PRINMAN Chapter 1: Intellectual capital- the collective brainpower or shared knowledge of a workforce Knowledge worker- someone whose mind

is a critical asset to employers Workforce diversity- describes differences among workers in gender, race, age, ethnicity, religion, sexual orientation and able-bodiedness. Prejudice- the display of negative irrational attitudes toward members of diverse populations Discrimination- actively denies minority members the full benefits of organizational membership. Glass ceiling effect- is an invisible barrier limiting career advancement of women and minorities. Globalization- is the worldwide interdependence of resource flows, product markets, and business competition. Ethics- set moral standards of what is good and right in ones behavior. Core workers- full time employees pursue traditional career paths. They can advance within the organization and may remain employed for a long time. Contract workers- perform specific tasks as needed by the organization and are compensated on a fee-for-fee basis rather than continuing wage or salary. Part-time workers- hired only as needed and for as long as needed. Portfolio worker- has up-to-date skills that allow for job and career mobility. Organization- collection of people working together to achieve a common purpose Open system- transforms resource inputs from the environment into product outputs. External environment- both the supplier of resources and the source of customers Feedback- indicates how well the organization is doing Productivity- quantity and quality or work performance, with resource utilization considered. Performance effectiveness- output measure of task or goal accomplishment. Performance efficiency- input measure of resource cost associated with goal accomplishment. Manager- is a person who supports, activates, and is responsible for the work of others. Top managers- guide the performance of the organization as a whole or of one of its major parts. Middle managers- oversee the work of large departments or divisions. Team leaders- report to middle managers and supervise non managerial workers. Line managers- directly contribute to producing the organizations goods or services. Staff managers- use special technical expertise to advise and support line workers. Functional managers- are responsible for one area such as finance, marketing, production, personnel, accounting or sales. General managers- are responsible for complex, multifunctional units. Administrator- a manager in a public or nonprofit organization Accountability- the requirement to show performance results to a supervisor. Effective manager- helps others achieve high performance and satisfaction at work. Quality of work life- overall quality of human experiences In the workplace. Upside-down pyramid- operating workers are t the top serving customers while managers are at the bottom supporting them. Management- process of planning, organizing, leading and controlling the use of resources to accomplish performance goals Planning-process of setting objectives and determining what should be done to accomplish them. Organizing- the process of assigning tasks, allocating resources and coordinating work activities. Leading- the process of arousing enthusiasm and inspiring efforts to achieve goals Controlling- process of measuring performance and taking action to ensure desired results Informational roles- involve giving, receiving and analyzing of information. Monitor- scanning for information Disseminator- sharing information Spokesperson- acting as official communicator Interpersonal roles- involve interactions with people inside and outside the work unit Figurehead- modeling and setting forth key principles and policies Leader- providing direction and instilling enthusiasm Liaison- coordinating with others

Agenda setting- develops action priorities for accomplishing goals and plans Networking- process of creating positive relationship with people who can help advance agendas Social capital- capacity to get things done with support and help of others Learning- change in behavior that results from experience Lifelong Learning- continuous learning from daily experiences Skill- ability to translate knowledge into action that results in desired performance Technical skill- ability to use expertise to perform a task with proficiency Human skill or Interpersonal skill- ability to work well in cooperation with other people Emotional intelligence- ability to manage ourselves and our relationships effectively Conceptual skill- ability to think analytically to diagnose and solve complex problems Managerial competency- skill-based capability for high performance in a management job Chapter 2: Scientific Management- emphasizes careful selection and training of workers and supervisory support. Motion study- science of reducing a task to its basic physical motions. Administrative Principles- identifies the following five rules or duties of management, which closely resembles the four functions of management- planning, organizing, leading and controlling. 1. Foresight to complete a plan of action for the future. 2. Organization- to provide and mobilize resources to implement the plan. 3. Command- to lead, select and evaluate workers to get the best work toward the plan 4. Coordination- to fit diverse efforts together and to ensure information is shared and problems solved. 5. Control- to make sure things happen according to plan and to take necessary corrective action. Scalar chain principle- there should be a clear and unbroken line of communication from the top to the bottom Unity of command principle-each position should receive orders from only one boss. Unity of direction principle- one person should be in charge of all activities that have the same performance objective. Bureaucracy- a rational and efficient form of organization founded on logic, order and legitimate authority. Characteristics of Webers Bureaucratic Organization: 1. Clear divisions of labor- jobs are well defined, and workers become highly skilled at performing them. 2. Clear hierarchy of authority- authority and responsibility are well defined for each position and each position reports to a higher-level one. 3. Formal rules and procedures- written guidelines direct behavior and decision in jobs and written files are kept for historical record. 4. Impersonality- rules and procedures are impartially & uniformly applied with no one receiving preferential treatment. 5. Careers based on merit- workers are selected and promoted on ability, competency, and performance and managers are career employees of the organization. Human resource approaches- people are rational and self-actualizing Organization as communities- managers and workers should labor in harmony without one party dominating the other, and with the freedom to talk over and truly reconcile conflicts and differences. Hawthorne studies- had a scientific management perspective and sought to determine economic incentives and physical conditions of workplace affected the output of workers. Hawthorne Effect- is the tendency of persons singled out for special attention to perform as expected. Human relations movement- suggested that managers using good human relations will achieve productivity. Organizational behavior- study of individuals and groups in organizations. Need- is a psychological deficiency that a person wants to satisfy. Deficit Principle- a satisfied need is not a motivator of behavior. Progression principle- the five needs exist in the hierarchy of prepotency. Theory X- assumes people dislike work, lack ambition, act irresponsibly, and prefer to be led. Theory Y- assumes people are willing to work, like responsibility and are self-directed and creative. Self-fulfilling prophecy- occurs when a person acts in ways that confirm anothers expectations. Management science and operations research- use quantitative analysis and applied mathematics to solve problems. Mathematical forecasting- helps make future projections for reserve sizes & depiction rates that are useful in the planning process. Network models- break large tasks into components.

