chapter 8 business – Flashcards

Unlock all answers in this set

Unlock answers
question
According to the text the key to success for organizations is
answer
According to the text the key to success for organizations is remaining flexible and adapting to the changing times. Often that means going back to basic organizational principles.
question
describe division of labor
answer
Division of labor refers to dividing up tasks among workers
question
describe job specialization
answer
Job specialization is dividing tasks into smaller jobs
question
often being flexible enough to adapt to changing times means
answer
going back to basic organizational principles and rebuilding the firm on a sound foundation
question
one of the first steps is to -- your business
answer
organize
question
organizing or structuring begins with?
answer
determining what work needs to be done (mowing, edging, trimming) and then dividing up the tasks.
question
the process of setting up individual departments to do specialized tasks is called
answer
departmentalization
question
name some departments a company many have
answer
production (mowing) marketing accounting and maintenance.
question
starting an organization consists of
answer
a. devising a division of labor b. setting up teams or departments to do specific tasks c. assigning responsibility and authority to people d. allocating resources e. assigning specific tasks f. establishing procedures for accomplishing organizational objectives
question
what does an organization chart show
answer
An organization chart shows relationships among people: who is accountable for the completion of specific work and who reports to whom.
question
what has created so much change in organizations
answer
The change in organizations is due to the changing business environment - more global competition, a declining economy, faster technological change, and pressure to do more about the environment. Consumer expectations have also changed, and consumers expect the highest quality products and fast, friendly service at a reasonable cost.
question
many organizations in the past were designed more to
answer
facilitate management than to please the costumes.
question
mass production
answer
methods for efficiently producing large quantities of goods
question
during the era of mass production, organization theorists emerged name two influential thinkers whose principles are still being used in businesses throughout the world
answer
henri fayol and max weber
question
name a booked the Henri Fayol published in 1919 and in 1949 it was popularized in the US under what title
answer
Administration industrielle et generale In US General and Industrial Management
question
name 10 of Fayols principles of organization
answer
Unity of command Hierarchy of authority Division of labor Subordination of individual interests to the general interest Authority Degree of centralization Clear communication channels Order Equity Esprit de corps
question
Unity of command
answer
reporting to only one boss
question
Hierarchy of authority -
answer
workers should know to whom they report. (Managers should have the right to give orders and expect others to follow(changed over time empowerment is often more important now))
question
Division of labor -
answer
functions are divided into areas of specialization (such as production, marketing, and finance has changed cross functional teamwork is getting more emphasis)
question
Subordination of individual interests to the general interest -
answer
team work (concept is still very much used)
question
Authority -
answer
managers have the right to give orders and power to enforce obedience (being modified as managers are beginning to empower employees)
question
Degree of centralization -
answer
The amount of decision making power given to top management should vary by circumstances.
question
Clear communication channels -
answer
all workers should be able to reach others in the firm quickly and easily
question
Order -
answer
people and materials should be in the proper location
question
Equity -
answer
managers should treat employees with respect and justice
question
Esprit de corps -
answer
a spirit of pride and loyalty should be created
question
the process of rule making often led to
answer
The process of rule making often led to rigid organizations that didn't always respond quickly to consumer requests
question
what was the title of max webers book
answer
the theory of social and economic organization it appeared int eh US in the late 40's
question
Max Weber was a
answer
German sociologist and economist, he promoted the pyramid-shaped organization structure that became popular in large firms
question
Identify four characteristics of Max Webers Bureaucracy
answer
a. Job descriptions b. Written rules, decision guidelines and detailed records c. Consistent procedures, regulations and policies d. Staffing and promotions based on qualifications
question
how do workers today differ from those during the time that Weber was writing and how did that affect management
answer
Workers during Weber's time were much less educated and trained than today's workers. Weber felt that a firm would do well if employees would do what managers told them to do. The less decision making employees had to do, the better.
question
In a company with many layer of management what is the process for an employee mto introduce a work change?
answer
In a company with many layers of management, if employees want to introduce work changes, they ask a supervisor, who asks a manager, who asks a manager at the next level up, and so on. Eventually a decision is made and passed down from manager to manager until it reaches the employee. Decisions can take weeks or months to be made.
question
What did Weber mean by the term "bureaucrat"
answer
Weber used the term bureaucrat to describe a middle manager whose function it was to implement top management's orders.
