Glossary

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A

Administrative management is the use of institutions and order rather than relying on personal qualities to get things done.

Applied ethics is the application of moral philosophy to actual problems, including those in management.

Assessment centres are multi-exercise programmes designed to identify the recruitment and promotion potential of personnel.

Assets are the property, plant and equipment, vehicles, stocks of goods for trading, money owed by customers and cash: in other words, the physical resources of the business.

Authority refers to the rights inherent in a position to give instructions and to expect others to follow those instructions.

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B

Balance sheet shows the financial position of a company at a particular time. It shows the physical resources (assets) of the business and, to match that, the sources from which finance has been raised both from shareholders and from borrowing.

Behaviour models of leadership attempt to identify the behaviours that effective managers use to influence subordinates.

Behaviour modification is a general label for attempts to change behaviour by using appropriate and timely reinforcement.

Benchmarking is a process of comparing organisational performance and practices with others (preferably leaders) in the same or different industries.

Bureaucracy is a system in which people are expected to follow precisely defined rules and procedures rather than to use personal judgement.

The business process view puts satisfying customer’s requirements at the heart of a design process to develop a supply system that will operate without waste. The orientation is towards speed of response and two-way flow of information and other resources.

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C

The capital market comprises all the individuals and institutions that have money to invest, including banks, life assurance companies and pension funds and, as users of capital, business organisations, individuals and governments.

Cash flow statement shows the sources from which cash has been generated and how it has been spent during a period of time.

A cell layout creates multiple cells dedicated to producing families of output types.

Centralisation is when a relatively large number of decisions are taken by management at the top of the organisation.

A channel is the medium of communication between a sender and a receiver.

Coercive power is the ability to obtain compliance through fear of punishment.

Collectivism pertains to societies in which people, from birth onwards, are integrated into strong, cohesive groups.

Communication is the exchange of ideas, opinions and information through written or spoken words, symbols or actions.

Competence (1) Competence concerns the actions and behaviours identified by change agents as contributing in their experience to the perceived effectiveness of change implementation. (2) Competences are those behaviours required for satisfactory (‘threshold competence’) or excellent (‘superior competence’) performance in a job.

Competitive advantage ‘arises from discovering and implementing ways of competing that are unique and distinctive from those of rivals, and that can be sustained over time’ (Porter, 1994).

A competitive environment is the industry-specific environment comprising the organisation’s customers, suppliers and competitors.

Competitive or business strategy ‘is concerned with the firm’s position relative to its competitors in the markets which it has chosen’ (Kay, 1996).

Concentric layout occurs in, for example, shipbuilding where the product is so large that it remains static while labour and materials come to the centre to assemble the ship.

Consumer-centred organisation is focused upon and structured around the identification and satisfaction of the demands of its consumers.

Consumers are individuals, households, organisations, institutions, resellers and governments that purchase the products offered by other organisations.

Content is the specific substantive task that the group is undertaking.

Contingency approaches to organisational structure are those based on the idea that the performance of an organisation depends on having a structure that is appropriate to its environment.

Corporate social responsibility is the awareness, acceptance and management of the implications and effects of all corporate decision making.

Corporate strategy ‘is concerned with the firm’s choice of business, markets and activities’ (Kay, 1996), and thus it defines the overall scope and direction of the business.

Cost expresses in money units the effect of activating or consuming resources. It is an internal control process of the producing organisation and is not visible to outside parties.

Counterimplementation refers to attempts to block change without displaying overt opposition.

Craft production refers to a system in which the craft producers do everything. With or without customer invovlement they design, source materials, make, display, sell, perhaps service and do the accounts.

A critical perspective is one which evaluates an institution or practice in terms of its contribution to human autonomy, responsibility, democracy and ecologically sustainable activity.

Critical success factors are those aspects of a strategy that must be achieved to successfully meet objectives and, if possible, to secure competitive advantage.

Current assest can be expected to be cash or to be converted to cash within a year.

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D

Data are raw, unanalysed facts, figures and events.

A database consists of items of data stored in a way that enables them to be organised and retrieved in many ways.

Decentralisation is when a relatively large number of decisions are taken lower down the organisation in particular operating units.

A decision support system is a computer-based system, almost interactive, designed to assist managers in making decisions.

Decoding is the interpretation of a message into a form with meaning.

Delegation occurs when one person gives another the authority to undertake specific activities or decisions.

