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Exam 2
Class notes
82
Management
Undergraduate 3
10/30/2010

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Term
organizational control
Definition
the process used to regulate organizational activities to be consistent with plans and expectations
Term
standards
Definition
are how plans and expectations are expressed
Term
standards are often but not always
Definition
numerical
Term
control process (4)
Definition
1. Establish standard of performance
2. Measure actual performance
3. Compare performance to standards
4. If inadequate take action, if not do nothing
Term
standards should focus on...
Definition
inputs (feed-forward control), ongoing activities (concurrent), and outputs (feedback)
Term
distortion can occur when persons report
Definition
their own performance results
Term
feedback
Definition
info that compares actual performance to a standard
Term
exception principle
Definition
managers should concentrate their efforts on substantial deviations from standards
Term
do deviations in either direction warrant attention?
Definition
yes
Term
The most important trade-off is
Definition
efficiency v. flexibility
Term
efficiency
Definition
the amount of resources used to achieve an organizational goal
Term
flexibility
Definition
the extent to which an organization can adapt to changes in its environment

ex. fashion and toy industry very flexible
Term
organizational structure is the framework that defines how (3):
Definition
1. tasks are divided-- departmentalization
2. resources are deployed
3. depts are coordinated
Term
departmentalization: functional
Definition
grouping based on similar skills and experise
Term
departmentalization: divisional
Definition
grouping based on similarities in organizational outputs
Term
departmentalization: matrix
Definition
simultaneous functional and divisional chains of command
Term
teams
Definition
teams coordinate departments and accomplish tasks
Term
virtual network
Definition
organization is a central hub that outsources major functions to other companies