Inventory analysis-helps control inventories by mathematically determining how much to automatically order and when. Queuing theory- helps allocate service personnel & workstations based on alternative workload demands and in a way that minimizes both customer waiting time and costs of service workers. Linear Programming- used to calculate how best to allocate production among different machines. Operations Management- study of how organizations produce goods and services. System- a collection of interrelated parts working together for a purpose Subsystem- smaller component of a larger system Open system- interacts with its environment and transforms resource inputs to outputs. Contingency thinking- tries to match management practices with situational demands. Total quality management- managing with an organization-wide commitment to continuous improvement, product quality and customer needs. Continuous improvement- involves always searching for new ways to improve work quality and performance. ISO certification- indicates conformance with a rigorous set of international quality standards. Knowledge management- is the process of using intellectual capital for competitive advantage. Learning organization- continuously changes and improves, using the lessons of experiences. High performance organization- consistently achieves excellence while creating a high-quality work environment. Evidence-based management- involves making decisions based on hard facts about what really works.

Chapter 4: General Environment- comprised of economic, legal-political, technological, sociocultural and natural environment conditions. Economic Conditions- influence customer spending, resource supplies and investment capital Legal-political Conditions- represented by existing and proposed laws and regulations, government policies and the philosophy and objectives of political parties. Technological Conditions- personal empowerment and social interactions Sociocultural conditions- norms, customs, and social values on such matter such as ethics, human rights Natural environment conditions- green. Reduce paper usage, recycle, use local produce and adopt energy saving practices. Offshoring- outsourcing of jobs to foreign locations Onshoring/Reshoring- the return of jobs from foreign locations as companies establish new domestic operations Unbranding- occurs when stores owned by major national and global chains are advertised with local nonbranded names. Internet censorship- deliberate blockage and denial of public access to information posted on the internet Enterprise 2.0- the use of social networking and blog technologies in the workplace Generational Cohorts- consists of people born within a few years of one another and who experience somewhat similar life events during their formative years. Sustainable business- both meets the needs of the customers and protect the natural environment for future generations Specific/Task Environment- includes the people and group with whom an organization interacts Stakeholders- are the persons, groups, and institutions directly affected by an organization Consumer relationship management- uses information technologies to communicate with customers and gather data tracking their needs and desires Supply chain management- involves management of all operations linking an organization & its suppliers Competitive advantage- something that an organization does extremely well, is difficult to copy and gives it an advantage over competitors Environmental uncertainty- lack of information regarding what exists in the environment and developments may occur Organizational effectiveness- measure of how well the organization performs while using resources to accomplish mission and objectives Triple bottom line- assesses the economic, social and environmental performance of an organization. 3 Ps of organization- Performance, Profit Planet