question
Name an organization today that still thrives on Weber's theories
answer
United Parcel Service (UPS)
question
When employees have to ask their manager for permission to make a change,
answer
the process may take so long that customers become annoyed. This can happen in both large and small organizations. Since customers want efficient, quick service, slow service is not acceptable.
question
empowerment works only when
answer
employees are given the proper training and resources to respond
question
How are companies reorganizing to make customers happy
answer
To make customers happy, organizations are giving employees more power to make decisions on their own and to please the customer no matter what.
question
name two companies who have reorganized giving empowerment to employees
answer
Home Depot and Nordstrom ( Nordstrom employees can accept a return from a customer without managerial approval even if the item was not originally sold at that store)
question
what are the advantages of centralized authority
answer
Greater management control More efficiency Simpler distribution system Stronger brand/corporate image
question
what are the disadvantages of centralized authority
answer
Less responsiveness to customers Less empowerment Interorganizational conflict Lower morale away from headquarters
question
What are the advantages of decentralized authority
answer
Better adaptation go customer wants More empowerment of workers Faster decision making Higher morale
question
what are the disadvantages of decentralized authority
answer
Less efficiency Complex distribution system Less top-management control Weakened corporate image
question
when designing responsive organizations firms have to make decisions about several organizational issues:
answer
centralization versus decentralization span of control tall versus flat organization structures departmentalization
question
what retailing giant has a very centralized form of management
answer
Target it is so top down that the CEO interviews candidates for the top 600 positions
question
McDonalds believes
answer
the purchasing promotion and other such decisions are best handled centrally.
question
companies are moving toward catering to what
answer
companies are moving toward catering to local markets
question
what two retail stores are implementing decentralized authority
answer
JcPenny and Manys also Home depot and lowes
question
why does span of control narrow at higher levels of organization
answer
At levels where work is standardized, span of control can be broad. The appropriate span gradually narrows at higher levels of the organization because work becomes less standardized and managers need more face-to-face communication.
question
what is the trend in todays organizations regarding span of control
answer
The trend is to expand the span of control by reducing the number of middle managers and hiring more educated and talented lower level employees.
question
Span of control in tall organizational structures
answer
In a tall organization there are many levels of management, and span of control is small. (few people reported to each manager)
question
Span of control in flat organizational structures
answer
In a flat organization, there are fewer layers of management, and the span of control gets broader. (many people report to each manager)
question
The appropriate span of control gradually
answer
narrows at higher levels of the organization
question
why does The appropriate span of control gradually narrows at higher levels of the organization
answer
because work becomes less standardized and managers need more face to face communication
question
flat structures can respond readily to customers demands because
answer
lower-level employees have authority and responsibility for making decisions and mangers can be spared some day to day tasks
question
what are the advantages of the traditional functional structure
answer
a. Skills can be developed in depth and employees can progress as skills are developed. b. the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area c. Employees can coordinate work within the function, and top management can easily direct and control various departments' activities
question
what are the disadvantages of the traditional functional structure
answer
a. Lack of communication among departments. b. Employees identify with the department and not with the corporation as a whole. c. Response to external change is slow. d. people may not be trained to take different managerial responsibilities rather they tend to become narrow specialists . e. People in the same department tend to think alike - groupthink.
question
what are five methods of grouping, or departmentalizing, workers
answer
a. Product b. Function c. Customer group d. Geographic location e. Process
question
groupthink
answer
People in the same department tend to think alike
question
five methods of grouping, or departmentalizing workers are
answer
product function customer group geographic location
question
The decision about which way to departmentalize depends on
answer
the nature of the product and the customers served.
question
such product focused departmentalization usually results in
answer
good customer relations
question
A hybrid form of departmentalization is being used when
answer
companies use a combination of departmentalization techniques.
question
Four organizational structures are:
answer
a. Line organizations b. Line and staff organizations c. Matrix-style organizations d. Cross-functional self-managed teams
question
In a large business, a line organization may have the disadvantages of
answer
a. being too inflexible b. having too few specialists c. having long lines of communication d. being unable to handle complex decisions necessary in a large organization.
