Glossary of Comm 180

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intrinsic reward
the personal satisfaction you feel when you perform well and complete goals
scientific management
studying workers to find the most efficient way of doing things and then teaching people those techniques
time-motion studies
studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task
the series of elementary motions that could be analyzed to make each motion more efficient
Hawthorne effect
the tendency for people to behave differently when they know they are being studied
Frederick Herzberg
psychologist who conducted a study in which he asked workers to rank various job-related factors in order of importance relative to motivation
William Ouchi
management professor who wondered whether the reason that Japanese companies were outperforming U.S. businesses was the way they managed their workers
Type J
Japanese management approach - includes lifetime employment, consensual decision-making, collective responsibility for the outcomes of decisions, slow evaluation and promotion, implied control mechanisms, non-specialized career paths, and holistic concern for employees

based on the culture of Japan - includes a focus on trust and intimacy within the group and family

Type A
U.S. management approach - relies on short-term employment, individual decision-making, individual responsibility for the outcomes of decisions, rapid evaluation and promotion, explicit control mechanisms, specialized career paths, and segmented concern for employees

based on American culture - includes a focus on individual rights and achievements

Theory Z
hybrid approach recommended by Ouchi - includes long-term employment, collective decision-making, individual responsibility, slow evaluation and promotion, implicit informal control, explicit formalized control, moderately specialized career paths, and holistic concern for employees
goal-setting theory
the idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions

all organization members should have some basic agreement about overall goals and specific objectives for each department and individual

there should be a system to engage everyone in the organization in goal setting and implementation

management by objectives (MBO)
a system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees

developed by Peter Drucker in the 1960s

used by large corporations like Toyota and government agencies like the Department of Defense

most effective in relatively stable situations when managers can make long-range plans and implement them with few changes

central idea is that employees need to motivate themselves

reinforcement theory
theory that positive and negative reinforcers motivate a person to behave in certain ways
a manager might try to stop undesirable behavior by not responding to it
equity theory
the idea that employees try to maintain equity between inputs and outputs compared to others in similar positions
job enrichment
a motivational strategy that emphasizes motivating the worker through the job itself

work is assigned so that individuals can complete an identifiable task from beginning to end and are held responsible for successful achievement

job enlargement
a job enrichment strategy that involves combing a series of tasks into one challenging and interesting assignment
high-context culture
workers build personal relationships and develop group trust before focusing on tasks

Koreans, Thais, and Saudis

low-context culture
workers often view relationship building as a waste of time that diverts attention from the task
human resource management (HRM)
the process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals
Title VII
prohibits discrimination in hiring, firing, compensations, apprenticeships, training, terms, conditions, or privileges of employment based on race, religion, sex, creed, or national origin

brought the government directly into the operations of HRM

Equal Employment Opportunity Act
strengthened the EEOC by giving it rather broad powers

permitted the EEOc to issue guidelines for acceptable employer conduct in administering equal employment opportunity

affirmative action
employment activities designed to "right past wrongs" by increasing opportunities for minorities and women

most controversial policy enforced by the EEOC

reverse discrimination
discrimination against whites or males in hiring or promoting
Civil Rights Act of 1991
expanded the remedies available to victims of discrimination by amending Title VII of the Civil Rights Act of 1964

victims have the right to a jury trial and punitive damages

Office of Federal Contract Compliance Programs (OFCCP)
ensures that employers comply with nondiscrimnation and affirmative action laws and regulations when doing business with the federal government
job description
a summary of the objectives of a job the type of work to be done, the responsibilities and duties, the working conditions, and the relationship of the job to other functions
job specifications
a written summary of the minimum qualifications required of workers to do a particular job
the set of activities used to obtain a sufficient number of the right employees at the right time; the purpose is to select those who best meet the needs of the organization
the process of gathering information and deciding who should be hired, under legal guidelines, to serve the best interests of the individual and the organization
contingent workers
employees that include part-time workers, temporary workers, seasonal workers, independent contractors, interns, and co-op students
the activity that introduces new employees to the organization, to fellow employees, to their immediate supervisors, and to the policies, practices, and objectives of the firm
on-the-job training
training at the workplace that lets the employee learn by doing or by watching others for awhile and then imitating them
apprentice programs
training programs during which a learner works alongside an experienced employee to master the skills and procedures of a craft
off-the-job training
internal or external training programs away fro the workplace that develop any of a variety of skills or foster personal development
online training
training programs in which employees complete classes via the internet
vestibule training
training done in schools where employees are taught on equipment similar to that used on the job
job simulation
the use of equipment that duplicates job conditions and tasks so trainees can learn skills before attempting them on the job
management development
the process of training and educating employees to become good managers, and then monitoring the progress of their managerial skills over time
the process of establishing and maintaining contacts with key managers in and outside the organization and using those contacts to weave strong relationships that serve as informal development systems
an experienced employee who supervises, coaches, and guides lower-level employees by introducing them to the right people and generally being their organizational sponsor
performance appraisal
an evaluation that measures employee performance against established standards in order to make decisions about promotions, compensation, training, or termination

