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Ch 8 GEB
| Question | Answer |
|---|---|
| Organizing | Structuring, begins with determining what work needs to be done |
| Job specialization | Dividing raises into smaller jobs. Helps increase efficiency |
| Division of labor | Dividing up the tasks among the three of you |
| Departmentalizations | The process of setting up individual departments to do specialized tasks |
| Three steps to structuring an organization | 1) devising a division of labor 2) setting up teams or departments to do specific tasks 3) assigning responsibility and authority to people |
| What does an organization chart show? | The relationships among people |
| Two changes organizations have to adapt to | Evolving business environment Change in customer expectations |
| Bureaucracy | Reliance on rules; an organization with many layers of managers who set rules and regulations and oversee all decisions |
| Mass production | Methods for efficiently producing large quantities of goods |
| Economies of scale | The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase |
| Henri Fayols book - French? American? | Administration industrielle et generale General and industrial management |
| Unity of command | Each worker is to report to one and only one boss |
| Hierarchy of authority | All workers should know to whom they report. Managers should have the right to give orders and expect others to follow |
| Division of labor | Functions are to be divided into areas of specialization such as production marketing and finances |
| Subordination of individual interests to the general interest | Workers are to think of themselves as a coordinated team |
| Authority | Managers have the right to give orders and the power to enforce obedience. Authority and responsibility are related |
| Degree of centralization | The amount of decision-making power vested in top management should vary by circumstances |
| Clear communication channels | All workers should be able to reach others in the firm quickly and easily |
| Order | Materials and people should be placed and maintained in the proper location |
| Equity | A manger should treat employees and peers with respect and justice |
| Esprit de corps | A spirit of pride and loyalty should be created among people in the firm |
| Fayols principles | Unity of command Hierarchy of authority Division of labor Subordination of individual interests to the general interest Authority Degree of centralization Clear communication channels Order Equity Esprit de corps |
| Hierarchy | A system in which one person is at the top of the organization and there is ranked or sequential ordering from the top down of managers who are responsible to that person |
| Max Weber’s book | The theory of social and economic organizations |
| Weber promotes what type of organizational structure | Pyramid -shaped organizational structure |
| What type of employees does Weber’s belief work with and why? | Employees that are relatively and uneducated and untrained workers because he believed that employees should simply do what they were told. The less decision making they had to do the better |
| Weber emphasized | Job descriptions Written rules, decision guidelines, and detailed records Consistent procedures, regulations, and policies Staffing and promotion based on qualifications |
| Disadvantage of rules and procedures | Became rigid and grew counterproductive |
| Chain of command | Line of authority that moves from the top of a hierarchy to the lowest level |
| Organization chart | Visual device that shows relationships among people and divides the organizations work; it shows who reports to whom |
| Bureaucrat | Middle manger who’s function was to implement top managements orders |
| Four factors to decide when designing an organization | 1) centralization versus decentralization 2) span of control 3) tall versus flat organizational structure 4) departmentalization |
| Centralized authority | Occurs when decision making is concentrated at the top level of management |
| Decentralized authority | Occurs when decision making is delegated to lower levels mangers and employees more familiar with local conditions than headquarters management could be |
| Advantages of centralized authority | Greater top management control More efficiency Simpler distribution system Stronger brand/corporate image |
| Advantages of decentralized authority | Better adaptation to customer wants More empowerment of workers Faster decision making higher morale |
| Disadvantages of centralized authority | Less responsiveness to customer Less empowerment Inter organizational conflict Lower morale away from headquarters |
| Disadvantages of decentralized authority | Less efficiency Complex distribution system Less top management control Weakened corporate image |
| Span of control | The optimum number of subordinates a manger supervises or should supervise |
| What is the right span of control | At lower levels - broad (15-40 workers). The appropriate span gradually narrows at higher levels of organization because work becomes less standardized and mangers need more face to face communication |
| The trend today of span of control a | Expand As organizations adopt empowerment, reduce the number of middle managers and hire more talented and better educated lower level employees |
| Tall organizational structure | An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management |
| Disadvantages of tall structure | Messages distorted Cost of managers and support people Enormous amount of paperwork Inefficiencies in communication and decision making |
| Departmentalization | Divides organizations into separate units. Traditional way is by function- design production marketing and accounting |
| Advantages of departmentalization | 1) employees can develop skills in depth and progress within a department as they master more skills 2) the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area 3) employees can coordi |
| Disadvantages of departmentalizations | Departments may not communicate well Employees may identify with their departments goals rather than the organization The company’s response to external changes may be slow People may not be trained to take different managerial responsibilities Depart |
| Flat organizational structure | An organizational structure that has few layers of management and a broad span of control |
| Five ways a firm can departmentalize | Product Customer group Geographic region Process Hybrid |
| Advantages of broad span of control | Reduced costs More responsiveness to customers Faster decision making More empowerment |
| Advantages of narrow span of control | More control by top management More chances for advancement Greater specialization Closer supervision |
| Disadvantages of broad span of control | Fewer chances for advancement Overworked managers Loss of control Less management expertise |
| Disadvantages of narrow span of control | Less empowerment Higher costs Delayed decision making Less responsiveness to customers |
| Four ways to structure an organization | Line organization Line and staff organizations Matrix style organizations Cross functional self managed teams |
| Line organization | An organization that has direct two way lines of responsibility authority and communication running from top to the bottom of the organization with all people reporting to only one supervisor Common in small businesses No specialist support staff Follo |
| Line personnel | Employees who are part of the chain of command that is responsible for achieving organizational goals |
| Staff personnel | Employees who advise and assist line personnel in meeting their goals |
| Matrix organization | An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure |
| Which industry developed the matrix organization | Aerospace |
| Advantages of matrix system | Gives managers flexibility in assigning people to projects It encourages inter organizational cooperation and teamwork Produces creative solutions to product development problems Makes efficient use of organizational resources |
| Disadvantages of matrix system | Costly and complex Can confuse employees about where their loyalty belongs Requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems May be a temporary solution to a long term problem |
| Cross functional self managed teams | Groups of employees from different departments who work together on a long term basis |
| What management principle does a matrix style organization challenge | That people can work for only one boss |
| What is the main difference between a matrix style organizations structure and the use of cross functional teams | Cross functional teams are long term while matrix style is temporary |
| Networking | Using communications technology and other means to link organizations and allow them to work together on common objectives |
| Real time | The present moment or the actual time in which something takes place |
| Virtual corporation | A temporary networked organization made up of replaceable firms that join and leave as needed |
| Benchmarking | Comparing an organizations practices, processes and products against the worlds best |
| Core competencies | Those functions that the organization can do as well as or better than any other organization in the world |
| Digital natives | Young people who have grown up using the internet and social networking |
| Companies most successful to adapting to change have what traits | They listen to customers They have inspirational managers who drive new ideas through out the organizations They often have had a close call with going out of business |
| Restructuring | Redesigning an organization so that it can more effectively and efficiently serve its customers |
| Inverted organization | An organization that has contract people at the top and the chief executive officer at the bottom of the organizational chart |
| What type of employees must be involved for an inverted organization? | Better educated better trained and better paid |
| Organizational (or corporate) culture | Widely shared values within an organization that provide unity and cooperation to achieve common goals |
| Formal organization | The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts |
| Informal organization | The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the firms organization; that is, the human side of the organization that does not appear on any organization chart |
| Nerve center of informal organization. | Grapevine |
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Flmntx88