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5th Edition 5th Edition Edited by Marilyn M Helms, D.B.A Encyclopedia of Management, 5th ed Marilyn M Helms, D.B.A., Editor Project Editor Julie A Gough © 2006 Thomson Gale, a part of The Thomson Corporation Thomson and Star Logo are trademarks and Gale is a registered trademark used herein under license Editorial Virgil Burton Miranda Ferrara Linda Hall Lynn Pearce Holly Selden Composition and Electronic Prepress Evi Seoud For permission to use material from this product, submit your request via Web at http://www.gale-edit.com/permissions, or you may download our Permissions Request form and submit your request by fax or mail to: While every effort has been made to ensure the reliability of the information presented in this publication, Thomson Gale does not guarantee the accuracy of the data contained herein Thomson Gale accepts no payment for listing; and inclusion in the publication of any organization, agency, institution, publication, service, or individual does not imply endorsement of the editors or publisher Errors brought to the attention of the publisher and verified to the satisfaction of the publisher will be corrected in future editions Permissions Department Thomson Gale 27500 Drake Rd Farmington Hills, MI 48331-3535 Permissions Hotline: 248-699-8006 or 800-877-4253, ext 8006 Fax: 248-699-8074 or 800-762-4058 For more information, contact Thomson Gale 27500 Drake Rd Farmington Hills, MI 48331-3535 Or you can visit our internet site at http://www.gale.com ALL RIGHTS RESERVED No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage retrieval systems—without the written permission of the publisher Manufacturing Wendy Blurton Since this page cannot legibly accommodate all copyright notices, the acknowledgments constitute and extension of the copyright notice LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA Encyclopedia of management / edited by Marilyn M Helms.—5th ed p cm Includes bibliographical references and index ISBN 0-7876-6556-8 (hardcover : alk paper) Industrial management—Encyclopedias I Helms, Marilyn M., 1962HD30.15.E49 2006 658'.003—dc22 2005018546 This title is also available as an e-book ISBN 1-4144-0478-6 Contact your Thomson Gale sales representative for ordering information Printed in the United States of America 10 HIGHLIGHTS The fifth edition of the Encyclopedia of Management presents a completely refreshed look at the vast and continually evolving field of management Through 303 essays, readers will encounter thousands of terms, issues, and concepts such as: • Aggregate Planning The Encyclopedia of Management’s essays offer a unique starting point for individuals seeking comprehensive information that can’t be adequately conveyed through brief dictionary-like definitions Placed into context, and enhanced by background data as well as graphics and statistics, the topics covered in this volume are of both current and enduring interest • Apprenticeship Programs • Balanced Scorecard • Benchmarking • Coalition Building • Ethics • Globalization • Hypothesis Testing • Inventory Management • Japanese Management • Lean Manufacturing and Just-in-Time Production ADDITIONAL FEATURES • Contents are arranged alphabetically from A to Z in one volume • One comprehensive tiered index simplifies accessibility • Cross-references abound to help readers locate information • Many essays written by acclaimed experts in their fields • Management Awards • “Further Reading” sections provide source suggestions for further study • Mission and Vision Statements • Graphs, charts, and tables • Organization Theory • Math formulas illustrate concepts and models • Outsourcing and Offshoring • Pioneers of Management • Project Management • Quality of Work Life • Time-Based Competition Composed by subject matter specialists and business writers, under the guidance of an expert advisory panel headed by Dr Marilyn M Helms of Dalton State College, EoM represents a substantial contribution to business and management reference Students, scholars, and business practitioners alike will find a wealth of information in this fully revised source • Virtual Organizations • Women and Minorities in Management • World-Class Manufacturer • Zero-Sum Game v E N C Y C L O P E D I A O F M A N A G E M E N T TABLE OF CONTENTS PREFACE AND USER’S GUIDE xi EDITOR AND ADVISORS xv CONTRIBUTORS xix GUIDE TO FUNCTIONALAREA READINGS xxi ESSAY TITLES, A - Z Acquisitions Activity-Based Costing Affirmative Action Aggregate Planning Angels and Venture Capitalists Apprenticeship Programs 11 The Art and Science of Management 14 Artificial Intelligence 18 Assessment Centers 21 Attribution Theory 22 Autonomy 25 Balance Sheets 27 Balanced Scorecard 30 Bar Coding and Radio Frequency Identification 35 Bases of Power 37 Benchmarking 38 Body Language 40 Brainstorming 43 Break-Even Point 45 Budgeting 49 Bundled Goods and Services 50 Business Continuity Planning 52 Business Plan 54 Business Process Reengineering 58 Business Structure 61 Cafeteria Plan—Flexible Benefits 65 Capacity Planning 66 Case Method of Analysis 67 Cash Flow Analysis and Statement 70 Cellular Manufacturing 73 Census—Economic 77 Chain of Command Principle 77 Change—Managing 78 Change—Reactive vs Proactive 78 Change—Trends in Organizations 78 Chaos Theory 78 Closed Systems 81 Coalition Building 82 Communication 85 Competitive Advantage 89 Competitive Intelligence 92 Complexity Theory 95 Computer-Aided Design and Manufacturing 98 Computer-Aided Manufacturing 101 Computer-Integrated Manufacturing 101 Computer Networks 104 Computer Security 108 Concurrent Engineering 112 Conflict Management and Negotiation 115 Consulting 120 Consumer Behavior 121 Contingency Approach to Management 125 Contingent Workers 126 Continuing Education and Lifelong Learning Trends 128 Continuous Improvement 132 Corporate Governance 134 Corporate Social Responsibility 137 Cost-Volume-Profit Analysis 141 Cost Accounting 144 vii E N C Y C L O P E D I A O F M A N A G E M E N T Cover Letter Trends 149 Creativity 149 Critical Path Method 150 Culture—International Differences 150 Culture—Organizational 150 Customer Relationship Management 150 Cycle Time 152 Data Processing and Data Management 155 Debt vs Equity Financing 159 Decision Making 160 Decision Rules and Decision Analysis 164 Decision Support Systems 170 Delegation 174 Deregulation 177 Dictionary of Occupational Titles 179 Discrimination 179 Distribution and Distribution Requirements Planning 184 Diversification Strategy 187 Diversity 191 Divestment 193 Domestic Management Societies and Associations 194 Downsizing and Rightsizing 197 Due Diligence 200 E-Commerce 203 EAP 203 Economic Census 203 Economics 205 Economies of Scale and Economies of Scope 209 Effectiveness and Efficiency 211 Efficiency 214 Electronic Commerce 214 Electronic Data Interchange and Electronic Funds Transfer 218 Electronic Funds Transfer 220 Empathy 220 Employee Assistance Programs 221 Employee Benefits 223 Employee Compensation 226 Employee Evaluation and Performance Appraisals 231 Employee Handbook and Orientation 236 Employee Recruitment Planning 241 Employee Screening and Selection 243 Employment Law and Compliance 248 Empowerment 253 Enterprise Resource Planning 256 Entrepreneurship 258 Ergonomics 259 Ethics 261 viii E N C Y C L O P E D I A O F M A N A G E M E N T European Union 265 Executive Compensation 271 Executive Development 273 Expatriates 274 Experience and Learning Curves 276 Expert Systems 279 Exporting and Importing 281 Facilitator 287 Family-Friendly Business Practices 288 Feedback 288 Financial Issues for Managers 289 Financial Ratios 292 First-Mover Advantage 297 Five S Framework 299 Flexible Benefits 300 Flexible Manufacturing 300 Flexible Spending Accounts 303 Focused Factory 305 Forecasting 307 Franchising 311 Free Trade Agreements and Trading Blocs 314 Futuring 315 Gap Analysis 319 Generic Competitive Strategies 321 Globalization 325 Goals and Goal Setting 331 Government-University-Industry Partnerships 335 Group Decision Making 341 Group Dynamics 343 Handheld Computers 349 Health Savings Accounts 350 Human Resource Information Systems 351 Human Resource Management 357 Hypothesis Testing 364 IPO 367 Importing 367 Income Statements 367 Industrial Relations 371 Industry Life Cycle 373 Initial Public Offering 373 Innovation 374 Instant Messaging 376 Intellectual Property Rights 377 Internal Auditing 379 International Business 381 International Cultural Differences 385 International Management 387 International Management Societies and Associations 393 International Monetary Fund 396 International Organization for Standardization 399 The Internet 402 Intrapreneurship 407 Inventory Management 408 Inventory Types 412 Japanese Management 417 Job Analysis 423 Joint Ventures and Strategic Alliances 427 Just-in-Time Production 430 Knowledge Management 431 Knowledge Workers 432 Layout 439 Leadership Styles and Bases of Power 442 Leadership Theories and Studies 445 Lean Manufacturing and Just-in-Time Production 450 Leveraged Buyouts 454 Licensing and Licensing Agreements 455 Lifelong Learning Trends 457 Line-and-Staff Organizations 457 Listening 459 Location Strategy 462 Logistics and Transportation 464 Longitudinal Scenarios 467 MIS 469 Macroeconomics 469 Macroenvironmental Forces 469 Maintenance 474 Make-or-Buy Decisions 479 Management: Art vs Science 481 Management Audit 481 Management Awards 483 Management Control 490 Management Functions 493 Management Information Systems 496 Management Levels 498 Management Science 503 Management Societies and Associations: Domestic 508 Management Societies and Associations: International 508 Management Styles 508 Management Thought 511 Management and Executive Development 515 Managing Change 519 Manufacturing Resources