1. establishing performance standards
2. communicating those standards
3. evaluating performance
4. discussing results with employees
5. taking corrective action
6. using the results to make decisions

Hay system
pay system based on job tiers, each of which has a strict pay range

set up on a point basis with three key facts considered:
1. know-how
2. problem solving
3. accountability

fixed compensation computed on weekly, biweekly, or monthly pay periods
hourly wage or daywork
wage based on number of hours or days worked, used for most blue-collar and clerical workers

does not include benefits such as retirement systems

piecework system
wage based on the number of items produced rather than by the hour or day --> creates incentives to work efficiently and productively
commission plans
pay based on some percentage of sales

often used to compensate salespeople

resemble piecework systems

bonus plans
extra pay for accomplishing or surpassing certain objectives
gain-sharing plans
annual bonuses paid to employees based on achieving specific goals such as quality measures, customer satisfaction measures, and production targets
stock options
right to purchase stock in the company at a specific price over a specific period - often gives employees the right to buy stock cheaply despite huge increases in the price of the stock
skill-based pay
form of team compensation that rewards the growth of both the individual and the team
gain-sharing system
form of team compensation that bases bonuses on improvements over previous performance
fringe benefits
benefits such as sick-leave pay, vacation pay, pension plans, and health plans that represent additional compensation beyond base wages
soft benefits
fringe benefits that help workers maintain the balance between work and family life that is often as important to hardworking employees as the nature of the job itself

include onsite haircuts and shoe repair, concierge services, and free breakfasts

flextime plan
work schedule that gives employees some freedom to choose when to work, as long as they work the required number of hours
core time
in a flextime plan, the period when all employees are expected to be at their job stations
compressed workweek
work schedule that allows an employee to work a full number of hours per week but in fewer days
job sharing
an arrangement whereby two part-time employees share one full-time job
SWOT analysis
potential external strengths, weaknesses, opportunities, and threats
an employee organization whose main goal is representing its members in employee-management negotiation of job-related issues
craft union
an organization of skilled specialists in a particular trade; most were established to achieve some short-range goal and then disbanded
Knights of Labor
first national labor union formed in 1869 by Uriah Stephens Smith

offered membership to all working people

promoted social causes as well as labor and economic issues

intention was to gain significant political power and eventually restructure the U.S. economy

fell from prominence after Haymarket Square riot in 1886

American Federation of Labor (AFL)
an organization of craft unions that championed fundamental labor issues; founded in 1886 by Samuel Gompers

intentionally limited membership to skilled workers, assuming they would have better bargaining power than unskilled workers in obtaining concessions from employers

industrial unions
labor organizations of unskilled and semiskilled workers in mass-production industries such as automobiles and mining
Congress of Industrial Organizations (CIO)
union organization of unskilled workers; broke away from the American Federation of Labor (AFL) in 1935 and rejoined it in 1955
merger of AFL and CIO after Taft-Hartley Act; formed by George Meany in 1955
Norris-LaGuardia Act (1932)
prohibited courts from issuing injunctions against nonviolent union activities; outlawed contract forbidding union activities; outlawed the use of yellow-dog contracts by employers

paved the way for union growth in the United States

yellow-dog contract
a type of contract that required employees to agree as a condition of employment not to join a union
National Labor Relations Act / Wagner Act (1935)
provided labor with clear legal justification to pursue key issues that were strongly supported by Samuel Gompers and the AFL

gave employees the right to form or join labor organizations, the right to collectively bargain with employers through elected union representatives, and the right to engage in labor activities such as strikes, picketing, and boycotts

prohibited certain unfair labor practices by the employer and the union, and established the National Labor Relations Board to oversee union election campaigns and investigate labor practices

