1. Organization – A tool people use to coordinate their actions to obtain something they desire or value.
2. Entrepreneurship – The process by which people recognize opportunities to satisfy needs and then gather and use resources to meet those needs.
3. Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect its ability to acquire and use resources to create value.
4. Economies of scale – Cost savings that result when goods and services are produced in large volume on automated production lines.
5. Economies of scope – Cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across different products or tasks.
6. Transaction Costs – The costs associated with negotiating, monitoring and governing exchanges between people.
7. Organizational Theory – The study of how organizations function and how they affect and are affected by the environment in which they operates.
8. Organizational Structure – The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.
9. Organizational Culture – The set of shared values and norms that controls organizational member’s interactions with each other and with suppliers, customers and other people outside the organization.
10. Organization Design – The process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.
11. Organizational Change – The process by which organizations redesign their structures and cultures to move from their present state to some desired future state to increase their effectiveness.
12. Contingency – An event that might occur and must be planned for.
13. Competitive advantage – The ability of one company to outperform another because its managers are able to create more value from the resources at their disposal.
14. Core Competence – Managers skills and abilities in value creating activities.
15. Strategy – The specific pattern of decisions and actions that managers take to use core competitive advantage and outperform competitors.
16. External resource approach – A method managers use to evaluate how effectively an organization managers and controls its external environment.
17. Internal systems approach – A method that allows managers to evaluate how effectively an organization functions and resources operate.
18. Technical approach – A method managers use to evaluate how efficiently an organization can convert some fixed amount of organizational resources into finished goods and services.
19. Official goals – Guiding principles that the organization formally states in its annual report and in other public documents.
20. Mission – Goals that explain why the organization exists and what it should be doing.
21. Operative goals – Specific long term and short term goals that guide managers and employees as they perform the work of the organization. Inversely
Stakeholders, Managers, and Ethics
1. Stakeholders – People who have an interest, claim, or stake in an organization, in what it does and in how well it performs.
2. Inducement’s – Rewards such as money, power, and organizational status.
3. Contributions – The skills, knowledge, and expertise that organizations require of their members during task performance.
4. Authority – The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources.
5. Chain of command – The system of hierarchical reporting relationships in an organization.
6. Hierarchy – A classification of people according to authority and rank.
7. Line role –...