Planning 523 Market Share 526 Marketing Communication 527 Marketing Concept and Philosophy 532 Marketing Research 535 Mechanistic Organizations 539 Meeting Management 540 Mentoring 545 Mergers and Acquisitions 548 Microeconomics 551 Miles and Snow Typology 551 Mission and Vision Statements 553 Models and Modeling 557 Morale 562 Motivation and Motivation Theory 563 Multimedia 566 Multinational Corporations 568 Multiple-Criteria Decision Making 571 NAICS 577 Negotiation 577 Nepotism 577 New Product Development 579 Non-Compete Agreements 583 Nonprofit Organizations 585 North American Industry Classification System 589 O*NET 593 Object-Oriented Programming 593 Occupational Information Network 595 Offshoring 596 Open and Closed Systems 596 Operant Conditioning 598 Operating Systems 600 Operations Management 602 Operations Scheduling 603 Operations Strategy 606 Opportunity Cost 610 Order-Qualifying Criteria 611 Order-Winning and Order-Qualifying Criteria 611 Organic Organizations 613 Organization Theory 615 Organizational Analysis and Planning 617 Organizational Behavior 620 Organizational Chart 621 Organizational Culture 624 Organizational Development 626 Organizational Learning 628 Organizational Structure 629 Organizing 635 Outsourcing and Offshoring 637 Participative Management 639 Patents and Trademarks 641 Performance Appraisals 643 Performance Measurement 644 Personality and Personality Tests 646 ix E N C Y C L O P E D I A O F M A N A G E M E N T Pioneers of Management 650 Planning 657 Poison Pill Strategies 660 Poka-Yoke 662 Popular Press Management Books 667 Porter’s 5-Forces Model 670 Pricing Policy and Strategy 673 Problem Solving 676 Process Management 680 Procurement 685 Product-Process Matrix 686 Product Design 690 Product Life Cycle and Industry Life Cycle 694 Production Planning and Scheduling 699 Productivity Concepts and Measures 700 Professional Readings for Managers 704 Profit Sharing 707 Program Evaluation and Review Technique and Critical Path Method 709 Project Management 714 Purchasing and Procurement 719 Quality Gurus 725 Quality and Total Quality Management 735 Quality of Work Life 741 Radio Frequency Identification 745 Reactive vs Proactive Change 745 Reinforcement Theory 749 Research Methods and Processes 751 Resumes and Cover Letter Trends 757 Reverse Supply Chain Logistics 761 Rightsizing 764 Risk Management 764 Robotics 767 SWOT Analysis 771 Safety in the Workplace 773 Sales Management 778 Scenario Planning 782 Securities and Exchange Commission 783 Sensitivity Training 786 Service Factory 789 Service Industry 790 Service Operations 795 Service Process Matrix 799 Shareholders 801 Simulation 806 Six Sigma 809 Span of Control 809 Spirituality in Leadership 811 Stakeholders 813 Statistical Process Control and Six Sigma 816 Statistics 821 x E N C Y C L O P E D I A O F M A N A G E M E N T Strategic Alliances 825 Strategic Partnerships 825 Strategic Planning Failure 825 Strategic Planning Tools 831 Strategy Formulation 837 Strategy Implementation 845 Strategy Levels 851 Strategy in the Global Environment 858 Stress 863 Succession Planning 867 Supply Chain Management 870 Sweatshops 873 Synergy 876 Systems Analysis 877 Systems Design 880 Task Analysis 885 Teams and Teamwork 887 Technological Forecasting 891 Technology Management 892 Technology Transfer 900 Telecommunications 905 Theory X and Theory Y 911 Theory Z 914 Theory of Constraints 916 Time-Based Competition 920 Time Management 924 Total Quality Management 928 Trademarks 928 Trading Blocs 928 Training Delivery Methods 928 Transnational Organization 935 Transportation 936 Trends in Organizational Change 937 Uniform Commercial Code 943 Utility Theory 944 Value-Added Tax 947 Value Analysis 950 Value Chain Management 953 Value Creation 955 Vendor Rating 956 Venture Capital 959 Videoconferencing 960 Virtual Organizations 963 Vision Statements 967 Warehousing and Warehouse Management 969 Women and Minorities in Management 971 Work-Life Balance 976 World-Class Manufacturer 980 Zero-Based Budgeting 985 Zero Sum Game 987 INDEX 991 PREFACE AND USER’S GUIDE PREFACE The Encyclopedia of Management, 5th Edition is an alphabetical reference book covering a comprehensive slate of management concepts Last published in 2000, this fully revised work represents the latest management theories and practices Each essay has been revised and new essays have been added to reflect the current state of management The Encyclopedia’s essays represent an authoritative treatment of the entire field of management, encompassing all the current theories and functional areas of this vast and growing discipline For the management student, manager, business practitioner, reference librarian, or anyone interested in a better understanding of a business management term or concept, the Encyclopedia should be a first-stop for general information as well as a link to other management concepts, related terms, references, and electronic databases and information sources It is designed to be a desk reference for everyday business management needs Still another use of the Encyclopedia is in a deeper understanding of one or more key functional areas of management By using the book as a systematic or a programmed reading of entries in selected categories or cluster areas, the reader can obtain a more thorough, in-depth understanding of key functional areas of management By reading all the essays for the terms under each heading in the “Guide to Functional-Area Readings”, individuals with a limited business background, a specialty in another management functional area, or a liberal arts education background can gain a broad, general familiarity with the entire scope of the management discipline today in one easy-to-use reference source The field of management is an extremely broad discipline that draws upon concepts and ideas from the physical and social sciences, particularly mathematics, philosophy, sociology, and psychology Within business, the field of management includes terms and ideas also common to marketing, economics, finance, insurance, transportation, accounting, computer technologies, information systems, engineering, and business law Management has applications in a wide variety of settings and is not limited to business domains Management tools, as well as the art and science of management, find applications wherever any effort must be planned, organized, or controlled on a significant scale This includes applications in government, the cultural arts, sports, the military, medicine, education, scientific research, religion, not-for-profit agencies, and in the wide variety of for-profit pursuits of service and manufacturing Management takes appropriate advantage of technical developments in all the fields it serves The growth of the discipline of management has also led to specialization or compartmentalization of the field These specialties of management make learning and study easier, but at the same time make broad understanding of management more difficult It is particularly challenging to the entrepreneur and the small business owner to master the subject areas, yet this group is compelled to excel at all management functions to further their businesses’ success Management specialties have grown to such an extent it is difficult for any single manager to fully know what management is all about So rapid have been the strides in recent years in such subjects as decision making, technology, the behavioral sciences, management information systems, and the like, to say nothing of proliferating legislative and governmental regulations affecting business, that constant study and education is required of all managers just to keep current on the latest trends xi E N C Y C L O P E D I A O F M A N A G E M E N T ZERO SUM GAME between two or more individuals or groups Management games are training or educational activities utilizing game theory models consisting of work situations A zero-sum game is one type of management game in which all the payoffs for all players total zero; what one player or group gains, the other loses To better understand the term zero-sum game, it is beneficial to analyze game theory, as well as management games Game theory is a significant branch of operations research and is closely related to decision theory and operational gaming It attempts to answer the question, In a situation of conflict, what choice should the player make? Game theory deals with abstract models of conflict situations or games of strategy A game occurs when an individual or teams of people are in competition either against one another or against situations, or both A game can be represented by the following model: there are n players (n being a certain number), each of whom is required to make one choice from a specified set of possible choices; when every player has made a choice, the particular combination of choices they have made determines an outcome that, in some way, affects or interests all players; each player knows what outcome results from each possible combination of choices; each player has an order of preference for the possible outcomes (often each player assigns to each outcome a numerical value, called a payoff, which can be thought of as representing the number of points, or dollars, etc., that he gains or loses from the outcome); each player knows the preferences of the other players (she knows what their payoffs are) and all players are assumed to act so as to gain the most they can from the game; but each player makes his choice without knowing what choice the other players are making In the game, the competing players are identified as persons whether they are individuals, teams, or any other group representing a single set of interests A play of a game is an exercise of the conflict model according