Management Glossary | A to Z Terms used in Management

An iterative and flexible approach to project management that focuses on delivering value in short cycles

The right to make decisions and take action.

Resources owned by a company with economic value.

Adam’s Equity Theory boils down to this: we judge fairness by comparing our efforts (inputs) to rewards (outputs), and feeling unfairly treated leads to demotivation. We even compare ourselves to others to see if things are balanced.

Comparing your company’s performance to similar businesses.

Budgetary control is like a financial GPS for your business. It helps you set spending targets, track progress, and adjust course to ensure your expenses stay on track with your goals.

The process of creating and maintaining a positive image of your company.

Business development is the engine of growth, driving new customers, partnerships, and opportunities to propel a business forward.

The practice of optimizing business processes to improve efficiency and effectiveness.

Business process re-engineering (BPR) is a method for improving an organization’s processes by fundamentally redesigning them. It involves challenging conventional thinking and looking for ways to improve efficiency, effectiveness, and customer satisfaction. In short, BPR helps organizations work smarter, not harder.

Consumer behavior, the study of how people choose, use, and dispose of products, helps businesses understand what motivates customers and create marketing strategies that influence their decisions. It’s crucial for businesses to reach, engage, and ultimately sell to their target audience.

Crisis management helps organizations prepare for, respond to, and recover from unexpected events that could damage their reputation, operations, or people. It involves planning, communication, and collaboration to minimize harm and return to normalcy as quickly as possible.

Coordination is the ability to work together effectively and efficiently towards a common goal. It is the process of bringing together and uniting various organizational components to accomplish predefined goals. It is a planned and rational procedure.

Committees bring together diverse expertise within an organization to tackle complex tasks and make informed decisions. They share workload, promote collaboration, but need effective coordination to avoid delays and fragmentation. Ultimately, well-managed committees can significantly improve decision quality and organizational effectiveness.

Corporate governance sets the rules for how companies operate, ensuring fairness, transparency, and accountability for all stakeholders, from shareholders to employees to society. This helps companies thrive and build trust.

Creativity in decision-making is thinking outside the box to solve unique problems. It involves a four-stage process: gathering information, subconsciously processing ideas, experiencing sudden insights, and refining the solution for practicality.

Integrating social and environmental concerns into your business practices.

As the right-hand person to the CEO, the COO manages an organization’s daily operations, ensuring smooth functioning and efficiency.

The process of choosing a course of action.

Departmentation refers to the process of grouping related activities or functions into specialized units or departments within an organization. It is derived from the word ‘department’, which signifies an organization’s distinct area or division responsible for specific tasks or functions.

Delegation empowers employees by giving them tasks and responsibility, freeing up managers for strategic thinking. It boosts productivity, develops skills, and helps plan for future leadership.

Emotions are feelings that come about when something happens, or we think about something, affecting how we act. These feelings are a mix of what happens in our bodies, what we think, and how we behave. Basic emotions like happiness, sadness, fear, surprise, disgust, and anger are simple and common.

The ability to understand and manage your own emotions, and the emotions of others.

Expectancy theory says we’re motivated by what we expect: putting in effort leads to good performance (Expectancy), good performance gets rewards (Instrumentality), and those rewards matter to us (Valence). Like a formula, these factors multiply to determine our overall motivation.

The principles of right and wrong conduct.

Employee Branding goes beyond just hiring – it’s about building a workforce that embodies and advocates for the company’s core values, fostering pride and ownership to transform them into active brand ambassadors.

Environmental Management aims to balance human needs with the planet’s health through strategic planning, sustainable practices, and innovative solutions, protecting resources and ecosystems for generations to come.

Entrepreneurship ignites passion, fuels innovation, and transforms dreams into reality, navigating challenges to carve a lasting legacy in the dynamic world of business.

Information provided to someone about their performance.

Functional organizations group individuals with similar skills into departments like marketing, finance, or operations. This fosters expertise, clarity on responsibilities, and efficient workflows.

The management of money and other financial resources.

Forecasting involves making educated guesses about future events that could affect a company. Businesses can predict sales, finances, customer demand, and market changes by examining past data, trends, and patterns. Forecasting helps companies make decisions, plan, and manage risks.

