Schermerhorn "Management" 11e 3,4,5&6

General Environment
The general environment is comprised of economic, legal-political, technological, sociocultural, and natural environment conditions.
Internet Censorship
The deliberate blockage and denial of public access to information posted on the Internet.
Sustainable Business
Meets the needs of customers and protects the well-being of our natural environment.
Sustainable Innovation
Creates new products and production methods that have reduced enviornmental impact.
Specific Environment
The specific environment, or task environment, includes the people and groups with whom an organazation interacts.
Stakeholders
The persons, groups, and institutions directly affected by an organization.
Value Creation
Creating value for and satisfying needs of stakeholders.
Competitive Advantage
Allows an organization to deal with market and environmental forces better than its competitors.
Strategic Positioning
Results in an organization doing different things or the same things in different ways from one’s major competitors.
Customer Relationship Management
Strategically tries to build lasting relationships with and to add value to customers.
Supply Chain Management
Strategically links all operations dealing with resource supplies.
Organizational Effectiveness
Sustainable high performance in using resources to accomplish mission.
Organizational Culture
The system of shared beliefs and values that guides behavior in organizations.
Socialization
The process through which new members learn the culture of an organization.
Value-based Management
Actively develops, communicates, and enacts shared values.
Workplace Spirituality
Creates meaning and shared community among organizational members.
Symbolic Leader
Uses symbols to establish and maintain a desired organizational culture.
Multiculturalism
Involves pluralism and respect for diversity.
Multicultural Organization
Based on pluralism and operates with inclusivity and respect for diversity.
Organizational Substructures
Exists among people with similar values and beliefs based on shared work responsibilities and personal characteristics.
Ethnocentrism
The belief that one’s membership group or subculture is superior to all others.
Glass Ceiling
A hidden barrier to the advancement of women and minorities.
Biculturalism
When minority members adopt characteristics of majority cultures in order to succeed.
Managing Diversity
Building an inclusive work environment that allows everyone to reach their full potential.
Ethics
Set standards of good or bad, right or wrong, on one’s conduct.
Ethical Behavior
“Right” or “Good” in the context of a governing moral code.
Values
Broad beliefs about what is appropriate behavior.
Terminal Values
Perferences about desired end states.
Instrumental Values
Preferences regarding the means to desired ends.
Utilitarian View
Ethical behavior that delivers the greatest good to the most people.
Individualism View
Ethical behavior that advances long-term self-interests.
Moral Rights View
Ethical behavior that respects and protects fundamental rights.
Justice View
Ethical behavior that treats people impartially and fairly.
commutative justice
Justice through fair exchange
Procedural Justice
Concerned that policies and rules are fairly applied.
Distributive Justice
Concerned that poeple are treated the same regardless of personal characteristics.
Interactional Justice
The degree to which others are treated with dignity and respect.
Universalism
Suggests ethical standards apply absolutely across all cultures.
“Certain absolute truths apply everywhere. Universal values transcend cultures in determining what is right or wrong.”
Don’t do anything you wouldn’t do at home.
Cultural Relativism
Suggest there is no one right way to behave; eithical behavior is determined by its culture context.
“No culture’s ethics are superior. The values and practices of the local setting determine what is right or wrong”
When in Rome, do as the Romans do.
Ethical Imperialism
An attempt to impose one’s ethical standards on other cultures.
Ethical Dilemma
A situation that offers potential benefit or gain and is also unethical.
Ethics Intensity
Indicates the degree to which an issue or situation is recognized to pose important ethical challenges.
Ethical Framework
A personal rule or strategy for making ethical decisions.
Lawrence Kohlberg: 3 Levels of Moral Development
Preconventional – Self-Centered Behavior
Stage 1 – Avoid harm or punishment
Stage 2 – Make deals for personal gain
Conventional – Social-Centered Behavior
Stage 3 – Act consistently with peers, others
Stage 4 – Follow rules, meet obligations
Postconventional – Principle-Centered Behavior
Stage 5 – Live up to societal expectations
Stage 6 – Act according to internal principles
Whistleblower
Exposes the misdeeds of others in organizations.
Code of Ethics
A formal statement of values and ethical standards.