to the rules; it consists of one or more moves by each player and may involve moves left to chance The outcome of the game is represented by the payoff, a gain or loss of some utility to each of the players as a result of the positions reached at the end of the game The solution of a game is comprised of the identification from among all the possible alternative courses of action, which ensures the player’s expected payoff at a quantity called the value of the game 988 E N C Y C L O P E D I A O F M A N A G E M E N T In a business scenario, for example, the competition between two companies may be structured in game-theory terms The persons are the companies, the play can be a determined period of time; and the rules are the discipline of the marketplace Within the rules, management may make a variety of decisions upon which actions may be taken These are known as the moves The firm’s master plan is the strategy In this example, the strategies of the companies would describe the companies’ general decisions on such topics as advertising, mergers, and new product lines The results of the interactions among the strategic choices made by the two firms are manifested by the payoff, which could be chosen to be annual gross sales, net profits, and so on Only when a situation such as this is structured and quantified is it meaningful to address a solution and value for the game The theory is used to calculate the optimum strategy that maximizes the winnings or minimizes the losses of one or more of the players Finite games, those in which each player has available a finite number of strategies, may be categorized according to the number of persons, relationships among payoffs, and whether cooperation among the players is allowed The simplest form is the twoperson zero-sum game, zero-sum denoting that the sum of the payoffs to the two players is zero A payoff matrix can be arranged to identify the payoffs for each player The matrix is expressed in terms of the payoff to A, whereas B’s payoffs are the negative of A’s, thus satisfying the condition that their sum be zero Positive entries indicate payments by B to A; negative ones, payments by A to B The solution can take two forms; the pure strategy case, in which a single strategy will be indicated as optimal; or a mixed strategy case, in which two or more strategies appear along with the relative frequencies with which they must be employed An example of a two-person zero-sum game given by Derek French and Heather Saward, showing a pure strategy solution, is presented in Exhibit Exhibit Matrix of a Two-Person Zero-Sum Game B's Strategies A's Strategies B1 B2 B3 A1 -1 A2 A3 A4 10 -2 10 In recent years there has been opportunity to watch game strategies being used on the reality television shows that place teams, and eventually individuals, against each other While ultimately a zero-sum game (in the end, one person wins everything), successful participants employed various strategies to cooperate with and exploit each other, all in an effort to win ZERO SUM GAME A’s problem is to choose one of his four strategies; while B’s is to choose one of his three For example, the choices of A2 and B2 result in the payment by B to A of three units, while A4 and B3 lead to the payment by A to B of two units First, consider A’s analysis of his problem: A1 is a weak strategy because it nets A less than does the equally available strategy A2, regardless of B’s choice In this example, A1 is dominated by A2, and hence A1 from further consideration By choosing A4 in an effort to realize the payoff of ten units at A4 and B1 could result in the loss of two units if B selects B3; similar dilemmas exist for the other choices Suppose that A takes a conservative point of view and examines the least his choice could produce; a gain of two for A2, a gain of five for A3, and a loss of two for A4 Of these options, A3 and its consequence appear the best choice; the five-unit gain represents an assured security level to A since he cannot be driven below this point by any action taken by B In essence, A has examined the minimum gain that each row strategy could produce and, striving to maximize his gain has selected the greatest of these This is referred to as A’s maximum strategy (R3 in Exhibit 1) At this point, B analyzes the greatest loss he might sustain as a result of his strategy choice; ten units for B1, five units for B2, and eight units for B3 Of these choices, B2 causes the smallest loss on B and establishes his security level by guaranteeing that no action of A’s can cause his loss to be above five Summarizing, B has identified the maximum loss that each column strategy could produce and, wanting to minimize his loss has selected the least of these; known as B’s minimax strategy The most important feature of this result is the independently arrived-at agreement on the part of the players as to their security levels This example also possesses a saddle-point, an element that is concurrently the greatest of the row minima and the least of the column maxima The significance lies in the fact that if either player deviates from this choice; it will result in either decreased gain or increased loss The solution is that A always employs A3, B always employs B2, and the value of the game is five This, of course, is not a fair game since A always wins five units at each play It can be made fair, however, by requiring A to pay five units to B each time to induce B to play, or by reducing each element of the game matrix by five Although the most notorious use of game theory was utilized by the armed services in the Vietnam War for strategic purposes, the theory is noted today for its potential contribution to industrial affairs Game theory is used to analyze economic policies and international agreements (e.g., whether economic sanctions act as practical incentives or build additional resentment) It is applied in management games, in which managers are grouped into teams representing a manager or the management of one of several competing organizations The manager must take a sequence of decisions relating to a simulation of a real-life management problem, and is then presented with the results of each decision after it is made In the game, the result of an individual decision is the response, or the next move, of the other competitors The games are used for several training purposes They provide experience and they bring rapid feedback on the results of a decision They also can show cause-and-effect relationships that may be blurred during longer time periods in real-life situations The end result is to attain more personal involvement, greater attention, and greater retention of new concepts and ideas that have been acquired SEE ALSO: Decision Making Kevin Nelson Revised by Wendy H Mason FURTHER READING: Finch, Frank, ed The Facts on File Encyclopedia of Management Techniques New York, NY: Facts on File, 1985 French, Derek, and Heather Saward Dictionary of Management Aldershot, Hants, England: Gower, 1983 “Game Theory.” Asia Africa Intelligence Wire, 29 August 2004 McMillan, John Games, Strategies and Managers New York, NY: Oxford University Press, 1996 Poundstone, William Prisoners’ Dilemma New York, NY: Anchor Books, Doubleday, 1993 989 E N C Y C L O P E D I A O F M A N A G E M E N T INDEX This index is sorted word-by-word A ABC analysis, 409–410 Academy of Management (AOM), 195 Accidents and accident prevention, 776–778 Accrual accounting, 367–368 Acquisitions, 548–551 Active listening, 460–461 Activity-based costing, 1–3, 47, 145 See also Inventory management; Inventory types; Process management; Quality and total quality management; Time-based competition Activity-based management, 2–3 Advertising, 528–529 Apprenticeship programs, 11–14, 934 See also Continuing education and lifelong learning trends; Training delivery methods Art and science of management, 14–18 See also Management science; Management thought; Organizational behavior; Research methods and processes; Statistics Artificial intelligence, 18–21, 279–281 See also Expert systems Assessment centers, 21–22 See also Employee evaluation and performance appraisals; Employee recruitment planning; Employee screening and selection Asset utilization ratios, 294 Association of International Management Sale Executives (AIMSE), 394 Association of Management/International Association of Management (AOM/IAOM), 394 Associations, professional, 194–197, 393–396, 705–706 See also individual names Affirmative action, 3–4, 182–184, 974 See also Discrimination; Diversity AT&T, 905–911 Age Discrimination in Employment Act, 250 Audit committees, 135–136 Aggregate planning, 4–9 See also Capacity planning; Planning; Simulation Auditing, 379–380 Attribution theory, 22–25 Australian Institute of Management (AIM), 394 Agile manufacturing, 301–303 Akao Prize, 486 All India Management Association (AIMA), 394 Amazon.com, 216–217, 297 Automated clearing house (ACH), 219–220 Autonomy, 25–26, 253–256 Averaging, 308–309 Awards, 483–490, 738–739, 958 American Management Association (AMA), 195, 394 Americans with Disabilities Act (ADA), 181, 250, 775–776 B Angels and venture capitalists, 9–11 Babbage, Charles, 651–652 Annualized hours (AH), Balance of trade, 281–285 Anticipation inventory, 414 Antitrust, 52 Balance Sheets, 27–30 See also Cash flow analysis and statement; Financial issues for managers; Financial ratios; Income statements APICS: The Association for Operations Management, 196 Balanced scorecard, 30–35 991 E N C Y C L O P E D I A O F M A N A G E M E N T Cafeteria plan-flexible benefits, 65–66, 225 See also Human resource management Banking industry, 53 Bankruptcy, 72 Bar coding and radio frequency identification, 35–37 See also Distribution and distribution requirements planning; Logistics and