Glossary Principles of Management

Glossary Principles of Management To download in Word: Click here To download in pdf: Click here A Administrative management is the use of institutions and order rather than relying on personal qualities to get things done. The administrative model of decision making describes how people make decisions in uncertain, ambiguous situations. Ambiguity is when people are uncertain about their goals and how best to achieve them. Applied ethics is the application of moral philosophy to actual problems, including those in management. Assessment centres are multi-exercise programmes designed to identify the recruitment and promotion potential of personnel. Assets are the property, plant and equipment, vehicles, stocks of goods for trading, money owed by customers and cash: in other words, the physical resources of the business. Authority refers to the rights inherent in a position to give instructions and to expect others to follow those instructions. B The Balanced Scorecard is a performance measure that looks at four areas: financial, customer, internal processes and people/innovation/growth that contribute to organisational performance. Balance sheet shows the assets of the business and the sources from which finance has been raised. Behaviour is something a person does that can be directly observed. Behaviour models of leadership attempt to identify the behaviours that effective managers use to influence subordinates. Behaviour modification is a general label for attempts to change behaviour by using appropriate and timely reinforcement. Benchmarking is a process of comparing organisational performance and practices with others (preferably leaders). Bounded rationality is behaviour that is rational within a decision process, which is limited (bounded) by an individual's ability to process information. Bureaucracy is a system in which people are expected to follow precisely defined rules and procedures rather than to use personal judgement. A business plan is a document which sets out the markets the business intends to serve, how it will do so and what finance they require. The business process view puts satisfying customer's requirements at the heart of a design process to develop a supply system that will operate without waste. The orientation is towards speed of response and two-way flow of information and other resources.    C The capital market comprises all the individuals and institutions that have money to invest, including banks, life assurance companies and pension funds and, as users of capital, business organisations, individuals and governments. Cash flow statement shows the sources from which cash has been generated and how it has been spent during a period of time. A cell layout creates multiple cells dedicated to producing families of output types. Centralisation is when a relatively large number of decisions are taken by management at the top of the organisation. Certainty describes the situation when all the information the decision maker needs is available. A channel is the medium of communication between a sender and a receiver. Coding is translating information into symbols for communication. Coercive power is the ability to obtain compliance through fear of punishment. Collectivism 'describes societies in which people, from birth onwards, are integrated into strong, cohesive in-groups which ... protect them in exchange for unquestioning loyalty.' (Hofstede, 1991, p. 51). Communication is the exchange of information through written or spoken words, symbols and actions to reach a common understanding. Competence (1) Competence concerns the actions and behaviours identified by change agents as contributing in their experience to the perceived effectiveness of change implementation. (2) Competences are those behaviours required for satisfactory ('threshold competence') or excellent ('superior competence') performance in a job. Competitive advantage 'arises from discovering and implementing ways of competing that are unique and distinctive from those of rivals, and that can be sustained over time' (Porter, 1994). A competitive environment is the industry-specific environment comprising the organisation's customers, suppliers and competitors. Competitive or business strategy 'is concerned with the firm's position relative to its competitors in the markets which it has chosen' (Kay, 1996). Complementarities Practices are said to be complementary when doing more of one increases the returns from doing more of another. Concentric layout occurs in, for example, shipbuilding where the product is so large that it remains static while labour and materials come to the centre to assemble the ship. Consideration is a pattern of leadership behaviour that demonstrates sensitivity to relationships and to the social needs of employees. Consumer-centred organisation is focused upon and structured around the identification and satisfaction of the demands of its consumers. Consumers are individuals, households, organisations, institutions, resellers and governments that purchase the products offered by other organisations. Content is the specific substantive task that the group is undertaking. Contingencies are factors such as uncertainty, interdependence and size that reflect the situation of the organisation. Contingency approaches to organisational structure are based on the idea that performance depends on having a structure that is appropriate to the environment. Core competencies are an organisation's major value-creating skills, capabilities and resources that shape its choice of strategy. Corporate responsibility is the awareness, acceptance and management of the implications and effects of all