ex)Tommy Hillfiger-- just designers, use other companies to manufacture
Term
functional departmentalization
Definition
most common-- divisional 2nd most
Term
divisional departmentalization requires less
Definition
coordination between depts
Term
3 functional characteristics
Definition
-more efficient due to economies of scale
-in depth skill specialization
-slow response to external changes (less flexible)
Term
3 divisional characteristics
Definition
-fast response to external changes (very flexible)
-greater concern for customer needs
-duplication of resources (less efficient)
Term
delegation
Definition
a manager's transfer of authority and responsibility to a subordinate
Term
decentralization
Definition
locating decision making authority and responsibility at LOWER organizational levels
Term
span of mgmt
Definition
the number of employees who report to a supervisor
Term
narrow span
Definition
taller structure with more hierarchal levels-- fewer people reporting
Term
wider span
Definition
flatter structure with fewer hierarchal levels-- more people reporting to one person
Term
formalization
Definition
written documentation used to direct and control employees
Term
highly formal organizations...
Definition
-are more bureaucratic
-employ more rules and procedures
-use specific narrow job descriptions (little employee discretion)
-have potential to be highly efficient
-are less flexible and creative
Term
to maximize efficiency (4)
Definition
-high formalization
-centralized authority
-tall organizations w/narrow spans
Term
motivation
Definition
the arousal, direction and persistence of behavior
Term
3 theories of motivation
Definition
1. content
2. reinforcement
3. process
Term
content theory
Definition
persons are motivated to satisfy certain needs
Term
reinforcement theory
Definition
consequences influence behaviors
Term
process theory
Definition
thought processes influence behavior
Term
hierarchy of needs
Definition
content theory developed by Abraham Maslow
Term
Maslow's needs
Definition
physiological --> safety --> belongingness --> esteem --> self actualization
Term
physiological needs
Definition
human physical needs
Term
safety needs
Definition
safe physical and emotional environments-- permanence and stability
Term
belongingness (social) needs
Definition
friendship, acceptance by others
Term
esteem (ego) needs
Definition
recognition and appreciation from others, a positive self image
Term
self actualization needs
Definition
self-fulfillment, competence, developing one's full potential
Term
positive reinforcement
Definition
when behavior is followed by positive consequences --> behavior is more likely to be repeated
Term
avoidance learning (negative reinforcement)
Definition
when behavior is followed by the removal or avoidance of negative consequences --> behavior is more likely to be repeated
Term
extinction
Definition
when behavior is followed by no consequences --> behavior is less likely to be repeated
Term
punishment
Definition
when behavior is followed by negative consequences --> behavior is FAR LESS likely to be repeated
Term
the criterion problem
Definition
it is hard to separate work from all employees so excellent behavior is not very obvious
Term
with the criterion problem..
Definition
-excellent behavior is frequently ignored
-rewards are often unrelated to performance
-managers focus on mistakes and use punishment to change behavior
Term
expectancy theory
Definition
a process theory-- motivation depends on expectations about one's ability to perform tasks and receive desired rewards
Term
elements of expectancy theory
Definition
-effort-performance (E > P)
-performance-outcome (P > O)
-valence
Term
E > P expectancy
Definition
probability that effort will lead to high performance
Term
P > O expectancy
Definition
probability that high performance will lead to desired rewards/outcomes
Term
valence
Definition
the value of rewards/outcomes
Term
job rotation
Definition
employees systematically move from one job to another
Term
job enlargement
Definition
combining a series of tasks into one broader job
Term
job enrichment
Definition
incorporating high-level motivators into the work
Term
core job dimensions (3)
Definition
-skill variety
-task identity
-task significance
Term
skill variety
Definition
extent a person is required to use many skills on the job
Term
task identity
Definition
the degree a job requires completion of an entire piece of work from beginning to end
Term
task significance
Definition
extent a job has a significant impact on the lives of other people
Term
autonomy
Definition
the extent the job provides substantial freedom discretion and independence in carrying out duties
Term
feedback
Definition
the degree to which the individual obtains clear info about the effectiveness of his/her performance
Term
psychological states
Definition
-meaningfulness of work
-responsibility for work outcomes
-knowledge of results
Term
team
Definition
two or more people who interact and coordinate their work to accomplish a FORMAL organizational goal
Term
characteristics of teams
Definition
-teams need leadership
-teams develop norms
-teams enforce norms
-teams become cohesive
-size makes a difference
Term
ostracism
Definition
exclusion
Term
potential benefits of teams:
increase in effort
Definition
the pressure of others enhances dominant/familiar behaviors (social facilitation)
Term
potential benefits of teams:
increase in effort
Definition
the pressure of others enhances dominant/familiar behaviors (social facilitation)
Term
potential benefits of teams:
greater need satisfaction
Definition
particularly safety, belongingness, and esteem
Term
potential benefits of teams:
greater knowledge and skills
Definition
better problem solving and decision making-- a diverse team does better with decision making
Term
potential benefits of teams:
organizations can be more responsive
Definition
greater flexibility because teams can be reorganized quickly
Term
potential benefits of teams:
faster communication
Definition
info is 70-90% accurate through the informal communication network (grapevine)
Term
potential benefits of teams:
teams can discipline members
Definition
teams can change a member's behavior when it causes a problem for the team
Term
potential costs of teams (5)
Definition
-informal goals can conflict with the goals of mgmt
-cohesive teams can resist change and new methods
-team's norms promote conformity and reduce creativity
-teams can reduce the power of low and middle managers
-teams may create legal problems--> wagner act
Term
Wagner act
Definition
prohibits forming groups (company unions) that reduce unionization
Term
groupthink
Definition
cohesiveness inhibits contrary opinions, causing members to withhold dissenting ideas, ignore obvious danger signals, be overly optimistic, believe that the team's position is moral
Term
superordinate goals
Definition
create goals that cannot be reached by a single party
Term
participation in decision making
Definition
members participate in decisions that affect them
Term
quality circles
Definition
"family" groups meet regularly to solve problems that affect their work
Term
self-direction (empowerment)
Definition
team is given mgmt responsibilities (hiring, decision making, self-supervision)
Term
profit sharing
Definition
employees receive extra income based on the organization's profits
Term
scanlon plans/ gain-sharing
Definition
employee participation is rewarded with a percentage of the amount saved
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