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Z94.10 Management

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RATIO ANALYSIS. A financial control technique that involves determining and evaluating financial ratios.

RATIONAL MODEL. A model of managerial decision making which suggests that managers engage in completely rational decision processes, ultimately make optimal decisions, and possess and understand all information relevant to their decisions at the time they make them.

RATIONALIZATION. The strategy of assigning activities to those parts of organization, regardless of their location, that are best suited to produce the desired results and then selling the finished products where they are likely to yield the best profits.

RATIONING. A method of adapting to environmental fluctuations that involves limiting access to a product or service that is in high demand.

RAW MATERIALS INVENTORY. The stock of parts, ingredients, and other basic inputs to a production or service process.

REACTIVE CHANGE. Change that occurs when one takes action in response to perceived problems, threats, or opportunities.

REALISTIC JOB PREVIEW. A technique used during the recruiting process in which the job candidate is presented with a balanced view of both the positive and the negative aspects of the job and the organization.

RECEIVER. The person with whom the message is exchanged in the communication process.

RECIPROCAL INTERDEPENDENCE. A type of technological interdependence in which one unit’s outputs become inputs to the other unit and vice versa.

RECRUITMENT. An activity in the staffing process that involves finding and attempting to attract job candidates who are capable of effectively filling job vacancies.

REFERENCE CHECKS. A selection method involving attempts to obtain job-related information about job applicants from individuals who are in a position to be knowledgeable about the applicants’ qualifications.

REFERENT POWER. Power that results from being ad-mired, personally identified with, or liked by others.

REGRESSION MODELS. Explanatory models based on equations that express the fluctuation in the variable being forecasted in terms of fluctuations among one or more other variables.

REINFORCEMENT THEORY. A theory of motivation that argues that our behavior can be explained by consequences in the environment and, therefore, that is not necessary to look for cognitive explanation.

RELATEDNESS NEEDS. The needs in ERG theory that address our relationships with significant others, such as families, friendship groups, work groups, and professional groups.

REORDER POINT (ROP). The inventory level at which a new order should be place.

REPLACEMENT CHART. A partial organization chart showing the major managerial positions in an organization, current incumbents, potential replacements for each position, and the age of each person listed on the chart.

REPRESENTATIVENESS. A decision-making has that involves the tendency to be overly influenced by stereo-types in making judgements about the like of occurrences.

RESERVATIONS. Organizational units that devote full time to the generation of innovative ideas for future business.

RESOURCE DEPENDENCE. An approach to controls that argues that managers need to consider controls mainly in areas in which they depend on others in resources necessary to reach organizational goals.

RESOURCE DEPENDENCE MODEL. A view of the organization-environment interface that highlights organizational dependence on the environment for resources and argues that organizations attempt to manipulate the environment to reduce that dependence.

RESPONSIBILITY. The obligation to carry out duties and active goals related to a position.

RESPONSIBILITY CENTER. A subunit headed by a manager who is responsible for achieving one or more goals.

RESTRAINING FORCES. Forces studied in force-field analysis that involve factors that pressure against a change.

RESTRUCTURING. A method of increasing organizational efficiency and effectiveness that involves making changes in organization structure, often includes reducing management levels and changing components of the organization through divestiture and/or acquisition, as well as shrinking the size of the work force.

REVENUE BUDGET. An operating budget that indicates anticipated revenues.

REVENUE CENTER. A responsibility center whose budgetary performance is measured primarily by its ability to generate a specified level of revenue.

REVITALIZATION. The renewal of the innovative vigor of organizations sought in the elaboration-of-structure stage of the organizational life cycle.

REWARD POWER. Power that is based on the capacity to control and provide valued rewards to others.

RISK. The possibility, characteristic of decisions made under uncertainty, that a chosen action could lead to losses rather than the intended results.

RITE. A relatively elaborate, dramatic, planned set of activities intended to convey cultural values to participants and, usually, an audience.

ROLE. A major work group input that involves a set of behaviors expected of an individual who occupies a particular position in a group; also used to denote a management process element consisting of an organized set of behaviors associated with a particular office or position.

ROMANCE OF LEADERSHIP. The phenomenon of leadership possibly being given more than its due credit for positive results.

ROUTING, OR DISTRIBUTION MODELS. Quantitative methods to assist managers in planning the most effective and economical approaches to distribution problems.

RULE. A standing plan that is a statement spelling out specific actions to be taken or not taken in a given situation.

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