transportation; Reverse supply chain logistics; Supply chain management; Warehousing and warehouse management Barnard, Chester, 655 Canada Awards for Excellence, 485–486 Capacity planning, 66–67 See also Aggregate planning; Manufacturing resources planning Capital, sources of, 9–11, 56–57, 159, 289, 959–960 See also Venture capitalists Capital budgeting, 291–292 Bases of power, 443–445 Bedeian, Arthur, 656 Case method of analysis, 67–70, 516, 931–932 See also Business plan; Training delivery methods Behavior, 22–25 Cash basis accounting, 367–368 Behavior modeling, 932–933 Cash budget, 70–71 Behavioral school of management, 513–514 Cash flow analysis and statement, 70–73 Behaviorally anchored ratings scale (BARS), 233–234 Cellular manufacturing, 73–77, 441 Benchmarking, 38–40 See also Competitive advantage; Continuous improvement; World-class manufacturer Census, economic, 203–205 Benefits administration, 225 Central and East European Management Development Association (CEEMAN), 394 Chain of command principle, 77–78 See also Management control; Management functions; Organizational chart; Organizational structure Blanchard, Ken, 668, 669 Blogs, 705 Chaos theory, 78–81 Boards of directors, 134–137 Body language, 40–43, 87, 461 See also International cultural differences Check 21, 220 Chief executive officers, 134–136 Bolton, Alfred, 656 Child care, 974, 977–978 Bonuses, 271 Civil Rights Acts, 180–182, 248–251, 973–974 Boston Consulting Group, 831–833 Classical school, 512–513 Boulton, Matthew, 651 Coaching and mentoring See Mentoring Bradshaw, Charles, 83 Coalition building, 82–84 See also Group decision making; Group dynamics; Managing change; Organizational structure; Teams and teamwork; Trends in organizational change Brainstorming, 43–45, 341 See also Creativity; Decision making; Group dynamics; Problem solving Collins, Jim, 669–670 Break-even point, 45–49, 141–144 See also Activity-based costing; Cost accounting; Cost-volume profit analysis; Financial issues for managers Communication, 85–89 Bretton Woods Agreement, 397–398 Competition, 670–673 Budgeting, 49–50, 147–148, 291–292, 985–987 See also Financial issues for managers; Zero-based budgeting Competition-based pricing, 674–675 Buffer inventory, 414 Competitive advantage, 89–92, 611–612 See also Economies of scale and economies of scope; Porter’s 5-Forces model Bundled goods and services, 50–52 Compensation, 226–231, 271–273 Bureaucratic controls, 490–491 Competitive Advantage Through People (Pfeffer), 667–668 Business continuity planning, 52–54 Competitive intelligence, 92–95 Business ethics See Ethics Complexity theory, 95–98 See also Chaos theory; Managing change; Organizational behavior; Trends in organizational change Business-level strategy, 855–857 Business plan, 54–58, 258 See also Entrepreneurship; Venture capital Comprehensive income, 371 Business process reengineering, 58–61, 881 See also Continuous improvement; Product-process matrix Computer industry, 51–52 Business structure, 61–63 See also Entrepreneurship; Organizational chart Computer integrated manufacturing (CIM), 101, 101–103 See also Computer-aided design and manufacturing (CAD); Manufacturing Resources planning; Robotics Butterfly Effect, 79 Computer-aided design and manufacturing (CAD), 98–101, 692 Computer networks, 104–108 See also Computer security; Internet C Cable television industry, 905–911 Computer security, 108–112 See also Computer networks; Technology management CADCAM, 98–101, 692 Concentric diversification, 188 992 E N C Y C L O P E D I A O F M A N A G E M E N T Concurrent engineering, 112–115 See also New product development; Time-based competition Confidence factors, 279–280 Conflict management and negotiation, 115–119, 163 See also Diversity; Management styles Conglomerate diversification, 189 Consulting, 120–121 Contextual influences, 17 Contingency approach to management, 125–126, 447–448, 514 Contingent workers, 126–128 See also Employee compensation; Employee recruitment planning; Employee screening and selection; Employment law and compliance; Human resource management Continuing education and lifelong learning trends, 128–131 Continuous improvement, 132–134, 255 See also Japanese management; Lean manufacturing and just-intime production; Quality and Total Quality Management; Quality gurus; Statistical process control and Six Sigma Database models, 156 Debt vs equity financing, 159–160, 289 See also Due diligence; Financial issues for managers; Financial ratios Decision making, 160–164 empowerment, 253–256 ethics and, 261–264 group, 341–343 make-or-buy decisions, 479–481 multiple-criteria, 571–575 shareholder control, 803–804 INDEX Consumer behavior, 121–125 Database marketing, 530 Decision package, 986 Decision rules and decision analysis, 164–170 See also Decision making; Decision support systems (DSS) Decision support systems (DSS), 161–162, 170–174 See also Competitive intelligence; Computer-aided design and manufacturing (CAD); Computer networks; Management information systems; Strategic planning tools Decoupling inventory, 414–415 Contribution margin model, 46 Delegation, 174–177 See also Management styles; Motivation and motivation theory; Time management Controlling, 496 Dell Computer, 216–217 Cooke, Morris, 654 Delphi method, 342, 892 Copyrights, 378–379 Demand-based pricing, 674 Corporate governance, 134–137 Demand forecasting, 352–354 Corporate-level strategy, 851–854 Deming, W Edwards, 132, 418, 655–656, 725–729, 736–737 Corporate reorganization, 197–200 Deming Prize, 483–484, 739–740 Corporate social responsibility, 137–141 See also Ethics Departmentalization, 631–632 Corporations (business structure), 62 Deregulation, 177–179 See also Economics Cost accounting, 1–3, 144–148 Design for manufacturing and assembly (DFMA), 691 Cost-based pricing, 673–674 Dialetical inquiry, 341 Contracts, 384, 390 Cost of goods sold, 369 Cost-volume-profit (CVP) analysis, 141–144 Dictionary of Occupational Titles See Occupational Information Network Costs, 47, 410–411 Differentiation strategy, 90–92, 322 Cover letters, 757–761 Digital rights management (DRM) technology, 379 Creativity, 149–150 See also Group decision making; Innovation Direct exporting, 283 Critical path method See Program evaluation and review technique and critical path method Crosby, Philip, 731–733, 738 Crossover chart, 47 Direct marketing, 529–530 Disaster recovery planning, 52–54 Disciplinary procedures, 239 Discounted cash flow, 291–292 Current liabilities, 29, 290 Discrimination, 179–184 See also Employee recruitment planning; Employee screening and selection; Employment law and compliance Customer relationship management (CRM), 150–152 Discussion method, 929–930 Customer service, 319–321 Distance education, 130–131 Cycle inventory, 415 Distinctive competencies, 607–608 Cycle time, 152–154 See also Operations management; Operations scheduling Distribution and distribution requirements planning, 184–187 See also Forecasting; Logistics and Transportation; Supply chain management; Warehousing and warehouse management Current assets, 27–28, 289–290 D Data processing and data management, 155–159 Database management systems (DBMS), 157–158 Diversification strategy, 187–191 See also Strategic planning failure; Strategy formulation; Strategy implementation; Strategy in the global environment 993 E N C Y C L O P E D I A O F M A N A G E M E N T Diversity, 42–43, 191–193, 938–939 See also Employment law and compliance; International cultural differences; Mentoring; Organizational culture; Work-life balance Divestment, 193–194 See also Downsizing and rightsizing; Strategic planning failure; Strategy implementation Domestic management societies and associations, 194–197, 705–706 See also International management societies and associations Downsizing and rightsizing, 197–200 See also Divestment; Quality and Total Quality Management; Strategic planning failure Employee compensation, 226–231 See also Employee benefits; Evaluation and performance appraisal; Human resource management Employee evaluation and performance appraisals, 231–236, 424 See also Human resource management; Job analysis Employee handbook and orientation, 236–241 See also Employee assistance programs (EAP); Employee benefits; Employee compensation; Employment law and compliance Employee orientation, 240 Employee privacy, 252 Employee recruitment planning, 241–243, 355, 359–360, 423–424 See also Employee screening and selection Dress code, 238 Drucker, Peter, 15, 432–434, 655 Employee retention, 355 Due diligence, 200–201 See also Entrepreneurship; Licensing and licensing agreements Dupin, Charles, 652 Employee screening and selection, 243–248, 646–650 See also Human resource management Employee wellness, 866 Dynamic systems theory, 79–80 Employment law and compliance, 239–240, 248–252 See also Diversity; Quality of work life; Safety in the workplace E E-commerce See Electronic commerce Empowerment, 25–26, 174, 253–256, 510–511, 639–641 See also Quality and total quality management E-learning, 930–931 Engineering Research Centers (ERC), 336–337 E-mail, 89, 109–111, 402–403 Enterprise resource planning, 256–258 Earnings per share, 370 Enterprise risk management (ERM), 767 Economic census, 203–205 Entrepreneurship, 9–11, 160–164, 258–259, 311–314, 972–973 See also Angels and venture capitalists; Initial public offering; Strategic planning tools; Strategy formulation; Succession planning; SWOT analysis Economic Order Quantity (EOQ), 47–48, 451 Economics, 205–209, 472–473 Economies of scale and economies of scope, 209–211 See also Economics Education and training apprenticeship programs, 11–14 case study, 67–70, 516, 921–932 continuing, 128–131 cross-cultural, 386 e-learning, 930–931 executive development, 515–519 game theory, 931, 987–989 job analysis and, 424 training delivery methods, 