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Mgmt Quiz 2

What is Differentiation? It is the process of establishing and controlling the division of labor, or degree of specialization, in the organization
What is Horizontal Differentiation? the way an organization groups organizational tasks into roles and roles into subunits (functions and divisions). The organizational chart horizontally differentiates roles according to their main task and responsibility. Grouping of Organizational tasks
What is Vertical Differentiation? The organizational vertically differentiates organizational roles in terms of the amount of authority that goes with each role (Span of Control-number of layers). Refers to how many levels there are from top to bottom. The distribution of authority
What is Departmentalization? What are the different forms of Departmentalization? the grouping of jobs and functions Function, Geography, Product, Customer, Hyrbid
What are the advantages/disadvantages in a Functional Structure? o Advantages-  knowledge sharing  specialization  leverage with vendors  economies of scale  Efficiency through standardization. o Disadvantages-  managing diverse products  cross-functional processes
What are the advantages/disadvantages in a Geographical Structure? o Advantages-  local focus (with customers)  low transportation costs  perception that the company is local o Disadvantages-  mobilizing and sharing resources
What are the advantages/disadvantages in a Product Structure? o Advantages-  product development cycle is shortened  focus can be on individual products,  operating freedom o Disadvantages-  Duplication  lost opportunities  competition between units  multiple customer contacts
What are the advantages/disadvantages in a Customer Structure? o Advantages  Customization based on specific customer needs  Relationships can be built  Customer solutions rather than simple products or services o Disadvantages-  Duplication  Lost opportunities  Competition between units
What are the advantages/disadvantages in a Hybrid Structure o Advantages  Single-point of interface for customers  Cross-selling  Product focus  Multiple distribution channels o Disadvantages  Contention over resources  Disagreements over pricing and costs  Conflicting metrics  Complexity
What is a Hybrid Structure? structure of a large organization that has many divisions and simultaneously uses many different types of organizational structure
What is Integration? The process of coordinating various tasks, functions, and divisions so that they work together and not at cross purposes
What is the relationship between the organization’s environment and the needs for integration and differentiation The more diverse the environment’s the organization operates in, the more differentiation among units is necessary and the more integration is necessary to achieve common goal.
What is the relationship between the organization’s environment and the needs for integration and differentiation A complex organization that is highly differentiated needs a high level of integration to coordinate its activities effectively. By contrast when an organization has a relatively simple, clearly defines role structure,only simple integrating mechanisms .
What is the relationship between the organization’s environment and the needs for integration and differentiation • Differentiation and the need for integration are important variables in accessing structure • The level of integration should be balanced with the organization’s level of differentiation.
What are the signs of poor integration? Missed schedules, slipped milestones, cost over-runs Turf battles o Initiatives begun in one function are sabotaged by other functions o Low satisfaction and high turnover among people in integrating jobs o Poor flow of information between functions
What are mechanisms for improving integration? o Hierarchy of authority o Paperwork and procedures o Direct contact-managers meet face to face o Formal liaison roles o Tasks force or teams o Integrating departments
What are network structures? A complex cluster of different orgs whose actions are coordinated by contracts rather than by a formal hierarchy of authority. Works with suppliers,manufacturers to outsource many of the value-creation activities to produce and market goods and services
What are the advantages of network structures? o Reduced production costs o Avoids the high bureaucratic costs of operating a complex organizational structure o Outsourcing allows companies to stay small flexible o Organizations gain access to low-cost overseas sources of inputs and expertise
What are the disadvantages of network structures? Result in coordination problems Considerable trust must be established within both groups so that ideas can be shared many opportunities to cut cost and increase quality are lost. o Could be difficult to find replacement contractors
What is a functional team structure? o Primary responsibility for the project passes from one function to another o Coordination is through agreed upon specifications
What are the advantages and disadvantages in a functional team structure? Advantages-authority aligned with responsibility, consistent with career paths, brings specialized expertise to key technical issues Disadvantages-coordination can be difficult, subsystems may be optimized instead of the overall project
What is a light weight team structure? o Functional organizations provide a liaison person to represent the function on a development team. o Project leader has the role of coordinating the team, but no authority to allocate resources
What are the advantages and disadvantages in a light weight team structure? Advantages-alignment with functional concerns, identification of specific individuals to contribute to the project, project manager can provide coordination Disadvantages- difficulties in coordinating and building commitment to the project, stress on mgr
What is a heavy-weight team structure? o Individuals from different functional areas are dedicated to the project o Project leader is a senior manager in the organization and has responsibility for the project and direct authority over resources and people
What are the advantages and disadvantages in a heavy weight team structure? Advantages-commitment and ownership of the project by members, integration of functions and project subsystems, alignment of resources and accountability o Disadvantages-tensions with functional areas, stress on support areas, high resource requirements
When is tacit coordination likely to be most effective? Tmost likely to be effective for companies that use informal processes like HEC and their hospital bed. They had developed an informal process that was so efficient that they really did not need to tie any formal procedures around it. Restaurant Industry
What are the basic processes of the different cognitive models of motivation? • Expectancy Theory- • Equity Theory- • Goal Setting Theory-
What is Expectancy Theory? Key Elements-belief that effort will lead to performance (expectancy), belief that performance will lead to success (instrumentality), value of outcomes (valence)Effort is multiplicative function of these three elements (any zero eliminates motivation)
What is Equity Theory Individuals compare what they put into work to what they get out of it. Inputs-Time worked, skills, experience.Outcomes- pay, benefits, recognition,.Individuals compare their ratios of outcomes to inputs to those of other people. Restore Cognitive balance
What is Goal-Setting Theory? • Goal Setting Theory- o Challenging goals are more motivating then easy goals o Participating in goal setting leads to higher motivation
What is social control the way organizational culture guides behavior. The widely shared norms can be powerful determinants of attitudes and behaviors.The norms and values that are shared, unofficial customs, rituals, and language that guide people in their actions.
