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BA 320
Chapter 2 - MGMT
43
Business
Undergraduate 3
02/24/2011

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Term
Job Specialization
Definition
the process by which a division of labor occurs as different workers specialize in different tasks over time
Term
Scientific Management Theory
Definition
the systematic study of relationships between people and tasks for the purpose of redesigning the work process to increase efficiency

1) Study how tasks are performed and figure how to improve

2) Codify the above into SOP

3) Hire workers to posses the skills and abilities necessary; train them using the SOPs

4) Set acceptable levels of performance and reward workers based on performance

Term
Fredrick W. Taylor
Definition
founder of Scientific Management Theory
Term
Frank and Lillian Gilbreth
Definition
followers of Fredrick Taylor; pioneered time and motion studies
Term
Time and Motion Studies
Definition
scientific studies that identify and measure physical motion over a set period of time
Term
Administrative Management Theory
Definition
the study of how to create an organizational structure and control system that leads to high efficiency and effectiveness
Term
Bureaucracy
Definition
a formal system of organization and administration designed to ensure efficiency and effectiveness
Term
Authority
Definition
the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources
Term
Rules
Definition
formal, written instructions that specify actions to be taken under different circumstances to achieve specific goals
Term
Standard Operating Procedures (SOPs)
Definition
specific sets of written instructions about how to perform a certain aspect of a task
Term
Norms
Definition
unwritten, informal codes of conduct that prescribe how people should act in particular situations
Term
Theory of Bureaucracy
Definition
1) A manager's authority derives from the position he or she holds in the organization

2) People should occupy positions because of their performance

3) The extent of each position's authority, responsibilities, and relationship to other positions should be clearly specified

4) Authority can be exercised effectively when positions are arranged hierarchically, so employees know whom to report to and to who reports to them

5) Managers must create a well-defined system of rules, SOPs, and norms to control behavior within an organization

Term
Max Webster
Definition
founder of the Theory of Bureaucracy
Term
Unity of Command
Definition
a reporting relationship in which an employee receives orders from, and reports to, only one superior
Term
Line of Authority
Definition
the chain of command extending from the top to the bottom of an organization
Term
Centralization
Definition
the concentration of authority at the top of the managerial hierarchy
Term
Unity of Direction
Definition
the singleness of purpose that makes possible the creation of one plan of action to guide managers and workers as they use organizational resources
Term
Equity
Definition
the justice, impartiality, and fairness to which all organizational members are entitled
Term
Order
Definition
the methodical arrangement of positions to provide the organization with the greatest benefit and to provide employees with career opportunities
Term
Initiative
Definition
the ability to act on one's own, without direction from a superior
Term
Discipline
Definition
obedience, energy, application, and other outward marks of respect for a superior's authority
Term
Espirit de Corps
Definition
shared feelings of comradeship, enthusiasm, or devotion to a common cause among members of a group
Term
Behavioral Management Theory
Definition
the study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals
Term
Mary Parker Follett
Definition
founder of Behavioral Management Theory
Term
Hawthorne Effect
Definition
the finding that a manager's behavior or leadership approach can affect workers' level of performance
Term
Human Relations Movement
Definition
a management approach that advocates the idea that supervisors should receive behavioral training to manage subordinates in ways that elicit their cooperation and increase their productivity
Term
Informal Organization
Definition
the system of behavioral rules and norms that emerge in a group
Term
Organizational Behavior
Definition
the study of the factors that have an impact on how individuals and groups respond to and act in organizations
Term
Theory X
Definition
negative assumptions about workers that lead to the conclusion that a manager's task is to supervise workers closely and control their behavior
Term
Theory Y
Definition
a set of positive assumptions about workers that lead to the conclusion that a manager's task is to create a work setting that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to exercise innovation and self-direction
Term
Management Science Theory
Definition
an approach to management that uses rigorous quantitive techniques to help managers make maximum use of organizational resources
Term
Total Quality Management (TQM)
Definition
focuses on analyzing an organization's input, conversion, and output activities to increase product quality
Term
Operations Management
Definition
provides managers with a set of techniques that they can use to analyze any aspect of an organization's production system to increase efficiency
Term
Quantitive Management
Definition
mathematical techniques to help managers decide, for example, how much inventory to hold at different times of the year, where to locate a new factory, and how best to invest an organization's financial capital
Term
Management Information Systems (MISs)
Definition
helps managers design systems that provide information about events occurring inside the organization as well as in its external environment - information that is vital for effective decision making
Term
Organizational Environment
Definition
the set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources
Term
Open System
Definition
a system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers
Term
Closed System
Definition
a system that is self-contained and thus not affected by changes occurring in its external environment
Term
Entropy
Definition
the tendency of a closed system to lose its ability to control itself and thus to dissolve and disintegrate
Term
Synergy
Definition
performance gains that result when individuals and departments coordinate their actions
Term
Contingency Theory
Definition
the idea that the organizational structures and control systems managers choose depend on (are contingent on) characteristics of the external environment in which the organization operates
Term
Mechanistic Structure
Definition
an organizational structure in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
Term
Organic Structure
Definition
an organizational structure in which authority is decentralized to middle and first-line managers and tasks and roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected
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