question

the key to success

answer

is remaining flexible enough to adapt to changing times

question

organizing, or structuring, begins with

answer

determining what work needs to be done (mowing, edging, trimming) and then dividing up the tasks among the three of you; this is called a division of labor

question

job specialization

answer

dividing tasks into smaller jobs

question

departmentalization

answer

process of setting up individual departments to do specialized tasks advantages: - employees can develop skills in depth and progress within a department as they master more skills - the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area - employees can coordinate work within the function, and top management can easily direct and control various departments' activities disadvantages: - documents may not communicate well. for example, production may be so isolated from marketing that it does not get needed feedback from customers. - employees may identify with their department's goals rather than the organization's. the purchasing department may find a good value somwehere and buy a huge volume of goods. that makes purchasing look good, but the high cost of storing the goods hurts overall profitability. - the company's response to external changes may be slow. - people may not be trained to take different managerial responsibilities; rather, they tend to become narrow specialists. - department members may engage in groupthink (they think alike) and may need input from outside to become more creative.

question

organizational chart

answer

shows relationships among people: who is accountable for the completion of specific work, and who reports to whom - shows relationships among people - show who is accountable for the completion of specific work - shows who reports to whom typical elements of organization chart: - president - first-line supervisors - employees

question

economies of scale

answer

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 ex: the cost of building a car declined sharply when automobile companies adopted mass production and GM, Ford, and others introduced their huge factories. over time, such innovations became less meaningful as other companies copied the processes.

question

two influential thinkers and organization theorists that emerged during the era of mass production

answer

Henri Fayol and Max Weber

question

Fayol's principals of organization

answer

- unity of command: each worker is to report to one, and only one, boss. prevents confusion. - hierarchy of authority: all workers should know to whom they report. managers should have the right to give orders and expect others to follow. - 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. the goals of the team are 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: all workers should be able to reach others in the firm quickly and easily. - 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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Max Weber and Organizational Theory

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Weber's principles of organization resembled Fayol's, with the addition of: - job descriptions - written rules, decision guidelines, and detailed records - consistent procedures, regulations, and policies - staffing and promotion based on qualifications Weber: used the word bureaucrat to describe a middle manager whose function was to implement top management's orders - in favor of bureaucracy - put great trust in managers and felt firm would do well if employees simply did what they were told

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hierarchy

answer

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 creates of chain of command w/ one person at the top and the others ranked order to the bottom

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chain of command

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the line of authority that moves from the top of a hierarchy to the lowest level

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bureaucracy

answer

an organization with many layers of managers who set rules and regulations and oversee all decisions companies designed many rules and regulations to give managers control over employees; this reliance on rules

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centralized authority

answer

an organization structure in which decision-making authority is maintained at the top level of management

question

decentralized authority

answer

an organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be

question

span of control

answer

the optimal number of subordinates a manager supervises or should supervise

question

centralized management (pros and cons)

answer

advantages: - greater top-management control - more efficiency - simpler distribution system - stronger brand/corporate image disadvantages: - less responsiveness to customers - less empowerment - inter-organizational conflict - lower morale away from headquarters

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decentralized management (pros and cons)

answer

advantages: - better adaptation to customer wants - more empowerment of workers - faster decision making - higher morale disadvantages: - less efficiency - complex distribution system - less top-management control - weakened corporate image

question

tall organization structure

answer

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management advantages: - more control by top mgmt - more chances for advancement - greater specialization - closer supervision disadvantages: - less empowerment - higher costs - delayed decision making - less responsiveness to customers

question

flat organizational structure

answer

an organization structure that has few layers of management and a broad span of control 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

question

departmentalization

answer

the dividing of organizational functions into separate units, such as design, production, marketing, and accounting. groups workers according to their skills, expertise, or resource use so they can specialize and work together more effectively. advantages: - employees can develop skills in dept and progress - company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area - employees can coordinate work within the function, and top mgmt can easily direct and control various departments' activities SMARTBOOK: - Company can achieve economies of scale, Employees develop in depth skills and continue in progress disadvantages: - depts may not communicate well - employees may identify with their dept's goals rather than the organization's - company's response to external changes may be slow - people may not be trained to take diff managerial responsibilities; tend to become narrow specialists - dept members may engage in groupthink and may need input from outside to become more creative

question

ways to departamentalize

answer

see page 214 - geographic location (countries) - manufacturer by function - pharmaceutical company by customer group - leather manufacturer by process - publisher by product

question

line organization

answer

an organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor - responsibility - authority - communication INFLEXIBLE...may be unable to handle complex decisions relating to thousands of products line organizations follow Fayol's traditional management rules

question

line personnel

answer

employees who are part of the chain of command that is responsible for achieving organizational goals includes: - production workers - distribution people - marketing personnel