566–568, 928–935 Effectiveness and efficiency, 90, 211–214 See also Time management Electronic commerce, 214–218 See also Consumer behavior; Customer relationship management Environment, 140, 401 Equal Employment Opportunity (EEO) laws, 179–182, 248–249 See also Civil Rights Acts Equal Pay Act, 251, 973 Equity financing, 159, 289 Ergonomics, 259–260 Ethernet, 105–106 Ethics, 261–265 compensation and, 273 competitive intelligence and, 93 decision making and, 161 human resources management, 362–363 product design, 692 See also Goals and goal setting; Mission and vision statements Euro, 267–271 Electronic data interchange and electronic funds transfer, 218–220 See also Distribution and distribution requirements planning; Electronic commerce; Internet European Association of Personnel Management (EPM), 394 Emerson, Harrington, 653 European Federation of Management Consulting Associations (FEACO), 394 Emotional intelligence, 670 European Quality Awards, 484–485 Empathy, 220–221 See also International management; Teams and Teamwork European Union, 12, 265–271 See also Free trade agreements and trading blocs; International business; International management Employee assistance programs (EAP), 221–222 See also Human Resource Management; Human resource management; Safety in the workplace; Stress European Women’s Management Development Network (EWMD), 394–395 Employee benefits, 223–226, 272, 303–305 health savings accounts, 350–351 See also Employee assistance programs (EAP); Employment law and compliance Event-scheduling method, 808 Employee comparison systems, 232–233 Expatriates, 274–276 994 E N C Y C L O P E D I A O F M A N A G E M E N T Executive compensation, 271–273 Exhibits, 531 Experience and learning curves, 276–279 See also Knowledge management; Organizational learning Expert systems, 279–281 Exporting and importing, 281–285, 383–384 Fraunhofer Gesellschaft, 338 Free trade agreements and trading blocs, 281–285, 314–315, 325–331 Freedom of Information Act, 252 Fringe benefits See Employee benefits External diversification, 190 Fuld & Company, 95 Functional school of management, 493–495 Facilitation, 43–44 Facilitators, 287–288 See also Management styles; Teams and teamwork Futuring, 315–318 See also Brainstorming; Gap analysis; Strategic planning tools; Strategy in the global environment; Technological forecasting; Technology management; Technology transfer Fair Labor Standards Act, 251 Fuzzy logic systems, 280 INDEX F Family and Medical Leave Act, 252, 974, 979 Family-friendly business practices See Work-life balance G Fayol, Henri, 77, 493, 654 Game theory, 931, 987–989 Feedback, 288–289, 334, 461, 644–646 Gantt, Henry, 605, 653 Feigenbaum, Armond, 732–733 Gantt charts, 605, 709 Feigenbaum, Mitchell, 79 Gap analysis, 319–321, 840–841 File Transfer Protocol (FTP), 405 General Agreement on Tariffs and Trade (GATT), 314 Financial controls, 491 General Electric, 826, 833–834 Financial issues for managers, 289–292, 390–391 Financial ratios, 292–297 See also Balance sheets; Cash flow analysis and statement; Financial issues for managers; Income statements Generic competitive strategies, 321–325, 835–836, 855–857 See also Strategic planning failure; Strategic planning tools; Strategy formulation; Strategy implementation; Strategy in the global environment; Strategy levels Finished goods, 413–414 Genetic algorithms, 20 Fiorina, Carly, 830 German apprenticeship model, 11–13 Firewalls, 111–112 Gilbreth, Frank, 653 First-mover advantage, 297–299 See also New product development; Product life cycle; Product life cycle and industry life cycle Gilbreth, Lillian, 653 Fixed-position layout, 440–441 Globalization, 325–331 corporate social responsibility, 140 joint ventures, 428–429 licensing, 456 logistics, 467 macroenvironment, 473–474 strategy, 858–863 trends, 937–938 See also International business; International cultural differences; International management; Organizational culture Flat organizations, 940 The Goal (Goldratt), 916–920 Five-factor model, 647–648 Five-forces model, 670–673, 836–837 Five S framework, 299–300 See also Lean manufacturing and just-in-time production; Quality and total quality management Flexibility, 939–940 Flexible benefit plans See Cafeteria plan-flexible benefits Flexible manufacturing, 77, 300–303 See also Cellular manufacturing; Economies of scale and economies of scope; Lean manufacturing and just-in-time manufacturing Flexible spending accounts, 303–305 Flexible workforce, 126–128, 742–743, 975, 979–979 Focus strategy, 323–324 Focused factory, 305–307 See also Product-process matrix; Strategy formulation Goals and goal setting, 331–335 Golden-Pryor Improvement Flowchart, 60 Goldratt, Eliyahu Moshe, 916–920 Goleman, Daniel, 670 Government-university-industry partnerships, 335–340 See also Joint ventures and strategic alliances; Licensing and licensing agreements; Product life cycle and industry life cycle; Stakeholders; Strategy formulation; Technology management; Technology transfer Grapevine, 88 Graphic rating scales, 233 Follett, Mary Parker, 655 Force field analysis, 849–850 Forecasting, 307–311, 315–318, 352–354 See also Futuring; Manufacturing resources planning; Sales management Franchising, 258–259, 311–314, 384 See also Business plan; Due diligence; Strategy formulation Gross product, 207 Gross profit on sales, 369 Group decision making, 341–343 Group dynamics, 343–347 See also Brainstorming; Group decision making; Teams and teamwork 995 E N C Y C L O P E D I A O F M A N A G E M E N T Group technology, 74–75 Internal rate of return, 292 Growth strategy, 187–188, 854 International business, 381–385, 385–387, 467, 473–474, 568–571, 858–863 Gung Ho! (Blanchard), 669 International cultural differences, 385–387, 391–393, 473 See also International business; International management; Organizational culture H Halsey, Frederick A., 652 International management, 387–393 See also International cultural differences Handheld computers, 349–350 International management societies and associations, 393–396, 705–706 See also Domestic management societies and associations Harrington, H James, 733 Harvard Business School, 68, 95 International Monetary Fund (IMF), 396–399 Health insurance, 224, 350–351 International Organization for Standardization (ISO), 399–402 Health savings accounts, 305, 350–351 International Project Management Association (IPMA), 394 Heider, Fritz, 23 Internet, 379, 402–407, 704–705 See also Computer networks; Computer security; Electronic commerce; Electronic data interchange and electronic funds transfer Hewlett Packard, 830 High-low method, 146 Hill, Terry, 611–613 Internet marketing, 531–532 Horizontal integration, 190 Internships, 11–12 Hoshin planning, 842–843 Intranets, 404–405 Human resource information systems, 351–357 Human resource management, 357–363, 391, 792–793 The Human Side of Enterprise (McGregor), 911–914 Hypothesis testing, 364–366 I Intrapreneurship, 407–408 See also Creativity; Entrepreneurship Inventory management, 408–412, 451 See also Aggregate planning; Inventory types; Lean manufacturing and just-in-time production; Manufacturing resource planning; Reverse supply chain logistics; Supply chain management Inventory types, 412–415 See also Inventory management; Theory of constraints Icarus paradox, 828 Ideal production, 452 Investor system, 171–174 Importing, 281–285 IPO, 373–374 Income statements, 367–371 See also Balance sheets; Cash flow analysis and statement; Financial issues for managers Ishikawa, Kaoru, 733 ISO standards, 399–402 Independent contract workers, 126–128 Indirect exporting, 283 J Induction algorithms, 19–20 Japanese management, 132–134, 299–300, 417–423, 450–453, 662–667, 842–843 Industrial relations, 371–373 See also Employment law and compliance; Human resource management Industry life cycle See Product life cycle and industry life cycle Inflation, 207–208 Job analysis, 423–427 See also Employee recruitment planning; Employee screening and selection; Employment law and compliance; Occupational information network Job-instruction technique (JIT), 933–934 Initial public offering (IPO), 373–374 See also Cash flow analysis and statement; Entrepreneurship; Financial issues for managers; Strategy implementation Job rotation, 518 Job satisfaction, 25–26, 75–76, 562–563, 741–743 Innovation, 91–92, 374–376, 894–899 Johnson, Spencer, 668–669 Instant messaging, 376–377 See also Communication; Handheld computers Institute for Supply Management (ISM), 196–197 Joint ventures and strategic alliances, 335–340, 384, 427–430 See also Competitive advantage; Diversification strategy; International business; Strategy formulation Institute of Management Specialists (IMS), 395 Juran, Joseph M., 656, 729–731, 737–738 Integrated marketing communication, 527–528 Just-in-time production, 450–453 Intellectual property rights, 377–379, 390, 641–643 K Interactionist approach, 115 Internal auditing, 379–380 See also Financial issues for managers Internal diversification, 189 Kaplan, Robert S., 30–35 Keiretsu, 420–422 996 E N C Y C L O P E D I A Kaizen, 132–134 O F M A N A G E M E N T Key success factors (KSS), 607 Local area networks, 105–106 Keynes, John Maynard, 208, 397 Location strategy, 462–464 See also Globalization; International business Kinesics, 40–43 Knowledge management, 431–432 See also Electronic commerce; Electronic data interchange and electronic funds transfer Knowledge representation systems, 279–281 L Labor relations, 251, 371–373 Latin American and Caribbean Council for Self-Management (LACCSM), 395 Layout, 439–442 See also Lean manufacturing and just-in-time production; Product-process matrix Long-range planning, 657–660 Long-term debt, 29 Long-term disability (LTD) insurance, 224 Longitudinal scenarios, 467–468 See also Contingency approach to management; Forecasting; Strategic