Name some specific challenges that today's managers and organizations face. (pg 7)

* Globalization

* Intense competition

* Rigorous ethical scrutiny

* Need for rapid response

* Digital workplace

*Increasing diversity

Define global outsourcing. (pg 7)

Contracting out some functions to organizations in other countries

Name two globalization trends (pg 7)

Global outsourcing and strategic partnering with foreign firms.

Describe organizations (pg 11).

Organizations are small entities that are goal directed, designed as deliberately structured and coordinated activity systems, and are linked to the external environment.

What is the key element of an organization (pg 11)?

People and their relationships with one another.

Where do the financial resources for nonprofits typically come from (pg 12)?

Government appropriations, grants and donations.

Name three innovative ways companies look for in order to produce and distribute desirable goods and services more efficiently (pg 13).

* E-business

* Use of computer-based manufacturing technologies.

* Redesigning organnizational structures and management practices.

Organizations exist for the purpose of ______________ (pg 14)

1.  Bring together resources to achieve desired goals and outcomes

2.  Produce goods and services efficiently

3.  Facilitate innovation

4.  Use modern manufacturing and information tecnologies

5.  Adapt to and influence a changing environment

6.  Create value for owners, customers, and employees

7.  Accommodate ongoing challenges of diversity, ethics, and the motivations and coordination of employees

What is the first step for understanding organizations (pg 14)?

Look at dimensions that describe specific organizational design traits.

Organizational dimensions fall into what two types (pg 15)?

Stuctural and contextual

Define structural dimensions (pg 15).

Structural dimenstions provide labels to describe the internal characteristics of an organization and create a basis for measuring and comparing organizations.

Define contextual dimensions (pg 15).

Contextual dimensions characterize the whole organization, including its size, technology, environment and goals.  They describe the organizational setting that influences and shapes the structural dimensions.  They can be confusing because they represent both the organization and the environment.

Name all six structural dimensions (pg 15).

1.  Formalization

2.  Specialization

3.  Hierarchy of authority

4.  Centralization

5.  Professionalism

6.  Personnel ratios

Define formalization as a structural dimension (pg 15).

Pertains to the amount of written documentation in the organization, to include procedures, job descriptions, regulations, and policy manuals.

Define specialization as a structural dimension (pg 17).

The degree to which organizational tasks are subdivided into seperate jobs.  If specialisation is extensive, each employee performs only a narrow range of tasks.  If specialisation is low, employees perform a wide range of tasks.  Specialisation is sometimes referred to as the division of labor.

Define hierarchy of authority in terms of structural dimensions (pg 17).

Describes who reports to whom and the span of control for each manager.  When spans of control are narrow, the heirarchy tends to be taller.

Define centralization in terms of structural dimensions (pg 17).

Refers to the hierarchical level that has authority to make a decision.  When decision making is kept at a top level, the organization is centralized.

Define profressionalism in terms of structural dimensions (pg 17).

The level of formal education and training of employees. 

Define personnel ratios in terms of structural dimensions (pg 17).

The deployment of people to various functions and departments.  Personnel ratios include the administrative ratio, the clerical ratio, the professional staff ratio, and the ratio of indirect to direct labor employees.  Is measured by dividing the number of employees in a classification by the total number of organizational employees.

Name the five contextual dimensions (pg 17-18).

1.  Size

2.  Organizational technology

3.  Environment

4.  Organization's goals and strategy

5.  Organization's curlture.

Define size in terms of contextual dimensions (pg 17).

Size can be measured for the organization as a whole or for specific components, such as a plant or division.  Typically measured by the number of employees.  Other measures include total sales or total assets.

Define organizational technology in terms of contextual dimensions (pg 17).

The tools, techniques, and actions used to transform inputs into outputs.  It concerns how the organization actually produces the products and services it provides for customers and includes things such as flexible manufacturing, advanced information systems, and the internet.

Define environment in terms of contextual dimensions (pg 17).

Includes all elements outside the boundary of the organization.  Key elements include the industry, government, customers, suppliers, and the financial community.  The environmental elements that affect an organization the most are often other organizations.

Define organization's goals and strategy in terms of contextual dimensions (pg 17).

Define the purpose and competitive techniques that set it apart from other organizations.  Often written down as an enduring statement of the company intent.  A strategy is the plan of action that describes resource allocation and activities for dealing with the environment and reaching the organization's goals.  Define the scope of operations and the relationship with employees, customers, and competitors.

Define an organization's culture in terms of contextual dimensions (pg 18).

The underlyiang set of key values, beliefs, understandings, and norms shared by employees.  May pertain to ethical behavior, commitment to employees, efficiency, or customer service, and they provide the glue to hold organization members together.  Is unwritten but can be observed in its stories, slogans, ceremonies, dress, and office layout.