corporate decision making. Corporate strategy 'is concerned with the firm's choice of business, markets and activities' (Kay, 1996), and thus it defines the overall scope and direction of the business. Cost expresses in money units the effect of activating or consuming resources. It is an internal control process of the producing organisation and is not visible to outside parties. A cost leadership strategy is one in which a firm uses low price as the main competitive weapon. Counterimplementation refers to attempts to block change without displaying overt opposition. Craft production refers to a system in which the craft producers do everything. With or without customer involvement they design, source materials, make, display, sell, perhaps service and do the accounts. A critical perspective is one which evaluates an institution or practice in terms of its contribution to human autonomy, responsibility, democracy and ecologically sustainable activity. Critical success factors are those aspects of a strategy that must be achieved to secure competitive advantage. Current assets can be expected to be cash or to be converted to cash within a year.    D Data are raw, unanalysed facts, figures and events. A database consists of items of data stored in a way that enables them to be organised and retrieved in many ways. Decentralisation is when a relatively large number of decisions are taken lower down the organisation in particular operating units. A decision is a specific commitment to action (usually a commitment of resources). Decision criteria define the factors that are relevant in making a decision. Decision making is the process of identifying problems and opportunities and then resolving them. A decision support system is a computer-based system, almost interactive, designed to assist managers in making decisions. Decoding is the interpretation of a message into a form with meaning. Delegating occurs when one person gives another the authority to undertake specific activities or decisions. Delivery relates to the achievement of all promises made by any supplier to a customer. Demand lead time is the elapsed time that a customer is prepared to allow between placing an order for a product or service and actually receiving it; in certain situations this time is effectively zero. Determinism is the view that an organisation's structure is determined by its environment. Differentiation (1) consists of offering a product or service that is perceived as unique or distinctive on a basis other than price. (2) The state of segmentation of the organisation into subsystems, which develop attributes relevant to their external environment. A divisional structure is when tasks are grouped in relation to their outputs, such as products or the needs of different types of customer.    E Emergent models of change emphasise that in uncertain conditions a project will be affected by unknown factors, and that planning has little effect on the outcome. Enlightened self-interest is the practice of acting in a way that is costly or inconvenient at present, but which is believed to be in one's best interest in the long term. Equity theory argues that perception of unfairness leads to tension, which then motivates the individual to resolve that unfairness. Escalation of commitment is an increased commitment to a previous decision despite evidence that it may have been wrong. Ethical audits are the practice of systematically reviewing the extent to which an organisation's actions are consistent with its stated ethical intentions. Ethical consumers are those who take ethical issues into account in deciding what to purchase. Ethical decision-making models examine the influence of individual characteristics and organisational policies on ethical decisions. Ethical investors are people who only invest in businesses that meet specified criteria of ethical behaviour. Ethical relativism is the principle that ethical judgements cannot be made independently of the culture in which they are made. Existence needs reflect a person's requirement for material and energy. Expectancy theory argues that motivation depends on a person's belief in the probability that effort will lead to good performance, and that good performance will lead to them receiving an outcome they value (valence). Expertise power is evident when a person's knowledge of the topic enables them to influence decisions. The external context consists of elements beyond the organisation such as competitors, or the wider PESTEL factors. External fit is when there is a close and consistent relationship between an organisation's competitive strategy and its HRM strategy. An extranet is a version of the Internet that is restricted to specified people in specified companies – such as major customers or suppliers. Extrinsic rewards are valued outcomes or benefits provided by others, such as promotion, a pay increase or a bigger car.    