question

staff personnel

answer

employees who advise and assist line personnel in meeting their goals includes those in: - marketing research - legal advising - information technology - human resource management

question

matrix organization

answer

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 adv: - gives managers flexibility in assigning ppl projects - encourages inter-organizational cooperation and teamwork - can produce creative solutions to product development problems - makes efficient use of organizational resources disadv: - costly and complex - confuse employees about where their loyalty belongs--with project manager or with their functional unit - requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems - may be only a temporary solution to a long-term problem temporarily borrows its specialists from different functional areas to accomplish a common project

question

cross functional self managed teams

answer

groups of employees from different departments who work together on a long-term basis

question

real time

answer

the present moment or the actual time in which something takes place

question

virtual corporation

answer

a temporary networked organization made up of replaceable firms that join and leave as needed

question

benchmarking

answer

comparing an organization's practices, processes, and products against the world's best

question

core competencies

answer

those functions that the organization can do as well as or better than any other organization in the world

question

digital natives

answer

young people who have grown up using the internet and social networking

question

restructuring

answer

resdesigning an organization so that it can more effectively and efficiently serve its customers

question

inverted organization

answer

an organization that has contact people at the top and the chief executive officer at the bottom of the organization manager's job is to assist and support frontline people naturally this means frontline people have to be better educated, better trained, and better paid than in the past. pyramid represents traditional organization, upside down pyramid represents inverted organization

question

organizational (or corporate) culture

answer

widely shared values within an organization that provide unity and cooperation to achieve common goals

question

formal organization

answer

the structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts

question

informal organization

answer

the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization nerve center is the grapevine, the system through which unofficial information flows between and among managers and employees. key people in the grapevine have considerable influence

question

what is happening today to American businesses?

answer

adjusting to changing markets, a normal function in a capitalist economy. key to success is remaining flexible and adapting to the changing times.

question

what are the principles of organization management?

answer

structuring an organization means devising a division of labor (sometimes resulting in specialization), setting up teams or depts, and assigning responsibility and authority. includes allocating resources (such as funds), assigning specific tasks, and establishing procedures for accomplishing organizational objectives. managers also have to make ethical decisions about how to treat workers.

question

four major choices in structuring organizations

answer

1) centralization vs decentralization 2) breadth of span of control 3) tall vs flat organization structures 4) type of departmentalization

question

latest trends in structuring

answer

departments are often replaced or supplemented by matrix organizations and cross-functional teams that decentralize authority. the span of control becomes larger as employees become self-directed. another trend is to eliminate managers and flatten organizations.

question

two major organizational models

answer

line organizations -clearly defined responsibility and authority - easy to understand - provides each worker with only one supervisor line-and-staff organizations - helps in areas such as safety, quality control, computer technology, human resource management, and investing staff: - marketing research analysts - legal advisers - human resource managers

question

key alternatives to major organizational models

answer

matrix organizations assign ppl to projects temp and encourage interorganizational cooperation and team work

question

networking

answer

using communications technology and other means to link organizations and allow them to work together on common objectives

question

centralized organization structure

answer

maintains the decision-making authority at the top level of management

question

decentralized organization structure

answer

decision-making authority is delegated as far down the chain of command as possible

question

in an organization with many layers of managers the pyramidal organization chart would be quite tall due to ___ spans of control (exists when a manager directly supervises only a few subordinates).

answer

narrow

question

an appliance company may have a refrigerator department, a washing machine department, and a dishwasher department. this company is departmentalizing by ___.

answer

product

question

Present (at top) ... branching out to: - consumers, commercial users, manufacturers, institutions

answer

departmentalization by customer group

question

ways to departmentalize

answer

by product: marketing manager (top) trade books, college texts, technical books by function: president (top) production, marketing, finance, human resources, accounting by customer group: president (top) consumers, commercial users, manufacturers, institutions by geographic location: by geographic location: vice president (international operations) (top) canadian division, japanese division, european division, korean division by process: production manager (top) cutters, dyers, stitchers

question

when designing responsive organizations, what decisions do firms have to make?

answer

- decide the span of control - choose between tall or flat structures - decide between centralized versus decentralization book answer: 1) centralization vs decentralization 2) span of control 3) tall vs flat organization structures 4) departmentalization

question

match the advantages with narrow or broad span of control:

answer

more control by top mgmt: narrow reduced costs: broad more responsiveness to customers: broad closer supervision: narrow more empowerment: broad

question

nowadays, many small firms

answer

outsource

question

in a pizza parlor the chain of command is a general manager, shift manager, and employees. the employees report to the shift manager who reports to the general manager. this exemplifies a:

answer

line organization

question

target's CEO personally conducts the interview process when hiring for top 600 positions in the company. this is an example of __.