True or False

"An organization can be understood primarily by understanding the people who make it up" (pg 18).

False.

An organization has distinct characteristics that are independent of the nature of the people who make it up.  All the people could be replaced over time while an organization's structural and contextual dimensions would remain similar.

Define efficiency (pg 20).

The amount of resources used to achieve the organization's goals.  Based on the quantity of raw materials, money, and employees necessary to produce a given level of output.

Define effectiveness (pg 20).

A broader term, meaning the degree to which an organization achieves its goals.

What is vital for an organization to be effective (pg 20)?

Clear, focused goals and appropriate strategies for achieving them.

Define the stakeholder approach (pg 20).

Managers carefully balance the needs and interests of various stakeholders in setting goals and striving for effectiveness.  Integrates diverse organizational activities by looking at various organizational stakeholders and what they want from the organization.

Define stakeholder (pg 20).

Any group within or outside of the organization that has a stake in the organization's performance.  The satisfaction level of each group can be assessed as an indication of the organization's performance and effectiveness.

True or false.

"The primary role of managers in business organizations is to achieve maximum efficiency" (pg 20).

False.

Efficiency is important, but organizations must respond to a variety of stakeholders, who may want different things from the organization.  Managers strive for both efficiency and effectiveness in trying to meet the needs and interest of stakeholders.  Effectiveness is often considered more important than efficiency.

Who are the nine major stakeholder groups of an organization (pg 21)?

1.  Owners and stakeholders  

2.  Employees  

3.  Customers  

4.  Creditors  

5.  Management  

6.  Government  

7.  Union  

8.  Community  

9.  Suppliers

Define organizational theory (pg 22).

A way of thinking about organizations, a way to see and analyze organizations more accurately and deeply than one otherwise could.

When did the modern era of management theory begin (pg 23)?

The modern era of management theory began with the classical management perspective in the late nineteenth and early twentieth century.

What did the classical perspective seek (pg 23)?

It sought to make organizations run like efficient, well-oiled machines.  It is associated with the development of hierarchy and bureaucratic organizations and remians the basis of much of modern management theory and practice.

Define scientific management (pg 23).

Was pioneered by Frederick Winslow Taylor.  It emphasizes scientifically determined jobs and management practices as the way to improve efficiency and labor productivity.  To use this approach, managers develop precise, standard procedures for doing each job, select workers with appropriate abilities, train workers in the standard procedures, carefully plan work, and provide wage incentives to increase output.

What did Frederick Winslow Taylor propose in terms of workers (pg 23)?

That workers "could be retooled like machines, their physical and mental gears recalibrated for better productivity."

Define administrative principles (pg 23-24).

Looks at the design and functioning of the organization as a whole.

Who was Henri Fayol (pg 23-24)?

He proposed fourteen principles of management, such as "each subordinate receives orders from only one superior" (unity of command).  These principles formed the foundation for modern management practice and organization design.

Administrative principles in particular contributed to the development of _________. (pg 25)

Bureaucratic organizations, which emphasized designing and managing organizations on an impersonal, rational basis through such elements as clearly defined authority and responsibility, formal recordkeeping, and uniform application of standard rules.

Name one problem with the classical perspective (pg 25).

It has failed to consider the social context and human needs.

Explain the Hawthorne Studies (pg 25).

A series of experiments at a Chicago electric company.  Interpretations of these studies at the time concluded that positive treatment of employees improved their motivation and productivity.

Define contigency (pg 26).

Means that one thing depends on other things, and for organizations to be effective, there must be a "goodness of fit" between their structure and  the conditions in their external environment.  What works in one setting may not work in another settings. 

What are the five parts of an organizational framework proposed by Henry Mintzberg (pg 26)?

1.  Technical core

2.  Technical support

3.  Top mangement

4.  Middle management

5. Admistrative support 

Define the technical core in terms of Mintsberg's Organizational Types. (pg 26).

Includes people who do the basic work of the organization.  Produces the product and service outputs of the organization.  Is where the primary transformation from inputs to outputs takes place.

Define technical support in terms of Mintzberg's Organizational Types.  (pg 26)

Helps the organization adapt to the environment.  Technical support employees such as engineers, researchers, and information technology professionals scan the environment for problems, opportunities and technological developments.  Responsible for creating innovations in the technical core, helping the organization change and adapt.

Define administrative support in terms of Mintzberg's Organizational Types. (pg 27).

Responsible for the smooth operation and upkeep of the organization, including its physical and human elements.  Includes human resource activities as well as maintenance activities.

Define top management in terms of Mintzberg's Organizational Types (pg 27).

Provides direction, planning, strategy, goals, and policies for the entire organization for major divisions.

