1.

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

13.
14.
15.
16.
17.
18.
19.
20.
21.

Management the process of designing and maintaining an environment in which individuals, working together in groups, efficiently
accomplish selected aims
Five managerial functions around which managerial knowledge is organized in this book: planning, organizing, staffing , leading, controlling
External elements that affect operation: economic, technological, social, ecological, political and ethical factors
Enterprise a business, government agency, hospital, university, or any other type of organization
All managers carry out managerial functions, but the time spent for each function may differ
Four skills required of administrators: technical, human, conceptual, and design skills
The aim of all managers should be to create a surplus by establishing an environment in which people can accomplish group goals with
the least amount of time, money, materials and personal dissatisfaction
To be successful in the 21st century, companies must take advantage of information technology-especially the internet-globalization-and
entrepreneurship
Effectiveness the achievement of objectives
Efficiency the achievement of the ends with the least amount of resources
Managing as practice is an art; the organized knowledge underlying the practice is a science
Approaches to management:
a. Empirical or Case approach identifies successes and failures
b. Managerial roles approach identified and grouped into interpersonal, informational and decision roles
c. Contingency or Situational approach recognizes the influence of given solutions on organizational behavior patterns.
d. Mathematical or Management Science approach management as a purely logical process
e. Decision Theory approach focuses on making of decisions, persons or groups making decisions and the decision-making
process
f. Reengineering approach fundamental rethinking, process analysis, radical redesign and dramatic results
g. Systems approach open to external environment
h. Sociotechnical Systems approach focuses on production, office operations, and other areas with close relationships between
the technical system and people
i. Cooperative Social Systems approach concerned with interpersonal and group behavioral aspects leading to a system of
cooperation.
j. Group Behavior approach behavior of people in groups
k. Interpersonal behavior approach interpersonal behavior, human relations, leadership, and motivation
l. McKinseys 7s Framework strategy, structure, systems, style, staff, shared values and skills
m. Total Quality Management approach providing dependable, satisfying products and services
n. Management Process or Operational approach draws together concepts, principles, techniques and knowledge from other
fields and managerial approaches
Management process or operational approach draws together the pertinent knowledge of management by relating it to the managerial
job
Inputs people, capital, managerial skills, technical knowledge and skills
The task of managers is to transform the inputs, in an effective and efficient manner, into outputs
Outputs products, services, profits, satisfaction, integration of the goals of claimants to the enterprise
Planning selecting missions and objectives as well as the actions to achieve them
Organizing establishing an intentional structure of roles for people to fill in an organization
Staffing filling and keeping filled, the positions in the organizational structure
Leading influencing people so that they will contribute to organizational and group goals
Controlling measuring and correcting individual and organizational performance to ensure that events conform to plans

Chapter 2
22. Pluralistic society a society where many organized groups represent various interests
23. Technology the sum total of the knowledge we have of ways to do things
24. Ecology the relationship of people and other living things with their environment
25. Corporate Social Responsibility the serious consideration of the impact of the companys actions on society
26. Social Responsiveness the ability of a corporation to relate its operations and policies to the social environment in ways that are mutually
beneficial to the company and to society
27. Ethics the discipline dealing with what is good and bad and with moral duty and obligation

28.
29.
30.
31.
32.
33.

Business Ethics concerned with truth and justice

Utilitarian Theory plans and actions should be evaluated by their consequences
Theory Based On Rights all people have basic rights
Theory of Justice decision makers must be guided by fairness and equity, as well as impartiality
Code a statement of policies, principles, or rules that guide behavior
Whistle-blowing making known to outside agencies unethical company practices

