Chapter 7 - Vocabulary Study Guide
Name: ________________________________ Teacher’s Name: _______________________
Date: ________________________________ Class: ________________________________
1. Empowerment: Form of participative management where employees share management responsibilities,
including decision making.
2. Morale: Collective feeling or attitude in a work group.
3. Matrix: Mathematical term describing a rectangular array of elements (numerical data, parameters or variables).
4. Market: Aggregate of people with the present or potential ability and desire to purchase a product or service;
equivalent to demand.
5. Leadership: Upper level of management that provides vision and direction for the company.
6. Laissez-faire: Doctrine that interference of government in business and economic affairs should be minimal.
7. Investment: Purchase of stocks, bonds, mutual fund shares, real property, collectible annuities, etc., with the
expectation of obtaining income or capital gain-or both-in the future.
8. Inventory: Value of a firm's raw materials, work in process, supplies used in operations, and finished goods.
9. Innovative: Use of a new product, service, or method in business practice immediately subsequent to its
10. Horizontal growth: Expansion of business capacity through the absorption of facilities or buildings as well as
through the acquisition of new equipment to handle an increased volume in sales in which the business is already
11. Delegate: To appoint, authorize, or commission; transfer authority from one person to another.
12. Downtime: Period during which a worker is idled because of a machine malfunction or because the flow of
materials is interrupted; also called downtime. Dead time is a direct cost to the company.
13. Business life cycle: Recurrent periods during which the nation's economy moves in and out of recession and
recovery phases effecting business.
14. Hierarchy: Ordering by importance of roles, responsibilities, or objectives in an organization.
15. Control: Measure assuring conformity with an organization's policies, procedures, or standards, as in quality
16. Compensation: Direct and indirect monetary and nonmonetary rewards given to employees on the basis of the
value of the job, their personal contributions, and their performance.
17. Operational planning: Short-term organizational objectives necessary to achieve longer-term tactical and
18. Command: Order by a superior to carry out an action.
19. Motivation: Inner strivings of individuals that direct behavior.
20. Chain of command: Structure of decision-making responsibilities from the higher levels of authority to the lower
21. Aptitude: The ability of an individual to learn material sufficiently so that he or she can properly perform the
business task required on the job.
22. Centralized-decentralized: Organization along a strictly hierarchical model. No delegation of authority is
23. Barriers: Conditions making entry into certain businesses extremely difficult.
24. Brand: Identifying mark, symbol, word(s), or combination of same that separate one company's product or
services from another firm's.
25. Downsize: Reducing the layers of management and the work force in order to increase organizational
productivity and profits.
26. Interpersonal: Of or relating to the interactions between individuals.
27. Expertise: Skill or knowledge in a particular area.
28. Facilitate: To make easy or less difficult; to free from difficulty or impediment; to lessen the labor.
29. Organizational structure: Apportionment of responsibility and authority among the members of an organization.
30. Generational: A group of generally contemporaneous individuals regarded as having common cultural or social
characteristics and attitudes.
31. Middle manager: Managers with full management responsibilities reporting to higher level managers.
32. Informational: Knowledge of specific events or situations that has been gathered or received by communication;
intelligence or news.
33. Esprit de corps: A common spirit of comradeship, enthusiasm, and devotion to a cause among the members of
34. Interdependent: Mutually dependent.
35. Feedback: The return of a portion of the output of a process or system to the input, especially when used to
maintain performance or to control a system or process.
36. Power: The ability or official capacity to exercise control; authority.
37. Profit: An advantageous gain or return; benefit.
38. Retrench: To cut down; reduce.
39. Supervisor: One who is in charge of a particular department or unit.
40. Tolerance: The capacity for or the practice of recognizing and respecting the beliefs or practices of others.
41. Unstructured: Lacking a definite structure or organization; not formally organized or systematized.
42. Work ethic: A set of values based on the moral virtues of hard work and diligence.
43. Integrity: Steadfast adherence to a strict moral or ethical code.
44. Participative management: An open form of management where employees have a strong decision-making
45. Participative budgeting: System enabling key employees in a department to provide input into the budgetary
46. Incentive: Something, such as the fear of punishment or the expectation of reward, that induces action or
47. Participative leadership: Consultative management method that encourages others to participate. Leadership
decisions are achieved as the end result of group participation.
48. Deploy: To distribute (persons or forces) systematically or strategically.
49. Productive: State of being creative.
50. Productivity: Measured relationship of the quantity and quality of units produced and the labor per unit of time.
51. Recruitment: Act of seeking prospective new employees or members for an organization.
52. Strategic planning: In a business firm, deciding what principal products and services to produce for what major
53. Synergy: Action of a combined enterprise to produce results greater than the sum of the separate enterprises.
54. Tactical planning: Performance targets established by middle management for achieving specific organizational
55. Turnover: Number of times a given asset is replaced during an accounting period, usually a year.
56. Autocratic: A person with unlimited power or authority.
57. Competence: The state or quality of being adequately or well qualified; ability.
58. Consequential: Following as an effect, result, or conclusion.
59. Stakeholder: Ownership in an enterprise.