When is social control most likely to be effective? When norms are characterized by consensus and intensity. That is, people who share the norm must feel strongly enough about it that they are willing to tell others when they’re not living up to the shared expectations about what is right and wrong.
What is culture? • Organizational culture is the pattern of beliefs and expectations or norms, that if they are widely shared and strongly felt can powerfully shape the attitudes and behaviors of individuals and groups
What are the steps in diagnosing an organization’s culture? 1. Identify critical strategic challenges 2. Link the strategy for meeting these challenges to the critical tasks needed to implement it 3. Identify the norms and values that will help accomplish critical tasks
What are the steps in diagnosing an organization’s culture? 4. Diagnose the norms that characterize the current culture 5. Identify gaps between norms needed and exiting ones 6. Decide on actions needed to reduce gaps
How do organizations shape their cultures? • Getting the right people- • Creating the right situation • Creating the right situation • Reward systems • Managing involvement and engagement- • Leader’s communications • Leader’s Actions emphasize intrinsic rewards as well as extrinsic,
What are the key crises organizations face as they grow? Crisis of Leadership, autonomy, control, red tape, internal growth, identity
Crisis of Leadership o Phase 1 Creativity-growth requires efficiencies, increased number of employees requires formal communication, new employees do not have the same commitment, financial controls required o Leads to hiring strong managers
•Crisis of autonomy o Phase 2 Direction-Centralized decision making becomes problematic as the organization becomes more complex, lower level employees become frustrated, procedures stifle individual initiative o Leads to greater delegation
•Crisis of control Phase 3 Delegation-top management feels a loss of control, units seek to optimize their own goals, not the organization’s goals, lack of cooperation between units o Leads to developing special coordination techniques
• Crisis of red tape o Phase 4 Coordination and Monitoring-resentment grows between line and staff groups, systems become overly bureaucratic, procedures become more important than innovation o Leads to development of cross-functional structures, emphasis on social control a
• Crisis of internal growth o Phase 5 Collaboration-growth is limited by internal and external constraints, search for partnerships and acquisitions
• Crisis of Identity Phase 6 Alliances
What are the norms that support innovation in organizations? • Norms that foster creativity o Support for risk taking o Tolerance for mistakes • Norms that foster implementation o Collaboration and teamwork o A sense of urgency and speed
o Support for risk taking  Rewards and recognition for new ideas  Positive attitudes toward change by mgmt.  People are expected to challenge the status quo  Task related conflict is encouraged rather than avoided  Frequent constructive feedback on the work
o Tolerance for mistakes  Mistakes are seen as a normal part of doing the job  People are given the freedom to make changes  Being safe rather than sorry is not accepted
o Collaboration and teamwork  Teamwork is emphasized  People share common goals  Information is shared openly
o A sense of urgency and speed  Decisions are made quickly  Flexibility and adaptability are emphasized  People are given autonomy to act
What are the characteristics of effective creative brainstorming? • Open environment that allows all workers to participate • Mix of backgrounds and experiences • A great deal of outside information • Focused sessions • Encourage wild ideas • Defer judgment
What are the characteristics of effective creative brainstorming? • Build on the ideas of others • Clear goals and criteria • One conversation at a time • Leadership based on group skills • Realistic time demands • Feedback and refocusing • Resources
What is Leadership Style? - the pattern of behavior a manager adopts to plan, organize, motivate, and control, it includes the way and the extent to which the manager sets goals and standards, develops action plans, direct others, gives feedback, rewards and punishes
What are the styles of leadership? • Coercive • Authoritative • Affiliative • Democratic • Pacesetting • Coaching-
Coercive Leadership Style? immediate compliance from employees is the primary objective. Provides clear directives for employees, maintains tight control through close monitoring, relies on negative corrective feedback comply.
