Term
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Definition
| vertical and horizontal configuration of departments, authority, and jobs within a company |
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Term
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Definition
collection of activities that transform inputs into outputs that customers value
"How do things get done?" |
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Term
| How is Microsoft's organization process different than Sony's? |
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Definition
Microsoft uses feedback and Sony uses accountability, responsibility, and positions within the chain of command
reengineering and empowerment |
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Term
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Definition
| method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks |
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Term
| 5 methods of departmentalization |
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Definition
functional
product
customer
geographic
matrix |
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Term
| functional departmentalization |
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Definition
| organizes the work and workers into separate units responsible for particular business functions or areas of expertise |
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Term
| All functionally departmentalized companies have the same functions |
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Definition
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Term
| advantages of functional departmentalization |
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Definition
allows work to be done by highly qualified specialists
lowers cost by reducing duplication
with everyone in the same department having similar work experience training, communication, and coordination are less problematic for departmental managers |
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Term
| disadvantages of functional departmentalization |
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Definition
cross department coordination can be difficult
lead to slower decision making and produce managers and workers with narrow experience and expertise
lead to slower decision making and produce managers and workers with narrow experience and expertise |
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Term
| product departmentalization |
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Definition
| organizes work and workers into separate units responsible for producing particular products or services |
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Term
| advantages of product departmentalization |
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Definition
allows managers and workers to specialize in one area of expertise
easier for top managers to assess work unit performance
decision making should be faster, because managers and workers are responsible for the entire product line |
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Term
| disadvantages of product departmentalization |
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Definition
duplication of hr, engineering, and customer service, which raises costs
challenge of coordinating across the different product departments |
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Term
| customer departmentalization |
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Definition
organizes work and workers into separate units responsible for particular kinds of customers
ie, Swisscom is divided up by customer |
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Term
| advantage of customer departmentalization |
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Definition
| focuses the organization on customer needs rather than on products or business functions |
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Term
| disadvantages of customer departmentalization |
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Definition
duplication of resources
meeting customer needs may lead to workers making decisions that help the customer but hurt the business |
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Term
| geographic departmentalization |
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Definition
| organizes work and workers into separate units responsible for doing business in particular geographic areas |
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Term
| advantage of geographic departmentalization |
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Definition
helps companies respond to the demands of different markets
reduce costs by locating unique organizational resources closer to the customers |
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Term
| disadvantage of geographic departmentalization |
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Definition
duplication of resources
ie, inventory tracking systems |
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Term
| matrix departmentalization |
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Definition
| hybrid structure in which two or more forms of departmentalization are used together |
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Term
| most common forms of matrix departmentalization is |
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Definition
| product and functional forms |
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Term
| what distinguishes matrix departmentalization from other forms? |
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Definition
employees report to two bosses
lead to much more cross-functional interaction than other forms of departmentalization
requires significant coordination between managers in the different parts of the matrix |
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Term
| advantage of matrix departmentalization |
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Definition
allows companies to manage in an efficient manner log, complex tasks like researching, developing, and marketing pharmaceuticals or carrying out complex global business
no duplication
pool of resources available to carry out large, complex tasks. |
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Term
| disadvantage of matrix departmentalization |
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Definition
| high level of coordination required to manage the complexity involved in running large, ongoing projects at various levels of completion |
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Term
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Definition
| managers in different parts of the matrix negotiate conflicts and resources directly |
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Term
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Definition
specialized matrix managers and department are added to the organizational structure;
managers from different parts of the matrix might report to the same matrix manager, who helps them sort out conflicts and problems |
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Term
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Definition
| right to give commands, take action, and make decisions to achieve organizational objectives |
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Term
| authority characterized by |
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Definition
chain of command
line versus staff authority
delegation of authority
degree of centralization |
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Term
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Definition
| vertical line of authority that clarify who reports to whom throughout the organization |
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Term
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Definition
workers should report to just one boss
serves one purpose:
to prevent the confusion that might arise when an employee receives conflicting commands from two different bosses |
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Term
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Definition
right to command immediate subordinates in the chain of command
ie, CEO can issue commands to presidents within his company |
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Term
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Definition
right to advise but not command others who are not subordinates in the chain of command
ie, a manager in HR cannot order the sony manager to hire certain people |
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Term
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Definition
activity that contributes directly to creating or selling the company's products
ie, activities that take place within manufacturing and marketing |
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Term
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Definition
| accounting and human resources does not contribute directly to creating or selling the company's products |
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Term
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Definition
| assignment of direct authority and responsibility to a subordinate to complete task for which the manager is normally responsible |
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Term
| 3 transfers when delegation takes place |
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Definition
transfers full responsibility for the assignment to the subordinate
managers gives full authority over the budget, resources, and personnel needed
