KEY TERMS – CHAPTER 10
organizing
organizational structure
organizational design
work specialization
departmentalization
functional departmentalization Grouping jobs by functions performed.
product departmentalization
geographical departmentalization
process departmentalization
customer departmentalization Grouping jobs on the basis of specific and unique customers who
cross-functional teams
chain of command
authority
responsibility
unity of command
span of control
centralization
decentralization
employee empowerment
formalization
mechanistic organization
organic organization
unit production
mass production
process production
simple structure
functional structure
divisional structure
team structure
matrix structure
project structure
boundaryless organization
virtual organization
network organization
learning organization
organizational chart
Arranging and structuring work to accomplish the organization’s
goals.
The formal arrangement of jobs within an organization.
Developing or changing an organization’s structure.
Dividing work activities into separate job tasks.
The basis by which jobs are grouped together.
Grouping jobs by product line.
Grouping jobs on the basis of geographical region.
Grouping jobs on the basis of product or customer flow.
have common needs.
Work teams composed of individuals from various functional
specialties.
The line of authority extending from upper organizational levels to
the lowest levels, which clarifies who reports to whom.
The rights inherent in a managerial position to tell people what to do
and to expect them to do it.
The obligation to perform any assigned duties.
The management principle that each person should report to only
one manager.
The number of employees a manager can efficiently and effectively
manage.
The degree to which decision making is concentrated at upper levels
of the organization.
The degree to which lower-level employees provide input or actually
make decisions.
Giving employees more authority (power) to make decisions.
How standardized an organization’s jobs are and the extent to which
employee behavior is guided by rules and procedures.
An organizational design that’s rigid and tightly controlled.
An organizational design that’s highly adaptive and flexible.
Producing items in units or small batches.
Producing items in large batches.
Producing items in continuous processes.
An organizational design with low departmentalization, wide spans of
control, centralized authority, and little formalization.
An organizational design that groups similar or related occupational
specialties together.
An organizational structure made up of separate, semiautonomous
units or divisions.
An organizational structure in which the entire organization is made
up of work groups or teams.
An organizational structure that assigns specialists from different
functional departments to work on one or more projects.
An organizational structure in which employees continuously work on
projects.
An organization whose design is not defined by, or limited to, the
horizontal, vertical, and horizontal boundaries imposed by a
predefined structure.
An organization that consists of a small core of full-time employees
and that hires outside specialists temporarily as needed to work on
projects.
An organization that uses its own employees to do some work
activities and networks of outside suppliers to provide other needed
product components or work processes.
An organization that has developed the capacity to continuously
learn, adapt, and change.
A visual drawing of an organization’s structure.
KEY TERMS – CHAPTER 11

communication The transfer and understanding of meaning.

interpersonal communication Communication between two or more people.
organizational communication All the patterns, networks, and systems of communication within an
message
encoding
channel
decoding
communication process
noise Any disturbances that interfere with the transmission, receipt, or feedback of a message.
nonverbal communication
body language
verbal intonation
filtering
selective perception
information overload
jargon
active listening
formal communication
informal communication
downward communication
upward communication
lateral communication
diagonal communication
communication networks
grapevine
e-mail The instantaneous transmission of written messages on computers that are linked together.
instant messaging (IM)
organization.
A purpose to be conveyed.
Converting a message into symbols.
The medium a message travels along.
Retranslating a sender’s message.
The seven elements involved in transferring meaning from one
person to another.
Communication transmitted without words.
Gestures, facial configurations, and other movements of the body
that convey meaning.
An emphasis given to words or phrases that conveys meaning.
The deliberate manipulation of information to make it appear more
favorable to the receiver.
When people selectively interpret what they see or hear on the basis
of their interests, background, experience, and attitudes.
The information we have to work with exceeds our processing
capacity.
Specialized terminology or technical language that members of a
group use to communicate among themselves.
Listening for full meaning without making premature judgments or
interpretations.
Communication that follows the official chain of command or is
required to do one’s job.
Communication that is not defined by the organization’s structural
hierarchy.
Communication that flows downward from a manager to employees.
Communication that flows upward from employees to managers.
Communication that takes place among any employees on the same
organizational level.
Communication that cuts across work areas and organizational
levels.
The variety of patterns of vertical and horizontal flows of
organizational communication.
The informal organizational communication network.
Interactive real-time communication that takes place among
computer users logged on the computer network at the same time.

blog An online journal that usually focuses on a particular subject.

wiki A type of Web site that allows anyone visiting it to add, remove, or otherwise edit the content.