F Factory production broke down the integrated nature of the craftworker's approach and made it possible to increase the supply of goods by dividing tasks into simple and repetitive sequences. Feedback (in communication) occurs as the receiver expresses his or her reaction to the sender's message. Feedback (in a system) refers to the extent to which people receive information about performance. Femininity pertains to societies in which social gender roles overlap. Five forces analysis is a technique for identifying and listing those aspects of the five forces most relevant to the profitability of an organisation at that time. Fixed assets are the physical properties that the company possesses – such as land, buildings, production equipment and vehicles – and which are likely to have a useful life or more than one year. There may also be intangible assets such as patent rights or copyrights. Flexible manufacturing is a manufacturing technology using computers to automate and integrate manufacturing components such as robots, machines, design and engineering. A focus strategy is when a company competes by targeting very specific segments of the market. Formal authority is the right that a person in a specified role has to make decisions, allocate resources or give instructions. Formal structure is the official guidelines, documents or procedures setting out how the organisation's activities are divided and coordinated. A formal team is one that management has deliberately created to perform specific tasks to help meet organisational goals. Formalisation is the practice of using written or electronic documents to direct and control employees. Functional managers are responsible for the performance of a common area of technical or professional work. A functional layout groups similar physical processes together and brings materials and/or customers to these areas. A functional structure is when tasks are grouped into departments based on similar skills and expertise.    G The general environment (sometimes known as the macro-environment) includes economic, political, social and technological factors that generally affect all organisations. General managers are responsible for the performance of a distinct unit of the organisation. Global companies work in many countries, securing resources and finding markets in whichever country is most suitable. Globalisation refers to the increasing integration of internationally dispersed economic activities. A goal is a desired future state for an activity or organisational unit. Goal-setting theory argues that motivation is influenced by goal difficulty, goal specificity and knowledge of results. Groupthink is 'a mode of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members' striving for unanimity overrides their motivation to realistically appraise alternative courses of action' (Janis, 1972). Groupware systems provide electronic communication between members of geographically dispersed teams. Growth needs are those which impel people to be creative or to produce an effect on themselves or their environment.    H High-context cultures are those in which information is implicit and can only be fully understood by those with shared experiences in the culture. A high-performance team is one that meets all the requirements of a real team, but in addition shows commitment to the personal growth of members and performs beyond expectations. Horizontal specialisation is the degree to which tasks are divided among separate people or departments. Human relations approach is a school of management which emphasises the importance of social processes at work. Human resource management is the effective use of human resources in order to enhance organisational performance. Hygiene factors (or maintenance factors) are those aspects surrounding the task which can prevent discontent and dissatisfaction but will not in themselves contribute to psychological growth and hence motivation.    I People use an incremental model of decision making when they are uncertain about the consequences. They search for a limited range of options, and policy unfolds from a series of cumulative small decisions. Individualism pertains to societies in which the ties between individuals are loose. Influence is the process by which one party attempts to modify the behaviour of others by mobilising power resources. An informal group is one that emerges when people come together and interact regularly. Informal structure is the undocumented relationships between members of the organisation that inevitably emerge as people adapt systems to new conditions and satisfy personal and group needs. Information comes from data that has been processed so that it has meaning for the person receiving it. Information overload arises when the amount of information a person has to deal with exceeds their capacity to process it. Information richness refers to the amount of information that a communication channel can carry, and the extent to which it enables sender and receiver to achieve common understanding. An information system is a set of people, procedures and resources that collects and transforms data into information and disseminates this information. Information systems management is the planning, acquisition, development and use of these systems. Initiating structure is a pattern of leadership behaviour that emphasises the performance of the work in hand and the achievement of production or service goals. Innovation covers incremental and/or step (breakthrough) changes in products and/or processes which change function, form, performance or resource use in an advantageous way. Institutional advantage 'is when a not-for-profit body performs its tasks more effectively than other comparable organisations' (Goold, 1997). Instrumentality is the perceived probability that good performance will lead to valued rewards, measured on a scale from 0 (no chance) to 1 (certainty). Integration is the process of achieving unity of effort amongst the various subsystems in accomplishing the organisation's task. The interaction model is a theory of change which stresses the continuing interaction between the internal and external contexts of an organisation, making the outcomes of change hard to predict. Interdependence is the extent to which departments depend on each other for resources or materials to accomplish their tasks. The internal context consists of elements within the organisation such as its technology, structure