National Labor Relations Board (NLRB)
provides workplace guidelines and legal protection to workers seeking to vote on organizing a union to represent them

consists of five members appointed by the U.S. president

formal process whereby a union is recognized by the National Labor Relations Board as the bargaining agent for a group of employees
negotiated labor-management agreement
agreement that sets the tone and clarifies the terms under which management and labor agree to function over a period of time
union security clause
provision in a negotiated labor-management agreement that stipulates that employees who benefit from a union must either officially join or at least pay dues to that union
closed shop agreement
clause in a labor-management agreement that specified workers had to be members of a union before being hired

outlawed in the Taft-Hartley Act in 1947

union shop agreement
clause in a labor-management agreement that says workers do not have to be members of a union to be hired, but most agree to join the union within a prescribed period

favored by unions today

agency shop agreement
clause in a labor-management agreement that says employers may hire nonunion workers; employees are not required to join the union but must pay a union fee
right-to-work laws
legislation that gives workers the right, under an open shop, to join or not join a union if it is present
open shop agreement
agreement in right-to-work states that gives workers the option to join or not join a union, if one exists in their workplace

a worker who does not join cannot be forced to pay a fee or dues

a charge by employees that management is not abiding by the terms of the negotiated labor-management agreement
shop steward
union officials who work permanently in an organization and represent employee interests on a daily basis

negotiate and resolve the vast majority of grievances

bargaining zone
the range of options between the initial and final offer that each party will consider before negotiations dissolve or reach an impasse
the use of a third party, called a mediator, who encourages both sides in a dispute to continue negotiating and often makes suggestions for resolving the dispute
the agreement to bring in an impartial third party to render a binding decision in a labor dispute

more extreme option used to resolve conflicts

often called the blue flu, workers arrange in groups to be absent from work and claim illness as a reason

used when strikes are prohibited

cooling-off period
when workers in a critical industry return to their jobs while the union and management continue negotiations

Taft-Hartley Act permitted the U.S. president to ask for one

can last up to 80 days

primary boycott
when a union encourages both its members and the general public not to buy the products of a firm involved in a labor dispute
secondary boycott
an attempt by labor to convince others to stop doing business with a firm that is the subject of a primary boycott; prohibited by the Taft-Hartley Act
an attempt by management to put pressure on unions by temporarily closing the business
a court order directing someone to do something or to refrain from doing something

management must show a just cause, such as the possibility of violence or destruction of property

workers hired to do the jobs of striking workers until the labor dispute is resolved

called scabs by unions

concessions made by union members to management; gains from labor negotiations are given back to management to help employers remain competitive and thereby save their jobs
sexual harassment
unwelcome sexual advances, requests for sexual favors, and other conduct of a sexual nature that creates a hostile work environment
comparable worth
legislative proposal that requires that people in jobs requiring similar levels of education, training, or skills should receive equal pay
data processing (DP)
name for business technology in the 1970s; included technology that supported an existing business and was primarily used to improve the flow of financial information

primary purpose was to improve the flow of financial information

information systems (IS)
name for business technology in the 1980s; technology that helps companies do business

includes such tools as ATMs and voicemail

business became more dependent on information systems

information technology (IT)
name for business technology since the late 1980s; technology that helps companies change business by allowing them to use new methods
business process information
includes all transaction data gathered at the point of sale as well as information gained through operations like enterprise resource planning, supply chain management, and customer relationship management systems
physical-world observations
information that results from the use of radio frequency (RFID) devices, miniature cameras, wireless access, global positioning systems, and sensor technology - all of which have to do with where people or items are located and what they are doing
public data
information that includes the electronic traces we leave when posting to the Internet, sending e-mail, and using instant messaging

free and accessible

data warehouse
stores data on a single subject over a specific period
data mining
a technique for looking for hidden patterns and previously unknown relationships among data
a companywide network, closed to public access, that uses internet-type technology
a semiprivate network that uses internet technology and allows more than one company to access the same information or allows people on different servers to collaborate
dedicated lines
lines reserved solely for the network
virtual private network (VPN)
a private data network that creates secure connections, or "tunnels," over regular internet lines

