Chapter 3: Organizing Flashcards
organizational structure
arrangement of people and tasks to accomplish organizational goals
formal or informal structure
principles of a bureaucratic organization (6)
hierarchy/chain of command
unity of command
span of control
task specialization (separate divisions or departments)
responsibilities + job description
line and staff functions (line deals with primary output & staff assists line functions)
bureaucracy advantages and disadvantages
+ allows for high level of accomplishment
+ workers know who is responsible for what and whether they have authority to make a given decision
+ facilities vertical integration
+ prevents workers from losing direction
- can be too rigid
- rules + regulations can lead to inefficiency
- frustration caused by red tape
- slower decision making (layers of approvals)
delegation
assigning formal authority and responsibility for accomplishing a specific task to another person
in order to delegate effectively, a manager should… (5)
assign duties to the right people (capable, motivated, responsible…)
delegate the whole task and step back (complete responsibility -> motivated)
give as much instructions as needed (coaching)
retain some important tasks (sensitive tasks)
obtain feedback on delegated task
difference between centralization and decentralization
centralization: extent to which authority is retained at the top of the organization
decentralization: extent to which authority is passed down to lower levels in an organization
- when decisions must be made at lower organizational levels (to be more attentive to market needs)
departmentalization
process of subdividing work into departments
functional
greographic
product/service
functional departmentalization
departments defined by function (eg. accounting)
+ well suited large batches of work + specialization
- people within unit may not communicate with other units
- can have problems due do size + complexity
geographic departmentalization
departments arranged according to geographical area
+ allows for decision making at local level (more attentive to market needs)
- can lead to high costs (duplication of efforts)
- management may experience difficulty in controlling local units
product/service departmentalization
departments arranged according to product/service
+ focus on a product/service, allows each department the maximum opportunity to grow
+ makes sense when product/service has unique demands
- in well run firms, unit cooperate in mutual benefit
- can lead to high costs (duplication of efforts)
- management may experience difficulty in controlling units
alternatives to departmentalization (hierarchy)
project structure matrix organization horizontal structure flat structure informal structure hybrid structure conglomerate
project structure
temporary group of specialists working under one manager to accomplish a fixed objective
- construction, military…
matrix structure
project structure over a functional structure
- capitalises on advantages of both + minimizing disadvantages
- big projects function as mini companies
- may make workers feel confused regarding chain of command
flat structures
organization with relatively few layers of management, making it less bureaucratic
- wider span of control
- shorter chain of command
downsizing
way of simplifying an organization
- make it less bureaucratic
+ reduce costs and increase profits
- can be expensive
for downsizing to help company in the long run (6)
- should be part of business strategy
- eliminate low value activities
- keep future work requirements in hand
- sensible criteria regarding laying off workers
- help laid off workers (assistance + reorientation)
- involve employees in resizing decisions
home shoring
moving customer service into workers’ homes as a form of telecommuting
horizontal structure
arrangement of work by multidisciplinary teams that are responsible for accomplishing a process
- can be considered a team structure
- instead of task focused, workers focus on purpose
reengineering
radical redesign of work to achieve substantial improvements in performance
- searches for the most efficient way to perform a large task
- switching from a vertical (task) emphasis to a horizontal (process) emphasis
informal structures
set of unofficial relationships that emerge to take care of events and transactions not covered by the formal structure
- adds flexibility + speed
- attempt to avoid bureaucracy
social network analysis (informal structures)
mapping and measuring of relationships and links between and among people, groups, and organizations
hybrid structure
combines characteristics from two or more structure types
conglomerate
large company that is really a collection of loosely related independent companies, which is controlled from a headquarters
factors affecting organizational structure
strategy + goals
technology
size of company
financial condition
environmental stability of firm
job design
process of laying out job responsibilities and duties and describing how they are to be performed
four major dimensions of job design
task characteristics
knowledge characteristics
social characteristics
contextual characteristics
task characteristics (job design)
how the work itself is accomplished
sub-dimensions:
- autonomy
- task variety
- task significance (impact on others)
- task identity
- feedback from job
knowledge characteristics (job design)
demand for knowledge
sub-dimensions:
- job complexity
- information processing
- problem solving
- skill variety
- specialization
social characteristics (job design)
interpersonal aspects of a job
sub-dimensions:
- interdependence
- interaction outside organization
- feedback from others
contextual characteristics (job design)
setting or environment of the job
sub-dimensions:
- ergonomics (if job allows correct posture or movement)
- physical demands
- work conditions
- equipment
professional vs non professional job differences
professional: requires more complexity + problem solving + skill variety
non professional: more physical demands
job specialization
degree to which a job holder performs only a limited number of tasks
\+ allows for development of expertise \+ requires less training - can lead to monotony - less flexibility - slow response
job description
written statement of the key features of a job along with the activities required to perform it effectively
job enrichment
include more challenge and responsibility in jobs to make them more appealing to employees
characteristics of an enriched job
personal accountability control over method direct feedback control over resources unique experience direct communication authority new learning ...