voice mail A communication system that digitizes a spoken message, transmits

it over a network, and stores the message on disk for the receiver to
retrieve later.

fax Communication through machines that allow the transmission of documents containing both text
and graphics over ordinary telephone lines.

electronic data interchange (EDI) A way for organizations to exchange standard business
transaction documents using direct computer-to-computer networks.

teleconferencing Communication system that allows a group of people to confer

simultaneously using telephone or e-mail group communications
software.

videoconferencing A simultaneous communication conference where participants can

see each other.
web conferencing Holding group meetings or live presentations over the Internet.

intranet An organizational communication network that uses Internet

technology and is accessible only by organizational employees.

extranet An organizational communication network that uses Internet

technology and allows authorized users inside the organization to
communicate with certain outsiders.

communities of practice Groups of people who share a concern, a set of problems, or a

passion about a topic, and who deepen their knowledge and
expertise in that area by interacting on an ongoing basis.
KEY TERMS – CHAPTER 12

high-performance work Work practices that lead to both high individual and
practices and high organizational performance.

human resource management Activities necessary for staffing the organization

process and sustaining high employee performance.

labor union An organization that represents workers and seeks to protect their
interests through collective bargaining.

affirmative action Programs that enhance the organizational status of

members of protected groups.

human resource planning Ensuring that the organization has the right number and kinds of
capable people in the right places and at the right times.

job analysis An assessment that defines jobs and the behaviors necessary to
perform them.

job description A written statement that describes a job.

job specification A statement of the minimum qualifications that a person must

possess to perform a given job successfully.

recruitment Locating, identifying, and attracting capable applicants.

decruitment Reducing an organization’s workforce.

selection Screening job applicants to ensure that the most appropriate

candidates are hired.

validity The proven relationship that exists between a selection device and
some relevant job criterion.

reliability The ability of a selection device to measure the same thing

consistently.

work sampling A type of job tryout in which applicants perform a task or set of tasks
that are central to it.

assessment centers Evaluating managerial potential through job simulation activities.

realistic job preview (RJP) A preview of a job that provides both positive and negative
information about the job and the company.

orientation Introducing a new employee to his or her job and the organization.

performance management system Establishes performance standards that are used to evaluate
employee performance.

written essay Appraising performance through a written description.

critical incidents Appraising performance by focusing on the critical job behaviors.

graphic rating scales Appraising performance using a rating scale on a set of performance
factors.

behaviorally anchored rating Appraising performance using a rating scale on

scales (BARS) examples of actual job behavior.

multiperson comparisons Appraising performance by comparing it with others’ performance.

360 degree feedback Appraising performance by using feedback from supervisors,

employees and co-workers.

skill-based pay A pay system that rewards employees for the job skills they can
demonstrate.

variable pay A pay system in which an individual’s compensation is contingent on

performance.

career A sequence of positions held by a person during his or her lifetime.

downsizing The planned elimination of jobs in an organization.

sexual harassment Any unwanted action or activity of a sexual nature that explicitly or
implicitly affects an individual’s employment, performance, or work
environment.

family-friendly benefits Benefits which accommodate employees’ needs for work-life balance.
KEY TERMS – CHAPTER 13

organizational change Any alteration of people, structure, or technology in

an organization.

change agent Someone who acts as a catalyst and assumes the responsibility for
managing the change process.

organizational development (OD) Techniques or programs to change people and the nature and
quality of interpersonal work relationships.

stress The adverse reaction people have to excessive pressure placed on them from extraordinary
demands, constraints, or opportunities.

creativity The ability to combine ideas in a unique way or to make unusual

associations between ideas.

innovation Taking creative ideas and turning them into useful products or work
methods.

idea champion Individuals who actively and enthusiastically support new ideas, build
support, overcome resistance, and ensure that innovations are implemented.
KEY TERMS – CHAPTER 14

behavior How people act.

organizational behavior The study of how people act at work.

employee productivity A performance measure of both efficiency and effectiveness.

absenteeism The failure to report to work.

turnover The voluntary and involuntary permanent withdrawal from an

organization.

organizational citizenship Discretionary behavior that is not part of an

behavior employee’s formal job requirements, but that
 promotes the effective functioning of the
organization.

job satisfaction An employee’s general attitude toward his or her job.

workplace misbehavior Any form of intentional behavior that has negative consequences for
the organization or individuals within the organization.

