Labor Relations - The system of relations between workers and management.

Laissez-Faire - A leadership philosophy characterized by an absence of managerial decision making.

Large Batch - Technologies that produce goods and services in high volume.

Lateral Leadership - Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving.

Law of Effect - A law formulated by Edward Thorndike in 1911 stating that behavior that is followed by positive consequences will likely be repeated.

Leader-Member Exchange (LMX) Theory - Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis.

Leading - The management function that involves the manager’s efforts to stimulate high performance by employees.

Lean Manufacturing - An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.

Learning Organization - An organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights.

Legal Responsibilities - To obey local, state, federal, and relevant international laws.

Legitimacy - People’s judgment of a company’s acceptance, appropriateness, and desirability, generally stemming from company goals and methods that are consistent with societal values.

Level 5 Leadership - A combination of strong professional will (determination) and humility that builds enduring greatness.

Liabilities - The amounts a corporation owes to various creditors.

Life-Cycle Analysis (LCA) - A process of analyzing all inputs and outputs, through the entire “cradle-to-grave” life of a product, to determine total environmental impact.

Line Departments - Units that deal directly with the organization’s primary goods and services.

Logistics - The movement of the right goods in the right amount to the right place at the right time.

Low-Cost Strategy - A strategy an organization uses to build competitive advantage by being efficient and offering a standard, no-frills product.