Ch6 Flashcards
Key functions that managers perform
Planning, organizing, leading, and controlling.
Division of labour
Determining work activities and dividing up tasks
Departmentalization
Grouping jobs and employees
Delegation
Assigning authority and responsibilities
Organization
Order and design of relationships within a company or firm. Consists of two or more people working together with a common objective and clarity of purpose.
Not involved in operations
Shareholders vote for who sits on the board of directors and they represent shareholders to management
Management
Management execute the goals and policies outlined by the board of directors. The number of layers of management will depend on the organizational structure
Execute the plan
Employees follow the directions of their managers
Forms of organizational structures
Traditional, matrix, and departmentalization
Departmentalization structure
Divides the organization into logical division’s where each division works as a separate unit
Product departmentalization
Where the structure is set up so that each section contains a separate product
Functional departmentalization
An organization is organized into departments based upon the respective functions each performs for the organization.
Advantages of departmentalization structure
• Reporting structure is clear. Relationships and job responsibilities may be clear and defined.
• Power struggles may be less frequent. Fewer battles within the department, as all everyone
should be aligned with a common purpose
• Higher performance. Employees working in focused groups may experience increased
feelings of ownership, commitment, and motivation.
Disadvantages of departmentalization structure
• Power struggles. Managers in different departments may have different goals, management
styles and needs, resulting in a battle for power, resources and influence in the direction of the
overall company
• Lack of cohesiveness. Team members from different departments may have difficulty
communicating effectively and working together as a team.
• Teamwork. By separating the skills and abilities of various specialists, the company can decrease
creativity and innovation.
• Lacks Flexibility. The structure can be less flexible because each department is siloed off from
the others, making it harder to collaborate with other departments.
Matrix structure
Used in conjunction with the traditional line and staff structure in an organization. Brings together people from different functional areas of the organization
Advantages of matrix structure
- teamwork
- efficient use of resources
- flexibility
- ability to balance conflicting objectives
- higher performance
- opportunities for personal and professional development.
Disadvantages of matrix structure
- power struggles
- confusion among team members
- lack of cohesiveness
Key attributes of a virtual corporation
- technology
- opportunism
- excellence
- trust
- no borders
Virtual teams
Reduced travel time and costs, reduced relocation expenses, and utilization of specialized talent regardless of an employees location
Outsourcing
Includes customer service, production, engineering, information technology , sales, marketing, and more
Gig economy
Contract work to freelancers, not considered full time employees.
Rational decision making model
- Identify problem
- Choose best decision process
- Discover possible choices
- Choose choice with most value
- Implement choice
- Evaluate choice
Managerial skills needed
Conceptual, human relations, and technical
Conceptual skills
Being able to relate organization to external environment and being able to recognize the problem and evaluate it.
Human relations skills
The ability to deal with people in the organization and outside the organization.
Technical skills
Skills that involve you to perform tasks in a department with specific discipline
Types of leadership
Autocratic, participative, and free- rein
Autocratic leadership
Leaders who direct and allow very little input in their decision
Participative leadership
Democratic: inputs from everyone then votes
Consensual: discussion and everyone comes to a conclusion/decision
Consultative: confer with members but YOU make the final call
Free rein leadership
Turn all authority over to the group
Employee empowerment
Participative and free rein leadership styles
Group cohesiveness
The degree to which group members are attracted to one another and share the same group goals
- Group work
Vs - Teamwork
- Share resources and coordinate efforts to help members better perform their individual tasks
- Collaboration, pooling of knowledge, skills, abilities and resources in a collective manner to attain a common goal
Types of theories
- equity theory
- expectancy theory
- goal setting theory
- reinforcement theory
Equity theory
Perception of fairness directly affects workers motivation
Expectancy theory
The way the individual acts is because of their belief that their efforts will lead to attractive rewards or that they will be recognized
Goal setting theory
Employees are highly motivated when they set specific goals and get feedback
Reinforcement theory
People do things because the believe other things will also follow
Types of motivations
Job enlargement Job enrichment Job rotation Economic incentives Work scheduling options
Job enlargement
Horizontal expansion of a job. Increasing number and variety of tasks a person performs
Job enrichment
Vertical expansion of a persons job. Person gets more authority.
Job rotation
Shifting of workers from one job to another
Work scheduling options
Flexible tome
Compressed work week
4-40 hrs per week
Economic incentives
Piece rate pays, profit sharing plans, bonuses, gain sharing plans, stock options