Attitudes Evaluative statements—favorable or unfavorable—concerning

objects, people, or events.

cognitive component That part of an attitude that’s made up of the beliefs, opinions,
knowledge, or information held by a person.

affective component That part of an attitude that’s the emotional or feeling part.

behavioral component That part of an attitude that refers to an intention to behave in a

certain way.

job involvement The degree to which an employee identifies with his or her job,
actively participates in it, and considers his or her job performance to
be important to self-worth.

organizational commitment An employee’s orientation toward the organization in terms of his or

her loyalty to, identification with, and involvement in the
organization.

perceived organizational support Employees’ general belief that their organization values their
contribution and cares about their well-being.

cognitive dissonance Any incompatibility or inconsistency between attitudes or between

behavior and attitudes.

attitude surveys Surveys that ask employees how they feel about their jobs, work
groups, supervisors, or the organization.

personality The unique combination of emotional, thought, and behavioral

patterns that affect how a person reacts and interacts with others.

big-five model Five-factor model of personality.

locus of control The degree to which people believe they control their own fate.

Machiavellianism The degree to which people are pragmatic, maintain emotional

distance, and believe that ends justify means.

self-esteem An individual’s degree of like or dislike for himself or herself.

self-monitoring An individual’s ability to adjust his or her behavior to external

situational factors.

impression management When individuals attempt to control the impression others form of
them.

emotions Intense feelings that are directed at someone or something.

emotional intelligence (EI) The ability to notice and to manage emotional cues and information.

perception The process of organizing and interpreting sensory impressions in

order to give meaning to the environment.

attribution theory A theory that explains how we judge people differently depending on
the meaning we attribute to a given behavior.
fundamental attribution error The tendency to underestimate the influence of external factors and
overestimate the influence of internal factors when judging other’s
behavior.

self-serving bias The tendency for individuals to attribute their own successes to
internal factors while putting the blame for failures on external
factors.

assumed similarity The belief that others are like oneself.

stereotyping Judging a person on the basis of one’s perception of a group to which

he or she belongs.

halo effect A general impression of an individual based on a single

characteristic.

learning Any relatively permanent change in behavior that occurs as a result

of experience.

operant conditioning A type of learning in which desired voluntary behavior leads to a

reward or prevents a punishment.

social learning theory A learning theory that says people learn through observation and
direct experience.

shaping behavior Systematically reinforcing each successive step to move an

individual closer to the desired behavior.
KEY TERMS – CHAPTER 15

group Two or more interacting and interdependent individuals who come together to achieve specific
goals.

forming The first stage of group development in which people join the group and
then define the group’s purpose, structure, and leadership.

storming The second stage of group development which is characterized by

intragroup conflict.

norming The third stage of group development which is characterized by close

relationships and cohesiveness.

performing The fourth stage of group development when the group is fully functional.

adjourning The final stage of group development for temporary groups during which
group members are concerned with wrapping up activities rather than task
performance.

role Behavior patterns expected of someone occupying a given position in a social unit.

normsStandards or expectations that are accepted and shared by a group’s members.

groupthink When a group exerts extensive pressure on an individual to align his or her
opinion with others’ opinions.

statusA prestige grading, position, or rank within a group.

social loafing The tendency for individuals to expend less effort when working collectively
than when working individually.

group cohesiveness The degree to which group members are attracted to one another and share
the group’s goals.

conflict Perceived incompatible differences that result in interference or opposition.

traditional view of conflict The view that all conflict is bad and must be avoided.

human relations view of The view that conflict is a natural and inevitable outcome
conflict in any group.
interactionist view of The view that some conflict is necessary for a group to
conflict perform effectively.

functional conflicts Conflicts that support a group’s goals and improve its performance.

dysfunctional conflicts Conflicts that prevent a group from achieving its goals.

task conflict Conflicts over content and goals of the work.

relationship conflict Conflict based on interpersonal relationships.

process conflict Conflict over how work gets done.

work teams Groups whose members work intensely on a specific, common goal using
their positive synergy, individual and mutual accountability, and
complementary skills.

problem-solving team A team from the same department or functional area that’s involved in
efforts to improve work activities or to solve specific problems.

self-managed work teamA type of work team that operates without a manager and is responsible for
a complete work process or segment.

cross-functional team A work team composed of individuals from various specialties.

virtual team A type of work team that uses technology to link physically dispersed
members in order to achieve a common goal.

social network structure The patterns of informal connections among individuals

within a group
KEY TERMS – CHAPTER 16

motivation The process by which a person’s efforts are energized, directed, and
sustained towards attaining a goal.

hierarchy of needs theory Maslow’s theory that there is a hierarchy of five human needs:
physiological, safety, social, esteem, and self-actualization.

physiological needs A person’s needs for food, drink, shelter, sexual satisfaction, and
other physical needs.

safety needs A person’s needs for security and protection from physical and
emotional harm.

social needs A person’s needs for affection, belongingness, acceptance, and

friendship.

esteem needs A person’s needs for internal factors such as self-respect, autonomy,
and achievement, and external factors such as status, recognition,
and attention.

self-actualization needs A person’s need to become what he or she is capable of becoming.