gives users the same capabilities as an extranet at much lower cost by using shared public resources rather than private ones

enterprise portal
centralizes information and transactions and serves as an entry point to a variety of resources, such as e-mail, financial records schedules, and employment and benefit files

identify users and allow them access to areas of the intranet according to their roles

broadband technology
technology that offers users a continuous connection to the internet and allows them to send and receive mammoth files that include voice, video, and data much faster than ever before
Web 2.0
the set of tools that allow people to build social and business connections, share information, and collaborate on projects online, including blogs, wikis, social networking sites and other online communities, and virtual worlds
network computing system (or client/server computing)
computer systems that allow personal computers (clients) to obtain needed information from huge databases in a central computer (the server)

- allow companies to save time and money
- provide easy links across functional boundaries
- allow employees to see complete information

thin-client networks
a hybrid of mainframe and network computing

alternative to network PCs

a process that allows networked computers to run multiple operating systems and programs through one central computer at the same time

used to remedy crashes, viruses, and other potential problems

safer from thieves or hackers since the hub can cut off all access to the computer if it becomes compromised

software that is copyrighted but distributed to potential customers free of charge

users are asked to send a specified fee to the developer if the program meets their needs and they decide to use it

public domain software / freeware
software that is free for the taking

quality varies greatly

a piece of programming code inserted into other programming to cause some unexpected and, for the victim, usually undesirable event
the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
a management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives
a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not
mission statement
an outline of the fundamental purposes of an organization
the broad, long-term accomplishments an organization wishes to attain
strategic planning
the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals
tactical planning
the process of developing detailed, short-term statements about what is to be done, who is to do it, and how it is to be done

normally done by managers at lower levels of the organization

include setting annual budgets and deciding on other activities necessary to meet strategic objectives

rational decision-making model
a series of steps managers often follow to make logical, intelligent, and well-founded decisions
problem solving
the process of solving the everyday problems that occur

less formal than decision making and usually calls for quicker reaction to resolve everyday issues

a problem-solving technique that involves coming up with as many solutions to a problem as possible in a short period of time with no censoring of ideas
a problem-solving technique that involves listing all the pluses for a solution in one column, all them minuses in another, and all the implications in a third column
top management
highest level of management, consisting of the president and other key company executives who develop strategic plans

includes CEO, COO, CFO, and CIO

chief executive officer (CEO)
often also the president of the firm and responsible for all top-level decisions; responsible for introducing change into an organization
chief financial officer (CFO)
responsible for obtaining funds, planning budgets, collecting funds, etc.
chief information officer (CIO) / chief knowledge officer (CKO)
responsible for getting the right information to other mangers so they can make correct decisions
middle management
the level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling
technical skills
skills that involve the ability to perform tasks in a specific discipline or department
human relations skills
skills that involve communication and motivation; they enable managers to work through and with people
conceputal skills
skills that involve the ability to picture the organization as a whole and the relationship among its various parts
creating a vision for others to follow, establishing corporate values and ethics and transforming the way the organization does business in order to improve its effectiveness and efficiency
autocratic leadership
leadership style that involves making managerial decisions without consulting others

effective in emergencies and when absolute followership is needed

effective sometimes with new, relatively unskilled workers who need clear direction and guidance

participative (democratic) leadership
leadership style that consists of managers and employees working together to make decisions

employees meet to discuss and resolve management issues by giving everyone some opportunity to contribute to decisions

free-rein leadership
leadership style that involves managers setting objectives and employees being relatively free to do whatever it takes to accomplish those objectives

most successful leadership style in organizations in which managers supervise professionals

giving employees the authority to make a decision without consulting the manager, and the responsibility to respond quickly to customer requests
giving workers the education and tools they need to make decisions

