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MGT 305: EXAM 2

Decision
A choice between two or more alternatives
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Problem
An obstacle that makes it difficult to achieve a desired goal or purpose
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Decision criteria
Criteria that defines whats important or relevant to resolving a problem
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Rational decision making
Describes choices that are logical and consistent and maximize value
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Bounded rationality
Decision making thats rational, but limited (bounded) by an individuals ability to process information
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Satisfice
Accept solutions that are "good enough"
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Escalation of commitment
An increases commitment to a previous decision despite evidence it may have been wrong
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Intuitive decision making
Making decisions in the basis of experience, feelings, and accumulated judgment
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Evidence-based management (EBMgt)
The systematic use of the best available evidence to improve management practice
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Structured problems
straightforward familiar and easily defined problems
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programmed decision
a repetitive decision that can be handled by a routine approach
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Procedure
A series of sequential steps used to respond to a well structured problem
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Rule
An explicit statement that tells managers what can or cannot be done
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Policy
A guideline for making decisions
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Unstructured problems
Problems that are new or unusual and for which information is ambiguous or incomplete
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nonprogrammed decisions
Unique and non recurring decisions that require a custom made solution
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Certainty
A situation in which a manager can make accurate decisions because all outcomes are known
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Risk
A situation in which the decision maker is able to estimate the likely hood of certain outcomes
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uncertainty
a situation in which a decision maker has neither certainty nor reasonable probability estimates available
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Linear thinking style
decision style characterized by a person's preference for using external data and facts and processing this information through rational leogical thinking
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Nonlinear Thinking Style
decision style characterized by a person's preference for internal sources of information and processing the information with internal insights, feelings, and hunches
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Heuristics
rules of thumb that mangers us to simplify decsion making
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Group
two or more interacting and interdependent individuals who come together to achieve specific goals
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Forming stage
the first stage of group development in which people join the group and then define the group's purpose, structure, and learning
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Storming stage
the second stage of group development, characterized by intragroup conflict
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Norming stage
the third stage of a group development, characterized by close relationships and cohesiveness
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Performing stage
the fourth stage of group development when the group is fully functional and works on group task
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Adjourning
the final stage of a group development for temporary groups during which group members are concerned with wrapping up activities rather than task performance
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Role
Behavior patterns expected of someone occupying a given position in a social unit
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Norms
Standards or expectations that are accepted and shared by a groups members
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Groupthink
When a group exerts extensive pressure on an individual to align his or her opinion with others opinions
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Status
A prestige grading, position, or rank within a group
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Social loafing
The tendency for individuals to expend less effort when working collectively than when working individually
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Group cohesiveness
The degree to which group members are attracted to one another and share groups goals
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conflict
Perceived incompatible differences that result in interference or opposition
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Traditional view of conflict
The view that all conflict is bad and must be avoided
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Human relations view of conflict
The view that conflict is a natural and inevitable outcome in any group
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Interactionist view of conflict
The view that some conflict is necessary for a group to perform effectively
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Functional conflicts
Conflicts that support a groups goals and improve its performance
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Dysfunctional conflicts
Conflicts that prevent a group from achieving its goals
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Task conflict
Conflicts over content and goals of the work
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Relationship conflict
Conflict based on interpersonal relationships
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Process conflict
Conflict over how work gets done
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work teams
Groups whose members work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills
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Problem solving teams
A team from the same department of functional area thats involved in efforts to improve work activities or to solve specific problems
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Self-managed work team
A type of work team that operates without a manger and its responsible for a complete work process or segment
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cross- functional team
A work team composed of individuals from various functional specialties
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Virtual team
A type of work team that uses technology to link physically dispersed members in order to achieve a common goal
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social network structure
the patterns of informal connections among individuals within a group
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Planning
Defining the organizations goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities
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goals (objectives)
desired outcomes or targets
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plans
documents that outline how goals are going to be met
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stated goals
official statements of what an orgnaiations says and what it wants its various stakeholders to believe, its goals are
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real goals
goals that are organization actually pursues, as defined by the actions of its members
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strategic plans
plans that apply to the entire organization and establish the organizations overall goals
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operational plans
plans that encompass a particular operational are of the organization
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long term plans
plans with a time frame beyond three years
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Short term plans
plans covering one year or less
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specific plans
plans that are clearly defined and leave no room for interpretation
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Directional plans
plans that are flexible and set out general guidelines
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single- use plan
a one time plan specifically designed to meet the needs of a unique situation
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standing plans
ongoing plans that provide guidance for activities performed repeatedly
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traditional goal setting
an approach to setting goals in which top managers set goals that then flow down through the organization and become subgoals for each organizational area
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mean-ends chain
an integrated network of goals in which the accomplishment of goals at one level serves as the means for achieving the goals, or ends, at the next level
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management by objectives (MBO)
a process of setting mutually agreed-upon goals and using those goals to evaluate employee performance
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mission
the purpose of an organization
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commitment concept
plans should extend far enough to meet those commitments made when the plans were developed
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Formal planning department
A group of planning specialists whole sole responsibilty is helping to write organizational plans
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environmental scanning
The screening of large amounts of information to anticipate and interpret changes in the environment
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competitor intelligence
Environmental scanning activity by which organizations gather information about competitors
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forecasts
Predictions of outcome
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Quantitative forecasting
Forecasting that applies a set of mathematical rules to a series of past data to predict outcome
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Qualitative forecasting
Forecasting that uses the judgement and opinions of knowledgeable individuals to predicts outcomes
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Benchmarking
The search for the best practices among competitors or non competitors that lead to their superior performance
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Resources
The assets of the organization including financial, physical, human, intangible, and structural cultural
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Budget
A numerical plan allocating resources to specific activities
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Scheduling
Detailing what activities have to be down, the order in which they are to be completed, who is to do each, and when they are to be completed.
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Gantt chart
A scheduling chart developed by Henry Gantt that shows actual and planned output over a period a time
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Load chart
A modified Gantt chart that schedules capacity by entire departments or specific resources
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PERT network
A flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each
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Events
End points that represent the completion of major activities in a PERT network
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Activities
The time or resources needed to progress from one event to another in a PERT network
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Slack time
The amount of time an individual activity can be delayed without delaying the whole project
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Critical path
The longest sequence of activities in a PERT network
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Breakdown analysis
A technique for identifying the point at which total revenue is just sufficient to cover total costs
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Linear programming
A mathematical technique that solves resource allocation problems
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Project
A one-time set if activities that has a definite beginning and ending point in time
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Project management
The task of getting a projects activities done on time, within budget, and according to specifications
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Scenario
A consistent view of what the future is likely to be
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