Immoral Manager
Chooses to behave unethically. intentional
Amoral Manager
Fails to consider the ethics for his or her behavior. unintentional
Moral Manager
Makes ethical behavior a personal goal.
Ethics Mindfulness
Enriched awareness that leads to consistent ethical behavior.
Social Entrepreneurship
A mission to solve pressing social problems.
Corporate Social Responsibility (CSR)
The obligation of an organization to serve its own interests and those of society.
Classical View of CSR
That business should focus on profits.
Socioeconomic view of CSR
That business should focus on broader social welfare as well as profits.
Virtuous Circle
Occurs when Corporate Social Responsibility (CSR) improves financial performance which leads to more CSR.
Social Responsibility Audit
Assesses an organization’s accomplishments in areas of social responsibility.
Obstructionist Strategy
Avoids social responsibility and reflects mainly economic priorities.
“Fights social demands”
Meet economic responsibilities
Defensive Strategy
Seeks protection by doing the minimum legally required.
Meet economic and legal responsibilities
Accommodative Strategy
Accepts social responsibility and tries to satisfy economic, legal, and ethical criteria.
Proactive Strategy
Meets all the criteria of social responsibility, including discretionary performance.
“Take leadership in social initiatives”
Corporate Governance
The oversight of top management by a board of directors.
triple bottom line
A business strategy that includes social, economic, and environmental criteria.
demand legitimacy
indicates the validity and legitimacy of a stakeholder’s interest in the organization
issue urgency
Indicates the extent to which a stakeholder’s concerns need immediate attention
stakeholder power
Refers to the capacity of the stakeholder to positively or negatively affect the operations of the organization
ethics training
Seeks to help people understand the ethical aspects of decision making and to incorporate high ethical standards into their daily behavior
offshoring
outsourcing that involves relocating business functions and processes to another country.
re-shoring
jobs that had been sent overseas are returning home (call centers; ATM manufacturing)
un-branding
A practice that occurs when stores owned by major national and global chains are advertised with local non-branded names.
enterprise 2.0
the use of social networking and blog technology in the workplace
generational cohorts
indicate similarities in birth year and associated similarities in experience
specific environment
the people or groups wit whom an organization interacts
environmental uncertainty
lack of information needed to understand or predict the future
three P’s of organizational performance
profit, people, planet
ISO 14001
A global quality standard that certifies organizations that set environmental objectives and targets, account for the environmental impact of their activities, and continuously improve environmental performance.
sustainable development
DEVELOPMENT THAT MEETS THE NEEDS OF THE PRESENT WITHOUT COMPROMISING ABILITY OF FUTURE GENERATIONS
environmental capital
natural resources used to sustain life and produce goods and services for society
green management
when managers recognize and consider the impact of their organization and its practices on the natural environment
social business innovations
finds ways to use business models to address important social problems
trickle up innovation
recognizes the potential for valuable innovations to be launched from lower organizational levels and divers locations including emerging markets
steps in innovation process
imagining, designing, experimenting, assessing, scaling 95
experimenting
examining practicality and financial feasibility through experiments and feasibility studies
assessing
identifying strengths and weaknesses, potential costs and benefits, and potential markets or applications
scale-ing
implementing what has been learned and commercializing new products or services
skunk works
special units given separate locations, special resources, and their own managers so they can succeed with innovation
ambidextrous organization
uses integrated creative teams to simultaneously be good at both producing and creating
global manager
is culturally aware and informed on international affairs
licensing agreement
a local firm pays a fee to a foreign firm for rights to make its products
franchising
a fee is paid for rights to operate using name branding and methods
insourcing
job creation through foreign direct investment
joint venture
operates in a foreign country through co-ownership by foreign and local partners
foreign subsidiary
local operation completely owned by a foreign firm
political risk
The likelihood that political forces will cause drastic changes in a country’s business environment that will adversely affect the profit and other goals of a business enterprise
political risk-analysis
tries to forecast political disruptions that can threaten the value of a foreign investment
tariffs
A tax on imported goods
nontarrif barriers
nontax methods of increasing the cost or reducing the colume of imported goods
protectionism
A government’s establishment of economic policies that restrict imports to protect domestic industries.