Green marketing involves creating and promoting eco-friendly products and services, focusing on sustainability throughout the process. This helps businesses appeal to environmentally conscious consumers and contribute to a healthier planet.

The “glass ceiling” refers to an invisible barrier holding women and minorities back from reaching top leadership positions, despite their talent and contributions. It’s a discriminatory obstacle hindering their rise and needs to be shattered for truly equal opportunities.

Goal Setting Theory is a paradigm that contends that establishing difficult but specific goals can produce greater outcomes than ones that are too easy or ambiguous. This framework places a strong emphasis on the role that clear goals have in inspiring individuals and groups. According to the theory, objectives should be SMART i.e. specific, measurable, achievable, relevant, and time-bound.

Human Resource Accounting (HRA) goes beyond traditional accounting by valuing employees and their skills as an investment, not just a cost. This helps companies understand their human capital’s worth and make informed decisions about talent management.

Frederick Herzberg’s theory, based on interviews with 200 US engineers and accountants, categorizes job factors into “motivators” (growth-related) and “hygiene factors” (maintenance-related). Motivators drive satisfaction, while hygiene factors prevent dissatisfaction, creating separate paths to positive and negative feelings about work.

Robert House’s Path-Goal Theory argues leaders influence subordinates’ satisfaction and performance by adapting their style to individual needs and situational factors like task structure and work environment. While offering a comprehensive framework, it faces criticism for complexity, limited empirical support, and neglecting leader traits and the full impact of their behaviour.

HRMS software automates and manages various HR tasks like recruitment, payroll, and employee information, streamlining operations and saving time for HR professionals in organizations of all sizes. They can be customized to fit specific needs and often come as modular suites or individual products.

Businesses on the same level join forces (Horizontal Marketing System) to share resources, reach more customers, and gain a competitive edge.

International management navigates complex global landscapes, balancing diverse cultures, navigating conflicting policies, and managing unique risks like nationalization, currency fluctuations, and local workforce challenges, often requiring decentralization.

The structure and content of a job.

Job Satisfaction refers to the extent to which employees feel content and fulfilled with their jobs. High job satisfaction occurs when the expectations, needs, and desires of an employee align well with what the job provides.

Japanese management, known for its emphasis on continuous improvement, collaboration, and respect for hierarchy, helped fuel Japan’s economic miracle, sparking worldwide interest in its unique approach.

Metrics used to track progress towards goals.

The process of capturing, storing, and sharing knowledge within an organization.

Kaizen, a Japanese term translating to change for the better or continuous improvement, represents a business philosophy focused on ongoing enhancement. It focuses on gradual progress and involves all employees in refining operations.

Hersey and Blanchard’s Life Cycle Theory argues that effective leadership adapts to follower maturity, proposing four styles (Telling, Selling, Participating, Delegating) based on task and relationship needs, influencing leadership training in companies like Bank of America.

Line organization prioritizes clarity and efficiency through a straightforward chain of command. Each employee reports directly to a single supervisor, creating clear accountability and centralized decision-making. This traditional structure minimizes confusion and ensures smooth communication.

A line and staff organization combines a clear chain of command with specialized support teams (finance, HR, marketing), enabling efficient decision-making and leveraging everyone’s expertise.

A production methodology that strives to optimize efficiency and limit waste within manufacturing systems is called Lean Manufacturing.

A production methodology that strives to optimize efficiency and limit waste within manufacturing systems is called Lean Manufacturing. Lean Manufacturing Technique are Just-in-Time Manufacturing, Continuous Improvement (Kaizen), Poka-Yoke, Kanban and Production Leveling (Heijunka).

A production methodology that strives to optimize efficiency and limit waste within manufacturing systems is called Lean Manufacturing. The core principle involves the reduction or elimination of non-value-adding activities and waste, as determined by customer criteria.

Management involves people at different levels with varying responsibilities and authority, forming a hierarchy to achieve organizational goals. This hierarchy has three main levels: top, middle, and operational.

Learning organizations go beyond training, actively adapting and acquiring knowledge together to stay ahead in a dynamic world, valuing individual and collective learning for sustained success.