Delivery relates to the achievement of all promises made by any supplier to a customer.

Demand leadtime is the elapsed time that a customer is prepared to allow between placing an order for a product or service and actually receiving it; in certain situations this time is effectively zero.

Deontology is the application of established general rules or moral laws to a decision.

Determinism is the view that an organisation’s structure is determined by its environment.

Differentiation (1) Consists of offering a product or service that is perceived as unique or distinctive on a basis other than price. (2) The state of segmentation of the organisation into subsystems, each of which tends to develop particular attributes in response to the particular demands posed by its relevant external environment.

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E

Egoism is the practice of evaluating a decision against the criterion of whether it serves a person’s self-interest.

Emergent models of change emphasise that in uncertain conditions it is likely that the results of a project will be affected by unknown factors, and that planning has only a limited effect on the outcome.

Encoding is translating information into symbols for communication.

Enlightened self-interest is the practice of acting in a way that is costly or inconvenient at present, but which is believed to be in one’s best interest in the long term.

Ethical audits are the practice of systematically reviewing the extent to which an organisation’s actions are consistent with its stated ethical intentions.

Ethical consumers are those who take ethical issues into account in deciding what to purchase.

Ethical investors are people who only invest in business that meet specified criteria of ethical behaviour.

Ethical relativism is the principle that ethical judgements cannot be made independently of the culture in which they are made.

Existence needs reflect a person’s requirement for material and energy.

Expertise power is evident when a person’s knowledge of the topic enables them to influence decisions.

External fit is when there is a close and consistent relationship between an organisation’s competitive strategy and its HRM strategy.

An extranet is a version of the Internet that is restricted to specified people in specified companies - such as major customers or suppliers.

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F

Factory production broke down the integrated nature of the craftworker’s approach and made it possible to increase the supply of goods by dividing tasks into simple and repetitve sequences.

Feedback occurs as the receiver expresses his or her reaction to the sender’s message.

Femininity pertains to societies in which social gender roles overlap.

Five forces analysis is a technique for identifying and listing those aspects of the five forces most relevant to the profitability of an organisation at that time.

Fixed assets are the physical properties that the company possesses - such as land, buildings, production equipment and vehicles - and which are likely to have a useful life or more than one year. There may also be intangible assets such as patent rights or copyrights.

Formal structure is the official guidelines, documents or procedures setting out how the organisation’s activities are divided and co-ordinated.

Formal team is one that management has deliberately created to perform specific tasks to help meet organisational goals.

Formalisation is the practice of using written or electronic documents to direct and control employees.

Functional managers are responsible for the performance of a common area of technical or professional work.

A functional layout groups similar physical processes together and brings materials and/or customers to these areas.

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G

The general environment (sometimes known as the macro-environment) includes economic, political, social and technological factors that generally affect all organisations.

General managers are responsible for the performance of a distinct unit of the organisation.

Globalisation is a more advanced form of internationalisation that implies a degree of functional integration between internationally dispersed economic activities.

Groupthink is ‘a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ striving for unanimity overrides their motivation to realistically appraise alternative courses of action’ (Janis, 1972).

Growth needs are those which impel people to be creative or to produce an effect on themselves or their environment.

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H

High-context cultures are those in which information is implicit and can only be fully understood by those with shared experiences in the culture.

A high-performance team is one that meets all the requirements of a real team, but in addition shows commitment to the personal growth of members and performs beyond expectations.

Horizontal specialisation is the degree to which tasks are divided among separate people or departments.

Human resource management is the effective use of human resources in order to enhance organisational performance.

Hygiene factors (or maintenance factors) are those aspects surrounding the task which can prevent discontent and dissatisfaction but will not in themselves contribute to psychological growth and hence motivation.

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I

Individualism pertains to societies in which the ties between individuals are loose.

Influence is the process by which one party attempts to modify the behaviour of others by mobilising power resources.

An informal group is one that emerges when people come together and interact regularly.

Informal structure is the undocumented relationships between members of the organisation that inevitably emerge as people adapt systems to new conditions and satisfy personal and group needs.

Information is useful knowledge derived from data.

An information system is a set of people, procedures and resources that collects and transforms data into information and disseminates this information.

Information systems management is the planning, acquisition, development and use of these systems.

Innovation covers incremental and/or step (breakthrough) changes in products and/or processes which change function, form, performance or resource use in an advantageous way.

