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Principles of Management Unit 2
Chapter 6-10
76
Management
Undergraduate 2
07/31/2013

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Term
Sexual Harassment
Definition
Any unwanted and offensive action of a sexual nature.
Term
Hostile Environment
Definition
A workplace where an employee is made to feel threatened or is offended.
Term
Technical Communication Problem
Definition
A problem regarding how accurately your message was conveyed.
Term
Semantic Communication Problem
Definition
A problem regarding how accurately the meaning of your message was conveyed.
Term
Effectiveness Communication Problem
Definition
A problem regarding how well your message resulted in the desired behavior.
Term
Shannon & Weaver
Definition
Authors of famous model of communication.
Term
Information Source
Definition
what produces the message.
Term
Transmitter
Definition
what encodes the message into signals.
Term
Channel
Definition
the vehicle that carries the message from the transmitter to the receiver.
Term
Receiver
Definition
what decodes the message from the channel.
Term
Destination
Definition
the person who receives the transmitted message.
Term
Noise
Definition
any interference resulting in the signal being received incorrectly.
Term
Stages in Team Building
Definition
Forming, Storming, Norming, Performing, and Adjourning.
Term
Forming
Definition
Deciding who is on the team.
Term
Storming
Definition
Ironing out differences about team goals and individual roles.
Term
Norming
Definition
Agreeing on shared team goals and processes.
Term
Performing
Definition
Getting the job done as a team.
Term
Adjourning
Definition
After the job is done the team can dissolve-contrast with department.
Term
Norm
Definition
An agreed-upon behavior within a group.
Term
Teamwork
Definition
A process of cooperative work that most organizations use to increase productivity, reduce costs, improve quality, enhance speed, and capture the creativity and innovation of their employees.
Term
Social Loafer
Definition
Team member who fails to do his or her fair share of the work but expects to reap the team’s reward.
Term
Working Group
Definition
A collection of people carefully chosen for their complementary skills who trust one another and are committed to a common goal, a common approach, and have agreed to hold each other mutually accountable.
Term
Silo
Definition
In management a silo is when workers in one department work in isolation on their part of the project-contrast with teamwork.
Term
Cash Flow Statement
Definition
Report providing summary of cash flowing in and out of the business during a specific period such as a quarter (three months) or year.
Term
Current Ratio
Definition
= current assets divided by current liabilities
Term
Working Capital Ratio
Definition
Another name for the Current Ratio.
Term
Quick Ratio
Definition
(current assets – inventory) divided by current liabilities
Term
Acid Test
Definition
Another name for the Quick Ratio
Term
Earnings Per Share (EPS)
Definition
Net Income divided by Shares Outstanding
Term
Price-Earnings Ratio (P-ER Ratio)
Definition
Price per share divided by earnings per share.
Term
Debt-To-Equity Ratio
Definition
Total Liabilities divided by Shareholders’ Equity.
Term
Return on Equity (ROE)
Definition
(Net Income – Preferred Dividends) divided by Common Shareholders’ Equity.
Term
Operating Budget
Definition
The budget that lists the revenues and expenses related to the regular and ongoing operations of the organization.
Term
Master Budget
Definition
Budget of budgets where all the other budgets are combined.
Term
Income Statement
Definition
Report that measures a company’s revenues and expenses over a specific accounting period such as a quarter (three months) or a year.
Term
Profit and Loss Statement
Definition
Another name for the Income Statement that lists the revenues and expenses for a specific time period, also called P&L Statement.
Term
Balance Sheet
Definition
A financial report summarizing a company’s assets, liabilities, and stockholders’ equity at a specific point in time using the formula: Assets = Liabilities + Stockholders’ Equity.
Term
Lean Manufacturing
Definition
Focus on manufacturing that eliminates waste by making labor-related activities more efficient, repeatable, and impactful.
Term
Value
Definition
Any action or process that a customer would be willing to pay for.
Term
Sales Budget
Definition
Contains forecasts of sales by month, sales area, and product.
Term
Production Budget
Definition
Forecasts units to be produced each month per product.