Coercive Leadership Style? Most effective in crisis situations. Least effective for innovation and capable, motivated employees
Authoritative Leadership Style? objective to provide long-term direction and vision and articulates and develops a clear vision and direction. Obtains employees perspectives on the vision. Influences as a key managerial activity.
Authoritative Leadership Style? Most effective when a new vision must be conveyed to a group, with employees that need active guidance. Least effective when the group is very experienced and sophisticated and when trying to develop self-managed teams
Affiliative Leadership Style? primary objective of creating harmony among employees and with the leader. Promotes friendly interactions between workers. Shows concerns about employees needs and desires.
Affiliative Leadership Style? Most effective when tasks are routine and performance is high and employees who need personal support. Least effective when standards must be improved and employees who are task oriented and do not want to build a relationship
Democratic Leadership Style? primary objective of building commitment and consensus among employees. Gives employees full participation in setting direction and establishing plans. Emphasizes the importance of consensus in decision making.
Democratic Leadership Style? Most effective employees have greater information than the manager, there is ample time for decisions,employees share vision. Least effective people do not have knowledge or motivation to make good decisions and are inexperienced consensus decision making
Pacesetting Leadership Style? accomplishing tasks with a high standard of excellence. Mgr. leads by example,assumes others understand goals, works mostly individually, promotes individual effort,exerts tight control over poor performers by explicit task instruction or removing work
Pacesetting Leadership Style? Most effective for employees who can perform independently to high standards. Least effective when employees need feedback, access to the manager, and plans for development and when direction has not been clearly established or accepted
Coaching Leadership Style? Primary objective of the long term professional development of employees. Helps identify employees’ current strengths and weaknesses, works with employees to establish long range development goals.
Coaching Leadership Style? Most effective with employees who are interested in career growth and when innovation and risk taking is required. Least effective with inexperience employees and when explicit direction is needed.
Emotional Intelligence? is the ability to manage ourselves and our relationships effectively. Consists of four fundamental capabilities; self-awareness, self-management, social awareness, and social skill.
• Self-Awareness- the ability to read and understand your emptions as well as recognize their impact on work performance, relationships, and the like. Accurate self-assessment: a realistic evaluation of your strengths and limitations. Self-confidence-
• Self-Management- Self-control, trustworthiness, conscientiousness, adaptability, achievement, orientation, initiative
• Social Awareness- Empathy-skill at sensing other people’s emotions Organizational awareness- the ability to read the currents of organization life, build decision networks, and navigate politics Service orientation- the ability to recognize meet customer’s needs
• Social Skill- o Visionary Leadership- o Influence o Developing others o Communication o Conflict management o Building bonds o Teamwork and collaboration
What are the components of emotional intelligence? Self-Awareness- Self-Management- Social Awareness- Social Skill-
What are the key differences between leading and managing Leadingis about learninghow to copewith rapid produce changesetting direction. results in visionsand overarchingstrategies forrealizing them. aligning people, and providing motivationinspiration. Leaders look forright fit between people/vision.
What are the key differences between leading and managing Managing involvesplanning,budgeting, organizing,staffing.provides control, solves problems. The aim of mgmt. is predictability- orderly results.look for fit between people/jobs and sets up systems to ensure plansare implementedprecisely andefficiently.
What are the important elements of persuasion during a change effort • Establish credibility- • Frame for common ground • Reinforce their positions using vivid language and compelling evidence. • Connect emotionally-
What are the factors that are associated with successful change efforts? • Time Frame • Clarity of Crisis • Locus of knowledge and information • Manager’s power-strong leadership • Employee expectations, motivations, and organization culture • Clear goals and metrics • Wide communication
What are the factors that are associated with successful change efforts? • Including senior leadership • Rewards and incentives • Progress is monitored systematically • Keeping the momentum going • Follow-up
What actions do leaders typically take to successfully implement strategic changes? • Develop a sense of dissatisfaction with the status quo • Create a sense of urgency • Create and communicate a vision that makes sense to people • Follow-up effectively • Changes need to make sense to people • Effectively respond to resistance
What actions do leaders typically take to successfully implement strategic changes? • Implement using the correct process- The way people are involved should fit the system. It should be phases for “small wins” • Align structures and systems to support the change • Create a guiding coalition
What actions do leaders typically take to successfully implement strategic changes? • Recognize and reward desired new behaviors. Set milestones. Measure progress. • Build in participation and stability.
Why are individuals likely to resist change? • Fear of personal loss o Fear of the unknown o Employment insecurity  Respond with honesty and with encouragement • Disrupted relationships o Failure of the internal systems to work the way they used to  Response-help new groups to form
What are the key reasons transformation efforts fail? • Not establishing a great enough sense of urgency • Not creating a powerful enough guiding coalition • Lacking a vision • Under-communicating the vision by a factory of ten
What are the key reasons transformation efforts fail? • Not removing obstacles to the new vision • Not systematically planning for and creating short term wins • Declaring victory too soon • Not anchoring changes in the corporations culture
Created by: akaraliu



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