planning tools Lorenz, Edward, 79 Lot-sizing techniques, 411–412 Leader behavior approach, 446–447 M Leader Behavior Description Questionnaire (LBDQ), 447 Machine learning systems, 18 Leader-member exchange theory (LMX), 448–449 Macroenvironmental forces, 469–474 See also Economics; SWOT analysis Leadership styles and bases of power, 442–445 See also Chain of command principle; Leadership theories and studies; Management styles; Organizational culture; Span of control Leadership theories and studies, 445–450 See also Contingency approach to management; Leadership styles and bases of power; Management styles Leading, 495 Lean manufacturing and just-in-time production, 450–453 See also Cellular manufacturing; Continuous improvement; Flexible manufacturing; Japanese management; Poka-Yoke; Quality and Total Quality Management; World class manufacturer Learning curves, 276–279, 628 Learning organization, 515 INDEX Knowledge workers, 432–437 Logistics and transportation, 464–467, 918–919 See also Exporting and importing; Forecasting; Lean manufacturing and just-in-time production; Reverse supply chain logistics; Warehousing and warehouse management Magazines and newspapers, 705 Maintenance, 474–479 See also Continuous improvement; Lean manufacturing and just-in-time production; Operation strategy; Organizational culture Make-or-buy decisions, 479–481 See also Break-even point Malcolm Badridge National Quality Award, 484 Management and executive development, 194–197, 515–519 See also Employee evaluation and performance appraisals; Human resource management Management audit, 481–482 See also Effectiveness and efficiency Least-squares regression method, 146 Management awards, 483–490 See also Quality and total quality management; Quality gurus Lecture method, 929 Management books, 30–35, 667–670, 911–920 Level strategy, 5–6 Management by objectives (MBO), 235–236, 510 Leverage ratios, 294–295 Management by walking around (MBWA), 509–510 Leveraged buyouts, 454–455 See also Financial issues for managers; Shareholders Management coefficients model, 7–8 Lewin, Kurt, 442 Licensing and licensing agreements, 384, 455–457 See also Franchising; Intellectual property rights Life insurance, 225 Lifelong learning trends, 129, 457–459 Lilienthal, David E., 15 Limited Liability Corporations, 62–63 Line-and-staff organizations, 457–459 See also Leadership styles and bases of power; Organizational chart; Organizing Liquidity ratios, 295–296 Listening, 459–461 See also Communication Management control, 490–492 See also Organizational culture; Quality and total quality management; Teams and teamwork Management functions, 493–495, 500, 657–660 See also Management control; Management styles; Organizing; Planning Management information systems, 496–498 See also Knowledge management Management levels, 498–503 See also Management and executive development; Management functions; Organizational chart; Organizational structure; Outsourcing and offshoring; Teams and teamwork Management Professionals Association (MPA), 395 Management research, 15–17 Loading, 604 Management science, 503–508 See also Operations management; Operations scheduling; Operations strategy; Production planning and scheduling Loan applications, 72 Management structure, 429 997 E N C Y C L O P E D I A O F M A N A G E M E N T Management styles, 508–511 See also Leadership styles and bases of power; Leadership theories and studies; Quality and total quality management; Theory X and Theory Y; Theory Z Miller, Danny, 828–829 Management thought, 511–515 Mission and vision statements, 553–557, 839 See also Strategic planning failure; Strategic planning tools; Strategy formulation; Strategy implementation; SWOT analysis Managerial accounting See Cost accounting Managing change, 519–522, 745–749 See also Organizational culture; Trends in organizational change Minorities in the workplace, 192, 546, 971–976 Mintzberg, Henry, 15, 493–494, 500, 827–828 Manufacturing costs, 144–145 Models and modeling, 517, 557–562, 617–619, 806–809 See also Decision making; Decision rules and decision analysis; Decision support systems (DSS) Manufacturing processes, 73–77 Monte Carlo simulation, 807–808 Manufacturing resource planning, 257, 523–526 See also Competitive advantage; Enterprise resource planning; Inventory types; Lean manufacturing and just-in-time production; Quality and total quality management Morale, 562–563, 741–743 See also Human resource management; Quality of work life MARCO (Microelectronics Advanced Research Corp.), 337 Motivation and motivation theory, 25–26, 123–124, 253–256, 563–566 See also Goals and goal setting; Operant conditioning; Organizational behavior; Reinforcement theory; Theory X and Theory Y; Theory Z Market pioneers, 297–299 MRO goods inventory, 415 Market segmentation, 675–676 Mulchy, Anne, 830 Market share, 526–527 See also Generic competitive strategies Multimedia, 566–568 See also Technology management; Training delivery methods Market value ratios, 296 Multinational corporations, 568–571 See also Free trade agreements and trading blocs; International business; International management; Transnational organizations March, James G., 84 Marketing communication, 527–532 See also Communication; Marketing concept and philosophy; Marketing research Marketing concept and philosophy, 532–535 See also Market share; Marketing communication; Marketing research Marketing research, 535–539 See also Marketing concept and philosophy; Research methods and processes Mass customization, 691 Multiple-criteria decision making (MCOM), 571–575 See also Decision making; Decision rules and decision analysis; Decision support systems (DSS) Munsterberg, Hugo, 654 Myers-Briggs Type Indicator (MBTI), 648 N NAICS, 203–204, 589–591 Material requirements planning (MRP), 186–187, 257, 523–525 Mathematical models, 559–560 Negotiation, 722–723 Nepotism, 577–579 See also Employee recruitment planning; Entrepreneurship; Human resource management; Succession planning; Work-life balance Matrix structure, 633 Mayo, Elton, 655 McCallum, Daniel, 652 Net present value analysis, 292 McGregor, Douglas, 911–915 Network configurations, 104–105 Mechanistic organization, 539–540 See also Effectiveness and efficiency; Organic organizations; Organization theory; Organizational behavior; Organizational structure Networked organizations, 940–941 MEDEA (Microelectronics Development for European Applications), 337–338 New product development, 112–115, 374–376, 579–583, 695 See also Innovation; Product design; Product life cycle and industry life cycle Meeting management, 540–545 See also Group dynamics; Teams and teamwork Niche strategy, 323–324 Mentoring, 518, 545–548, 934 See also Diversity; Knowledge management; Training delivery methods; Women and minorities in management Mergers and acquisitions, 548–551 See also Financial ratios Networks, computer, 104–108 Networks, neural, 18 Nominal group technique, 341–342 Non-compete agreements, 583–585, Employment law and compliance, Entrepreneurship Meta-analysis, 16 Nonprofit organizations, 585–589 See also Balance sheets; Financial issues for managers; Income statements Metcalfe, Henry, 652 Nonverbal communication, 40–43, 87 Microsoft Corp., 51–52 Normative controls, 492 Miles, Raymond E., 551–553 North American Industry Classification System (NAICS), 203–204, 589–591 See also Free trade agreements and trading blocs Miles and Snow typology, 551–553 See also First-mover advantage; Generic competitive strategies; Innovation; Technology management 998 E N C Y C L O P E D I A O F M A N A G E M E N T Norton, David P., 30–35 O Organizational culture, 492, 624–626 See also International cultural differences Object-oriented programming (OOP), 593–595 See also Complexity theory; Computer networks; Knowledge management; Technological forecasting; Technology management; Technology transfer Organizational development, 626–628 See also Organization theory; Organizational learning; Quality and total quality management; Teams and teamwork Occupational information network (O*NET), 595–596 See also Job analysis Organizational learning, 628–629 See also Knowledge management; Organizational culture; Trends in organizational change INDEX Occupational Safety and Health Administration (OSHA), 251–252, 259–260, 774–775 Organizational structure, 501–503, 621–624, 629–635, 940 See also Line-and-staff organizations; Organizational development Offshoring, 793–794 Ohio State University, 447 Organizing, 495, 635–637 See also Organizational chart; Organizational structure On-the-job training, 933–934 Orientation, employee, 240 One Minute Manager (Blanchard and Johnson), 668 Osborn, Alex F., 43 O*NET, 595–596 OSHA, 251–252, 774–775 Online learning, 130–131 Ouchi, William, 417, 419, 509, 624, 914–915 Open and closed systems, 596–598 See also Managing change; Reactive vs proactive change Outsourcing and offshoring, 53, 637–638 See also International business; International management; Technology management; Technology transfer Operant conditioning, 598–600 See also Motivation and motivation theory; Organizational behavior Operating expenses, 369–370 Operating systems, 600–601 See also Computer-integrated manufacturing; Computer networks; Computer security; Data processing and data management; Management information systems Operations management, 602–603 See also Operations strategy; Product design; Product-process matrix; Production planning and scheduling; Service operations; Supply chain management Operations research, 503–508 Operations scheduling, 603–606, 709–714 See also Aggregate planning; Capacity planning; Operations management; Product-process matrix Operations strategy, 606–610 See also Mission and vision statements; Operations management; Order-writing and order-qualifying criteria; Quality and total quality management; Strategy