Institutional advantage ‘is when a not-for-profit body performs its tasks more effectively than other comparable organisations’ (Goold, 1997).

Integration is the process of achieving unity of effort amongst the various subsystems in the accomplishment of the organisation’s task.

International management is the practice of managing business operations in more than one country.

Internal fit is when the various components of the HRM strategy support each other and consistently encourage certain attitudes and behaviour.

Internationalisation is the increasing geographical dispersion of economic activities across national borders.

The Internet is a web of hundreds of thousands of computer networks linked together by telephone lines through which data can be carried.

An inter-organisational system is a computer system that enables data and information to pass between organisations, such as electronic orders or invoices.

An intranet is a version of the Internet that only specified people within an organisation can use.

Inventory consists of materials and part or finished goods that are held in anticipation of need by customers along a chain of supply from raw materials through to final consumption (and recycling?).

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J

Job analysis is the process of determining the characteristics of an area of work according to a prescribed set of dimensions.

A job enrichment model represents the idea that managers can change specific job characteristics to promote job satisfaction and so motivate employees.

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K

A knowledge system is a system that incorporates the decision-making logic of a human expert.

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L

Leadership is ‘the lifting of people’s vision to a higher sight, the raising of their performance to a higher standard, the building of their personality beyond its normal limitations’ (Drucker, 1985).

Legitimate power flows from the person’s formal position, which gives them authority over defined matters.

Liabilities of a business as reported in the balance sheet are the debts and financial obligations of the business to all those people and institutions that are not shareholders, e.g. a bank, suppliers.

Life cycle models of change are those that view change as an activity which follows a logical, orderly sequence of activities that can be planned in advance.

A limited liability company has an identity and existence in its own right as distinct from its owners (shareholders in Europe, stockholders in North America). A shareholder has an ownership right in the company in which the shares are held.

Line layout is completely specified by the sequence of activities needed to perform a givem transformation.

Line managers are responsible for the performance of activities that are directly involved in meeting customers’ needs.

Low-context cultures are those where people are more psychologically distant so that information needs to be explicit if members are to understand it.

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M

Management is the activity of getting things done with the aid of people and other resources.

Management as a general human activity occurs whenever people take responsibility for an activity and consciously try to shape its progress and outcome.

Management as a specialist occupation develops when activities previously embedded in the work itself become the responsibility not of the employee but of owners or their agents.

A manager is someone who gets things done with the aid of other people.

Market segmentation is the process of dividing markets comprising the heterogeneous needs of many consumers into smaller parts or segments comprising the homogeneous needs of smaller groups of consumers.

Marketing is a management process that identifies, anticipates and supplies consumer requirements efficiently and effectively.

The marketing environment consists of the actors and forces outside marketing that affect the marketing manager’s ability to develop and maintain successful relationships with its target consumers.

A marketing information system is the systematic processes and systems for the effective and efficient collection, analysis and distribution of marketing information.

The marketing mix is the mix of decisions about product features, prices, communications and distribution of products used by the marketing manager to position products competitively within the minds of consumers.

Marketing orientation is an organisational orientation that believes success is most effectively achieved by satisfying consumer demands.

Masculinity pertains to societies in which social gender roles are clearly distinct.

A mechanistic organisation means there is a high degree of task specialisation, people’s responsibility and authority are closely defined and decision making is centralised.

The message is what the sender communicates.

A metaphor is an image used to signify the essential characteristics of a phenomenon.

A model represents a complex phenomenon by identifying the major elements and relationships.

A monitoring system is a computer-based system that processes data to provide information about the performance of a business process.

Motivating factors are those aspects of the work itself that Herzberg found influenced people to superior performance and effort.

Motivation refers to the forces either within or external to a person that arouse enthusiasm and commitment to pursue a certain course of action.

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N

Noise is anything that confuses, diminishes or interferes with communication.

Non-linear systems are those in which small changes are amplified through many interactions with other variables so that the eventual effect is unpredictable.

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O

Observing is the activity of concentrating on how a team works rather than taking part in the activity itself.

An open system is one that interacts with its environment.

Operational research attempts to solve complex problems by developing mathematical models to analyse the many variables.

Operational strategies are those deployed by the different functions of the organisation, such as manufacturing, marketing, finance and human resource management, and which contribute to the achievement of corporate strategy.