Logistics is very important to the success and efficiency of businesses because it helps with things like on-time delivery, cutting costs, making good use of resources, keeping customers happy, and expanding into new markets around the world.

The process of acquiring, storing, and transporting inventory from one location to another is called Logistics Management. It involves making sure that the products are delivered to the right client, at the right time and place, as well as maintaining track of the resources, stocks, and relevant data.

Management, the art of leading others to achieve organizational goals, utilizes resources through planning, organizing, directing, and controlling. It combines scientific principles with situational adaptation for effective execution.

Micromanagement suffocates creativity and productivity by controlling every detail and offering little autonomy, leaving employees feeling stifled and unappreciated.

Management audits go beyond compliance, examining management effectiveness and identifying areas for improvement, ultimately aiming to boost transparency, accountability, and overall performance.

Management of Change (MOC) helps organizations smoothly implement new systems, processes, or structures by minimizing disruption and maximizing efficiency, particularly in safety-critical industries like manufacturing and healthcare.

Managerial effectiveness is achieving organizational goals by efficiently using resources and coordinating team efforts, influenced by the manager, organization, and external environment. It’s about doing the right things and doing them well, unlike efficiency which focuses on optimizing internal processes.

A goal-setting approach where employees agree on objectives with their managers.

A multinational corporation, headquartered in one country, controls and manages diverse affiliates globally, with a unified strategy and ownership structure, shaping the global economy as major players in trade and production.

The activities companies undertake to promote and sell their products or services.

Morale reflects a group’s spirit – high morale means a positive, productive environment, while low morale indicates discouragement and decreased performance.

McKinsey & Company, a renowned global consulting firm, leverages its vast expertise and network of specialists to help organizations overcome challenges, thrive, and achieve success.

When two or more companies combine.

David McClelland identified three core human needs: achievement, affiliation, and power. These needs drive our behavior and can be harnessed to improve organizational performance by understanding and aligning roles with individual motivations. However, limitations exist in the theory’s application and research backing.

In 1960, Douglas McGregor proposed Theory X (negative view of workers) and Theory Y (positive view) in his book, suggesting managers’ assumptions about employee motivation significantly impact their leadership approach.

The driving force that compels employees to act.

Mental Models serve as cognitive aids that assist individuals in comprehending the world, making decisions, and tackling problems by simplifying intricate concepts into practical frameworks

A manager is a leader who oversees and coordinates individuals or departments, ensuring smooth operations, achieving goals, and driving organizational success through planning, organizing, leading, and controlling.

Managers are entrusted with decision-making, resource allocation, and providing guidance and direction to their team members. They play a vital role in formulating strategies, setting goals, and devising action plans that drive the organisation’s success. In addition, managers are responsible for fostering effective communication, promoting teamwork, and effectively managing conflicts within their teams.

Matrix organizations break from the traditional structure, giving employees two bosses: a functional manager for expertise and a project manager for specific tasks. This blends specialized skills with cross-functional teamwork, enabling efficient resource allocation and flexible staffing. However, it needs clear communication, defined roles, and strong project management to avoid confusion and conflicts.

It is also known as human resource planning, is the process of forecasting an organization’s future human resource needs and ensuring that it has the right number of employees with the right skills in the right positions at the right time.

The process of reaching an agreement with others.

Non-profit organizations (NPOs) prioritize social impact over profit, offering crucial services and addressing societal issues through charitable donations and tax exemptions.

Operations Management ensures businesses run smoothly by planning, organizing, and optimizing resources to efficiently create goods or provide services, leading to satisfied customers, cost savings, and overall success in various industries.

Organizational theory is a field of study that examines how organizations are structured, managed, and operated. It encompasses a wide range of interdisciplinary perspectives, including sociology, psychology, economics, and management. Organizational theory seeks to understand the dynamics of organizations, their behavior, and their interactions with the external environment.

An effective organization efficiently hits its goals, optimizes resources, and adapts to change through clear communication, strong leadership, and continuous improvement, ultimately delivering value to stakeholders and achieving success.

Organizational communication is the lifeblood of any company, ensuring information flows smoothly and everyone’s on the same page, ultimately driving success.

