Term
| Define: Division of Labor |
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Definition
| Assigning task to the person best suited for the job |
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Term
| Define: Job Specialization |
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Definition
| The act of dividing a job in smaller jobs |
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Term
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Definition
| The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase. |
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Term
| Fayol's Principles of Organization |
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Definition
Unity of command - Each worker is to report to one, and only one, boss.
Hierarchy of authority - All workers should know to whom they report.
Division of labor - Functions are to be divided into areas of specialization such as production, marketing, and finance.
Subordination of individual interests to the general
interest - Workers are to think of themselves as a
coordinated team with goals more important than the goals of individual workers.
Authority - Managers have the right to give orders and the power to enforce obedience.
Degree of centralization - The amount of decision-making power vested in top management should vary by circumstances.
Clear communication channels
Order - Materials and people should be placed and maintained in the proper location.
Equity - A manager should treat employees and peers with respect and justice.
Esprit de corps - A spirit of pride and loyalty should be created among people in the firm. |
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Term
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Definition
| A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person. |
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Term
| What did Fayol's Principles leads to? |
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Definition
| led to rather rigid organizations that haven't always responded quickly to consumer requests |
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Term
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Definition
• Job descriptions.
• Written rules, decision guidelines, and detailed records.
• Consistent procedures, regulations, and policies.
• Staffing and promotion based on qualifications.
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Term
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Definition
| the line of authority that moves from the top of the hierarchy to the lowest level |
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Term
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Definition
| An organization with many layers of managers who set rules and regulations and oversee all decisions |
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Term
| 4 decisions in structuring organizations |
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Definition
(1) centralization versus decentralization
(2) span of control
(3) tall versus flat organization structures
(4) departmentalization. |
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Term
| Define: Centralized authority |
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Definition
| when decision malting is concentrated at the top level of management. |
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Term
| Define: Decentralized authority |
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Definition
| when decision malting is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be. |
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Term
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Definition
| The optimal number of subordinates a manager supervises or should supervise |
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Term
| Advantages to Centralized Management |
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Definition
• Greater top-management control
• More efficiency
• Simpler distribution system
• Stronger brand/corporate image |
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Term
| Disadvantages to Centralized Management |
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Definition
• Less responsiveness to customers
• Less empowerment
• lnterorganizational conflict
• Lower morale away from headquarters |
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Term
| Advantages to Decentralized Management |
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Definition
• Better adaptation to customer wants
• More empowerment of workers
• Faster decision making
• Higher morale |
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Term
| Disadvantages to Decentralized Management |
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Definition
• Less efficiency
• Complex distribution system
• Less top-management control
• Weakened corporate image |
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Term
| Define: tall organization structure |
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Definition
| An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management |
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Term
| Define: flat organization structure |
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Definition
| An organization structure that has few layers of management and a broad span of control. |
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Term
| Advantages and disadvantages to Narrow Span of Control |
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Definition
ADVANTAGES
• More control by top management
• More chances for advancement
• Greater specialization
• Closer supervision
DISADVANTAGES
• Less empowerment
• Higher costs
• Delayed decision making
• Less responsiveness to customers |
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Term
| Advantages and disadvantages to Broad Span of Control |
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Definition
ADVANTAGES
• Reduced costs
• More responsiveness to customers
• Faster decision making
• More empowerment
DISADVANTAGES
• Fewer chances for advancement
• Overworked managers
• Loss of control
• Less management expertise |
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Term
| Advantages and Disadvantages of departmentalization by function |
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Definition
ADVANTAGES
1. Employees can develop skills in depth and progress within a department
2. The company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area.
3. Employees can coordinate work within the function, and top management can easily direct and control various departments' activities.
Disadvantages
1. Departments may not communicate well.
2. Employees may identify with their department's goals rather than the organization's.
3. The company's response to external changes may be slow.
4. People may not be trained to take different managerial responsibilities
5. Department members may engage in groupthink and may need input from outside to become more creative
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Term
| 5 ways to departmentalize |
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Definition
Product
Function
Customer Group
Geographic Location
Process |
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Term
| 4 types of organization models |
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Definition
(1) line organizations,
(2) line-and-staff organizations,
(3) matrix-style organizations
(4) cross-functional self-managed teams |
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Term
Define: Line Organization
what does it not have |
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Definition
direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor
no specialists who provide managerial support. |
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Term
| line organization disadvantages |
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Definition
too inflexible
few specialists or experts to advise people
lengthy lines of communication |
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Term
| Line-and-Staff Organizations |
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Definition
minimize the disadvantages of simple line organizations,
have both line and staff personnel
Line personnel are responsible for directly achieving organizational goals
Staff personnel advise and assist line personnel in meeting their goals |
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Term
| Authority in line and staff organizations |
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Definition
Line personnel have formal authority to make policy decisions.
Staff personnel have authority to advise line personnel and influence their decisions, but they can't make policy changes themselves. |
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Term
| Define: matrix organization |
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Definition
| An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure. |
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Term
| Advantages and Disadvantages in a Matrix Organization |
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Definition
Advantages:
• managers have flexibility in assigning people to projects.
• It encourages interorganizational cooperation
• It can produce creative solutions
• It makes efficient use of organizational resources.
disadvantages:
• It's costly and complex.
• It can confuse employees about where their loyalty belongs
• It requires good interpersonal skills as well as cooperative employees and managers
• It may be only a temporary solution to a long-term problem. |
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Term
| Define: Cross-functional self-managed teams |
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Definition
| groups of employees from different departments who work together on a long-term basis |
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Term
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Definition
| uses communications technology and other means to link organizations and allow them to work together on common objectives |
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Term
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Definition
the present moment or the actual time in which an event takes place.
A heart-beat monitor monitors the heart in real time |
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Term
| Define: Virtual Corporation |
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Definition
| A temporary networked organization made up of replaceable firms that join and leave as needed. |
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Term
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Definition
| compares an organization's practices, processes, and products against the world's best. |
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Term
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Definition
| functions it can do as well as or better than any other organization in the world |
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Term
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Definition
| Young people who have grown up using the Internet and social networking |
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Term
| Formal vs informal organizations |
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Definition
formal organization - details lines of responsibility, authority, and position. It's the structure shown
on organization charts.
informal organization - the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization. Not shown on charts |
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Term
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Definition
| the system through which unofficial information flows between and among managers and employees. |
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Term
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Definition
+Time to focus on company’s primary function
+Increased level of expertise
+Cost effectiveness
+Decreased overhead
+Risk reduction
+Flexibility
+Technology
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Term
| Disadvantages of Outsourcing |
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Definition
-Less personal approach
-Less control by owner in planning, implementing & carrying out company’s future
-Potential for competing for the outsourcing firm’s time
-May be detrimental to company’s image
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Term
| How to Improve Organizational Structure? |
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Definition
Break business into smaller units
Build teamwork
Impose autonomy
Create meaningful incentives
Outsource non-operating activities
Share business capabilities across units
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