or business processes. Internal fit is when the various components of the HRM strategy support each other and consistently encourage certain attitudes and behaviour. International management is the practice of managing business operations in more than one country. Internationalisation is the increasing geographical dispersion of economic activities across national borders. The Internet is a web of hundreds of thousands of computer networks linked together by telephone lines through which data can be carried. An inter-organisational system is a computer system that enables data and information to pass between organisations, such as electronic orders or invoices. An intranet is a version of the Internet that only specified people within an organisation can use. Intrinsic rewards are valued outcomes or benefits that come from the individual, such as feelings of satisfaction, achievement and competence. Inventory consists of materials and part or finished goods that are held in anticipation of need by customers along a chain of supply from raw materials through to final consumption (and recycling?).    J Job analysis is the process of determining the characteristics of an area of work according to a prescribed set of dimensions. A job enrichment model represents the idea that managers can change specific job characteristics to promote job satisfaction and so motivate employees.    K Knowledge builds on information and embodies a person's prior understanding, experience and learning. A knowledge system is a system that incorporates the decision-making logic of a human expert.    L Leadership refers to the process of influencing the activities of others towards high levels of goal setting and achievement. Legitimate power flows from the person's formal position, which gives them authority over defined matters. Liabilities of a business as reported in the balance sheet are the debts and financial obligations of the business to all those people and institutions that are not shareholders, e.g. a bank, suppliers. Life cycle models of change are those that view change as an activity which follows a logical, orderly sequence of activities that can be planned in advance. A limited liability company has an identity and existence in its own right as distinct from its owners (shareholders in Europe, stockholders in North America). A shareholder has an ownership right in the company in which the shares are held. Line layout is completely specified by the sequence of activities needed to perform a given transformation. Line managers are responsible for the performance of activities that directly meet customers' needs. Low-context cultures are those where people are more psychologically distant so that information needs to be explicit if members are to understand it.    M Management is the activity of getting things done with the aid of people and other resources. Management as a general human activity occurs whenever people take responsibility for an activity and consciously try to shape its progress and outcome. Management as a specialist occupation develops when activities previously embedded in the work itself become the responsibility not of the employee but of owners or their agents. Management role is the sum of the expectations which others have of a manager. Management tasks are those of planning, organising, leading and controlling the use of resources to add value to them. A manager is someone who gets things done with the aid of people and other resources. Market segmentation is the process of dividing markets comprising the heterogeneous needs of many consumers into segments comprising the homogeneous needs of smaller groups. Marketing is a management process that identifies, anticipates and supplies consumer requirements efficiently and effectively. The marketing environment consists of the actors and forces outside marketing that affect the marketing manager's ability to develop and maintain successful relationships with its target consumers. A marketing information system is the systematic process for the collection, analysis and distribution of marketing information. The marketing mix is the mix of decisions about product features, prices, communications and distribution of products used by the marketing manager to position products competitively within the minds of consumers. Marketing orientation is an organisational orientation that believes success is most effectively achieved by satisfying consumer demands. Masculinity pertains to societies in which social gender roles are clearly distinct. A matrix structure is when those doing a task report both to a functional and a project or divisional boss. A mechanistic structure means there is a high degree of task specialisation, people's responsibility and authority are closely defined and decision making is centralised. The message is what the sender communicates. A metaphor is an image used to signify the essential characteristics of a phenomenon. A mission statement is a broad definition of an organisation's operations and scope, aiming to distinguish it from similar organisations. A model represents a complex phenomenon by identifying the major elements and relationships. A monitoring system is a computer-based system that processes data to provide information about the performance of a business process. Motivator factors are those aspects of the work itself that Herzberg found influenced people to superior performance and effort. Motivation refers to the forces within or beyond a person that arouse and sustain their commitment to a course of action. Multinational companies are based in one country, but have significant production and marketing operations in many others.    