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COB 300A- Management
Chapter 8- Organizational Culture & Structure
141
Management
Undergraduate 3
03/15/2011

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Term
organizational culture (aka corporate culture)
Definition
system of shared beliefs and values that develops within an organization and guides the behavior of its members
Term
Google
Definition
give an example(s) of a company w/strong organizational culture
Term
1) through symbols
2) story
3) hero
4) rites & rituals
Definition
what 4 ways is culture communicated?
Term
symbols
Definition
an object, act, quality, or event that conveys meaning to others [ex. company logos/colors]
Term
story
Definition
narrative based on true events, which is repeated- and sometimes embellished upon- to emphasize a particular value
Term
hero
Definition
person whose accomplishments embody the values of the organization; founding ___ started the organization, did something great, etc.
Term
rites & rituals
Definition
activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life
Term
organizational structure
Definition
the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated; it is a horizontal and vertical configuration
Term
organizational chart
Definition
a visual representation of an organization's structure
Term
common characteristics of all organizations
Definition
coordination of effort, a common goal or purpose, division of labor, hierarchy of authority
Term
bureaucracy
Definition
a rational, systematic, and precise form of organization in which rules, regulations, and techniques of control are specifically defined; comes from the Classical School of Management
Term
the Military, Walmart, Post Office
Definition
give examples of a successful bureaucracy
Term
Max Weber
Definition
who introduced the bureaucratic structure to organizations?
Term
to replace family-based operations in which business owners played favorites and hired employees based on family ties and friendships
Definition
Why was the bureaucratic structure introduced?
Term
principals of bureaucratic structures
Definition
hierarchy of authority, unity of command, task specialization, duties and rights of employees, managerial responsibility, line & staff functions
Term
hierarchy of authority
Definition
each lower organizational unit is controlled and supervised by a higher one
Term
unity of command
Definition
a subordinate receives assigned duties from one superior only and is accountable to that superior
Term
task specialization
Definition
work is based on ___ specialization performed by employees in separate departments
Term
rights and duties of employees
Definition
rules and job descriptions define the ___ and ___ of employees
Term
managerial responsibility
Definition
the responsibility and authority of managers is clearly defined
Term
line functions or staff functions
Definition
organizational units are defined as ___ or ___
Term
establishes authority and accountability within the organization
Definition
benefit of hierarchy of authority
Term
simplifies reporting relationships and clarifies priorities
Definition
benefit of unity of command
Term
allows workers to develop expertise and improve productivity
Definition
benefit of task specialization
Term
employees can focus on assigned tasks, set goals, and advance their jobs
Definition
benefit of defined duties and rights of employees
Term
minimizes overlapping of authority and confusion; clarifies roles and responsibilities among managers and employers
Definition
benefit of clearly defined managerial responsibility
Term
purpose; environment
Definition
since organizations operate in an "open system" the structure of the organization reflects no only its ___, but also its ____
Term
departmentalization
Definition
within the "organizing" function on management, work is subdivided into departments in one of the following ways:
-function (activity)
-product/service
-geographic location (territory)
-customer classification
-work flow process
-matrix
Term
functional departmentalization
Definition
grouping employees into departments based on similar skills
Term
when resources are tight or when high quality standards must be met
Definition
when do you use functional departmentalization?
Term
advantages of functional departmentalization
Definition
-permits economies of scale
-encourages efficient use of resources
-enhances the development of in-depth skills
-managers & employees are compatible b/c of similar training & expertise
-centralizes decision making
-provides unified direction from the top
-excellent coordination & communication
-promotes high quality technical problem-solving
Term
disadvantages of functional departmentalization
Definition
-slow response to environmental change
-delayed decision making
-produces routine, non-motivating employee tasks
-greater difficulty pinpointing problems within departments
-employees focus more on departmental goals than organizational goals
-less opportunity to become groomed for top management positions b/c of the task specialization
Term
divisional design
Definition
departments are grouped based on similar organizational outputs: customer, geography, or product
Term
use this structure when the target markets, geography served, or product lines are distinctly different
Definition
when do you use divisional design?
Term
advantages of divisional design
Definition
-fast response, flexibility in an unstable environment
-fosters concern for customer's needs
-excellent coordination across functional departments
-easy pinpointing of responsibility for product problems
-emphasis on overall product and divisional goals
-development of general management skills
Term
disadvantages of divisional design
Definition
-duplication of resources across divisions
-less technical depth and specialization
-poor coordination across divisions
-less top management control
-competition for corporate resources
Term
work flow design
Definition
a divisional design that separates divisions based on processes; a company might make the product in a mass-production division and in a custom-fabrication division
Term
matrix design (aka hybrid divisional design)
Definition
combines functional and divisional structures; utilizes functional and divisional chains of command simultaneously in the same part of the organization; two chains of command exist and some employees reports to two bosses; helps overcome duplication
Term
advantages of matrix design
Definition
-more efficient use of resources than single hierarchy
-flexibility, adaptability to changing environment
-development of both general and specialist management skills
-interdisciplinary cooperation, expertise available to all divisions
-enlarged tasks for employees
Term
disadvantages of matrix design
Definition
-frustration and confusion from dual chain of command
-high conflict b/t 2 sides of matrix
-many meetings, more discussion than action
-HR training needed
-power dominance by 1 side of the matrix
Term
team-based approach; network approach
Definition
___ and ___ organizational forms can be combined with other forms
Term
team-based approach
Definition
the organization creates a series work groups to accomplish specific tasks and to coordinate major departments; ___ can exist from the office of the president all the way down to the shop floor; helps improve horizontal relationships and solve problems throughout the organization
Term
teams
Definition
___ share a common goal, are independent, benefit from diversity, create higher motivation
Term
rotating team
Definition
[type of team] everybody becomes a leader over time; this type has the most controversy
Term
today's type of team structure
Definition
[type of team] leader and manager is a team member
Term
old-fashioned team
Definition
manager is separate from the team
Term
network design
Definition
the organization has central core that is linked to outside independent firms by computer connections, which are used to operate as if all were a single organization
Term
central hub (center of network design)
Definition
pass jobs to others (outsource); brains (or expertise) of job that sends jobs to other groups
Term
hourglass organizations
Definition
3 layer structure w/a constricted middle (narrow center); wide management at the top, narrow middle management, wide base of employees
Term
cluster organization
Definition
a structure largely consisting of work teams
Term
-the needs of your target market
-the factors in the external market
Definition
what should organizational structure be based on?
Term
unity of command
Definition
each subordinate receives assigned duties from one supervisor only
Term
span of control
Definition
the # of workers reporting directly to a manager [ex. 8 employees under a manager- everyone doing the same job, more employees under a manager)
Term
high-span of control
Definition
when managed employees have the same job functions
Term
low-span of control
Definition
when managed employees do different jobs
Term
authority
Definition
the formal and legitimate right of a manger to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes
Term
responsibility
Definition
the duty to perform a task or activity an employee has been assigned
Term
accountability
Definition
the fact that people w/authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
Term
line authority
Definition
___ departments perform tasks that reflect the organization's primary goal and mission; ___ authority means that people in management have formal authority to direct and control immediate subordinates
Term
staff authority
Definition
___ departments include all those that provide specialized skills in support of line departments; ___ authority is narrower and includes the right to advise, recommend, and counsel.
Term
tall structures
Definition
organizations with many layers- 5 or more layers
Term
flat structures
Definition
organizations with few layers- 4 or fewer layers [can also be quite wide]
Term
centralized decision making
Definition
the extent to which authority is retained at the top; decisions made by higher-level managers
Term
decentralized authority
Definition
the extent to which authority is passed down to lower levels; decisions are made by middle-level and supervisory-level managers
Term
horizontal structure
Definition
this structure highlights working within and across departments
Term
coordination
Definition
the quality of collaboration across departments
Term
1) task force
2) project team
3) project manager
Definition
name 3 examples of horizontal structure
Term
task force
Definition
a group of participants from several departments who meet regularly to solve ongoing problems
Term
project team
Definition
a temporary team designed to solve a short-term or specific problem involving several departments
Term
project manager
Definition
a person who is responsible for coordinating the activities of several departments for the completion of a specific project
Term
organizational chart (aka organization chart or Org chart)
Definition
a formal diagram of the vertical structure of the organization
Term
-name of the company
-the date the structure is effective
-names of employees
-position titles
Definition
what do organizational charts include?
