question

No matter what the size of the business, the principles of organization are much the same

answer

True

question

Organizing, or structuring

answer

begins with determining what work needs to be done; and then dividing the tasks

question

Division of labor

answer

dividing the tasks to be completed

question

Job specialization

answer

dividing tasks into smaller jobs

question

departmentalization

answer

the process of setting up individual departments to do specialized tasks

question

Structuring an organization

answer

consists of devising a division of labor; setting up teams or departments to do specific tasks; and assigning responsibility and authority to people.

question

Organization chart

answer

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

question

bureaucracy

answer

reliance of rules and regulations to give managers control over employees

question

mass production

answer

methods for efficiently producing large quantities of goods

question

economies of scale

answer

the fact that companies can reduce their production costs by purchasing raw materials in bulk

question

two influential thinkers during the era of mass production, organizations, theorists emerged

answer

Henri Fayol, Max Weber

question

Fayols Principles of organization published in his book Administration industrielle et generale 1919, popularized in US under the title General and Industrial management 1949

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

each worker is to report to one, and only one boss.

question

Hierarchy of authority

answer

All workers should know to whom they report. Managers should have the right to give orders and expect others to follow

question

Division of labor

answer

functions to be divided into areas of specialization such as production, marketing, and finance

question

Subordination of individual interests to the general interests

answer

workers to think of themselves as a coordinated team . The goals of the team are more important than the goals of individual workers

question

`Authority

answer

Managers have the right to give orders and the power to enforce obedience. Authority and responsibility are related; whenever authority is exercised, responsibility arises

question

Degree of centralization

answer

the amount of decision-making power vested in top management should vary by circumstances. In a smaller organization, it's possible to centralize all decision making power in the top manager; In a larger organization, however, some decision making power for both major and minor issues, should be delegated to lower- level managers and employees

question

Clear communication channels

answer

All workers should be able to reach others in the firm quickly and easily

question

Order

answer

Materials and people should be placed and maintained in the proper location

question

Equity

answer

A manager should treat employees and peers with respect and justice

question

Esprit de corps

answer

A spirit of pride and loyalty should be created among people in the firm

question

Max Weber and organizational theory

answer

Max Weber's book, The theory of Social and Economic Organizations appeared in the US in late 1940s much like Fayol's. Weber a German sociologist and economist , promoted the pyramid-shaped organization structure that became popular in large firms. Weber put great trust in managers and felt the firm would do well if employees simply did what they were told

question

Webers principles of organization resembled Fayol's in addition Weber emphasized:

answer

Job Description; Written rules, decision guidelines, and detailed records; Consistent procedures, regulations, and policies; Staffing and promotion based on qualifications;;; he was in favor of bureaucracy

question

Hierarchy

answer

a system in which one person is at the top of the organization and is a ranked or sequential ordering from the top down of managers and others who are responsible to that person

question

chain of command

answer

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

question

organization chart

answer

is a visual device that shows relationships among people and divides the organization's work; it shows who reports to whom

question

empowerment

answer

giving employees authority, which works only when employees are given the proper training and resources to respond

question

Centralized authority

answer

occurs when decision making is concentrated at the top level of management.

question

decentralized authority

answer

occurs when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be

question

span of control

answer

describes the optimal number of subordinates a manager supervises or should supervise. 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

tall organization structures

answer

an organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management

question

flat organization structure

answer

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

question

departmentalization

answer

divides organizations into separate units, the traditional way to departmentalize is by function. Groups workers according to their skills, expertise, or resource us so that they can specialize and work together more efficiently

question

Advantages of departmentalization

answer

1. Employees can develop skills in depth and progress within a department as they master more skills 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

question

Disadvantages of departmentalization

answer

1, Departments may not communicate well. For example, production may be so isolated from marketing that it does not get needed feedback from customers 2. Employees may identify with their department's goal rather than the organization's. The purchasing department may find a good value somewhere and buy a huge volume of goods. That makes purchasing look good, but the high cost of storing the goods hurts overall profitability 3. The company's response to external changes may be slow 4. People may not be trained to take different managerial responsibilities; rather, they tend to become narrow specialists 5. Department members may engage in groupthnk (they think alike) and may need input rom outside to become more creative

question

Organizational models

answer

1. line organizations 2. line-and-staff organizations 3. matrix style organizations 4. cross-functional self managed teams

question

line organizations

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 al people reporting to only one supervisor

question

disadvantages to line organizations in large organizations

answer

being too inflexible, having few specialists or experts to advise people alone the line, and of having lengthy lines of communications

question

line personnel

answer

employees who are part of the chain of command that is responsible for achieving organizational goals

question

staff personnel

answer

employees who advise and assist line personnel in meeting their goals

question

both line and line-and-staff organization structures may suffer from inflexibility

answer

true

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 line-and-staff structure

question

the matrix structure was developed in the aerospace industry and is now familiar in areas such as banking, management, consulting firms, accounting firms, and agencies and school systems

answer

true

question

Matrix structure advantages

answer

It gives managers flexibility in assigning people to projects it encourages interorganizational cooperation and teamwork it can produce creative solutions to product development problems it makes efficient use of organizational resources

question

Matrix structure disadvantages

answer

it's costly and complex it can confuse employees about where their loyalty belongs- with their functional unit it requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems it may be only a temporary solution to a long term problem

question

cross-functional self-managed teams

answer

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

question

self-managed

answer

means that they are empowered to make decisions without management approval. the barriers among design, engineering, marketing, distribution, and other functions fall when interdepartmental teams are created

question

networking

answer

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

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

benchmarkng

answer

compares 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

redesigning an organization so 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

question

traditional organization

answer

top management middle management supervisory management frontline workers (pyramid chart)

question

inverted organization

answer

empowered frontline workers (often in terms) Support personnel top management

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

question

informal organization

answer

the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organzation

Understanding Business Ch 8 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards