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Glossary
Chapter 8
Bureaucratic control system	Focuses on managing organizational processes through budgets, statistical reports, standard operations procedures, and centralization of decision making.
Control system	Vertical organizational links, up and down the organizational hierarchy.
Coordination system	Horizontal organizational links.
Cultural control system	Uses organizational culture to control the behaviors and attitudes of employees.
Decision–making control	Level in the organizational hierarchy where managers have the authority to make decisions.
Direct contact	Face–to–face interaction of employees.
Dispersed subunits	Subsidiaries located anywhere in the world where they can most benefit the company.
Export department	Coordinates and controls a company’s export operations.
Foreign subsidiaries	Subunits of the multinational company located in another country.
Full–time integrator	Cross–unit coordination is the main job responsibility.
Functional structure	Has departments or subunits based on separate business functions, such as marketing or manufacturing.
Geographic structure	Has departments or subunits based on geographical regions.
Global virtual team	Groups of people from different parts of the world who work together by using information and communication technologies such as intranets, Web meetings, WIKIs, e–mails, and instant messaging.
Hybrid structures	Mixes functional, geographic, and product units.
Interdependent relationships	Continuous sharing of information and resources by dispersed and specialized subunits.
International division	Responsible for managing exports, international sales, and foreign subsidiaries.
Knowledge management	Systems and mechanisms to ensure that the right form of knowledge is available to the right individual at the right time.
Liaison roles	Part of a person’s job in one department to communicate with people in another department.
Metanational structure	An evolution of the transnational network structure that develops extensive systems to encourage organizational learning and entrepreneurial activities.
Minireplica subsidiary	Scaled–down version of the parent company, using the same technology and producing the same products as the parent company.
Organizational design	How organizations structure subunits and use coordination and control mechanisms to achieve their strategic goals.
Output control system	Assesses the performance of a unit based on results, not on the processes used to achieve the results.
Product structure	Has departments or subunits based on different product groups.
Profit center	Unit controlled by its profit or loss performance.
Specialized operations	Subunits specializing in particular product lines, research areas, or marketing areas.
Task force	Temporary team created to solve a particular organizational problem.
team	Permanent unit of the organization designed to focus the efforts of different subunits on particular problems.
Transnational network structure	Network of functional, product, and geographic subsidiaries dispersed throughout the world, based on the subsidiaries’ location advantages.
Transnational subsidiary	Has no company– wide form or function; each subsidiary does what it does best or most efficiently anywhere in the world.
Worldwide geographic structure	Has geographical units representing regions of the world.
Worldwide matrix structure	Symmetrical organization, usually with equal emphasis on worldwide product groups and regional geographical divisions.
Worldwide prod.	Gives product divisions responsibility to produce and sell their products or services throughout the world.

Glossary Chapter 10 B2B Business–to–business transactions. B2C Business–to–consumer transactions. C2B Consumer–to–business transactions. C2C Consumer–to–consumer transactions. E–commerce The selling of goods or services over the Internet. E–commerce enablers Fulfillment specialists that provide other companies with services such as Web site translation. Internet hosts Computer connected to the Internet with its own Internet Protocol address. Localized Web site Web site that is adapted to the local cultures. Secure server Internet host that allows users to send and receive encrypted data. Standardized Web site Web site that is similar in design and layout around the world.
Glossary Chapter 11 Balance sheet method Attempts to equate purchasing power in the host country with purchasing power in the expatriate’s home country. Cross–cultural training Increases the relational abilities of future expatriates and, in some cases, of their spouses and families. Ethnocentric IHRM All aspects of HRM for managers and technical workers tend to follow the parent organization’ home country HRM practices. expatriate Employee who comes from a country that is different from the one in which they working. Expatriate glass ceiling The organizational and structural barriers preventing female managers from receiving international assignments. flexpatriates Employees who are sent on frequent but short–term international assignments. Global IHRM Recruiting and selecting worldwide, and assigning the best managers to international assignments regardless of nationality. Global pay system Worldwide job evaluations, performance appraisal methods, and salary scales are used. Headquarters–based compensation system Paying home country wages regardless of location. Home country national Expatriate employee who comes from the parent firm’s home country. Host country nationals Local workers who come from the host country where the unit (plant, sales unit, etc.) is located. Host–based compensation system Adjusting wages to local lifestyles and costs of living. Human resource management (HRM) Recruitment, selection, training and development, performance appraisal, compensation, and labor relations. IHRM orientation Company’s basic tactics and philosophy for coordinating IHRM activities for managerial and technical workers. inpatriate Employees from foreign countries who work in the country where the parent company is located. International cadre Managers who specialize in international assignments. International human resource management (IHRM) All the HRM functions, adapted to the international setting. Key success factors for expatriate assignments Relational abilities, family situation, motivation, and language skills. Polycentric IHRM Firm treats each country– level organization separately for HRM purposes. Regiocentric IHRM Regionwide HRM policies are adopted. Repatriation problem Difficulties that managers face in coming back to their home countries and reconnecting with their home organizations. Third country nationals Expatriate workers who come from neither the host nor home country. Training rigor Extent of effort by both trainees and trainers to prepare the expatriate.

Glossary Chapter 13 Building a relationship The first stage of the actual negotiation process, when negotiators concentrate on social and interpersonal matters. Competitive negotiation Each side tries to give as little as possible and tries to win for its side. Concession making Process requiring each side to relax some of its demands to meet the other party’s needs. Dirty tricks Negotiation tactics that pressure opponents to accept unfair or undesirable agreements or concessions. Final agreement Signed contract, agreeable to all sides. First offer First proposal by parties of what they expect from the agreement. Formal communication Communication that acknowledges rank, titles, and ceremony in prescribed social interaction. Haptics or touching Basic form of human interaction, including shaking hands, embracing, or kissing when greeting one another. High–context language One in which people state things indirectly and implicitly. Holistic approach Each side makes very few, if any, concessions until the end of the negotiation. Interpreter’s role To ensure the accuracy and common understanding of written and oral agreements. kinesics Communication through body movements. Low–context language One in which people state things directly and explicitly. Negotiation steps Preparation, building the relationship, exchanging information, first offer, persuasion, concessions, agreement, and postagreement. Nonverbal communication Face–to–face communication that is not oral. oculesics Communication through eye contact or gaze. olfactics Use of smells as a means of nonverbal communication. Personal success characteristics Tolerance of ambiguous situations, flexibility, creativity, humor, stamina, empathy, curiosity, and knowledge of a foreign language. Persuasion stage Stage when each side in the negotiation attempts to get the other side to agree to its position. postagreement Consists of an evaluation of the success of a completed negotiation. Problem–solving negotiation Negotiators seek mutually satisfactory ground that is beneficial to both companies. proxemics The use of space to communicate. Sequential approach Each side reciprocates concessions made by the other side. Task–related information Actual details of the proposed agreement. Verbal negotiation tactics Promises, threats, recommendations, warnings, rewards, punishments, normative appeals, commitments, self–disclosures, questions, commands, saying no (refusals), interruptions. Whorf hypothesis Theory that language determines the nature of culture.

Glossary
Chapter 12
Backdoor recruitment	Prospective employees are friends or relatives of those already employed.
Bonus system	In Japan, employees often receive as much as 30 percent of their base salary, usually given twice a year during traditional gift– giving seasons.
Craft union	Represents people from one occupational group, such as plumbers.
Dual system	A form of vocational education in Germany that combines in–house apprenticeship training with part–time vocational school training and that leads to a skilled worker certificate.
Enterprise union	Represents all the people in one organization, regardless of occupation or location.
Ideological union	Represents all types of workers based on an ideology (e.g., communism) or religious orientation.
Induced factor conditions	National resources created by a nation, such as a superior educational system.
Industrial union	Represents all people in an industry, regardless of occupational type.
Local union	Represents one occupational group in one company.
Meister	In Germany, a master technician.
Natural factor conditions	National resources that occur naturally, such as abundant water supply.
Nenpo system	New Japanese compensation system based on yearly performance evaluations that emphasize goals, although goals are not always the same as in Western companies.
Resource pool	All the human and physical resources available in a country.
U.S. legal requirements for appraisals	Regulating performance evaluation practices to ensure their

Glossary
Chapter 14
Achievement– motivation theory	Suggestion that only some people have the need to win in competitive situations or to exceed a standard of excellence.
Autonomous work group	Team or unit that has nearly complete responsibility for a task.
Equity theory	Proposal that people perceive the fairness of their rewards vis–á–vis their inputs based on how they compare themselves to others.
ERG theory	Simplified hierarchy of needs: growth needs, relatedness needs, and existence needs.
Expectancy theory	Assumption that motivation includes people’ desire to satisfy their needs and their beliefs regarding how much their efforts at work will eventually satisfy their needs.
Extrinsic work values	Preference for the security aspects of jobs, such as income and job security.
Goal–directed behavior	One that people use with the intention of satisfying a need.
Goal–setting theory	Assumption that the mere existence of a goal is motivating.
Hierarchy of needs theory	States that people have five basic types of needs: physiological, security, affiliation, esteem, and self– actualization.
Intrinsic work values	Preference for openness–to–change job aspects, such as autonomy, being able to take initiative and be creative.
Job characteristics model	Suggests that work is more motivating when managers enrich core job characteristics, such as by increasing the number of skills a job requires.
motivation	A psychological process resulting in goal– directed behavior that satisfies human needs.
Motivator–hygiene theory	Assumption that a job has two basic characteristics: motivators and hygiene factors.
need	Feeling of deficit or lacking that all people experience at some time.
Need theory	Of motivation, assumes that people can satisfy basic human needs in the work setting.
Operant conditioning	Model proposes that if a pleasurable consequence follows a behavior, the behavior will continue, whereas if an unpleasant consequence follows a behavior, the behavior will stop.
Process theories	Of motivation, arising from needs and values combined with an individual’s beliefs regarding the work environment.
punishment	Consequences of a person’s behavior that discourage the behavior.
reinforcement	Reactions to a person’ behavior that encourage the person to continue the behavior.
Social loafing	People put out less effort when they work in groups.
Sociotechnical systems (STS) approach	Focuses on designing motivating jobs by blending the social system (i.e., organizational structure, culture) with technologies.
Work centrality	Overall value of work in a person’ life.
Work obligation norms	Degree to which work is seen as an obligation or duty to society.

Glossary
Chapter 15
Attributional approach to leadership	Emphasis on what leaders believe causes subordinates’ behaviors.
Autocratic leadership	Leaders make all major decisions themselves.
Consultative or participative leadership	Leader’s style falls midway between autocratic and democratic styles.
Contingency theory	Assumption that different styles and leaders are appropriate for various situations.
Democratic leadership	Leader includes subordinates in decision making.
Fiedler’s theory of leadership	Proposal that success of task– or person– centered leader depends on relationships between the leader and subordinates, the degree that subordinates’ tasks are easily and clearly defined, and the officially granted organizational power of the leader.
Fundamental attribution error	Assumption by managers that people behave in certain ways because of internal motivations rather than outside factors.
Global leader	One who has the skills and abilities to interact with and manage people from diverse cultural backgrounds.
Great person theory	Leaders are born with unique characteristics that make them quite different from ordinary people.
Influence tactics	Tactical behaviors leaders use to influence subordinates.
leadership	Ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.
National–context contingency model of leadership	Shows how culture and related social institutions affect leadership practices.
Path–goal theory	Four types of leadership styles that a manager might choose depending on the situation.
Person–centered leader	One who focuses on meeting employees’ social and emotional needs.
Subordinates’expectations	Expectations regarding what leaders should do and what they may or may not do.
Task–centered leader	One who gives subordinates specific standards, schedules, and tasks.
Transformational leadership	Managers go beyond transactional leadership by articulating a vision, breaking from the status quo, providing goals and a plan, giving meaning or a purpose to goals, taking risks, being motivated to lead, building a power base, and demonstrating high ethical and moral standards.