An operational system is a computer application that processes transactions in an orderly and efficient way to provide a desired output.

An order qualifier is a necessary but not sufficient requirement to be considered by a customer.

An order winner is some feature or combination of features of the product or service that positively differentiates it from thoses of competitors and make customers want to buy it in preference to those others.

An organic organisation is one where people are expected to work together and to use their initiative to solve problems; job descriptions and rules are few and imprecise.

Organisation consists of people trying to influence others to achieve certain objectives that create wealth or well-being through a variety of processes, technologies, structures and cultures.

An organisation chart shows the main departments and senior positions in an organisation and the reporting relations between them.

Organisation culture is the collection of relatively uniform and enduring values, beliefs, customs and practices that are uniquely shared by an organisation’s members and which are transmitted from one generation of employees to the next.

Organisation structure ‘The structure of an organisation [is] the sum total of the ways in which it divides its labour into distinct tasks and then achieves co-ordination among them’ (Mintzberg, 1989).

An organisational capability is an activity that an organisation can perform better than its competitors.

An organisational system is a computer system that enables data and information to pass between units of an organisation.

Outer context of change relates to environmental factors, such as competitor behaviour, customer demands or other factors in the external environment.

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P

Participative models of change are those that recommend change managers to consult widely and deeply with those affected and to secure their willing consent to the changes proposed.

Partnering describes a business relationship based on taking a long-term view that the partners wish to work together according to a mutually acceptable vision in ways which enhance all customers’ satisfaction. The partners also seek to develop the relationship so that each will benefit in recognised business performance areas.

Perception is the active psychological process in which stimuli are selected and organised into meaningful patterns.

Performance appraisal is a systematic review of a person’s work and achievements over a recent period, usually leading to plans for the future.

Performance-related pay refers to payment systems in which a percentage of pay depends on the assessed performance of individuals, groups or the organisation as a whole.

Person culture is one in which activity is strongly influenced by the wishes of the individuals who are part of the organisation.

PEST analysis is a technique for identifying and listing the political-legal, economic, socio-cultural and technological factors in the general environment most relevant to an organisation at that time.

Philanthropy is the practice of contributing personal wealth to charitable or similar causes.

Political behaviour is ‘the practical domain of power in action, worked out through the use of techniques of influence and other (more or less extreme) tactics’ (Buchanan and Badham, 1999).

Political models of change emphasise that change is likely to affect the interests of stakeholders unevenly and that those who see themselves losing will resist the change despite the rationality of the arguments or invitations to participate.

Power concerns ‘the capacity of individuals to exert their will over others’ (Buchanan and Badham, 1999).

A power culture is one in which people’s activities are strongly influenced by a dominant central figure.

Power distance is the extent to which the less powerful members of organisations within a country expect and accept that power is distributed unevenly.

Preferred team roles are the types of behaviour that people display relatively frequently when they are part of a team.

A process is the way people interact with each other in performing a task, such as how they make decisions.

Product is a generic term used to identify both tangible goods and intangible services.

The product life cycle suggests that products pass through the stages of introduction, growth, maturity and decline.

A project manager is someone who is responsible for managing a project, usually intended to implement a change in some aspects of organisational working.

Product position is the position in which consumers place a product relative to that of an alternative supplier.

Profit and loss statement reflects the benefits derived from the trading activities of the business during a period of time.

A pseudo-team is a collection of individuals who could perform more effectively but have shown no interest in developing the necessary skills and methods.

A psychological contract is the set of understandings people have regarding the commitments made between themselves and their organisation.

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Q

The quality of a product or service is the (often imprecise) perception of a customer that what has been provided is at least what was expected for the price he or she paid.

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R

A receiver is the person whose senses perceive the sender’s message.

Referent power (or charismatic power) arises when subordinates want to identify with the leader, on account of some personal characteristics of the leader.

Relatedness needs involve a desire for relationships with significant other people.

Relationship marketing is an approach that focuses on developing a series of transactions with consumers.

Responsibility refers to a person attempting to meet the expectations others have of them.

Reward power is the ability of someone to reward another through possessing resources the other values.

A role is the sum of the expectations that other people have of a person occupying a position.

Role culture is one in which people’s activities are strongly influenced by clear and detailed job descriptions and other formal signals as to what is expected of them.

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S

Scenario planning is an attempt to build plausible views of a small number of different possible futures for an organisation operating in conditions of high uncertainty.