Term
salaries
Definition
what are confidential and not included on an Org chart?
Term
product/service
Definition
the structural design of your organization impacts the creation and delivery of your _____
Term
questions to ask about your firm's structure
Definition
-improve or inhibit the flow of information to decision-makers, employees, customers, and the public?
-place decision-making in the appropriate level of the firm?
-produce the quality of the product/service that you have promised?
-allow the firm to respond to customers when they expect it?
Term
questions to ask about your firm's structure
Definition
-provide flexibility for the firm to respond to changes in the external environment?
-allow for product returns, repair, or service?
-only include paid, full-time or part-time employees (no independent contractors)?
-only show reporting relationships and maintain the unity of command rule?
-avoid unnecessary shadows, double lines, or arrows (instead of lines)?
Term
Full Time Equivalent (FTE)
one FTE = 40 hours/week
Definition
instead of counting heads, you count hours [ex. 20 hr employee = .50 ___]
Term
job design
Definition
crafting individual jobs; reaching into areas of leadership, motivation, & HR management
Term
job analysis
Definition
examining the work that has to be done; determine the most efficient & effective way to accomplish tasks; then assign the work to individual job positions
Term
how to communicate the tasks and to motivate and reward your employees
Definition
When job design, what should you consider?
Term
job specialization
Definition
taking the overall job and breaking it into smaller pieces
Term
work specialization
Definition
the degree to which organizational tasks are subdivided into individual jobs; it is also called division of labor
Term
it reduces required skills and allows you to develop expertise
Definition
what are the advantages of work specialization?
Term
it is difficult to coordinate all the people; if job is too small and narrow it may get boring
Definition
what are the disadvantages of work specialization?
Term
job description
Definition
says what the job involves, expectations, etc.
Term
job overview/job summary
Definition
one paragraph description of position; used for advertising the job
Term
task/assigned responsibility
Definition
identifies job functions, communicated performance requirements, evaluate performance during reviews
Term
minimum job requirements/Bonafide Occupation Qualification (BFOQ)
Definition
minimum requirements to fulfill a job; ADA established this
Term
the job characteristic model
Definition
a method for developing an enriched job
Term
b/c job characteristics lead to critical psychological states to personal and work outcomes
Definition
why is the job characteristic model important?
Term
5 characteristics of jobs
Definition
1) skill variety
2) task identity
3) task significance
4) autonomy
5) feedback
Term
employee motivation, satisfaction, and performance
Definition
what do the 5 job characteristics lead to?
Term
skill variety
Definition
the # of different activities performed in a job
Term
task identity
Definition
degree that a job from beginning to end requires completion of a whole, diverse unit; a question of whether you are doing the job or parts of the job
Term
task significance
Definition
degree that a job has impact on others
Term
autonomy
Definition
freedom and Independence of workers
Term
feedback
Definition
amount of information about job performance
Term
positive; performance
Definition
by combining tasks, forming natural work units, establishing client relationships, vertically loading the job, and opening feedback channels, you help employees obtain _____ attitudes towards their job and higher _____
Term
job crafting
Definition
when employees alter their carefully designed jobs by changing the physical and mental aspects of the job in either tasks or their relationships
Term
ways to determine if something is wrong with a job
Definition
-productivity over time should increase
-absenteeism- if ppl. don't show up
-turnover- if ppl. leave job often
Term
employee satisfaction
Definition
asking people if they like their jobs
Term
1) Job rotation
2) job enlargement
3) job involvement or enrichment
*overall goal: making jobs more interesting
Definition
what are 3 techniques to improving satisfaction? what is the overall goal of these techniques?
Term
job rotation
Definition
temporary switching of job assignments to make jobs more interesting
Term
job enlargement
Definition
increase the # and variety of tasks within a job (giving ppl. additional responsibilities)
Term
job involvement or enrichment
Definition
degree to which individuals identify psychologically w/their work
Term
job enrichment
Definition
an approach to include more challenge and responsibility in jobs to make them more appealing to most employees
Term
characteristics of an enriched job
Definition
-jobs should allow for new hiring
-personal accountability
-control over scheduling
-control over resources (autonomy)
-direct communication authority (allowed to talk to everyone)
-direct feedback
Term
better communication tools and new industries
Definition
what has helped organizations have more flexibility to modify daily work schedules based on employee preferences?
