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Organizational Theory (2)
Organizational Theory and Design, Textbook by Richard L. Daft
85
Business
Undergraduate 2
06/25/2014

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Term
Resource-Dependence Theory
Definition
argues that organizations try to minimize their dependence on other organizations for the supply of important resources and try to influence the environment to make resources available.
Term
Supply Chain Management
Definition
managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumers.
Term
Collaborative Networks
Definition
an emerging alternative to resource-dependence theory.
Companies join together to become more competitive and to share scarce resources.
Term
Core Technology
Definition
The work process that is directly related to the organization's mission.
Term
Digital Factories
Definition
The ultimate automated factories that link manufacturing components that previously stood alone.
Term
Large-batch Production
Definition
A manufacturing process characterized by long production runs of standardized parts.
Term
Service Technology
Definition
Technology characterized by simultaneous production and consumption, customized output, customer participation, intangible output, and being labor intensive.
Term
Behavior Control
Definition
Manager observations of employee actions to see whether the individual follows desired procedures and performs tasks as instructed.
Term
Data Warehousing
Definition
The use of huge databases that combine all of the company's data and allow users to access the data directly, create reports, and obtain responses to what-if questions.
Term
Executive Dashboard
Definition
A software program that presents key business information in graphical, easy-to-interpret form and alerts managers to any deviations or unusual patterns in the data.
Term
Feedback Control Model
Definition
A control cycle that involves setting goals, establishing standards of performance, measuring actual performance and comparing it to standards, and changing activities as needed based on feedback.
Term
Outcome Control
Definition
A management focus on monitoring and rewarding results rather than on how those results are obtained.
Term
Six Sigma
Definition
A highly ambitious quality standard that specifies a goal of no more than 3.4 defects per million parts; also, a set of control procedures that emphasizes a relentless pursuit of quality.
Term
Knowledge Management
Definition
The ability to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that the organizational activities build on what is already known.
Term
Codified Knowledge
Definition
Formal, systematic knowledge that can be articulated, written down, and passed on to others in documents, rules, or general instructions.
Term
Tacit Knowledge
Definition
Knowledge based on personal experience, rules of thumb, intuition, and judgement; knowledge that is difficult to put in writing.
Term
Enterprise Resource Planning
Definition
A system that collects, processes, and provides information about a company's entire enterprise.
Term
Integrated Enterprise
Definition
An organization that uses advanced IT to enable close coordination within the company as well as with suppliers, customers, and partners.
Term
E-business
Definition
Any business that takes place by digital process over a computer network rather than in physical space.
Term
Legitimacy
Definition
The general perception that an organization's actions are desirable, proper, and appropriate within the environment's system or norms, values, and beliefs.
Term
Mimetic
Definition
The pressure to copy or model other organizations that appear to be successful.
Term
Organizational Structure
Definition
Designates formal reporting relationships, including the number of levels in hierarchy and the span of control of managers and supervisors.
Term
Global Product Structure
Definition
Structure in which the product divisions take responsibility for global operations in their specific product area.
Term
Matrix Structure
Definition
Organization structure in which both product division and functional structures (horizontal and vertical) and implemented simultaneously.
Term
Transnational Model
Definition
A form of horizontal organization that has multiple centers, subsidiary managers who initiate strategy and innovations for the company as a whole, and unity and coordination achieved through corporate culture and shared vision and values.
Term
Transaction Processing System
Definition
a system that automates the organization's routine, day-to-day business transactions.
Term
Data Mining
Definition
Processing, receiving information
Term
Benchmarking
Definition
The process of continually measuring products, services, and practices against tough competitors or other organizations recognized as industry leaders.
Term
Customer Service Indicator
Definition
Measure such things as how customers view the organization as well as customer retention and satisfaction.
Term
Pooled Interdependence
Definition
The lowest form of interdependence, in which work does not flow between departments.
Term
Sequential Interdependence
Definition
A serial form of interdependence in which the output of one operation becomes the input of another operation.
Term
Reciprocal Interdependence
Definition
The highest level of interdependence, in which the output of one operation is the input of a second, and the output of the second operation is the input of the first. (EX. a hospital)
Term
Craft Technology
Definition
Technology Characterized by a fairly stable stream of activities, but the conversion process is not analyzable or well understood.
Term
Engineering Technology
Definition
Technology that tend to be complex because there is substantial variety in the tasks performed, but activities are usually handled on the basis of established formulas, procedures, and techniques.
Term
Non-routine Technology
Definition
Technology characterized by high task variety, and the conversion process is not analyz-able or well understood.
Term
_____ are changes in a n organization's production process that enable distinctive competence.
Definition
Technology Changes

*** Production Process = Technology
Term
The type of change which will have direct impact on the administrative domain in an organization is called ____ change.
Definition
Strategy and Structure
Term
Which of the following is NOT given as an essential element for successful change?
Definition
Competition
Term
The ambidextrous approach refers to:
Definition
Using different structures and management processes for creation and for implementation.
Term
Corporate entrepreneurship:
Definition
attempts to release the creative energy of all employees.
Term
Key components of organization design contributing to successful new product innovation are:
Definition
specialization, boundary spanning, and horizontal coordination.
Term
In the horizontal coordination model, the ___ component means that each department involved with new products has excellent linkage with relevant sectors in the external environment.