An organization manual is a roadmap for managers, outlining key principles, practices, and guidelines to ensure consistent and successful operations. It empowers them with clear roles, decision-making guidance, and strategic direction, ultimately contributing to a streamlined and thriving organization.

An Organization chart is a visual map of an organization, showing who works there, who they report to, and how everyone connects. It helps everyone understand the company’s structure and who to go to for what.

Organizational Development helps companies transform and succeed in changing times by focusing on improving people, processes, and performance through collaborative efforts.

Organizational Culture refers to the shared values, beliefs, attitudes, and behaviors that characterize a company or institution. It encompasses the norms and practices that shape how individuals within the organization interact with each other, approach their work, and perceive the organization’s mission and objectives.

Organisational conflicts are disagreements or clashes within a company arising from personality differences, competing interests, or unclear goals. They can be interpersonal, between teams, or even at departmental levels, impacting productivity and morale.

Organizational change is the process of transforming a company’s structure, operations, or culture to adapt to new challenges and opportunities. In simple terms, it’s about evolving the way an organization works to stay relevant and successful.

An organizational structure defines how an organization operates, setting clear roles, communication channels, and reporting lines to achieve goals efficiently. It’s like a blueprint for success, shaping culture, optimizing workflows, and maximizing results.

Organizational politics can be seen as either negative (dishonest, hindering progress) or positive (natural, conflict resolution). Ultimately, it’s about using power and influence to achieve goals in situations with uncertainty and disagreement.

The study of how individuals and groups behave within organizations.

The process of setting goals, monitoring performance, and providing feedback to employees.

It is also known as Human Resource Management, is the effective process of managing the workforce of the organization, including recruitment, training, evaluation of employees’ performance, remuneration and benefit administration, labor relations, and compliance with labor laws and regulations.

Project organization is the blueprint for project success. It defines roles, responsibilities, communication, and tasks, ensuring everyone’s aligned.

Performance appraisals are formal reviews assessing an employee’s work, providing feedback, setting goals, and influencing decisions about promotions, raises, and other job-related matters. They involve evaluating specific skills and behaviors over a period of time.

Despite comprising half the world’s population, women face widespread discrimination and gender-based violence, including sexual exploitation at work. Laws like India’s POSH Act aim to protect their rights and dignity.

A Project Manager, Leads teams and coordinates resources to deliver projects on time, within budget, and meeting expectations, acting as a strategic guide and problem-solver to ensure smooth execution.

Managing the public’s perception of an organization.

POSDCORB is a framework outlining key management functions: Planning, Organizing, Staffing, Directing, Coordinating, Reporting, and Budgeting, helping organizations achieve efficiency and effectiveness.

A Point of Sale (POS) is the digital or physical hub where customers pay for products and services, evolving from cash registers to systems managing inventory and analyzing data.

Quality Control ensures consistent product/service quality through monitoring, assessment, and regulation throughout the process, identifying and rectifying issues to meet predefined standards and satisfy customers.

The technique in which a group of employees uses participant management to identify and solve problems with the performance or quality of a product is known as Quality Circle.

It is also referred to as the management science approach, arose in prominence during and following World War II. Its origins can be traced back to the pressing need for making informed decisions concerning strategic and tactical military operations. In response to this demand, multidisciplinary groups of scientists were assembled to conduct applied scientific research in this field.

The process of attracting and hiring qualified employees.

Identifying and mitigating potential risks.

Sales Management involves strategic direction, motivation, and guidance of individuals to accomplish sales goals effectively. The sales manager oversees every component of the sales process, including tasks such as predicting and allocating sales revenue, hiring and training sales staff, and conducting performance assessments to ensure optimal team performance.

Social audits go beyond financials, assessing a company’s social and ethical impact through internal checks, stakeholder feedback, and transparency to ensure true social responsibility.

The process of making long-term decisions about the direction of an organization.

Six Sigma, a data-driven approach, helps businesses achieve near-perfect processes by minimizing defects and exceeding customer expectations, leading to increased profits and streamlined operations.