N A network structure is when tasks required by one company are performed by other companies with expertise in those areas. Networking refers to 'individuals' attempts to develop and maintain relationships with others (who) have the potential to assist them in their work or career' (Huczynski, 2004, p. 305). Noise is anything that confuses, diminishes or interferes with communication. Non-linear systems are those in which small changes are amplified through many interactions with other variables so that the eventual effect is unpredictable. A non-programmed decision is a unique decision that requires a custom-made solution when information is lacking or unclear. Non-receptive contexts are those where the combined effects of features of the organisation (such as culture or technology) tend to hinder change. Non-verbal communication is the process of coding meaning through behaviours such as facial expression, gestures and body postures.    O Observation is the activity of concentrating on how a team works rather than taking part in the activity itself. An open system is one that interacts with its environment. Operational plans detail how the overall objectives are to be achieved, by specifying what senior management expects from specific departments or functions. Operational research attempts to solve complex problems by developing mathematical models to analyse the many variables. Operational strategies are those deployed by the different functions of the organisation, such as manufacturing, marketing, finance and human resource management, and which contribute to the achievement of corporate strategy. An operational system is a computer application that processes transactions in an orderly and efficient way to provide a desired output. An opportunity is the chance to do something not previously expected. An order qualifier is a necessary but not sufficient requirement to be considered by a customer. An order winner is some feature of the product that so positively differentiates it that customers want to buy it in preference to competing products. An organic structure is one where people are expected to work together and to use their initiative to solve problems; job descriptions and rules are few and imprecise. An organisation is a social arrangement for achieving controlled performance towards goals that create value. An organisation chart shows the main departments and senior positions in an organisation and the reporting relations between them. Organisation culture is the collection of relatively uniform and enduring values, beliefs, customs and practices that are uniquely shared by an organisation's members and which are transmitted from one generation of employees to the next. Organisation Development (OD) is a systematic process in which applied behavioural science principles and practices are introduced with the goal of increasing individual and organisational performance. Organisation structure 'The structure of an organisation [is] the sum total of the ways in which it divides its labour into distinct tasks and then achieves co-ordination among them' (Mintzberg, 1989). An organisational capability is an activity that an organisation can perform better than its competitors. Organisational change is a deliberate attempt to improve performance by changing one or more aspects of the organisation, such as its technology, structure or business processes. An organisational system is a computer system that enables data and information to pass between units of an organisation. Outer context of change relates to environmental factors, such as competitor behaviour, customer demands or other factors in the external environment.    P The participative perspective is the belief that if people are able to take part in planning a change, they will be more willing to accept and implement the change. Partnering describes a business relationship based on taking a long-term view that the partners wish to work together to enhance customers' satisfaction. A perceived performance gap arises when people believe that the actual performance of a unit or business is out of line with the level they desire. Perception is the active psychological process in which stimuli are selected and organised into meaningful patterns. Performance appraisal is a systematic review of a person's work and achievements over a recent period, usually leading to plans for the future. Performance imperatives are those aspects of performance which are especially important for an organisation to do well, such as flexibility and innovation. Performance-related pay refers to payment systems in which a percentage of pay depends on the assessed performance of individuals, groups or the organisation as a whole. A person culture is one in which activity is strongly influenced by the wishes of the individuals who are part of the organisation. PESTEL analysis is a technique for identifying and listing the political, economic, social, technological environmental and legal factors in the general environment most relevant to an organisation. Philanthropy is the practice of contributing personal wealth to charitable or similar causes. Planning is the task of setting objectives, specifying how to achieve them, implementing the plan and evaluating the results. A policy is a guideline that establishes some general principles for making a decision. Political behaviour is 'the practical domain of power in action, worked out through the use of techniques of influence and other (more or less extreme) tactics' (Buchanan and Badham, 1999). The political model is a model of decision making that reflects the view that an organisation consists of groups with different interests, goals and values. Political