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organizing

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deployment of organizational resources to achieve strategic goals

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organizational structure

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framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated

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org chart

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visual representation of an organization's structure - provides a picture of the intended reporting structure

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authority

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formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes

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authority have 3 characteristics

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vested in organizational positions, not people - accepted by subordinates - flows down the vertical hierarchy

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scalar principle

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clearly defined line of authority in the organization that includes all employees

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responsibility

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duty to perform the task or activity an employee has been assigned

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accountability

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people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command

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delegation

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process used to transfer authority and responsibility to positions below them in the hierarchy

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Principles of effective delegation

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assign a meaningful task - select the right person (suitable ability) - parity principle

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parity principle

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assign authority that is commensurate with responsibility

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span of management (control)

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number of employees who report directly to a manager

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Factors that affect the span of management

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ambiguity of work - subordinate training/access to information - capability of manager - similarity of jobs - subordinate preference for autonomy

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centralization

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location of decision authority near the top organizational levels - appropriate in times of crisis or risk of company failure

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Decentralization

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location of decision near lower organizational levels -

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decentralization is especially appropriate when

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external environments are volitle - organizations grow in size and complexity - capable lower-level managers - type of decision

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Departmentalization

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Basis for grouping positions into departments and departments into the total organization

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functional structure

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grouping of positions into departments based on similar skills, expertise, and resource use - people, facilities, and other resources representing common function are grouped into a single department

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Matrix structure

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utilizes functional and divisional chains of command simultaneously in the same part of the organization - may be a temporary or a permanent structure - team-oriented arrangement that promotes coordinated, multidisciplinary activity across functional areas - adopted as an integrating mechanism to deal with diversity of functions and clients

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virtual network approach

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disaggregates major functions to separate companies that are brokered by a small headquarters organization

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outsourcing

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the practice of taking a significant activity within the organization and contracting it out to an independent party. (firm would rather not be associated with a particular activity)

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modular approach

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manufacturing company uses outside suppliers to provide large components of the product, which are then assembled into a final product by a few workers

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Organizing for Horizontal Coordination

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Managers have to tie all the specialized departments to work together

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coordination

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quality of collaboration across departments

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task forces

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temporary team or committee formed to solve a specific short-term problem involving several departments

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project manager

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responsible for coordinating the activities of several departments on a full-time basis for the completion of a specific project

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reengineering

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radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. (high cost in human terms)

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Environmental uncertainty

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decision makers have difficulty acquiring good information and predicting external changes

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organic systems

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suited to less stable (more uncertain) environments - structure is more horizontal, fluid - decision making is decentralized

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mechanistic system

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suited to more stable environments - structure is highly specialized, vertical - decision making is centralized

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Woodward's manufacturing technology

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identified three types of production that differ in terms of technical complexity (i.e., reliance on mechanization instead of people) small batch - mass - continuous process

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small batch

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production of goods in batches of one or a few products designed to customer specification

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mass production

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production of a large volume of products with the same specifications

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continuos process

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mechanization of the entire work flow and nonstop production

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technological imperitive

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organic structure best for small-batch and continuous production - mechanistic structure best for mass production

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work specialization - division of labor

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the degree to which org tasks are subdivided into seperate jobs

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chain of command

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an unbroken link of authority that links all people in an org and shows who reports to whom

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unity of command

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each employee is held accountable to only one supervisor

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acceptance theoy of authority

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a manager has the authority only if the subordinates choose to accept his demands

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line authority

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people in management positions have formal authority to direct and control immediate subordinates

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staff authority

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narrower and includes the right to advise, recommend and counsel in the staf specialist area of expertise

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tall structure

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overall narrow span and more hierarchical level

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flat structure

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wide span, horizontally disbursed, has fewer hierarchical levels

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divisional structure

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an org structure in which departments are grouped based on similar org outputs

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two boss employee

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those who report to 2 supervisors simultaniously

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matriz boss

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the product or functional boss responsible for one side of the matrix

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top leader

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the overseer of both the product and functional chains of command, responsible for entire matrix

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cross functional teams

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group of employees from various functional departments that meet as a team to resolve mutual problems

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permanent teams

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of group of participants from several functionals who are permanently assigned to solve ongoing problems of common interest

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team-based structure

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structure in which the entire org is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish the orgs goals

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virtual network structure

answer

an org structure that disaggregates major functionas to seperate companies that are brokered by small headquarters orgs

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process

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an organized group of related tasks and activities that work together to transform inputs into outputs and create value

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technical complexity

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the degree to which complex machinery is involved in the production process to the exclusion of people

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service technology

answer

intangible outputs and direct contact with employees

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digital technology

answer

use of the internet and other digital proesses to conduct or support business operations

Management Chapter 10 – Flashcards

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