Business and Society | Chapter 7 NOTES – Flashcards

An organization is group of two or more people working together to achieve a common set of goals. the relationships among positions within an organization can be illustrated by means of an organization chart. Five element-job design, departmentalization, delegation, span of management, and chain command-help to determine what an organization chart and the organization itself looks like.

Job specialization is the separation of all the activities within a organization into smaller components and the assignment of those different components to different people. Several factors combine to make specialization to useful technique for designing jobs, but high levels of speculation many cause employee dissatisfaction and boredom. One technique for overcoming these problems is job rotation.

departmentalization is the grouping of jobs into manageable until. Typical bases for departmentalization are by functions, products, locations, or customer Because each of these bases provides particular advantage most firms- especially larger ones- use a combination of different base to address different organization situations.

Delegation is giving part of a manager's work to other workers. It involves the following three steps: (1) assigning responsibility, (2) granting authority, and (3) creating accountability. A decentralized firm is one that delegates as much power as possible to people in the lower management level. In a centralized firm, on the other hand, power is retained at the upper levels.

The span of management is the number of workers who report directly to a manager. Spans generally are characterized as wide (many workers per manager) or narrow (few workers per manager). Wide spans generally result in flat organization (few layers of management); narrow spans generally result in tall organizations (many layers of management).

There are four basic forms of organizational structure. The line structure is the oldest and simplest structure, in which the chain of command moves in the straight lines from person to person down through the lowes of management, The line- and-staff structure is similar to the line structure butt adds specialists called staff managers to assist the line managers in decision making. the line structure workers most efficiently for smaller organizations, wearer the line-and-staff structure is used by medium0 and larger0sized organization. The matrix structure may be depicted as product departmentalization superimposed on functional departmentalization. with the matrix structure and employee on a cross functional team reports to both that e project manager and the nindiciual;s supervisor in a functional department. In an organization with e network structure, the primary function performed internally is administration, and other functions are contracted out to other firms.

Corporate culture has both internal and eternal edicts on an organization.An organization's culture can influence the way employees think and act, and it can also determine the public;s perception of he organization. corporate culture can added a firm;s performance over time,either negatively or positively. creating a culture of trust, for example, can lead to increased growth, profits, productively, and job satisfaction, while retaining the best employees, inspiring customers loyalty, developing new markets, and increasing creativity. In addition, when two or more companies undergo the integration process, their different or similar corporate cultures can affect the success of a merger or acquisition.

Committees and task forces are used to develop organizational structure within an organization. An ad hoc committee is created for a specific short-term purpose, whereas a standing committee is relatively permanent. a task force is created to investigate major problem or pending decision.

Informal group are created by group members to accomplish goals that many or may not be relevant to the organization, and they can be very powerful forces. The grapevine-the informal communication network within an organization-can be used to transmit information (important or gossip) through an organization much faster than through the formal communication network. Information transmitted through the grapevine can go in any direction across the organizational striker, skipping up or down levels of management and even across departments

In the chart these positions are represented by broken lines, as you can see with the direction of legal services, public affairs, and human resources. Instead they hold advisory, or staff, position.

When a worker has to learn one specific, highly specialized task, that inducible can learn it quickly and perform it efficiently. Workers repeating the same job does not lose time, changing operations, as the pin workers did when producing complete pins. More specialized the job, the easier it is to design specialized equipment & training. Negative-Conquence is boredom and dissatisfaction in employees may feel when repeating the same job.

-Under this scheme, all marketing personnel are grouped together in the marketing department, all production personnel in the production department. -smaller and newer organizations department -Disadvantages-lead to slow decision making and it tends to emphases the department over the organization as a whole.

-Older and larger firms that produce and sell a variety of products. -Each department handles it own marketing, production, financial management and human resources activities. -Departmentalization by product makes decision making easier and provides for the integration of all activities associated with each product. -Disadvantage-causes duplication of specialized activities such as finance-between departments. -Emphasis is placed on the product rather than on the whole organization.

-Departmental areas may range from whole countries (for international firms) to regions within countries (for national firms) to areas of several city blocks (for police department organization precincts). -Dis. -large administration staff and an elaborate control system may be needed to coordinate operations across many locations.

-Adv.-deal efficiently with unique customers or customer groups. -Dis.-larger-than-usual administration staff is needed.

-PepsiCo, Beverages, Frito-Lay, Quakers, And latin American Food -3 main division: men's, women's and children's clothes -distinguish the firm production and marketing activities -location is used to organize the firm market efforts

(1) the manager must assign responsibility (2) the manager must grant authority (3) Manager must create accountability

-one is the external environment -lower -level managers are closer to the problems. -the riskier or more important the decsions that have to be made, the greater the tendency to centralize decision making. -is the abilities of lower-level managers

exists when a manager has a larger number of subordinates (1)The manager and the subordinates are very competent (2) the organization has a well-established set of standard operating procedures (3) few new problems are expected to arise

exist when the manager has only a few subordinates. (1) workers are physically located far from one another (2) The manager has much work to do in addition to supervising workers (3) a great deal of interaction is required between supervisor and workers (4) new problems arise frequently

and the organization is flat.

and the resulting organization is tall.

-A straight line could be drawn own through the levels of management from the chief executive down to the lowest level in the organization. In small retail store. -The downside of a line structure is that line managers are responsible for many activities, and therefore must have a wide range of knowledge about all of them.

-line managers have line authority, which means that they can make decisions and issue directive relating to the organization's goals. Staff managers seldom have this kind of authority. -advisory authority or throaty-> advisory authority or functional authority. Advisory authority is the exception that line managers will consult the appropriate staff manager when making descion.

Is a stronger form. It is the authority of staff managers to make decisions and issue directive about their areas of expertise.

Occurs when product departmentalization is superimposed on a functionally departmentalized organization.

an individual who is working with the team reports to both the project manager and the individual;s superior in the functional department

-flexibility probably being the most obvious one. -increase productivity, raise morale, and nurture creativity and innovation -employees experience personal development through doing a variety of jobs

-having employees eep to more than one supervisor can cause confusion about who is in charge -take longer to resolve problems and issues han individuals working alone. -personality clashes, poor communications, underlined individuals and team performance simultaneously. Because more mangers and support staff may be needed, a matrix structure is more expensive to maintain,

administration is the primary function performed, and other functions such as engineering, production, marketing, and finance are contracts out to other organizations.

is flexible that allows the organization to adjust quickly to change.

challenges faced by managers in network-structure organizations include controlling the quality of work performed by other organization, low morale and high turnover among hourly workers, and a lack of clear hierarchy.

Characterized by a base of trust and friendship among employees, a strong commitment to the organization, and informal environment.

may have a negative connotation, but it also involves a high degree of passion, engr., see of purpose, and excitement for one's work.

does not imply that employee are motivated to work on only for the money, although financial gain does play a role

employees do not become friends, and they work "at" the organization, not "for" it. Employees have a high degree of autonomy, flexibility, and equality.

combines the positive traits of the network culture -those of friendship, commitment, high focus on performance, and high energy.

increase in growth, profit, productivity, and job satisfaction.

integration of two or more companies.

adv. -Their several members are able to bring information and knowledge to the task are hand. -Committees tend to make more accurate decisions and to transmit their results through the organization more effectively. -deliberations take longer than individual actions -unceccesay compromise make take place within the committee, or the opposite may occur, as on persona dominates

-workers may create an informal group to go bowling, form a munition, get a particular manager fired or transferred, or meet for lunch. -cause disagreement and conflict, or them can help to boost morale and job satisfaction. -formal communications usually follow a path that parallels the organizational chain of command.