Define middle manegement in terms of Mintzberg's Organizational Types (pg 27).

Responsible for implementation and coordination at the departmental level.  Responsible for mediating between top mangement and the technical core.

True or false?

"A CEO's top priority is to make sure the organization is designed correctly."

True.

Top managers have many responsibilities, but one of the most important is making sure the organization is designed correctly.  Organization design organizes and focuses people's work and shapes their response to customers and other stakeholders.  Managers consider both structural and contextual dimensions as well as make sure the various parts of the organization work together to achieve important goals.

What are the five organization types, as proposed by Henry Mintzberg? (pg 27-28).

1.  Entrepreneurial structure

2.  Machine bureaucracy

3.  Professional bureaucracy

4.  Diversified form

5.  Adhocracy

Define entrepreneurial structure in terms of the Mintzberg's five organization types. (pg 29)

Typically a new, small start-up company.  Consists mainly of a top manager and workers in the technical core.  Organization is managed and coordinated by direct supervision from the top.  Few support staff are needed.  There is little formalization or specialization.  Is suited to a dynamic environment because the simplicity and flexibility enables it to maneuver quickly and compete successfully with larger, less adaptable organizations.

Define machine bureaucracy in terms of the Mintzberg's five organization types. (pg 29)

Very large and mature.  The technical core is often oriented to mass production.  Has fully elaborated technical and administrative departments, including engineers, market researchers, and financial analysts who scrutinize, routinize and formalize work in the high-volume production center.  Has a narrow middle management area.  Reflects extensive formalization and specialization, with a primary goal of efficiency.  Simple and stable environment.

Define professional bureaucracy in terms of the Mintzberg's five organization types. (pg 29)

Distinguished by its size and power, made up of highly skilled professionals.  Technical staff is small or nonexistent.  Large administrative support staff is needed.  Primary goals are quality and effectiveness.  The professionals and technical core have autonomy.  Typically provides services rather than tangible goods.  Exists in complex environments.

Define diversified form in terms of the Mintzberg's five organization types. (pg 29)

Mature and extremely large firms that are subdivided into product or market groups.  Relatively small top management.  A small technical support group for the top level.  Larger administrative support staff.  Helps solve the problem of inflexibility experienced by a too-large machine bureaucracy by dividing it in smaller parts.

Define adhocracy in terms of the Mintzberg's five organization types. (pg 29-30)

Develops in a complex, rapidly changing environment.  Design goal is frequent innovation and meeting continually changing needs.  The various parts are merged together.  The main structure consists of many overlapping teams.

Define the science of chaos theory (pg 30).

Suggests that relationships in complex adaptive systems - including organizations- are nonlinear and made up of numerous interconnections and divergent choices that create unintended effects and render the whole unpredictable.  Recognizes that randomness and disorder occurs within certain larger patterns of order.  Suggests that organizations should be viewed more as natural systems than as well-oiled, predictable machines.

Define learning organization (pg 31). 

Promotes communication and collaboration so that everyone is engaged in identifying and solving problems, enabling the organization to continuously experiment, improve, and increase its capability.

Name the five elements of organization design (pg 31).

1.  Structure

2.  Tasks

3.  Systems

4.  Culture

5.  Strategy

Define task (pg 31)

A narrowly defined piece of work assigned to a person.  In traditional organizations, tasks are broken down into specialized, separate parts, as in a machine.   Knowledge and control of tasks are centralized at the top of the organization, and employees are expected to do as they are told.

Define role (pg 31).

Is a part in a dynamic social system.  Allows the person to use his or her discretion and ability to achieve an outcome or meet a goal.  In learning organizations, employees play a role in the team or department and roles may be continually redefined or adjusted.  Few rules or procedures, and knowledge and control of tasks are located with the workers rather than with supervisors or top executives.  Employees encouraged to take care of problems by working w/ one another & w/customers.

Define level of analysis (pg 35).

Is the difference between a course in organization theory and one in managmeent or organizational behavior.  They include external environment, orignation level of analysis, group level of analysis and individual level of analysis.

Define organizational behavior. (pg 36)

The micro approach to organizations because it focuses on the individuals within organizations as the relevant units of analysis.  Examines concepts such as motivation, leadership style, and personality.  Is concerned with cognitive and emotional differences between people within organizations.

Define organization theory (pg 36).

A macro examination of organizations because it analyzes the whole organization as a unit.  Is concerned with people aggregated into departments and organizations and with the differences in structure and bahavior at the organization level of analysis.  Might be considered the sociology of organizations, while organicational behaior is the psyhology of organizations.

Define Meso Theory (pg 36).

Concerns the integration of both micro and macro levels of analysis.  Individuals and groups affect the organization, and the organization in return influences individuals and groups.