Key Terms
- autocratic leaders
- Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates
- coercive power
- Power that is derived from an individual’s ability to threaten negative outcomes.
- conceptual skills
- A manager’s ability to view the organization as a whole, understand how the various parts are interdependent, and assess how the organization relates to its external environment.
- consensual leaders
- Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.
- consultative leaders
- Leaders who confer with subordinates before making a decision but who retain the final decision-making authority.
- contingency plans
- Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.
- controlling
- The process of assessing the organization’s progress toward accomplishing its goals; includes monitoring the implementation of a plan and correcting deviations from the plan.
- corporate culture
- The set of attitudes, values, and standards that distinguishes one organization from another.
- decisional roles
- A manager’s activities as an entrepreneur, resource allocator, conflict resolver, or negotiator.
- democratic leaders
- Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.
- effectiveness
- The ability to produce the desired result or good.
- efficiency
- Using the least amount of resources to accomplish the organization’s goals.
- empowerment
- The process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions.
- expert power
- Power that is derived from an individual’s extensive knowledge in one or more areas.
- free-rein (laissez-faire) leadership
- A leadership style in which the leader turns over all authority and control to subordinates.
- global management skills
- A manager’s ability to operate in diverse cultural environments.
- human relations skills
- A manager’s interpersonal skills that are used to accomplish goals through the use of human resources.
- informational roles
- A manager’s activities as an information gatherer, an information disseminator, or a spokesperson for the company.
- interpersonal roles
- A manager’s activities as a figurehead, company leader, or liaison.
- leadership
- The process of guiding and motivating others toward the achievement of organizational goals.
- leadership style
- The relatively consistent way that individuals in leadership positions attempt to influence the behavior of others.
- legitimate power
- Power that is derived from an individual’s position in an organization.
- management
- The process of guiding the development, maintenance, and allocation of resources to attain organizational goals.
- middle management
- Managers who design and carry out tactical plans in specific areas of the company.
- mission
- An organization’s purpose and reason for existing; its long-term goals.
- mission statement
- A statement that conveys an organization’s purpose and reason for existing and describes its basic philosophy.
- nonprogrammed decisions
- Responses to infrequent, unforeseen, or very unusual problems and opportunities where the manager does not have a precedent to follow in decision-making.
- operational planning
- The process of creating specific standards, methods, policies, and procedures that are used in specific functional areas of the organization; helps guide and control the implementation of tactical plans.
- organizing
- The process of coordinating and allocating a firm’s resources in order to carry out its plans.
- participative leaders
- Leaders who share decision-making with group members and encourage discussion of issues and alternatives; includes democratic, consensual, and consultative styles.
- planning
- The process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done; and determining who should do it.
- power
- The ability to influence others to behave in a particular way.
- programmed decisions
- Decisions made in response to frequently occurring routine situations.
- referent power
- Power that is derived from an individual’s personal charisma and the respect and/or admiration the individual inspires.
- reward power
- Power that is derived from an individual’s control over rewards.
- situational leadership
- Selecting a leadership style based on the maturity and competency level of those who will complete the task.
- strategic planning
- The process of creating long-range (one to five years), broad goals for the organization and determining what resources will be needed to accomplish those goals.
- supervisory (first-line) management
- Managers who design and carry out operation plans for the ongoing daily activities of the firm.
- tactical planning
- The process of beginning to implement a strategic plan by addressing issues of coordination and allocating resources to different parts of the organization; has a shorter time frame (less than one year) and more specific objectives than strategic planning.
- technical skills
- A manager’s specialized areas of knowledge and expertise, as well as the ability to apply that knowledge.
- top management
- The highest level of managers; includes CEOs, presidents, and vice presidents, who develop strategic plans.