Definition
boundary spanning
Term
____ means extending the search for and commercialization of new products beyond the boundaries of the industry.
Definition
Open innovation
Term
Which of the following is not a force for culture change?
Definition
Large group intervention
Term
When the organization development consultant brings together a group to discuss and solve problems such as conflicts, goals, decision making, or communication, the intervention technique is called:
Definition
team building
Term
Bounded rationality:
Definition
describes how decisions actually have to be made under severe time and resource constraints.
Term
When Tom Smith, CEO of Food Lion reads Modern Grocer, visits other grocery stores to compare prices, and reviews daily sales figures, he is doing activities in which of the following steps of the rational approach?
Definition
Monitor the decision environment
Term
Which step in the rational approach immediately follows developing alternative solutions?
Definition
Evaluating alternatives
Term
Intuitive decision making uses ____ to make decisions.
Definition
judgment
Term
The management science model for decision making is best to use when:
Definition
problems are analyzable and measurable, and parties involved agree on goals
Term
A company that uses a computerized system extensively in their production process from the design stage through automatic ordering of raw materials through participation for delivery would be using which type of organizational decision making?
Definition
Carnegie
Term
_____ means organizations accept a satisfactory rather than a maximum level of performance, enabling them to achieve several goals simultaneously.
Definition
Satisficing
Term
In the garbage can model of decision making:
Definition
a "choice opportunity" could explain an odd choice simply because it was time to make some decision.
Term
The agreement among managers about the nature of a problem or opportunity and about which goals and outcomes to pursue is referred to as:
Definition
problem census
Term
The phenomenon known as "escalating commitment" refers to:
Definition
continuing to invest time and money in a solution despite evidence of failure.
Term
Culture Changes
Definition
changes in the values, attitudes, expectations, beliefs, and behavior of employees.
Term
Product and Service Changes
Definition
changes that pertain to the product or service outputs of an organization.
Term
Technology Changes
Definition
changes in an organization's production process, including its knowledge and skill base, that enable distinctive competence.
Term
Strategy and Structure Change
Definition
change that pertains to the administrative domain in an organization.
Term
Horizontal coordination model
Definition
a model of the three components of organizational design needed to achieve new product innovation: departmental specialization, boundary spanning, and horizontal linkage.
Term
Internal Integration
Definition
a state in which members develop a collection identity and know how to work together effectively.
Term
Adaptability Culture
Definition
a culture characterized by strategic focus on the external environment through flexibility and change to meet customers needs.
Term
Clan Culture
Definition
a culture with a primary focus on the involvement and participation of the organization's members and on rapidly changing expectations from the external environment.
Term
Mission Culture
Definition
a culture characterized by emphasis on a clear vision of the organization's purpose and on the achievement of goals to achieve the purpose.
Term
Code of Ethics
Definition
a formal statement of the organization's values concerning ethics and social responsibility.
Term
Corporate Social Responsibility
Definition
(CSR) the concept of management's obligation to make choices and take action so that the organization contributes to the welfare and interest of all organizational stakeholders.
Term
Values-Based Leadership
Definition
a relationship between a leader and followers that is based on shared, strongly internalized values that are advocated and acted upon by the leader.
Term
Bureaucracy
Definition
an organizational framework marked by rules and procedures, specialization and division of labor, hierarchy of authority, emphasis on technically qualified personnel, and written communications and records.
Term
Formalization
Definition
the degree to which an organization has rules, procedures, and written documentation.
Term
Organizational Decline
Definition
a condition in which a substantial, absolute decrease in an organization's resource base occurs over a period of time.
Term
Market Control
Definition
the use of price competition to evaluate the output and productivity of an organization or its major departments and divisions.
Term
Entrepreneurial Stage
Definition
the life cycle stage in which an organization is born and it emphasis is on creating a product and surviving in the market place.
Term
Collectivity Stage
Definition
the life cycle phase in which an organization has strong leadership and begins to develop clear goals and direction.
Term
Formalization Stage
Definition
the life cycle stage that involves the instillation and use of rules, procedures, and control systems.
Term
Elaboration Stage
Definition
a mature stage of the life cycle in which a red tape crisis is resolved through the development of new sense of teamwork and collaboration.
Term
Bounded Rationality perspective
Definition
a perspective that described how decisions are made when problems are ill-defined, numerous factors affect the decision, and time is limited.
Term
Garbage Can Model
Definition
decision-making model that describes the pattern or flow of multiple decisions within an organization.
Term
Problem Consensus
Definition
the level of agreement among management about the nature of the problem or opportunity and about which goals and outcomes to pursue.
Term
Carnegie Model
Definition
organization decision making that involves making final choice based on coalition among those managers.
Term
Escalating Commitment
Definition
persisting to invest time and money in a solution despite strong evidence that it is not working.
Term
High formalization is associated with
Definition
Large size
Term
Which of the following is the use of rules, policies, written documentation, standardization to standardize behavior and asses behavior
Definition
Bureaucratic Control
Term
Clan control is most often used in:
Definition
small, informal organizations with strong culture.
Term
Managers at the American Red Cross are struggling with raising funds to cover expenses. Donations have been declining, many major disasters have drained funds. What would be responsible for the decline?
Definition
Environmental Decline
Term
Nordstrom's upside-down organization chart is an example of ____ being used to convey organizational culture to all employers.
Definition
An organization structure
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