider
the possibilities beyond what one is told.
Effective Follower - critical, independent
thinker who actively participates in the
organization.
Alienated Follower - person who is an
independent thinker but is passive in the
organization.
Conformist - active in the organization but
does not use critical thinking skills.
Passive follower - exhibits neither critical
thinking skills nor active participation.
Pragmatic Survivor - has qualities of all
four following styles, depending on which
fits the prevalent situation.
Power - potential ability to influence the
behavior of others.
Influence - effect of persons actions have
on attitudes of others.
Legitimate Power - power that stems from
a managers formal position in an
organization.

4. Middle-of-the-road - moderate amount

of concern for people and production.
5. Impoverished - the absence of a
management philosophy.
Contingency Approach - model of
leadership that describes the relationship
between leadership styles and specific
situations.
Situational Model - links the leaders
behavioral with the readiness level of
followers.
1. Directing Style - leaders use this style
when followers have low ability and low
willingness.
6. Coaching Style - use this style when
followers have low ability but high in
willingness.
7. Supporting Style - when followers have
high ability but low in willingness.
8. Entrusting Style - followers have high
ability and willingness.
Substitute for Leadership - situational
variable that makes leadership style
redundant.
Neutralizer - situational variable that
counteracts a leadership style and prevents
the leader from displaying certain behaviors.
Charismatic leader - leader who has the
ability to inspire and motivate people to
transcend their expected performance.

Belongingness - reflect the desire to

be accepted by ones peers, have friendships,
be part of a group, and be loved.
Esteem - desire for a positive selfimage and to receive attention, recognition,
and appreciation from others.
Self-Actualization - includes the
need for self-fullfillment.
ERG Theory - modification of the needs
hierarchy.
Existence needs - for physical well-

Reward power - results from the authority

to bestow rewards.
Coercive power - stems from the authority
to punish or recommend punishment.
Expert power - results from a leaders
special knowledge or skill in the tasks
performed by subordinates.
Coherent power - results from
characteristics that command subordinates
identification with, respect and admiration
for, and desire to emulate the leader.

being.

Chapter 16

Relatedness needs - for satisfactory

relationship with others.

Motivation - arousal of enthusiasm and

persistence to pursue a certain course of
action.

Growth needs - focus on the

development of human potential and the
desire for personal growth and increased
competence.

Intrinsic Rewards - satisfactions that a

person receives in the process of performing
a particular action.

Frustration-regression principle - the idea

that failure to meet a high-order need may
cause regression to an already satisfied
lower-order need.

Extrinsic Rewards - given by another

person, such as a manager, and include pay
increases, promotions, and praise.

Two-factor Approach

Content Theories - emphasizes the needs

that motivate people.

Hygiene factors - focuses on lowlevel needs and involves the presence or

absence of job dissatisfiers.

Hierarchy of Needs - proposes that people

are motivated by multiple needs and that
these needs exist in hierarchal order.

Motivators - influences job

satisfaction based on fulfilling higher-level
needs.

Physiological - most basic human

needs.
Safety - includes safe and secure
physical and emotional environment and
freedom of threats.

Behavior modification - set of techniques

by which reinforcement theory is used to
modify human behaviour.
Law of effect - positively reinforced
behavior tends to be repeated or negatively
reinforced behavior tend to be inhibited.
Positive reinforcement - administration of a
pleasant and rewarding consequences
following a desired behavior.
Avoidance Learning - removing of
unpleasant consequence once a behavior is
improved.
Punishment - imposition of an unpleasant
outcome following an undesirable behavior.
Extinction - withholding positive rewards
and essentially ignoring an undesirable
behavior.
Social Learning Theory - individuals
motivation can result from thoughts, beliefs,
and observations of others behavior.
Vicarious Learning - individual sees others
perform certain behaviors and get rewarded
with them.

Process Theories - explains how people

select behaviours with which to meet their
needs and determine whether their choices
were successful.
Goal-setting theory - proposes that
managers can increase motivation and
enhance performance by setting specific
goals and helping people track their progress
toward goal achievement by providing
timely feedback.
Goal Specificity - degree to which
goals are concrete and unambiguous.
Goal Difficulty - hard goals are
more motivating than easy ones.
Goal Acceptance - employees have
to buy into the goals and be committed to
them.
Equity Theory - focuses on individuals
perception of how fairly they are treated
relative to others.
Expectancy theory - motivation depends on
individuals expectation about their ability to
perform tasks and receive desired rewards.

Job Design - applying motivational theories

to the structure of works.

E to P - expectancy that putting

effort into a given task will lead to high
performance.

Job Enrichment - incorporating high-level

motivators into the work.

P to O - high performance will lead

to the desired outcome.

Work Redesign - altering jobs to increase

both the quality of employees work
experience and their productivity.

Valence - value of outcomes of the

individuals.

Job Characteristics Model - model of job

design that considers core job dimensions.

Reinforcement Theory - based on the

relationship between a given behavior and
its consequences.

Chapter 18

Chapter 17

Team - unit of two or more people who

interacts and coordinate their work to
accomplish a goal.

Communication - process by which

information is exchanged and understood.

Social Facilitation - tendency for the

presence of other people to influence an
individuals motivation and performance.
Functional Team - composed of managers
and subordinates in the formal chain of
command.
Cross-functional Teams - made up of
employees from different areas of expertise
with the same hierarchal level.
Special Purpose team - team created
outside the formal structure to undertake a
project of special importance.
Self-managed teams - consists of
multiskilled employees who rotates jobs to
produce an entire product or service.
Styles in Handling Conflict
1. My Way (Dominating)
9. Our Way (Collaborating)
10.

Your Way (Accommodating)

11.

No Way (Avoiding)

12.

Halfway (Compromising)

Negotiation - conflict management strategy

wherein people engage in give-and-take
discussions.
Integrative - collaborative approach that is
based on a win-win assumption.

Message - tangible formulation of an idea.

Channel - medium by which a message is
sent.
Feedback - occurs when the receiver
responds to the senders message.
Centralized Network - communication
structure in which team members
communicate through single individual.
Decentralized Network - team members
freely communicate with one another.
Channel Richness - amount of information
that can be transmitted during a
communication period.
Communication Apprehension individuals level of fear associated with
interpersonal communication.
Listening - skill of grasping both facts and
feelings to interpret messages genuine
meaning.
Nonverbal Communication communication through actions.
Downward Communication - from top
management to subordinates.
Upward Communication - from lower to
higher levels of hierarchy.
Horizontal Communication - exchange of
messages among peers or coworkers.

contribute to improving short and long-term

financial performance.
Customer Service - measures
information such as how customers view the
organization.
Internal Business Process - focus
on production and operating statistics.
Potential Learning and growth focusing on how well resources and human
capital are being managed for the companys
future.
Six Sigma - quality control approach that
emphasizes a relentless pursuit of higher
quality and lower cost.

Distributive - competitive and adversarial

approach in which each party strives to get
as much as it can.

Chapter 19
Organisational Control - systematic
process through which managers regulate
organisational activities to meet planned
goals.
Balanced Scorecard - comprehensive
management control system that balances
traditional financial measures with
operational measures relating to a
companys critical success factors.
Financial Performance - reflects a
concern the organisations activities