Sexual harassment in the workplace is harmful to individuals and organizations alike. Employers must take proactive steps like establishing policies, training, and support systems to prevent and address it, fostering a safe and productive work environment.

Span of management refers to the ideal number of employees a manager can effectively lead. It balances team size and manager workload, impacting communication, decision-making, and resource utilization.

The process of managing the flow of goods and services from suppliers to customers.

A Stockout occurs when a company runs out of a particular good or item. This indicates that the product is unavailable and cannot be purchased by customers. Stockouts happen when a product’s supply cannot keep up with demand or when inventory control fails to replenish supplies promptly.

Software development where companies use various designations to define roles and responsibilities, ranging from intern to CTO, each requiring specific skills and experience. These designations help attract talent, clarify career paths, and showcase individual achievements.

Small business management involves overseeing and coordinating all aspects of a small business to ensure its success and growth. This includes planning, organizing, leading, and controlling various business activities. It also involves hiring and training employees, leveraging technology to improve efficiency, and staying adaptable to market changes.

Total Quality Management (TQM) empowers everyone in an organization to continuously improve, satisfy customers, and eliminate waste, ultimately leading to better processes, products, and customer satisfaction.

Team building strengthens groups by fostering collaboration, communication, and trust, leading to efficient achievement of shared goals.

Trait theory suggests leaders are born with specific personality traits, but it’s criticized for lacking universality, clear measurement methods, and ignoring context.

Attracting, retaining, and developing talented employees.

Town Hall Meetings bridge the gap between employees and management, providing a platform for information sharing, feedback, and building company culture.

Organizing and using your time effectively.

Time Management is the strategic process of organizing and planning, how to allocate one’s time effectively for maximum productivity. It involves elements, like organization, planning, and scheduling to optimize available time, considering an individual’s unique situation and capabilities.

Transactional Analysis (TA) examines how people interact by analyzing their “ego states” (inner roles) and the patterns in their communications, offering insights into both individual and group behavior.

Coping with the unknown.

Vertical Integration is a strategy where firms take control of multiple stages within their supply chain. Instead of relying on external contractors, they bring these operations in-house, giving them greater control over production. This can be achieved by building their production lines or acquiring existing businesses that handle upstream or downstream parts of the supply chain.

The core beliefs and principles that guide an organization’s actions.

A clear picture of what the organization wants to achieve in the future.

Warehouse Management involves overseeing the daily activities of a warehouse. This includes receiving goods, arranging storage space, scheduling workers, handling inventory, and shipping orders.

William Ouchi, a renowned management theorist and professor, made significant contributions to organizational behavior. He’s best known for developing Theory Z, emphasizing employee participation, team spirit, and long-term employment, drawing inspiration from Japanese management practices.

The overall physical, mental, and emotional well-being of employees.

Balancing work and personal life commitments

Xenophobia is the irrational fear or dislike of foreigners or anything perceived as different, leading to discrimination and exclusion.

This is a strategy used by businesses to maximize revenue by setting different prices for the same product or service based on demand, competition, and other factors.

A budgeting method where all expenses are justified each year.

Difference between Management and Administration 

Difference between Management and Entrepreneurship

Difference between Planning and Strategy

Difference between Manager and Supervisor

Difference between Forecasting and Prediction

Difference between Manager and Director

Difference between Planning and Forecasting 

Difference between Executive and Non-Executive Director

Difference between Forecasting and Budgeting 

Difference between Leader and Boss

Difference between Performance Management and Performance Evaluation

Difference between Suppliers and Vendors

Difference between Traditional and Learning Organisation

Difference between Entrepreneur And Intrapreneur 

Difference between Mission and Vision

Difference between Formal and Informal Group 

Difference between Authoritative, Democratic and Laissez Faire Style of Leadership

Difference between Group and Team

Difference between Creativity and Innovation

Difference between Upward and Downward Communication

Difference between Citation and Reference

Difference between Authority and Power

Difference between Motivation and Morale

Difference between Financial Accounting and Management Accounting

Difference between Reward and Incentive

Difference between Intrinsic and Extrinsic Motivation

Difference between Entrepreneur and Entrepreneurship

Difference Between Management by Objectives (MBO) and Management by Exception (MBE)