Theory X The assumption that employees dislike work, are lazy, avoid
responsibility, and must be coerced to perform.

Theory Y The assumption that employees are creative, enjoy work, seek
responsibility, and can exercise self-direction.
motivation-hygiene theory The motivation theory that intrinsic factors are related to job
satisfaction and motivation, whereas extrinsic factors are associated
with job dissatisfaction.

hygiene factors Factors that eliminate job dissatisfaction, but don’t motivate.

motivators Factors that increase job satisfaction and motivation.

three-needs theory The motivation theory that says three acquired (not innate) needs—
achievement, power, and affiliation—are major motives in work.

need for achievement (nAch) The drive to excel, to achieve in relation to a set of standards, and to
strive to succeed.

need for power (nPow) The need to make others behave in a way that they would not have
behaved otherwise.

need for affiliation (nAff) The desire for friendly and close interpersonal relationships.

goal-setting theory The proposition that specific goals increase performance and that
difficult goals, when accepted, result in higher performance than do
easy goals.

self-efficacy An individual’s belief that he or she is capable of performing a task.

reinforcement theory The theory that behavior is a function of its consequences.

reinforcers Consequences immediately following a behavior

that increase the probability that the behavior will
be repeated.

job design The way tasks are combined to form complete jobs.

job scope The number of different tasks required in a job and the frequency
with which those tasks are repeated.

job enlargement The horizontal expansion of a job by increasing job scope.

job enrichment The vertical expansion of a job by adding planning and evaluating
responsibilities.

job depth The degree of control employees have over their work.

job characteristics model (JCM) A framework for analyzing and designing jobs that identifies five
primary job characteristics, their interrelationships, and their impact
on outcomes.

skill variety The degree to which a job requires a variety of activities so that an
employee can use a number of different skills and talents.

task identity The degree to which a job requires completion of a whole and
identifiable piece of work.

task significance The degree to which a job has a substantial impact on the lives or
work of other people.

autonomy The degree to which a job provides substantial freedom,

independence, and discretion to the individual in scheduling work
and determining the procedures to be used in carrying it out.

feedback The degree to which carrying out work activities required by a job
results in the individual’s obtaining direct and clear information about
his or her performance effectiveness.
equity theory The theory that an employee compares his or her job’s input-
outcomes ratio with that of relevant others and then corrects any
inequity.

referents The persons, systems, or selves against which individuals compare

themselves to assess equity.

distributive justice Perceived fairness of the amount and allocation of rewards among
individuals.

procedural justice Perceived fairness of the process used to determine the distribution
of rewards.

expectancy theory The theory that an individual tends to act in a certain way based on
the expectation that the act will be followed by a given outcome and
on the attractiveness of that outcome to the individual.

compressed workweek A workweek where employees work longer hours per day but fewer
days per week.

flexible work hours (flextime) A scheduling system in which employees are required to work a
certain number of hours per week, but are free, within limits, to vary
the hours of work.

job sharing The practice of having two or more people split a full-time job.

telecommuting A job approach where employees work at home and are linked to the
workplace by computer and modem.

open-book management A motivational approach in which an organization’s financial

statements (the “books”) are shared with all employees.

employee recognition programs Personal attention and expressing interest, approval, and
appreciation for a job well done

pay-for-performance programs Variable compensation plans that pay employees on the basis of
some performance measure.

stock options Financial instruments that give employees the right

to purchase shares
KEY TERMS – CHAPTER 17

leader Someone who can influence others and who has managerial
authority.

leadership The process of influencing a group to achieve goals.

behavioral theories Leadership theories that identified behaviors that differentiated

effective leaders from ineffective leaders.

autocratic style A leader who tended to centralize authority, dictate work methods,
make unilateral decisions, and limit employee participation.

democratic style A leader who tended to involve employees in decision making,

delegate authority, encourage participation in deciding work
methods and goals, and use feedback as an opportunity for coaching
employees.

laissez-faire style A leader who generally gave the group complete freedom to make
decisions and complete the work in whatever way it saw fit.

initiating structure The extent to which a leader defined and structured his or her role
and the roles of group members.
consideration The extent to which a leader had job relationships characterized by
mutual trust and respect for group members’ ideas and feelings.

high-high leader A leader high in both initiating structure and consideration behaviors.

managerial grid A grid of two leadership behaviors—concern for people and concern
for production—which resulted in five different leadership styles.