key to success of empowerment

external customers
dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use
internal customers
individuals and units within the firm that receive services from other individuals or units
promotion mix
the combination of promotional tools an organization uses
integrated marketing communication (IMC)
a technique the combines all the promotional tools into one comprehensive, unified promotional strategy
paid, nonpersonal communication through various media by organizations and individuals who are in some ways identified in the advertising message
nonpersonal communication that does not have an identified sponsor
product placement
putting products into TV shows and movies where they will be seen
a full-length TV program devoted exclusively to promoting goods or services
interactive promotion
promotion process that allows marketers to go beyond a monologue, where sellers try to persuade buyers to buy things, to a dialogue in which buyers and sellers create mutually beneficial exchange relationships
personal selling
the face-to-face presentation and promotion of goods and services
researching potential buyers and choosing those most likely to buy
in the selling process, making sure that people have a need for the product, the authority to buy, and the willingness to listen to a sales message
a person with the means to buy a product, the authority to buy, and the willingness to listen to a sales message
trial close
a step in the selling process that consists of a question or statement that moves the selling process towards the actual close
sales promotion
the promotional tool that stimulates consumer purchasing and dealer interest by means of short-term activities

displays, trade shows and exhibitions, event sponsorships, and contests

a promotional tool in which a company lets consumers have a small sample of a product for no charge
viral marketing
the term now used to describe everything from paying customers to say positive things on the internet to setting up multilevel selling schemes whereby consumers get commissions for directing friends to specific websites
a means of distributing audio and video programs via the internet that lets users subscribe to a number of files, also known as feeds, and then hear or view the material at the time they choose
push strategy
promotional strategy in which the producer uses advertising, personal selling, sales promotion, and all other promotional tools to convince wholesalers and retailers to stock and sell merchandise
pick economy
customers who pick out their products from online outlets or who do online comparison shopping
strategy of setting the price high and then dropping it as the product begins to sell
strategy of setting the price low at the beginning
the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners, and society at large

the activities buyers and sellers perform to facilitate mutually satisfying exchanges

production era
era that lasted until the 1900s - "produce as much as you can, because there is a limitless market for it"

limited production capability and vast demand for products existed

goals centered on production

selling era
era that began in the 1920s; business philosophy turned from producing to selling

most companies emphasized selling and advertising in an effort to persuade consumers to buy existing products; few offered extensive service after the sale

marketing concept
a three party business philosophy:

1. customer orientation - find out what consumers want and provide it for them

2. service orientation - make sure everyone in the organization has the same objective: customer satisfaction

3. profit orientation - focus on those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs

customer relationship era
era of the 1990s and early 2000s; idea is to enhance customer satisfaction and stimulate long-term customer loyalty
customer relationship management (CRM)
the process of learning as much as possible about customers and doing everything you can to satisfy them - or even exceed their expectations - with goods and services
marketing mix
the ingredients that go into a marketing program:

1. product
2. price
3. place
4. promotion

any physical good, service, or idea that satisfies a want or need plus anything that would enhance the product in the eyes of the consumers, such as the brand
concept testing
developing an accurate description of your product and asking people whether the idea appeals to them
test marketing
the process of testing products among potential users
all the techniques sellers use to inform people about and motivate them to buy their products and services

includes advertising, personal selling, PR, publicity, word of mouth, and various sales promotion efforts

marketing research
the analysis of markets to determine opportunities and challenges, and to find the information needed to make good decisions
secondary data
information that has already been compiled by others and published in journals or books or made available online

least expensive method of collecting data

primary data
data that you gather yourself

results of new studies

common forms include telephone surveys, online surveys, mail surveys, and personal interviews

focus group
a small group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, and other given issues
environmental scanning
the process of identifying the factors that can affect marketing success

factors include global, technological, sociocultural, competitive, and economic influences

consumer market
all the individuals or households that want goods and services for personal consumption or use
business-to-business (B2B) market
all the individuals and organizations that want goods and services to use in producing other goods and services to sell, rent, or supply goods to others
market segmentation
the process of dividing the total market in to groups whose members have similar characteristics
target marketing
marketing directed toward those groups (market segments) an organization decides it can serve profitably
niche marketing
the process of finding small but profitable segments and designing or finding products for them
long tail
explains how companies selling more products with lower demand can easily compete with those solely dependent on big sellers
one-to-one marketing
developing a unique mix of goods and services for each individual customer

used by travel agencies

mass marketing
developing products and promotions to please large groups of people

increased after Industrial Revolution

relationship marketing
marketing strategy with the goal of keeping individual customers over time by offering them products that exactly meet their requirements
cognitive dissonance
a type of psychological conflict that can occur after a purchase

consumers who make a major purchase may have doubts about whether they got the best product at the best price

marketers must reassure such consumers after the sale that they made a good decision

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