job characteristics model of job enrichment
method of job enrichment that focuses on the task and interpersonal dimensions of a job
characteristics: skill variety + task identity + task significance + autonomy + feedback
job involvement
degree to which individuals identify psychologically with their work
job enlargement
increasing the number and variety of tasks within a job
job rotation
temporary switching of job assignments
job crafting
physical and mental changes individuals make in the task or relationship aspects of their job
types of changes:
- number and types of job tasks
- interactions with others on the job
- one’s view of the job
job embeddedness
array of forces attaching people to their jobs
theory of turnover suggesting that a combination of many factors influences whether employees stay with a firm
- links or connections to people + community
- sacrifices that would be made if job were left behind
- fit + compatibility with organizational environment (internal + external)
ergonomics
practice of matching machines to worker requirements
- workers should adopt safe + comfortable postures
alternative work schedules
flexible working hours
compressed work sheet (40 hours in less than 5 days)
telecommuting (work at home, productivity increases 25%)
job sharing (two part time workers share job)
part-time + temporary work
shift work (non-standard hour shifts)
high-performance work system
a way of organizing work so that frontline workers participate in decisions that have an impact on their jobs and the wider organization
difference between worker retention and worker turnover
retention: workers remain within organization, same staff
turnover: worker substitution, staff is changing
- ## retention is a major strategy in talent management
talent management
approach to attract, develop, and retain people with the aptitude and abilities to meet current and future organizational needs
strategic HR planning involves planning for:
future needs
future turnover
recruitment + layoffs
training + development
HR model
strategic planning of staff recruiting selection orientation + training performance evaluation compensation
recruitment
process of attracting the right candidate with set of right skills + characteristics to fulfil job
job description vs job specification
job description states the activities required in job whereas job specification states the characteristics required to perform the job
sources for recruitment
internal sources (referrals, present employees..)
visit to universities
media adverts
flyers
references
internet (online recruiting + social media)
global recruitment
recruiters must meet job specifications calling for multiculturalism in addition to more traditional skills
for managers, can be difficult because candidates must blend the work practices of two cultures
decruitment
process of reducing workforce
- not just layoffs, can be transfers, retirement…
selection process involves… (6)
- screening interview
- psychological tests (situational, aptitude + personality + honesty and integrity tests)
- job interview (when applicant has been successful in previous steps)
- reference + background check
- physical examination + drug testing
- cross-cultural selection
employee orientation
activity designed to acquaint new employees with the organization
explains corporate culture
portrays nature of job + performance expectations
buddy/mentor aids in orientation
informal socialisation to introduce employees
common forms of training
personal skills interpersonal technical training mandatory (by law) training task performance training decision making training problem solving training
performance evaluation (appraisal)
formal system for measuring, evaluating, and reviewing performance
key factors to evaluate:
- task performance
- citizenship (within environment)
- counterproductive behaviour
forced rankings
employees are measured against each other
“top 20%, vital 70% and bottom 10%”
360 evaluation
performance appraisal in which a person is evaluated by a sampling of all the people with whom he or she interacts
purposes of performance evaluation
salary administration
documenting poor performance
increasing productivity
help employees grow + develop
major 3 forms of compensation
fixed remuneration (fixed wage, salary..)
variable remuneration (dependent on performance)
job benefits (insurance, healthcare, car…)
labour unions
seeks fair treatment of workers –> influences almost all human resource programs and practices
has a larger role in countries with economic coordination (w/ state)
organizational culture
system of shared values and beliefs that actively influence the behavior of organization members
6 dimensions of organizational culture
values + beliefs relative diversity resource allocation + rewards (investment of resources) degree of change sense of ownership strength of culture (extent of impact)
how to managers manage + sustain culture
be a role model for change use rewards to reinforce the culture select candidates that match the culture sponsor new training programs to support the culture spread the type of change required
consequences of organizational culture (6)
increase in productivity, quality + moral
competitive advantage
innovation
predictor of success in merging firms is compatibility of their respective cultures
finding a good person organization fit (easier to identify)
direction of leadership activity
conditions for change
non satisfaction with current state of affairs
existence of possible alternative to current state
existence of benefits from changing the current state
perception that group is capable of implementing the change
unfreezing
reducing or eliminating resistance to change
if employees oppose a change, it will not be implemented effectively
reasons for resistance to change (6)
fear of unfavourable outcome
not wanting to break old habits
concern about upsetting balance of an activity
desire to cling to the old
awareness of the weakness of proposed change
resistance can be feedback from worried workers
gaining support for change (8)
allow for discussion + negotiation allow for participation point out compelling reasons for change establish sense of urgency use a visual people can relate to avoid change overload get best workers behind program allow for first hand observation of change
six sigma
philosophy of driving out waste and improving quality, and the cost and time performance of a company