formulation Opportunity cost, 610–611 See also Balance sheets; Economics; Strategic planning failure Order-winning and order-qualifying criteria, 611–613 See also Competitive advantage; Operations strategy; Product life cycle and industry life cycle Organic organizations, 613–615 See also Effectiveness and efficiency; Mechanistic organizations; Organization theory Overall cost leadership, 321–322 Overall equipment effectiveness (OEE), 477–478 Owens, Robert, 651 Owners’ equity, 30 P Part-time workers, 126–128 Participative management, 253–256, 508–509, 639–641 See also Human resource management; Management styles; Motivation and motivation theory; Synergy; Teams and teamwork Partnerships, 61–62 Patents and trademarks, 377–378, 641–643 See also Licensing and licensing agreements Path-goal theory, 448 Pay equity, 227–228, 272–273 Payback method, 292 Pensions, 224 PeopleSoft, 356–357 Performance Management Association (PMA), 395 Performance measurement, 30–35, 231–236, 288–289, 334, 644–646 See also Balanced scorecard; Human resource management; Quality and total quality management; Strategy formulation Person-organization fit (p-o fit), 17 Organization theory, 615–617 See also Mechanistic organizations; Organic organizations; Organizational analysis and planning Organizational analysis and planning, 617–620 See also Organizational chart; Organizational development; Organizational structure Organizational behavior, 80–84, 620–621 See also Motivation and motivation theory; Organic organizations; Organizational culture; Organizational development Organizational change, 519–522 Organizational chart, 621–624, 629–635 See also Management levels Organizational conflict, 115–119 Personal digital assistants (PDAs), 349–350 Personal selling, 531 Personal space, 42, 87–88 Personality and personality tests, 646–650 See also Employee screening and selection; Employment law and compliance; Human resource management; Leadership theories and studies; Management styles PERT See Program evaluation and review technique and critical path method Peters, Tom, 81 Pfeffer, Jeffrey, 667–668 Phishing, 109–110 999 E N C Y C L O P E D I A O F M A N A G E M E N T Pioneers of management, 650–656 See also Management thought; Quality and total quality management; Quality gurus; individual names Planning, 495, 657–660 See also Forecasting; Government-university-industry partnerships; Strategic planning tools; Strategy formulation; Strategy in the global environment; Strategy levels Poison Pill strategies, 660–662 See also Diversification strategy; Leveraged buyouts; Mergers and acquisitions Productivity improvement system, 453 Professional readings for managers, 667–670, 704–707 See also Management books Profit sharing, 707–709 Profitability ratios, 293 Program evaluation and review technique and critical path method, 603–606, 709–714 See also Project management Poka-Yoke, 662–667 See also Quality and total quality management Project management, 714–719 See also Product-process matrix; Program evaluation and review technique and critical path method Political correctness, 788–789 Property, 29 Political environment, 471 Public relations, 529 Popular press management books, 667–670, 911–920 See also Art and science of management; Management styles Purchasing and procurement, 719–723 See also Distribution and distribution requirements planning; Quality and total quality management; Supply chain management Porter, Michael, 321–325, 670–673, 835–837, 855–857 Porter’s 5-forces model, 670–673, 836–837 See also Competitive advantage; Generic competitive strategies; Product life cycle and industry life cycle; Strategy formulation Portfolio management, 170–174 Predictive markets, 162–163 Pregnancy Discrimination Act, 974 Preventive maintenance system, 452, 475–476 Pricing policy and strategy, 147, 673–676 See also Product design; Product life cycle and industry life cycle; product-process matrix; Strategy formulation Primal Leadership (Goleman), 670 Privacy Act, 252 Probability, 824 Q Quality and total quality management, 735–741 awards, 484–485, 738–739 continuous improvement, 132 customer satisfaction, 781 Hoshin planning, 842–843 ISO standards, 400–401 management, 509, 515 Poka-Yoke, 662–667 product design, 692 quality controls, 491–492 quality improvement system, 452–453 See also Continuous improvement; Japanese management; Management awards; Participative management; Quality gurus; Teams and teamwork Quality gurus, 725–735 See also Quality and total quality management Problem solving, 676–679 See also Project management Process layout, 439–440 Process management, 680–685 See also Continuous improvement; Japanese management; Managing change; Product-process matrix; Trends in organizational change Process reengineering See Business process reengineering Quality of work life, 741–744 See also Contingent workers; Employee assistance programs (EAP); Human resource management; Safety in the workplace; Work-life balance Quality prizes, 484–485, 738–739 Quantitative school, 514 Quantum skills, 118–119 Process school of management, 493–495 Procurement, 719–723 See Purchasing and procurement Product design, 690–694 See also Computer-aided design and manufacturing (CAD); Pricing policy and strategy; Product life cycle and industry life cycle; Product-process matrix; Quality and total quality management; Reverse supply chain logistics; Supply chain management R Radio frequency identification (RFID), 36–37 Ratio analysis, 71 Raw materials, 413 Product development See New product development Reactive maintenance, 475 Product layout, 440 Product liability, 390 Reactive vs proactive change, 745–749 See also Managing change; Organizational development; Trends in organizational change Product life cycle and industry life cycle, 612–613, 694–699 See also Product-process matrix; Strategic planning tools; Strategy formulation; Strategy implementation Records protection, 108–109 Product-process matrix, 686–690 See also Operations strategy; Process management Redundancy (communication), 86–87 Production planning and scheduling, 699–700 Productivity concepts and measures, 700–704 See also Economies of scale and economies of scope; Effectiveness and efficiency; Experience and learning curves; Financial issues for managers; Financial ratios 1000 E N C Y C L O P E D I A O F M A N A G E M E N T Recruitment, employee See Employee recruitment Regulation, 177–178 Regulative controls, 490 Reinforcement theory, 598–599, 749–751 See also Leadership styles and bases of power; Motivation and motivation theory; Operant conditioning Reliability-centered maintenance (RCM), 477 Servant leadership, 449, 812 Research, management, 15–17 Service factory, 789–790 See also Service industry; Service operations; Service process matrix Research, marketing, 535–539 Research and development, 335–340 Research methods and processes, 364–366, 751–757, 821–825 Restructuring, 197–200 Retrenchment strategy, 854–855 Service operations, 795–799 scheduling, 605–606 See also Inventory management; Layout; Operations scheduling; Operations strategy; Order-winning and order-qualifying criteria; Product-process matrix; Purchasing and procurement; Service process matrix; Vendor rating INDEX Resumes and cover letter trends, 757–761 See also Employee recruitment planning; Employee screening and selection; Human resource management Service industry, 8–9, 48, 665–666, 790–795 See also Human resource management; Outsourcing and offshoring; Service factory; Service operations; Service process matrix Revenues, 368–369 Reverse supply chain logistics, 761–764 See also Inventory management; Inventory types; Logistics and transportation; Production planning and scheduling; Purchasing and procurement; Quality and total quality management; Supply chain management Rightsizing, 197–200 Risk management, 764–767 See also Business continuity planning; Strategic planning tools; Succession planning Robotics, 767–769 See also Lean manufacturing and just-in-time production; Quality and total quality management; Simulation Role-playing, 517, 932 S Safety in the workplace, 773–778 ergonomics, 259–260 See also Employment law and compliance Sales management, 778–782 See also Customer relationship management (CRM); Employee compensation; Employee recruitment planning; Human resource management; Motivation and motivation theory; Total quality management (TQM) Service process matrix, 799–801 See also Product-process matrix; Service operations Setup cost reduction system, 452 Sexual harassment, 249–250, 973, 975 Shareholders, 801–806 See also Corporate governance; Knowledge management; Stakeholders Shewhart, Walter A., 733 Shingo, Shigeo, 733–734 SIC (Standard Industrial Classification) system, 589–591 Simon, Herbert, 83–84 Simulation, 8, 557–562, 806–809, 931–933 Situational approach to management, 125–126, 447–448, 514 Six Sigma, 816–821 16 PF, 647–648 Small business See Entrepreneurship Smith, Adam, 137, 651 Snow, Charles C., 551–553 Social Security, 223 Sales promotion, 530–531 Society for Human Resource Management (SHRM), 195–196 Sampling, 824–825 See also Data processing and data management; Forecasting; Models and modeling; Planning Society of Competitive Intelligence Professionals (SCIP), 92, 94 Sociocultural environment, 469–470 Sourcing, 721–722 Santa Fe Institute, 96 Spam, 110–111 Sarbanes-Oxley Act of 2002, 134, 380, 785 Scatter-graph method, 146 Span of control, 809–811 See also Empowerment; Management styles; Organizational structure; Organizing Scenario planning, 782–783 See also Forecasting; Longitudinal scenarios; Planning; Strategic planning tools Special Libraries Association (SLA) Competitive Intelligence Division, 94–95 Scheduling, 4–9, 699–700, 709–714 Specialization, 209–210 Schematic models, 559 Schonberger, Richard J., 417, 419 Spirituality in leadership, 