question
a line organizaiton does not have
answer
any specialists who provide managerial support
question
name four departments line organizations do not have
answer
legal department 'accounting department human resources department information technology department
question
Line organizations follow all of whos traditional management rules
answer
Fayols
question
Line managers can issue
answer
orders enforce discipline and adjust the organization as conditions change
question
line personnel include
answer
production workers
question
staff personnel include
answer
marketing research legal advising information technology human resource management
question
what is the difference between line and staff personnel
answer
The difference between line and staff personnel is authority. Line personnel have formal authority to make policy decisions. Staff personnel have the authority to advise the line personnel and make suggestions, but they can't make policy changes themselves.
question
In a matrix system a product manager can
answer
borrow people from different departments to help design and market new product ideas.
question
matrix system is important in industries where competition is stiff, and the life cycle of new ideas is short, and where the emphasis is on
answer
new product development, creativity, special projects, rapid communication, and interdepartmental teamwork.
question
staff personnel strengthen the
answer
line positions and are like well-paid consultants on the organization's payrol
question
Many organization benefit form expert staff advice on
answer
safety legal issues quality control database management motivation investing
question
what is the most important difference between line and staff personnel
answer
authority
question
Line personnel have formal authority to
answer
make policy decisions
question
Staff personnel have the authority to
answer
advise the line personnel and make suggestions, but they can't make policy changes themselves
question
todays economy is dominated by
answer
high growth industries where competition is stiff and the life cycle of new ideas is short
question
name so high growth industries
answer
telecommunications nanotechnology robotics biotechnology aerospace
question
The advantages of a matrix structure are
answer
a. Flexibility in assigning people to projects. b. Encourages cooperation among departments. c. Can produce creative solutions to problems. d. Allows for efficient use of resources.
question
disadvantages of a matrix structure are
answer
a. Costly and complex. b. Can cause confusion among employees as to where their loyalty belongs. c. Requires good interpersonal skills and cooperative managers and employees. d. Temporary solution to long term problem.
question
a potential problem with the teams created by matrix management is
answer
that the project teams are not permanent. After a problem is solved or a product developed, the team breaks up, so there is little opportunity for cross-functional training.
question
An answer to the disadvantage of the temporary teams created by matrix management is to
answer
develop permanent teams and to empower them to work closely with suppliers, customers, and others to quickly and efficiently bring out new, high-quality products while giving great service.
question
describe the characteristics of cross-functional teams
answer
Cross- functional teams consist of groups of employees from different departments who work together on a long term basis. These teams are empowered to make decisions without having to seek the approval of management. Barriers between functions fall when these interdepartmental teams are created.
question
why should cross functional teams include customers, suppliers, and distributors.
answer
When cross functional teams include customers, suppliers and distributors it goes beyond the boundaries of the organization, and market information can be shared.
question
self managed means
answer
that they are empowered to make decisions without management approval.
question
sometimes the teams are inter firm that is
answer
the members come form two or more companies
question
when suppliers and distributors are in other countries cross functional teams may
answer
share market information across national boundaries
question
what is meant by the concept of transparency
answer
Transparency occurs when a company is so open to other companies that electronic information is shared as if the companies were one company.
question
how have the networking, real time, and the concept of transparency changed they way information is shared between organizations
answer
Organizations are so closely linked via networking that each organization knows what the others are doing, in real time. Since data is so readily available to organizational partners, companies are so open to one another that the solid walls between them have become transparent. Because of this integration, two companies can now work together so closely that they operate as two departments within one company.
question
most organizations are no longer
answer
self-sufficient or self-contained
question
if Most organizations are no longer self-sufficient or self-contained what are they a part of
answer
Many modern organizations are part of a vast network of global businesses.
question
An organizational chart showing what people do within any one organization may not be complete because
answer
the company is actually part of a larger system of firms.
question
what is the result of those changes on organizational design and structure
answer
Organizational structures tend to be flexible and changing. Experts from one company may work for one company one year, and another the next year. Organizations deal with each other on a temporary basis and the ties between organizations are no longer permanent. These are often called virtual corporations because they are made up of replaceable firms or individuals that join the network and leave it as needed.
question
virtual corporations
answer
they are made up of replaceable firms or individuals that join the network and leave it as needed.
question
How does benchmarking lead to outsourcing, and ultimately to a firm's core competencies
answer
Benchmarking demands that organizations compare each function against the best in the world. If an organization can't do as well as the best in a particular area, it often will try to outsource the function to an organization that is the best. Outsourcing is assigning various functions to outside organizations. When a firm has completed the outsourcing process, the remaining functions are the firm's core competencies, which are functions that the organization can do as well as, or better than, any other organization in the world.