models of change emphasise that change is likely to affect the interests of stakeholders unevenly and that those who see themselves losing will resist the change despite the rationality of the arguments or invitations to participate. The political perspective reflects the view that organisations are made up of groups with separate interests, goals and values, and that these affect how they respond to change. Power concerns 'the capacity of individuals to exert their will over others' (Buchanan and Badham, 1999). A power culture is one in which people's activities are strongly influenced by a dominant central figure. Power distance is the extent to which the less powerful members of organisations within a country expect and accept that power is distributed unevenly. Preferred team roles are the types of behaviour that people display relatively frequently when they are part of a team. A problem is a gap between an existing and a desired state of affairs. A procedure is a series of related steps to deal with a structured problem. A process is the way people interact with each other in performing a task, such as how they make decisions. Process consultation is an OD intervention in which an external consultant facilitates improvements in an organisation's diagnostic, conceptual and action planning skills. Product is a generic term used to identify both tangible goods and intangible services. The product life cycle suggests that products pass through the stages of introduction, growth, maturity and decline. Product position is the position in which consumers place a product relative to that of an alternative supplier. Profit and loss statement reflects the benefits derived from the trading activities of the business during a period of time. A programmed decision is a repetitive decision that can be handled by a routine approach. A project manager is someone who is responsible for managing a project, usually intended to change some aspects of an organisation. A pseudo-team is a collection of individuals who could perform more effectively but have shown no interest in developing the necessary skills and methods. A psychological contract is the set of understandings people have regarding the commitments made between themselves and their organisation.    Q The quality of a product or service is the (often imprecise) perception of a customer that what has been provided is at least what was expected for the price he or she paid.    R The rational model of decision making assumes that people make consistent choices to maximise economic value within specified constraints. Real goals are those to which people give most attention. Receptive contexts are those where features of the organisation (such as culture or technology) tend to help change. Referent power (or charismatic power) arises when subordinates want to identify with the leader, on account of some personal characteristics of the leader. Relatedness needs involve a desire for relationships with significant other people. Relationship marketing is an approach that focuses on developing a series of transactions with consumers. Responsibility refers to a person attempting to meet the expectations others have of them. Reward power is the ability of someone to reward another through possessing resources the other values. Risk refers to situations in which the decision maker is able to estimate the likelihood of the alternative outcomes. A role is the sum of the expectations that other people have of a person occupying a position. A role culture is one in which people's activities are strongly influenced by clear and detailed job descriptions and other formal signals as to what is expected of them. A rule sets out what someone can or cannot do in a given situation.    S Satisficing is the acceptance by decision makers of the first solution that is 'good enough'. Scenario planning is an attempt to build plausible views of a small number of different possible futures for an organisation. Scientific management The school of management called 'scientific' attempted to create a science of factory production. Selection tests are formal, often psychologically based methods of assessing candidates' likely suitability for a job. Selective attention is the ability, often unconscious, to choose from the stream of signals in the environment, concentrating on some and ignoring others. Self-efficacy is an individual's belief that he or she is capable of performing a task. A sensitivity analysis tests the effect on a plan of several alternative values of the key variables. Sensitivity training is a technique for enhancing self-awareness and changing behaviour through unstructured group discussion. Shareholders are the principal risk takers in a company. They contribute the long-term capital for which they expect to be rewarded in the form of dividends – a distribution from the profit of the business. Shareholders' funds are the capital contributed by the shareholders plus profits that have not been distributed to the shareholders. Situational models of leadership attempt to identify the contextual factors that affect when one style will be more effective than another. Skill refers to a person's ability to perform various types of cognitive or behavioural activity effectively. The social contract consists of the mutual obligations that society and business recognise they have to each other. A sociotechnical approach is a systems development strategy that attempts to improve simultaneously the performance of the organisation and the quality of the working life of the workers. A sociotechnical system is one in which outcomes depend on the interaction of both the technical and social subsystems. A span