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BA7101- PRINCIPLES OF MANAGEMENT

GLOSSARY

1. Achievement-oriented Leadership: a leadership style in which the leader sets challenging goals, has
high expectations of employees, and displays confidence that employees will assume responsibility
and put forth extraordinary effort
2. Active Listening: assuming half the responsibility for successful communication by actively giving the
speaker non judgmental feedback that shows you've accurately heard what he or she said
3. Assemble-to-order: a manufacturing operation that divides manufacturing processes into separate
parts or modules that are combined to create semi-customized products
4. Attribution Theory: the theory that we al have a basic need to understand and explain that causes of
other people's behavior
5. Batch Production: a manufacturing operation that produces goods in large batches in standard lot
sizes
6. Coaching: communicating with someone for the direct purpose of improving the person's on-the-job
performance or behavior
7. Consideration: the extent to which a leader is friendly, approachable, and supportive and shows
concern for employees
8. Contingency Theory: a leadership theory that states that in order to maximize work group
performance, leaders must be matched to situation that best fits their leadership style
9. Communication: the process of transmitting information from one person or place to another
10. Communication Medium: the method used to deliver an oral or written message
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11. Component Parts Inventories: the basic parts used in manufacturing that are fabricated from raw
materials
12. Continuous-flow Production: a manufacturing operation that produces goods at a continuous, rather
than discrete, rate
13. Counseling: communication with someone about non-job-related issues that may be affecting or
interfering with person's performance
14. Cross-cultural Communication: transmitting information from a person in one country or culture to a
person from another country or culture
15. Customer Focus: an organizational goal to concentrate on meeting customers' needs at all levels of
organization
16. Degree of Dependence: degree to which an individual is dependent on the partner's actions and on
their joint activities
17. Diversity: a variety of demographic, cultural, and personal Differences among an organization's
employees and customers
18. Effectiveness: accomplishing tasks that help fulfill organizational objectives
19. Efficiency: getting work done with a minimum of effort, expense, or waste
20. Environment Change: the rate at which a company's general and specific environments change
21. Environment Scanning : searching the environment for important events or issues that might affect an
organization
22. Exporting: selling domestically produced products to customers in foreign countries
23. External Environments: al events outside a company that have the potential to influence or affect it.
24. Economic Order Quantity: a system of formulas that minimizes ordering and holding costs and helps
determine how much and how often inventory should be ordered
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25. Empathetic Listening: understanding the speaker's perspective and personal frame of reference and
giving feedback that conveys that understanding to the speaker
26. Expectancy Theory: the theory that people will be motivated to the extent to which they believe that
their efforts will lead to good performance, that good performance will be rewarded, and that will be
offered attractive rewards
27. Extrinsic Reward: a reward that is tangible, visible to others, and given to employees contingent on
the performance of specific tasks or behaviors.
28. Feedback: the amount of information the job provides to workers about their work performance
29. Finished Goods Inventory: the final outputs of manufacturing operations
30. Formal Communication Channel: the system of official channels that carry organizationally approved
messages and information
31. First-line Managers: train and supervise the performance of non-managerial employees who are
directly responsible for producing the company's products or services
32. Gainsharing :a compensation system in which companies share the financial value of performance
gains, such as productivity, cost savings, or quality, with their workers
33. Global Business : the buying and selling of goods and services by people from different countries
34. Groupthink: a barrier to good decision making caused by pressure within the group for members to
agree with each other
35. Informal Communication Channel: "grapevine"; the transmission of messages from employee to
employee outside of formal communication channels
36. Inputs: in equity theory, the contributions employees make to the organization
37. Intrinsic Reward: a natural reward associated with performing a task or activity for its own sake
38. Inventory Turnover: the number of times per year that a company sells or "turns over" its average
inventory
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39. ISO 9000: a series of five international standards, from ISO 9000 to ISO 9004, for achieving
consistency in quality assurance in companies throughout the world
40. Just-in-time Inventory System: an inventory system in which component parts arrive from suppliers
just as they are needed at each stage of production
41. Joint Venture: a strategic alliance in which two existing companies collaborate to form a third,
independent company
42. Leadership: the process of influencing others to achieve group or organizational goals
43. Leadership Style: the way a leader generally behaves toward
followers
44. Motivation: the set of forces that initiates, directs, and makes people persist in their efforts to
accomplish a goal
45. Management: getting work done through others
46. Mission: A clarification of an organizations purpose, or why it should be doing what it does. An
organizations mission is the foundation of its vision of success.