ISO 14001- an international quality standard requiring organizations to set environmental objectives and targets, account for environmental impact and continuously improve environmental performance Sustainable development- makes use of environmental resources to support societal needs today while also preserving and protecting the for future generations Environmental/Natural Capital- storehouse of natural resources Green Management- managing people and organizations in ways that achieve responsible stewardship of the natural environment Innovation- the process of taking a new idea and putting it into practice Product Innovations- results in new or improved products or services Process Innovations- results in better way of doing things Business and model Innovations- results in ways for firms to make money Sustainable Innovations/ Green Innovations- help reduce the carbon footprints and environmental impacts of organizations, their practices and products. Social business innovations- find way to use business models to address important social problems Reverse Innovation- recognizes the potential for valuable innovations to be launched from lower organizational levels and diverse locations, including emerging markets Commercializing Innovation- turns new ideas into actual products, services and processes to increase profits through greater sales or reduce costs. Chapter 4: Computer Competency- ability to understand computers and to use them to their best advantage Information Competency- ability to utilize technology to locate, retrieve, evaluate organize and analyze info for decision making Data- are raw facts and observations Information- data made useful for decision making Information that is truly useful in in management meets the test of these five criteria: 1. 2. 3. 4. 5. Timely- the info is available when needed; it meets deadlines for decision making and action High Quality- the info is accurate and is reliable; it can be used with confidence. Complete- info is complete and sufficient for the task at hand; it is as current and up to date as possible Relevant- info is appropriate for task at hand; it is free from extraneous or irrelevant materials Understandable- info is clear and easily understood by user; it is free from unnecessary detail

Information technology- helps us acquire, store and process information Intelligence information- gathered from stakeholders and external environment Internal information- flows up, down, around and across organizations Public information- disseminated to stakeholders and environment Information systems- use IT to collect, organize and distribute data for use in decision making Management information systems (MIS)- meet the information needs of the managers in making daily decisions Problem solving- involves identifying and taking action to resolve problems Decision- a choice among possible alternative courses of action Performance Deficiency- actual performance is less than desired Performance Opportunity- actual situation either turns out better than anticipated or offers the potential to do so Problem avoiders- who ignore information that would otherwise signal the presence of a performance deficiency or opportunity Problem solvers- who are willing to make decisions and try to solve problems but only when forced to by the situation Problem seekers- actively process information and constantly look for problems to solve Systematic thinking- approaches problems in a rational and analytical fashion Intuitive thinking- approaches problems in a flexible and spontaneous fashion Multidimensional thinking- ability to address many problems at once Strategic Poisoning- focuses on long term objectives while being flexible in dealing with short term problems

Cognitive styles- describe the way people deal with information while making decisions Sensation thinkers- tend to emphasize the impersonal rather than the personal & take a realistic approach to problem solving Sensation feelers- tend to emphasize both analysis and human relations Intuitive thinkers- comfortable with abstraction and unstructured situations Intuitive feelers- prefer broad and global issues Structured problems- are straightforward and clear with respect to information needs Programmed decision- applies a solution from past experience to a routine problem Unstructured problems- have ambiguities and information deficiencies Nonprogrammed decision- applies a specific solution crafted for a unique problem Crisis decision- an unexpected problem that can lead to disaster if not resolved quickly and appropriately Crisis Management- preparation for the management of crises that threaten an organizations health and well-being Certain environment- offers complete information on possible action alternatives and their consequences Risk environment- lack information but offers probabilities of the likely outcomes for possible action alternatives Uncertain environment- lacks so much information that it is difficult to assign probabilities to the likely outcomes Decision making process- begins with identification of a problem and ends with evaluation implemented The decision making process 1. 2. 3. Identify and define the problem Generate and evaluate alternative courses of action Cost-benefit analysis- involves comparing the costs and benefits of each potential course action Decide on a preferred course of action Classical decision model- describes decision making with complete information Optimizing decision-chooses the alternative giving the absolute best solution to a problem Behavioral decision model- describes decision making with limited information and bounded rationality Bounded rationality- describes making decisions within the constraints of limited information & alternatives Satisfying decision- chooses the first satisfactory alternative that comes in ones attention Implement the decision Lack-of-participation error- failure to involve in a decision the persons whose support is needed to implement it Evaluate results

4. 5.

Heuristics- strategies for simplifying decision making Availability heuristics- bases a decision on recent information or events Representativeness heuristics- bases a decision on similarity to other situations Anchoring and adjustment- bases a decision on incremental adjustments from opinion decision point Framing error- trying to solve a problem in the context in which it is perceived Confirmation error- occurs when focusing only on information that confirms a decision already made Escalating commitment- continuation of course of action even though it is not working