Chapter 3
34. International Management focuses on the operation of international firms in host countries
35. International Businesses engage in transactions across national boundaries
36. Multinational Corporations have their headquarters in one country but operate in many countries
37. Ethnocentric Orientation the style of the foreign operations is based on that of the parent company
38. Polycentric Orientation the foreign subsidiaries are given a great deal of managerial freedom
39. Regiocentric Orientation the foreign operations are staffed on a regional basis
40. Geocentric Orientation the entire organization is viewed as an interdependent system operating in many countries
41. Global or Transnational Corporations view the whole world as one market
42. Codetermination requires labor membership in the supervisory board and the executive committee of the corporation
43. Chaebol characterized by a tight collusion between government and industrial conglomerates
44. Inhwa Korean concept of harmony
45. Wa Japanese concept of harmony
46. Theory Z the adaptation of selected Japanese managerial practices to the U.S. environment
Chapter 4
47. Planning - selecting missions and objectives as well as the actions to achieve them, which requires decision making, that is, choosing a
course of action from among alternatives.
48. Mission or Purpose the basic purpose or function or tasks of an enterprise or agency or any part of it
49. Synergy means that the whole is greater than its parts
50. Objectives or goals the ends toward which activity is aimed
51. Strategy the determination of the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of
resources necessary to achieve these goals
52. Policies general statements or understandings that guide or channel thinking in decision making
53. Procedures plans that establish a required method of handling future activities
54. Rules spell out specific required actions or nonactions, allowing no discretion
55. Program a complex of goals, policies, procedures, rules, task assignments, steps to be taken, resources to be employed, and other
elements necessary to carry out a given course of action
56. Budget a statement of expected results expressed in numerical terms
57. Steps in Planning:
a. Being aware of opportunities
b. Establishing objectives
c. Developing premises
d. Determining alternative courses
e. Evaluating alternative courses
f. Selecting a course
g. Formulating derivative plans
h. Quantifying plans by budgeting
58. Premises assumptions about the environment in which the plan is to be carried out
59. Principle of Planning Premises the more thoroughly individuals charged with planning understand and agree to utilize consistent planning
premises, the more coordinated enterprise planning will be
60. An objective is VERIFIABLE when at the end of the period on can determine whether or not it has been achieved
61. KRA -Key Result Area an area in which performance is essential for the success of the enterprise
62. MBO-Management by Objectives a comprehensive managerial system that integrates many key managerial activities in a systematic
manner and is consciously directed toward the effective and efficient achievement of organizational and individual objectives

Chapter 5
63. Strategy the determination of the mission or purpose and the basic long-term objectives of an enterprise, followed by the adoption of
courses of action and allocation of resources necessary to achieve these aims
64. Policies general statements or understandings that guide managers thinking in decision making
65. Mission a statement that answers the question What is our business?
66. Strategic Intent the commitment to win in the competitive environment
67. TOWS matrix Four Alternative Strategies (Internal Strengths, Internal Weaknesses, External Opportunities, External Threats)
a. SO strategy Maxi-Maxi (maximize-maximize)
b. ST strategy Maxi-Mini (maximize-minimize)
c. WO strategy Mini-Maxi (minimize-maximize)
d. WT strategy Mini-Mini (minimize-minimize)
68. Planning Premises the anticipated environment in which plans are expected to operate
Chapter 6
69. Decision Making the selection of a course of action from among alternatives
70. Satisficing picking a course of action that is satisfactory or good enough under the circumstances
71. Principles of the limiting factor by recognizing and overcoming factors that stand critically in the way of a goal, the best alternative course
of action can be selected
72. Quantitative factors factors that can be measured in numerical terms
73. Qualitative or intangible factors factors that are difficult to measure numerically
74. Marginal Analysis Comparing the additional revenue and the additional cost arising from increasing output
75. Cost-effectiveness Analysis seeks the best ratio of benefit and cost
76. Programmed decisions are used for structured or routine work
77. Nonprogrammed decisions are used for unstructured, novel and ill-defined situations of a nonrecurring nature
78. Creativity the ability and power to develop new ideas
79. Innovation the use of new ideas
80. Four phases of the Creative Process unconscious scanning, intuition, insight and logical formulation or verification
Chapter 7
81. Organization a formalized intentional structure of roles or positions
82. Formal Organization the intentional structure of roles in a formally organized enterprise
83. Informal Organization a network of interpersonal relationships that arise when people associate with each other
84. Department a distinct area, division, or branch of an organization over which a manager has authority for the performance of specified
activities
85. Principle of the Span of Management there is a limit to the number of subordinates a manager can effectively supervise, but the exact
number will depend on the impact of underlying factors
86. Intrapreneur a person who focuses on innovation and creativity and who transforms a dream or an idea into a profitable venture by
operating within an established organizational environment
87. Entrepreneur a person who does similar things as the intrapreneur, but outside the organizational setting
Chapter 8
88. Departmentation by Enterprise Function grouping of activities according to the functions of an enterprise, such as production, sales and
financing
89. Departmentation by territory or geography grouping or activities by area or territory is common in enterprises operating over wide
geographic areas
90. Departmentation by customer group grouping of activities that reflects a primary interest in customers
91. Departmentation by product grouping of activities according to products or product lines, especially in multiline, large enterprises
92. Matrix Organization the combining of functional and project or product patterns of departmentation in the same organization structure
93. SBU Strategic Business Units distinct businesses set up as units in a larger company to ensure that certain products or product lines
are promoted and handled as though each were an independent business
94. Core Competency collective learning, coordination and integration of skills to obtain streams of technology
95. Virtual Organization a rather loose concept of a group of independent firms or people that are connected through, usually, information
technology