transfer of accountability |
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Term
| centralization of authority |
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Definition
location of most authority at the upper levels of the organization
managers make most decisions |
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Term
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Definition
location of a significant amount of authority in the lower levels of the organization
high degree of delegation at all levels
workers closest to the problem are authorized to make the decision to solve it |
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Term
| advantages of decentralization |
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Definition
| develops employee capabilities throughout the company and leads to faster decision making and more satisfied customers and employees |
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Term
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Definition
| when standardization is not important |
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Term
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Definition
| the number, kind, and variety of tasks that individual workers perform in doing their jobs |
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Term
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Definition
| occurs when a job is composed of a small part of a larger task or process |
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Term
| specialized are characterized by |
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Definition
simple
easy to learn
low variety
high repetition |
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Term
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Definition
attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
ie, answering phones all day to file papers |
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Term
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Definition
increases the number of different tasks that a worker performs within one particular job
ie, several tasks to perform |
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Term
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Definition
| attempts to overcome the deficiencies in specialized work by increasing the number of tasks by giving workers the authority and control to make meaningful decisions about their work |
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Term
| job characteristics model |
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Definition
| an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes |
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Term
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Definition
create jobs that result in positive personal and work outcomes
internal work motivation
satisfaction with one's job and work effectiveness |
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Term
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Definition
| motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss |
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Term
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Definition
| number of different activities performed in a job |
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Term
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Definition
| degree to which a job from beginning to end requires completion of a whole and identifiable piece of work |
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Term
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Definition
| degree to which a job is perceived to have a substantial impact on others inside or outside the organization |
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Term
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Definition
| degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work |
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Term
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Definition
| amount of information the job provides to workers about their performance |
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Term
| establishing client relationships |
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Definition
| increases skill variety, autonomy and feedback by giving employees direct contact with clients and customers |
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Term
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Definition
| means pushing some managerial authority down to workers |
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Term
| opening feedback channels |
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Definition
| means finding additional ways to give employees direct, frequent, feedback about their job performances. |
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Term
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Definition
| fundamental rethinking and radical radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost quality, service and speed |
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Term
| intraorganizational process |
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Definition
| collection of activities that take place within an organization to transform inputs into outputs that customer value |
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Term
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Definition
why do we do what we do?
that's the way we have always have done it |
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Term
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Definition
| throwing out the old ways of doing things |
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Term
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Definition
| most business people are process oriented |
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Term
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Definition
| reengineering is about achieving quantum improvements in company performance |
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Term
| reengineering changes work by |
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Definition
| changing task interdependence |
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Term
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Definition
| the extent to which collective action is required to complete an entire piece of work |
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Term
| 3 kinds of interdependence |
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Definition
pooled
sequential
reciprocal |
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Term
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Definition
| each job or department contributes tot he whole independently |
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Term
| sequential interdependence |
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Definition
| work must be performed in succession, as one group's or job's outputs become the inputs for the next group or job |
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Term
| reciprocal interdependence |
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Definition
| different jobs or groups work together in a back and forth manner to complete the process |
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Term
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Definition
pooled interdependence by redesigning work
increases reciprocal interdependence
(makes employees responsible for more)
leads to layoffs |
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Term
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Definition
| permanently passing decision-making authority and responsibility from managers to workers |
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Term
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Definition
| feeling of intrinsic motivation in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self determination |
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Term
| interorganizational process |
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Definition
collection of activities that occur among companies to transform inputs into outputs that customers value
(companies work to keep customers happy) |
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Term
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Definition
| outsource all remaining business activities to outside companies, suppliers, specialists, or consultants |
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Term
| advantages of modular organizations |
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Definition
| pay for outsourced labor, expertise, or manufacturing capabilities only when needed, they can cost significantly lees to run traditional organizations |
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Term
| primary disadvantage of modular organizations |
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Definition
loss of control
loss of competitive advantage
the outsourced company can become competitor |
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Term
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Definition
| part of a network in which many companies share skills costs, capabilities, markets, and customers with each other |
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Term
| virtual organizations uses 2 methods |
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Definition
use a broker to create and assemble knowledge
virtual organization agreement |
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