question
do networked organization structures tend to be flexible
answer
yes
question
when a firm has completed its outsourcing process the remain functions are its
answer
core competences
question
why is introducing change in an organization difficult
answer
Introducing change in an organization is difficult because managers and employees may have a tendency to "get stuck" in their old ways, and resist the efforts to change.
question
how are companies using the internet to help adapt to changes
answer
The Internet has created new opportunities to ask customers questions and provide them with information. Companies are also training older employees to be more tech savvy to become familiar with social networking sites such as Facebook and Twitter as well as other applications.
question
Companies are coordinating the efforts of traditional departments with
answer
their Internet staff to create easy-to-manage interactions.
question
are Companies also training older employees to be more tech savvy
answer
yes
question
once you have formed and organization you must
answer
be prepared to adapt the structure to changes in the market
question
in adapting to change employees have a tendency to say
answer
that's the way we've always done things. If it isn't broken, don't fix it
question
what is one of the hardest challenges facing any manager
answer
introducing change is thus one of the hardest challeneges facing any manager
question
to empower employees firms often must
answer
reorganize dramatically to make front line workers their most important people
question
with inverted organization the management layers are few and the managers job is
answer
to assist and support front line people not boss them around
question
illustrate and describe an inverted organization
answer
An inverted organization has contact people at the top and the chief executive officer at the bottom. There are few layers of management. Draw here
question
how does the inverted organization support front line personnel
answer
Companies based upon an inverted organization structure support front-line personnel with internal and external databases, advance communication systems and professional assistance.
question
how does (inverted organization) this change the requirements for front-line personnel
answer
means that front line personnel have to be better educated, better trained and better paid than in the past.
question
how is the culture of an organization reflected
answer
The culture of an organization is reflected in stories, traditions, and myths
question
describe the kind of organizational culture that the best organizations have..
answer
The best organizations have cultures that emphasize service to others, especially customers. The atmosphere is one of friendly, concerned, caring people who enjoy working together to provide a good product at a reasonable price. Those companies have less need for close supervision of employees, and fewer policy manuals, organization charts and formal rules, procedures and controls.
question
the key to productive culture
answer
The key to a productive culture is mutual trust.
question
These companies stress high moral and ethical values such
answer
as honesty, reliability, fairness, environmental protection, and social involvement.
question
in the past manager controlled
answer
information and that gave them power
question
in more progressive organizations today everyone shares
answer
information, often through an elaborate database system and among firms as well as within them
question
can a organizational culture can also be negative
answer
yes
question
what are two organizational systems that all companies have
answer
formal organization informal organization
question
what is a drawback of the formal organization
answer
The drawback of the formal organization is that it is often too slow and bureaucratic to enable an organization to adapt quickly.
question
what is a benefit of the formal organization
answer
The benefit of a formal organization is that it provides helpful guidelines and lines of authority to follow in routine situations.
question
what is the drawback of the informal organization
answer
The drawback of the informal organization is that it is often too unstructured and emotional to allow careful, reasoned decision-making on critical matters.
question
what is the benefit of the informal organization
answer
the informal organization is very effective in generating creative solutions to short-term problems and providing a feeling of camaraderie and teamwork among employees.
question
describe the importance of the "grapevine" in the organization
answer
The grapevine is the nerve center of the informal organization. It is the system through which unofficial information flows between employees and managers.
question
Key people in the grapevine have
answer
considerable influence.
question
how have managers' views toward the informal organization changed in the new more open organizations
answer
In more traditional organizations, managers and employees were often at odds, and the informal structure often hindered management. In the new, more open organizations, managers and employees work together and the informal structure is viewed as an asset that promotes harmony among workers and establishes a positive corporate culture.
question
can an organization operate effectively without both types of organiztion
answer
no
question
in any organization it's wise to learn quickly
answer
who is important in the informal organization
question
the informal organization's nerve center is
answer
the grapevine
question
the informal organization is an invaluable what
answer
managerial asset that can promote harmony among workers and establish the corporate culture
question
as effective as the informal organization may be in creating group cooperation it can still be
answer
equally powerful in resisting management directives.
question
what is the key to managerial success
answer
learning to create the right corporate culture and work within the informal organization
Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New