Term
types of work schedules used in the workplace
Definition
-flexible work hours
-compressed work week
-alternative work place
-hoteling or shared space
-job sharing
-part-time/temporary
-shift work
Term
flexible work hours
Definition
adjusting work hours around core hours
Term
compressed workweek
Definition
40 hours of work in 4 days (four 10-hour days)
Term
alternative workplace
Definition
non-traditional work settings, locations, or practices
Term
hoteling or shared space
Definition
shared office spaces for temporary use
Term
job sharing
Definition
more than one employee performing the same job
Term
part-time/temporary
Definition
work with reduced hours
Term
shift work
Definition
provides coverage during non-standard work hours
Term
outsourced employees
Definition
these employees don't work for you but do work with your employees and accomplish your tasks
Term
things to consider when deicing whether or not to keep a job "in-house"
Definition
-critical nature of the work
-competitive advantage
-quality
-control
-employee relationships
Term
critical nature of work
Definition
if tasks are essential to your success, you don't want to lose control
Term
competitive advantage
Definition
don't give company secrets to someone outside your company
Term
control
Definition
have measures in place to make sure others are following your plan- you cannot "fire" and employee who doesn't work for you
Term
employee relationships
Definition
know the rules that determine if a worker is an employee or independent contractor; this will affect payroll, scheduling, and employee relations
Term
service- intangible
product- tangible
Definition
service vs products: OUTPUT
Term
S- production & consumption occur at the same time

P- products can be inventoried
Definition
service vs products: CONSUMPTION
Term
S- labor & knowledge intensive
P- capital asset intensive
Definition
service vs products: MAIN RESOURCE
Term
S- high customer interaction
P- little direct customer interaction
Definition
service vs products: CUSTOMER CONTACT
Term
S- very important
P- less important
Definition
service vs products: HUMAN ELEMENT
Term
S- perceived and difficult to measure (subjective)

P- is measured directly
Definition
service vs products: QUALITY
Term
S- rapid response is necessary
P- longer lead times are acceptable
Definition
service vs products: RESPONSE TIME
Term
S- site is important
P- site is moderately important (you can ship a product)
Definition
service vs products: FACILITIES
Term
SERVICE: airlines, hotels, law firms
PRODUCT: soft drink companies, steel companies, automobile manufacturers

BOTH: fast-food outlets, cosmetics, real estate, stock brokers, retail stores
Definition
service vs products: EXAMPLES of each and an example of something that is both
Term
1) pooled
2) sequential
3) reciprocal
Definition
what are 3 forms of interdependence?
Term
pooled interdependence
Definition
working separately but in same direction; ex: bank- employees give loans, some take deposits, some investments
Term
sequential interdependence
Definition
value added then passed on to the next person/station; ex: assembly line (manufacturing or information)
Term
FALSE.
Definition
TRUE or FALSE: Interdependence does NOT influence organizational structure.
Term
reciprocal interdependence
Definition
admitted, team formed to service client based on needs; most completed form of interdependence; requires high coordination; ex: patient admitted to emergency room
Term
-low horizontal comm.
-standardization, rules, procedures
-low need for close units
Definition
what type level of horizontal communication and decision-making, type of coordination, and level of priority for locating units together does POOLED interdependence need?
Term
-med. horizontal comm.
-plans, schedules, feedback
-medium need for close units
Definition
what type level of horizontal communication and decision-making, type of coordination, and level of priority for locating units together does SEQUENTIAL interdependence need?
Term
-high horiz. comm.
-mutual adjustment, cross-departmental meetings, teamwork
-high need for close units
Definition
what type level of horizontal communication and decision-making, type of coordination, and level of priority for locating units together does RECIPROCAL interdependence need?
Term
1) small-batch & unit production
2) large-batch & mass production
3) continuous process production
Definition
what are the 3 systems of (manufacturing) production?
Term
Group 1: small batch & unit production; skill is highest
[ex. someone making a violin]

Group 2: large-batch & mass production; assembly lines
[ex. toaster manufacturer]

Group 3: continuous process production; technical expertise highest
[ex. nuclear power plant, oil refinery- production never stops]
Definition
which type of production belongs to groups 1,2, & 3; give an example of each
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