Fiedler contingency model A contingency theory that proposed that effective group performance
depended upon the proper match between a leader’s style of
interacting with his or her followers and the degree to which the
situation allowed the leader to control and influence.

least-preferred co-worker (LPC)A questionnaire that measured whether a leader was

questionnaire task or relationship oriented.

leader-member relations One of Fiedler’s situational contingencies that described the degree
of confidence, trust, and respect employees had for their leader.

task structure One of Fiedler’s situational contingencies that described the degree
to which job assignments were formalized and procedurized.

position power One of Fiedler’s situational contingencies that described the degree
of influence a leader had over power-based activities such as hiring,
firing, discipline, promotions, and salary increases.

situational leadership theory A leadership contingency theory that focuses on

(SLT) followers’ readiness.

readiness The extent to which people have the ability and willingness to
accomplish a specific task.

leader participation model A leadership contingency model which related leadership behavior
and participation in decision making.

path-goal theory A leadership theory that says it’s the leader’s job to assist his or her
followers in attaining their goals and to provide the direction or
support needed to ensure that their goals are compatible with the
overall objectives of the group or organization.

transactional leaders Leaders who lead primarily by using social exchanges (or
transactions).

transformational leaders Leaders who stimulate and inspire (transform) followers to achieve
extraordinary outcomes.

charismatic leader An enthusiastic, self-confident leader whose personality and actions

influence people to behave in certain ways.

visionary leadership The ability to create and articulate a realistic, credible, and attractive
vision of the future that improves upon the present situation.

legitimate power The power a leader has as a result of his or her position in the
organization.

coercive power The power a leader has because of his or her ability to punish or
control.

reward power The power a leader has because of his or her ability to give positive
benefits or rewards.

expert power Influence that’s based on expertise, special skills, or knowledge.

referent power Power that arises because of a person’s desirable resources or

personal traits.
credibility The degree to which followers perceive someone as honest,
competent, and able to inspire.

trust The belief in the integrity, character, and ability of a leader.

empowerment Increasing the decision-making discretion of workers.

KEY TERMS – CHAPTER 18

controlling The process of monitoring, comparing, and correcting work

performance.

market control An approach to control that emphasizes the use of external

market mechanisms to establish the control standards.

bureaucratic control An approach to control that emphasizes organizational

authority and relies on administrative rules, regulations,
procedures, and policies.

clan control An approach to control in which employee behavior is

regulated by the organization’s culture.

control process A three-step process including measuring actual performance,

comparing actual performance against a standard, and taking
managerial action.

range of variation The acceptable parameters of variance between actual

performance and the standard.

immediate corrective action Corrective action that corrects problems at once to get
performance back on track.

basic corrective action Corrective action that looks at how and why performance
deviated and then proceeds to correct the source of deviation.

performance The end result of an activity.

organizational performance The accumulated end results of all the organization’s work
activities.

productivity The overall output of goods or services produced divided by

the inputs needed to generate that output.

organizational effectiveness A measure of how appropriate organizational goals are and

how well an organization is achieving those goals.
feedforward control A type of control that takes place before a work activity is
done.

concurrent control A type of control that takes place while a work activity is in
progress.

management by walking around A term used to describe when a manager is out in the work
area interacting directly with employees.

feedback control A type of control that takes place after a work activity is done.

economic value added (EVA) A financial tool for measuring corporate and divisional
performance, calculated by taking after-tax operating profit
minus the total annual cost of capital.

market value added (MVA) A financial tool for measuring the stock market’s estimate of
the value of a firm’s past and expected investment projects.

management information system (MIS) A system used to provide management with needed
information on a regular basis.
data Raw, unanalyzed facts.

information Processed and analyzed data.

balanced scorecard A performance measurement tool that looks at four areas—

financial, customer, internal processes, and
people/innovation/growth assets—that contribute to a
company’s performance.

benchmarking The search for the best practices among competitors or

noncompetitors that lead to their superior performance.

employee theft Any unauthorized taking of company property by employees

for their personal use.

service profit chain The service sequence from employees to customers to profit.

corporate governance The system used to govern a corporation so that the interests
of corporate owners are protected.