of control is the number of subordinates reporting directly to the person above them in the hierarchy. Staff managers are responsible for the performance of functions that provide support to line managers. Stakeholder mapping is a means of identifying the expectations and power of different stakeholders. Stakeholders are individuals, groups or other organisations with an interest in, or who are affected by, what the organisation does. Stated goals are those which are prominent in company publications and websites. Stereotyping is the practice of consigning a person to a category or personality type on the basis of their membership of some known group. A strategic alliance is when firms agree to cooperate to achieve commercial objectives. A strategic business unit consists of a number of closely related products for which it is meaningful to formulate a separate strategy. Strategic management is an organisation-wide task involving both the development and implementation of strategy. A strategic plan sets out the overall direction for the business, is broad in scope and covers all the major activities. Strategy is concerned with deciding what business an organisation should be in, where it wants to be, and how it is going to get there. Structural choice approaches emphasise the scope management has for deciding the form of structure, irrespective of external conditions. Structure is the regularity in the way a unit or group is organised, such as the roles that are specified. Subjective probability (in expectancy theory) is a person's estimate of the likelihood that a certain level of effort (E) will produce a level of performance (P) which will then lead to an expected outcome (O). Subsystems are the separate but related parts that make up the total system. Succession planning is the use of a deliberate process to ensure that staff are developed who are able to replace senior management as required. Supply lead time is the total elapsed time between the decision to obtain the basic input resources to the final delivery of the product or service to the customer. Survey feedback is an OD intervention in which the results of an opinion survey are fed back to respondents to trigger problem-solving on the issues which the survey identifies. A SWOT analysis is a way of summarising the organisation's main strengths and weaknesses relative to external opportunities and threats. A system is a set of interrelated parts designed to achieve a purpose. A system boundary separates the system from its environment. A system of supportive relationships refers to the interactions and experiences that build a person's sense of personal worth. The systems approach looks at the different parts of an interacting set of activities as a whole and considers the best way for the whole to function.    T A target market is the segment of the market selected by the organisation as the focus of its activities. A task culture is one in which the focus of activity is towards completing a task or project using whatever means are appropriate. A team is 'a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they hold themselves mutually accountable' (Katzenbach and Smith, 1993b). Team-based rewards are 'payments or non-financial incentives provided to members of a formally established team and linked to the performance of the group' (IPD, 1996). Technology is the knowledge, equipment and activities used to transform inputs into outputs. Teleology is the practice of evaluating a decision against the criterion of whether the outcome achieves the original goal. Traits are a variety of individual attributes, including aspects of personality, temperament, needs, motives and values. A transactional leader is one who treats leadership as an exchange, giving followers what they want if they do what the leader desires. Transactional marketing is an approach that focuses upon one-off exchanges with consumers. A transformational leader is one who treats leadership as a matter of motivation and commitment, inspiring followers by appealing to higher ideals and moral values. Transnational companies operate in many countries and delegate many decisions to local managers.    U Uncertainty is when people are clear about their goals, but have little information about which course of action is most likely to succeed. Uncertainty avoidance is the extent to which members of a culture feel threatened by uncertain or unknown situations. Utilitarianism is the practice of evaluating a decision against the criterion of its consequences for the majority of people.    V Valence is the perceived value or preference that an individual has for a particular outcome. Validity occurs when there is a statistically significant relationship between a predictor (such as a selection test score) and subsequent measures of on-the-job performance. Value is added to resources when they are transformed into goods or services that are worth more than their original cost plus the cost of transformation. A value chain 'divides a firm into the discrete activities it performs in designing, producing, marketing and distributing its product. It is the basic tool for diagnosing competitive advantage and finding ways to enhance it' (Porter, 1985). A value for money service is one that is provided economically, efficiently and effectively. Vertical specialisation refers to the extent to which responsibilities at different levels are defined. Virtual organisations are those that deliver goods and services but have few, if any, of the physical features of conventional businesses.    W A working group is a collection of individuals who work mainly on their own but interact socially and share information and best practices.