Chapter 9
96. Power the ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups
97. Authority the right in a position to exercise discretion in making decisions affecting others
98. Bases of power:
a. Legitimate position power
b. Expertness specialized knowledge
c. Referent charismatic power
d. Reward
e. Coercive power to punish
99. Empowerment employees at all levels in the organization are given the power to make decisions without asking their superiors for
permission
100. Scalar Principle the clearer the line of authority, the clearer will be the responsibility for decision making and the more effective will be
organizational communication
101. Line Authority the relationship in which a superior exercises direct supervision over a subordinate
102. Staff relationship is advisory
103. Functional authority the right delegated to an individual or a department to control specified processes, practices, policies, or other
matters relating to activities undertaken by persons in other departments
104. Decentralization the tendency to disperse decision-making authority in an organized structure
105. Diff. Kinds of Centralization
a. Centralization of performance
b. Departmental centralization
c. Centralization of management
106. Recentralization centralization of authority that was once decentralized; normally not a complete reversal of decentralization, as the
authority delegated is not wholly withdrawn
Chapter 10
107. In organizing, there is no one best way, it depends on the specific situation
108. Establishment of objectives and orderly planning are necessary for good organization
109. Planning the organizational structure helps determine future personnel needs and required training programs
110. Organization Chart indicates how departments are tied together along the principal lines of authority
111. Organization Chart shows formal authority relationships and omits the many significant informal and informational relationships
112. A good POSITION DESCRIPTION informs everyone of the incumbents responsibilities
113. The effectiveness of an organization is influenced by the organization culture
114. Organization Culture the general pattern of behavior, shared beliefs and values that organization members have in common
115. Value a fairly permanent belief about what is appropriate and what is not that guides the actions and behavior of employees in fulfilling
the organizations aims
Chapter 11
116. Staffing filling, and keeping filled, positions in the organization structure
117. The staffing model shows that managers have to be recruited, selected, placed and promoted
118. Principle of Open Competition vacant positions should be opened to the best qualified persons available, whether inside or outside the
enterprise
119. Selection choosing from among candidates, from within or outside the organization the most suitable person for a position
120. Intragroup Communication communication with people in the same organizational unit
121. Intergroup Communication communication with other departments as well as with groups outside the enterprise
122. Recruiting attracting candidates to fill positions in the organizational structure
123. Two approaches to filling positions: selection and placement
124. Validity the degree to which the data predict the candidates success as a manager
125. Reliability the accuracy and consistency of the measurement
126. Assessment Center a technique for selecting and promoting managers
127. Orientation the introduction of new employees to the enterprise, its functions, tasks and people
128. Organizational Socialization acquisition of work skills and abilities, adoption of appropriate role behaviors and adjustment to the norms
and values of the work group

129. Forms of International Business:

a. Exportation engaged in sending goods and services to a host country
b. Licensing Agreement engaged in sharing primary technical know-how to a host country
c. Management Contracts transfer of managerial and technical know-how
d. Joint Ventures and Strategic Alliances transfer of materials, services and personnel
e. Subsidiaries transfer of capital and know-how
130. Strategic Planning Process
a. Inputs to the Organization
b. Industry Analysis the formulation of a strategy requires the evaluation of the attractiveness of an industry by analyzing the
external environment
c. Enterprise Profile usually the starting point for determining where the company is and where it should go
d. Orientation, Values, and Vision of Executives they set organizational climate, and they determine the direction of the firm
through their vision that answers the question What do we want to become?
e. Mission (Purpose), Major Objectives and Strategic Intent
f. Present and Future External Environment must be assessed in terms of threats and opportunities
g. Internal Environment audited and evaluated with respect to its resources and weaknesses and strengths
h. Development of Alternative Strategies
i. Evaluation and Choice of Strategies various strategies have to be carefully evaluated before the choice is made
j. Consistency Testing and Contingency Planning the last key aspect of strategic planning process
k. Medium and short range planning, implementation through organizing, staffing, leading and controlling
131. Selecting an Alternative: Three Approaches
a. Experience previous occurrence of events
b. Experiment try one of the alternatives and see what happens; used in scientific inquiry
c. Research and Analysis comprehending pencil-and-paper or computer-and-printout approach