answer

centralized authority

question

which of the following are reasons to name department managers for each department created during departmentalization?

answer

- to assure the department's accountability - to maintain control of the whole process

question

the primary reason why managers in the latter 1900's began designing organizations was so that ___.

answer

managers could control workers

question

an organization chart

answer

shows relationships among people: who is accountable for the completion of specific work, and who reports to whom

question

in the retail clothing industry the customer demands vary from state to state. JCPenney sells different items in California than in New York. This illustrates a

answer

decentralized authority

question

Nike sells golf clubs, swim swear, as well as footballs. However, Nike is highly known for its performance in designing and marketing of athletic shoes. This is known as Nike's ___.

answer

core competency

question

a local furniture company launched a website to boost national sales. however, it could not fill the orders efficiently so it started using FedEx and UPS. this is an example of ___.

answer

outsourcing

question

a mcdonald's restaurants anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. this is an example of:

answer

organization culture

question

when you separate project duties according to each person's degree major, this division is known as...

answer

division of labor

question

a ___ allows one supervisor to be responsible for many workers whose work tasks are predictable and standardized

answer

broad span of control

question

line personnel have the ___ to issue orders and discipline employees, while staff personnel have the ability to ___ and influence.

answer

authority; advise

question

as the owner of a small bookstore, while monitoring the environment, you discover that Barnes and Noble will open a store in your area. what must you do based on this information?

answer

adjust to new realities

question

matrix organizations violate traditional managerial principles, yet can be more efficient. this contradiction can be attributed to which of the following attributes?

answer

- it encourages inter-organizational cooperation and teamwork - it can produce creative solutions to problems

question

which of the following would be the result of a departmentalization process?

answer

- the creation of a Human Resources dept - the creation of an accounting dept

question

when a firm like Target compares itself to Walmart to improve its practices or processes in order to become better than Walmart, it is exemplifying benchmarking for a ____ purpose

answer

competitive purpose

question

which of the following exemplify line personnel in the line-and-staff organization

answer

- packaging personnel - production workers

question

which of the following are considered to be drivers of organizational change in the evolving business environment?

answer

- more global competition - faster technological change - pressure to preserve the natural environment

question

departmentalization by process enables employees to do a better job because they can

answer

focus on learning few critical skills

question

when doctors, nurses, technicians, and anesthesiologists from different departments in the hospital work together to complete an operation this is an example of a

answer

cross functional self managed team

question

the bureaucratic principles proposed by Fayol and Weber are most likely to apply to an organization that:

answer

- wants to eliminate decision making for lower level employees - employs many unskilled workers

question

as organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees that trend today is to:

answer

expand the span of control

question

you and a friend start a snow cone stand. on your first day you realize that there are really two tasks involved: cashier and snow cone maker. if you each focus on one of the two jobs, this is known as:

answer

division of labor

question

cross-functional teams work best

answer

when leadership is shared to complete the task

question

a large corporation might use a flat organization structure in order to:

answer

match the friendliness of small firms

question

henri fayol's book popularized in the US was titled:

answer

general and industrial management

question

at rowe furniture in Salem, Virginia, the manufacturing chief dismantled the assembly line and empowered the people who had had limited functions--like sewing, gluing, and stapling--with the freedom to make sofas as they saw fit. productivity and quality soared.

answer

expansion of the span of control

question

a surgical team has various skilled personnel that work together on a long-term basis to accomplish daily surgeries. a group like this represents what type of organizational model?

answer

cross-functional self-managed teams

question

in a capitalist economy, adjusting to change is a ___ function.

answer

normal

question

the latest transformations of the business environment led to businesses changing

answer

quickly

question

if you were in charge of marketing for the college of business and trying to increase enrollment, what would be one of your first steps?

answer

benchmarking against competitors

question

when GM and Ford Motor Company introduced large factories and mass production, the cost of building cars declined. This effect exemplifies ___.

answer

economies of scale

question

Weber's principles of strict rules and procedures are still known to be very effective for which of the following organizations?

answer

United Parcel Service

question

during the most recent economic crisis, Macy's department store switched to a decentralized structure by giving local managers more authority to buy, price, and promote merchandise. Why would they take such measures?

answer

to merchandise appropriately for each area

question

which is true about the principles of organization?

answer

regardless of the business size the principles are similar

question

according the Harvard Business Review, young people who play online games will feel comfortable working in global teams. why is this assumption made?

answer

these young people have experience working in groups over the internet

question

in line and staff structures, staff managers provide advice and support to ___ departments on specialized matters such as finance, engineering, human resources, and the law.

answer

line departments

question

organizations monitor the business ___ to see what competitors are offering and what customers are demanding.

answer

environment

question

what is a positive result of departmentalization by product?

answer

it results in good customer relations

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