Term
Fixed Costs
Definition
Costs that remain the same regardless of how many units are produced this month.
Term
Variable Costs
Definition
Costs, such as raw materials used, that go up as the level of production goes up.
Term
Capital Budget
Definition
Planned Costs to build or buy large items such as buildings or large equipment that would not be a part of the ordinary costs of doing business.
Term
Control
Definition
Any process that directs the activities of individuals toward the achievement of the organizations goals.
Term
Bureaucratic Control
Definition
The use of rules, regulations, and formal authority to guide the performance of employees.
Term
Market Control
Definition
Control based on pricing mechanism; if something gets too costly, then the market will show purchases that the same product or service is available elsewhere at a lower cost.
Term
Clan Control
Definition
Control employees impose on themselves based upon agreed-upon norms, values, shared goals, and trust.
Term
Standard
Definition
An expected performance level.
Term
Six Sigma
Definition
A control standard of less than 3.4 defects per million.
Term
Ken Lay
Definition
Former CEO of Enron who died of an apparent heart attack before going to prison for fraud.
Term
Jeff Skilling
Definition
Former CEO of Enron who is currently serving a prison term for fraud.
Term
Robert K. Greenleaf
Definition
Former AT&T executive and college lecturer who authored the book Servant Leadership and founder of the Servant Leadership movement.
Term
Least Preferred Co-worker
Definition
an indirect way of determining whether a leader is people-oriented by asking him or her to describe the employee they would least prefer to work with.
Term
Fred Fiedler
Definition
Professor and author of a Theory of Leadership describing the Contingency Theory of Leadership.
Term
Robert House
Definition
Professor, author and advocate of the Path-Goal Theory of Leadership.
Term
Internal Locus of Control
Definition
A belief that the individual is in charge of the things that occur in life, or at least our reaction to them.
Term
External Locus of Control
Definition
A belief that things external to the individual such as chance, fate, God, or other outside forces determine life’s events.
Term
Enron
Definition
In 2000, the seventh largest corporation in the U.S. with “reported” earnings of $101 Billion and 21,000 employees that was bankrupt by the end of 2001.
Term
Authentic Leadership Theory
Definition
Those who lead best derive their power from the consent of their followers.
Term
Divine Right of Kings
Definition
Belief that kings and queens derive their right to rule from the will of God.
Term
Transference
Definition
A psychological tendency to transfer our feelings for one person onto another.
Term
Leader-Member Relations
Definition
the degree of confidence, trust, and respect employees have in their leader.
Term
Task Structure
Definition
the degree to which the job assignments of workers are structured (well-defined) or unstructured.
Term
Position Power
Definition
the amount of power the leader has over variables such as hiring, firing, discipline, promotions, and salary increases.
Term
Path-Goal Theory of Leadership
Definition
Leaders lead best by helping their followers align their personal goals with the goals of the organization.
Term
Transactional Theory of Leadership
Definition
Leaders use pay and other rewards to trade off with followers to get them to do what the leader wants done.
Term
Transformational Theory of Leadership
Definition
Leaders inspire their followers to implement major organization shifts or sea changes.
Term
Charismatic Leadership Theory
Definition
Leaders use their charm to lead others.
Term
Servant Leadership Theory
Definition
The leader considers himself or herself to be a servant to all and leads out of a desire to serve rather than out of a need for money, power, and prestige.
Term
Leader-Member Exchange Theory of Leadership
Definition
Leaders lead by drawing key followers into their inner circle.
Term
Leadership
Definition
The art and science of ethically and effectively guiding others toward a positive goal.
Term
Contrarian
Definition
A person who typically thinks and acts contrary to popular or accepted opinion.
Term
Great Man Theory of Leadership
Definition
The theory that leaders are born leaders or sent by God to lead.
Term
Leadership Trait Theory
Definition
The theory that potential leaders can be identified early by certain traits.
Term
Ohio State Leadership Studies
Definition
Research conducted over 50 years ago at Ohio State with mixed results regarding whether concern for people was better than concern for the task.
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