NAFTA
-North American Free Trade Agreement linking Canada the united states and Mexico
WTO
(World Trade Organization)–an international organization based in Geneva that monitors and enforces rules governing global trade
the European union
political and economic alliance of European countries
transnational corporation
is a global corporation or MNE that operates worldwide on a borderless basis
MNE
multinational enterprise
global corporation
an MNE or MNC that conducts commercial transactions across national Boundaries
FCPA
it is illegal for US firms, agents on behalf, or employees to pay or offer bribes to foreign officials for purpose of gaining and or maintaining business
low context cultures
Cultures in which messages are direct, specific, and detailed. Not depended on a great deal of context with the message.
high context cultures
Cultures in which messages are indirect, general and ambiguous. Needs to be understood based on the context of the communication situation.
monochromic culture
people that do one thing at a time
culture
Beliefs, customs, and traditions of a specific group of people.
cultural intelligence
An individual’s ability to understand and adjust to new cultures
polychromic culture
Like Japan, Middle East, and Latin America. Those cultures that welcome the simultaneous occurrence of many things and emphasize involvement with people over specific time
proxemics
How people use space to communicate
ecological fallacy
Erroneously basing conclusions about individuals solely on the observation of groups.
power distance
Degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individuals’ physical and intellectual capabilities and heritage
individualism
Giving priority to one’s own goals over group goals and defining one’s identity in terms of personal attributes rather than group identifications
collectivism
A cultural orientation in which interdependence, cooperation, and social harmony take priority over personal goals
uncertainty avoidance
A national culture attribute that describes the extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.
time orientation
is the degree to which a society emphasizes short term or long term goals
comparative management
the study of how management practices differ among countries and cultures
humane orientation
the degree that a culture expects and rewards altruistic and generous behavior
performance orientation
The culture encourages and rewards members for excellence and performance improvements
entrepreneurship
Accepting the risk of starting and running a business.
classic entrepreneurship
someone willing to pursue opportunities in situations others view as problems or threats
serial entrepreneurship
starts and runs business and non profits over and over again
first mover advantage
any advantage that comes to a firm because it exploits an opportunity before any other firm does
itrapreneurs
display entrepreneurial behaviors as employers of larger firms
internal locus of control
The perception that one controls one’s own fate
necessity based entrepreneurship
takes place because other employment options don’t exist
social entrepreneurship
leveraging resources to address social problems
social entrepreneur
An individual who pursues initiatives and opportunities and mobilizes resources to address social problems and needs in order to improve society and well-being through creative solutions
small business
A business with under 500 employees that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry.
franchise
A legal agreement that gives an individual the right to market a company’s products or services in a particular area.
startup
a new and temporary venture that is trying to discover a profitable business model for future success.
lean startup
use free software and web services while staying small and keeping operations simple
internet entrepreneurship advertising model
advertisers pay to be displayed
internet entrepreneurship subscription model
visitors pay for value
internet entrepreneurship intermediary model
fee for bringing buyers and sellers together
internet entrepreneurship transaction model
sells something customers want to buy
succession problem
the issue of who will run the business when the current head leaves
succession plan
The process of identifying a plan for the orderly replacement of key employees.
business incubators
Protected environments for new, small businesses.
SBDC
Small Business Development Centers are located throughout the United States and are administered by the SBA. They provide management assistance to entrepreneurs and new business owners.
business plan
A formal planning step that focuses on the entire venture and describes all the elements involved in starting it.
sole proprietorship
business owned and usually operated by one person who is responsible for all its debts
partnership
A business in which two or more persons combine their assets and skills
corporation
A business owned by stockholders who share in its profits but are not personally responsible for its debts
LLC
Business structure that offers its owners the advantage of limited liability and partnership-like taxation, in which profits are passed through to the owners and taxed on their personal income tax returns.
debt financing
Funds raised through various forms of borrowing that must be repaid
equity financing
Funds raised from operations within the firm or through the sale of ownership in the firm.
venture capitalist
individuals or companies that invest in new businesses in exchange for partial ownership of those businesses
IPO
Initial Public Offering
angel investor
Wealthy individuals who seek high returns through private investments