Scientific management The school of management called ‘scientific’ attempted to create a science of factory production.

Selection tests are formal, often psychologically based methods of assessing candidates’ likely suitability for a job.

Shareholders are the principal risk takers in a company. They contribute the long-term capital for which they expect to be rewarded in the form of dividends - a distribution from the profit of the business.

Shareholders’ funds are the capital contributed by the shareholders plus profits that have not been distributed to the shareholders.

Situational models of leadership attempt to identify the contextual factors that affect when one style will be more effective than another.

Skill refers to a person’s ability to perform various types of cognitive or behavioural activity effectively.

The social contract consists of the mutual obligations that society and business recognise they have to each other.

A sociotechnical approach is a systems development strategy that attempts to improve simultaneously the performance of the organisation and the quality of the working life of the workers.

A sociotechnical system is one in which outcomes depend on the interaction of both the technical and social subsystems.

A span of control is the number of subordinates reporting directly to the person above them in the hierarchy.

Staff managers are responsible for the performance of functions that provide support to line managers.

Stakeholder mapping is a means of identifying the expectations and power of different stakeholders.

Stakeholders are individuals, groups or other organisations with an interest in what the organisation does.

A strategic business unit consists of a number of closely related products for which costs are not shared with other businesses and for which it is meaningful to formulate a separate strategy.

Strategic management is an organisation-wide task involving both the development and implementation of strategy. It demands the ability to steer the organisation as a whole through strategic change under conditions of complexity and uncertainty.

Strategy is concerned with deciding what business an organisation should be in, where it wants to be, and how it is going to get there.

Structural choice approaches emphasise the scope management has for deciding the form of structure, irrespective of external conditions.

Structure is the regularity in the way a unit or group is organised, such as the roles that are specified.

Subjective probability (in expectancy theory) is a person’s estimate of the likelihood that a certain level of effort (E) will produce a level of performance (P) which will then lead to an expected outcome (O).

Subsystems are the separate but related parts that make up the total system.

Succession planning is the use of a deliberate process to ensure that staff are developed who are able to replace senior management as required.

Supply leadtime is the total elapsed time between the decision to obtain the basic input resources to the final delivery of the product or service to the customer.

A SWOT analysis is a way of summarising the organisation’s main strengths and weaknesses relative to the significant opportunities and threats in the external environment.

A system is a set of interrelated parts designed to achieve a purpose.

A system boundary separates the system from its environment.

A system of supportive relationships refers to the interactions and experiences that build a person’s sense of personal worth.

The systems approach looks at the different parts of an interacting set of activities as a whole and considers the best way for the whole to function.

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T

A target market is the segment of the market selected by the organisation as the focus of its activities.

A task culture is one in which the focus of activity is towards completing a task or project using whatever means are appropriate.

A team is ‘a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable’ (Katzenbach and Smith, 1993b).

Team-based rewards are ‘payments or non-financial incentives provided to members of a formally established team and linked to the performance of the group’ (IPD, 1996).

Teleology is the practice of evaluating a decision against the criterion of whether the outcome achieves the original goal.

Traits are a variety of individual attributes, including aspects of personality, temperament, needs, motives and values.

Transactional marketing is an approach that focuses upon one-off exchanges with consumers.

Transformational leaders raise the consciousness of followers by appealing to higher ideals and moral values.

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U

Uncertainty avoidance is the extent to which members of a culture feel threatened by uncertain or unknown situations.

Utilitarianism is the practice of evaluating a decision against the criterion of its consequences for the majority of people.

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V

Validity occurs when there is a statistically significant relationship between a predictor (such as a selection test score) and subsequent measures of on-the-job performance.

Value is added to resources when they are transformed into goods or services that are worth more than their original cost plus the cost of transformation.

A value chain ‘divides a firm into the discrete activities it performs in designing, producing, marketing and distributing its product. It is the basic tool for diagnosing competitive advantage and finding ways to enhance it’ (Porter, 1985).

A value for money service is one that is provided economically, efficiently and effectively.

Vertical specialisation refers to the extent to which responsibilities at different levels are defined.

Virtual organisations are those that deliver goods and services but have few, if any, of the physical features of conventional businesses.

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W

A working group is a collection of individuals who work mainly on their own but interact socially and share information and best practices.

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X

 

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Z

 

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