811–813 See also Leadership styles and bases of power; Leadership theories and studies Securities and Exchange Commission (SEC), 783–786 See also Business continuity planning; Due diligence; Ethics; Financial issues for managers; Financial ratios Sponsorships, 531 Segmentation strategy, 323–324 Stability strategy, 854 Self-checks, 664–665 Stakeholders, 139–140, 813–815 See also Corporate governance; Shareholders Spyware, 109 Sensitivity training, 786–789 See also Continuous improvement; Feedback; Group decision making; Group dynamics; Human resource management; Teams and teamwork; Training delivery methods Standard Industrial Classification (SIC) system, 589–591 Sequencing, 604–605 Statistical analysis, 16–17 Statement of financial position, 27–30 1001 E N C Y C L O P E D I A O F M A N A G E M E N T Statistical process control and Six Sigma, 816–821 See also Quality and total quality management; Quality gurus Systems development life cycle (SDLC), 877–880 Systems school, 514 Statistics, 364–366, 821–825 Strategic alliances, 335–340, 384–385, 427–430 T Strategic business units, 633–634 Taft-Hartley Act, 251 Strategic planning failure, 825–831 See also Strategic planning tools; Strategy formulation; Strategy implementation; Strategy in the global environment; Strategy levels Taguchi, Genichi, 734 Strategic planning tools, 831–837, 836–837 See also Generic competitive strategies; Porter’s 5-forces model; Strategic planning failure; Strategy formulation; Strategy implementation; Strategy in the global environment; Strategy levels; SWOT analysis Strategy formulation, 837–845 See also Continuous improvement; Mission and vision statements; Strategic planning failure; Strategic planning tools; Strategy implementation; Strategy in the global environment; Strategy levels Strategy implementation, 845–851 See also Strategic planning failure; Strategic planning tools; Strategy formulation; Strategy in the global environment; Strategy levels Strategy in the global environment, 858–863 See also International business; International management; Macroenvironmental forces; Multinational corporations; Strategic planning failure; Strategic planning tools; Strategy formulation; Strategy implementation; Strategy levels; Transnational organization Strategy levels, 851–857 See also Generic competitive strategies; Porter’s 5-forces model; Strategic planning failure; Strategic planning tools; Strategy formulation; Strategy implementation; Strategy in the global environment Stress, 863–867, 926–927 See also Contingent workers; Employee assistance programs (EAP); Human resource management Takeover defenses, 549–550, 660–662 Task analysis, 885–887 See also Human resource management; Job analysis; Strategic planning tools Tax-exempt organizations, 585–589 Taxes, 947–950 Taylor, Frederick, 652–653, 734 Teams and teamwork, 887–891 empowerment, 255–256 facilitators, 287–288 group dynamics, 341–347 management controls, 492 See also Participative management Technological forecasting, 891–892 See also Futuring; Longitudinal scenarios; Multiple-criteria decision making (MCOM) Technology management, 470–471, 892–899 See also Innovation; Management information systems; New product development; Organizational learning; Technology transfer Technology transfer, 900–905 See also Joint ventures and strategic alliances; Licensing and licensing agreements; Technology management Telecommunications, 51, 905–911 See also Computer networks; Technology management; Technology transfer Telephone industry, 905–911 Subchapter S structure, 62 Temporary workers, 126–128 Subsidiaries, 384 Theoretical inventory, 415 Substitutes for leadership theory, 449 Theory of constraints, 916–920 See also Inventory management; Inventory types; Manufacturing resources planning; Operations scheduling; Operations strategy Succession planning, 518–519, 867–869 See also Employee screening and selection; Entrepreneurship; Human resource information systems; Human resource management; Management and executive development Supply chain management, 53–54, 690, 761–764, 870–873 See also Data interchange and electronic funds transfer; Distribution and distribution requirements planning; Reverse supply chain logistics Theory X and Theory Y, 509, 911–914 See also Theory Z Theory Z, 417, 419, 509, 914–916 See also Empowerment; Japanese management; Theory X and Theory Y Supply chain operations reference (SCOR), 872 Theory Z: How American Companies Can Meet the Japanese Challenge (Ouchi), 914–916 Surveys, 754–755 Thompson, James, 84 Sweatshops, 873–876 See also Ethics; Globalization; International management; Stress Time-based competition, 920–923 See also Cycle time; Lean manufacturing and just-in-time production; New product development SWOT analysis, 556, 771–773, 834–835, 840, 845–846 See also Strategic planning tools; Strategy formulation Synergy, 188, 876–877 See also Mergers and acquisitions; Organizational structure; Teams and teamwork Systems analysis, 877–880 See also Business process reengineering; Data processing and data management; Management information systems; Open and closed systems; Systems design Systems design, 880–883 See also Business process reengineering; Open and closed systems; Systems analysis 1002 E N C Y C L O P E D I A O F M A N A G E M E N T Time management, 924–928 See also Goals and goal setting; Lean manufacturing and just-intime production; Meeting management; Organizing; Stress; Technology management; Time-based competition Title VII, 180–182, 248–249 Topologies, 104–105 Total productive maintenance (TPM), 476–477 Total quality management (TQM) See Quality and total quality management Touch (nonverbal communication), 42, 87 Towne, Henry, 652 Verbal models, 559 Trade, 281–285, 325–331 Vertical integration, 190 Trademarks, 378, 641–643 Videoconferencing, 960–963 See also Computer networks; Virtual organizations Trading blocs, 314–315 Training See Education and training Virtual organizations, 963–967 See also Lean manufacturing and just-in-time production; Teams and teamwork; Trends in organizational change Viruses (computer), 111 Trait approach, 446 Vroom-Yetton-Jago decision-making model, 447–448 INDEX Training delivery methods, 566–568, 928–935 See also Case method of analysis; Continuing education and lifelong learning trends; Employee screening and selection; Management and executive development; Mentoring Vision statements See Mission and vision statements Transformational leadership, 449, 812–813 Transit inventory, 414 W Transnational organization, 935–936 See also International business; International management; Organizational structure Wagner Act, 251 Transportation, 466–467 Warehousing and warehouse management, 969–971 See also Location strategy; Logistics and transportation; Supply chain management Transworld Corp., 83 Watt, James, 651 Trends in organizational change, 937–941 See also Diversity; Globalization Weber, Max, 77–78, 654–655 U Welch, Jack, 826 Wellness programs, 221–222 Who Moved My Cheese (Johnson), 668–669 Unbundling, 52 Wide area networks, 105–106 Unconstrained growth, 72 Wireless communications, 905–911 Unemployment insurance, 223 Unemployment rate, 208 Uniform Commercial Code, 943–944 See also Exporting and importing; International management Uniform Resource Locators (URL), 403–404 Women and minorities in business, 192, 546, 971–976, 977 See also Diversity; Entrepreneurship; Mentoring; Sensitivity training; Work-life balance Work-in-process, 413 University of Michigan, 447 Work-life balance, 976–980 See also Employee benefits; Employment law and compliance; Human resource management; Women and minorities in business Ure, Andrew, 652 Workers’ compensation insurance, 224 Utility theory, 944–945 See also Consumer behavior; Economics Workplace violence, 864–865 University management institutes, 395–396 V Valuation, 550–551 Value-added tax, 947–950 See also Exporting and importing; International management; Product design; Product life cycle and industry life cycle; Production planning and scheduling Value analysis, 950–953 See also Competitive advantage; New product development Value-based pricing, 674 Value chain management, 953–955 See also Cycle time; Lean manufacturing and just-in-time production; Supply chain management Value creation, 955–956 See also Competitive advantage; Entrepreneurship; Intrapreneurship; Value analysis; Value chain management Vendor rating, 956–959 See also Purchasing and procurement; Quality and total quality management; Supply chain management Venture capital, 9–11, 959–960 See also Due diligence; Entrepreneurship; Financial issues for managers; Financial ratios World-class manufacturer, 980–983 See also Benchmarking; Customer relationship management (CRM); Human resource management; Management awards; Performance measurement; Quality and total quality management World Future Society, 317–318 World Management Council (WMC), 395 World Trade Organization (WTO), 314 World Wide Web, 403–404 Worldatwork, 196 Wren, Daniel, 656 X Xerox, 830 Z Zero-based budgeting, 985–987 Zero Defect Quality Control, 662 Zero sum game, 987–989 See also Decision making 1003 E N C Y C L O P E D I A O F M A N A G E M E N T .. .5th Edition 5th Edition Edited by Marilyn M Helms, D.B.A Encyclopedia of Management, 5th ed Marilyn M Helms, D.B.A., Editor Project Editor Julie A Gough © 2006 Thomson Gale, a part of The... Printed in the United States of America 10 HIGHLIGHTS The fifth edition of the Encyclopedia of Management presents a completely refreshed look at the vast and continually evolving field of management. .. Encyclopedia of Management, 5th Edition is an alphabetical reference book covering a comprehensive slate of management concepts Last published in 2000, this fully revised work represents the latest management
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