47. Middle Managers: responsible for setting objectives consistent with top management's goals and for
planning and implementing subunit strategies for achieving these objectives
48. Mission: A special assignment that is given to a person or group
49. Noise: anything that interferes with transmission of the intended message
50. Nonverbal Communication: any communications that doesn't involve words
51. Operational Plans: day-to-day plans, developed and implemented by lower-level managers, for
producing or delivering the organization's products and services over 30-day to six-month period
52. Organizational Culture: the values, beliefs, and attitudes shared by organizational members
53. Organizational Stories: stories told by organizational members to make sense or organizational
events and changes and to emphasize culturally consistent and assumptions, decisions, and actions
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54. Organizing: deciding where decisions will be made, who will do what jobs and tasks, and who will
work for whom
55. Output Control: the regulation of workers' results or outputs through rewards and incentives
56. Procedures: a standing plan that indicates the specific steps that should be taken in response to a
particular event.
57. Participative Leadership: a leadership style in which the leader consults employees for their
suggestions and input before making decisions
58. Perception: the process by which individuals attend to, organize, interpret, and retain information from
their environments.
59. Purpose: The mission, aim, need, primary concern, function of or results sought from a system. A
purpose is what the system is to accomplish, with no emphasis on how it is to be accomplished.
60. Perceptual Filters: the personality; psychology; or experience-based differences that influence people
to ignore or pay attention to particular stimuli
61. Position Power: the degree to which leaders are able to hire, fire, reward, and punish workers
62. Positive Reinforcement: reinforcement that strengthens behaviors with desirable consequences
63. Project Team: a team created to complete specific, one-time projects or tasks within a limited time
64. Protectionism: a government's use of trade barriers to shield domestic companies and their workers
from foreign competition
65. Rational Decision Making: a systematic process of defining problems, evaluating alternatives, and
choosing optimal solutions.
66. Raw Material Inventories: the basic inputs in a manufacturing process
67. Reinforcement Theory: the theory that behavior is a function of its consequence, that behaviors
followed by positive consequences will occur more frequently, and that behaviors followed by negative
consequences, or not followed by positive consequences, will occur less frequently
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68. Reducing Dependence: making others independent upon themselves in the work place
69. Resource Flow: the increase or decrease of a resource as the result of an event
70. Risk Propensity: the willingness to undertake risk with the opportunity of gaining an increased payoff
71. Satisfying: choosing a "good enough" alternative
72. Selective Perception: the tendency to notice and accept objects and information consistent with our
values, beliefs, and expectations, while ignoring or screening out or not accepting inconsistent
information
73. Stock out: the point when a company runs out of finished product
74. Self-monitoring: awareness of one's behavior and how it affects others
75. Semi-autonomous Work Group: a group that has the authority to make decisions and solve problems
related to the major tasks of producing a product or service
76. Standards: a basis of comparison for measuring the extent to which various kinds of organizational
performance are satisfactory or unsatisfactory
77. Strategic Plan: overall company plans that clarify how the company will serve customers and position
itself against competitors over the next two to five years
78. Strategic Issues: Fundamental policy questions or critical challenges that affect an organizations
mandates, mission and values; product, service level or mix; clients, users or payers; or cost, financing,
organization or management.
79. Strategy: A pattern of purposes, policies, programs, actions, decisions or resource allocations that
define what an organization is, what is does and why it does it. Strategies can vary by level, function
and time frame. Strategies are developed to deal with strategic issues.
Sub optimization: performance improvement in one part of organization but only at the expense of
decreased performance in another part.
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80. Tactical Plans: plans created and implemented by middle managers that specify how the company will
use resources, budgets, and people over the next six months to two years to accomplish specific goals
within its mission
81. Top Managers: executives responsible for the for the overall direction of the organization
82. Trade Barriers: government-imposed regulations that increase the cost and restrict the number of
imported goods
83. Work Team: a small number of people with complementary skills who hold themselves mutually
accountable for pursuing a common purpose, achieving performance goals, and improving
interdependent work processes
84. Total Quality Management (TQM): an integrated, principle-based, organization-wide strategy for
improving product and service quality
85. Trait Theory: a leadership theory that holds that effective leaders possess a similar set of traits or
characteristics
86. Vision: An object of imagination. A manifestation to the senses of something immaterial. In planning,
the perception or imagining of a desired end state, as yet unachieved, and its expression in the form of
a narrative description, picture, recording, plan, model, etc.
87. Vision of Success: A statement of what an organization should look like and how it should behave as
it fulfills its mission.
88. Values: Beliefs; societal, organizational and individual aspirations; and desired end states
89. Worker Maturity: describes how leadership should change with an employee's maturity