Chapter 7 Flashcards
The reporting structure and division of labor in an organization
Organization chart
A form of organization that seeks to maximize internal efficiency
Mechanistic organization
An organizational form that emphasizes flexibility
Organic structure
An aspect of the organization’s internal environment created by job specialization and the division of labor
Differentiation
The degree to which differentiated work units work together and coordinate their efforts
Integration
The assignment of different tasks to different people or groups
Division of labor
A process in which different individuals and units perform different tasks
Specialization
The procedures that link the various parts of an organization to achieve the organization’s overall mission
Coordination
The legitimate right to make decisions and to tell other people what to do
Authority
The number of subordinates who report directly to an executive or supervisor
Span of control
The assignment of new or additional responsibilities to a subordinate
Delegation
The assignment of a task that an employee is supposed to carry out
Responsibility
The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance
Accountability
An organization in which high level executives make most decisions and pass them to lower levels for implementation
Centralized organization
An organization in which lower-level managers make important decisions
Decentralized organization
Units that deal directly with the organizations primary goods and services
Line departments
Units that support line department
Staff departments
Subdividing an organization into smaller subunits
Departmentalization
Departmentalization around specialized activities such as production, marketing and human resources
Functional organization
Departmentalization that groups units around products, consumers, or geographic regions
Divisional organization
An organization composed of dual reporting relationships in which some managers report to 2 supervisors – a functional manager and a divisional manager
Matrix organization
A structure in which each worker reports to one boss, who in turn reports to one boss
Unit-of-command principle
A collection of independent mostly single function firms that collaborate on a good or service
Network organization
Advantages of Delegation
Leverages manager’s energy and talent, conserves managers’ most viable asset: time, develops managerial skills and knowledge in subordinates, promotes subordinates’ sense of importance and commitment to organization
Three basic approaches to departmentalization
Functional, divisional, and matrix
Vertical differentiation within organizational structure
Authority with independent organization, the Board of Directors, the chief executives, hierarchical levels, as well as issues pertaining to delegation and decentralization
Horizontal differentiation in an organizational structure
Exploring issues of the departmentalization that create functional, divisional, and matrix organizations
The optimal span of control maximizes effectiveness by balancing to considerations:
- They must be narrow enough to permit managers to maintain control over subordinates. 2. It must not be so narrow that it leads to over control and a excessive number of managers overseeing a few subordinates
The optimal span of control depends on a number of factors:
- The work is clearly defined and unambiguous. 2. Subordinates are highly trained and have access to information. 3. The manager is highly capable and supportive. 4. Jobs are similar, and performance measures are comparable. 5. Subordinates prefer autonomy to the supervisory control.
Steps in effective delegation
- The find the goal. 2. Select the person for the tax. 3. Solicit the subordinates view about suggested approaches. 4. Give the subordinate the authority, time and resources to perform the assignment. 5. Schedule checkpoints for reviewing progress. 6. Follow through by discussing progress at appropriate intervals.
The functional organization structure
The divisional organization structure
Matrix organizational structure
Divisions are built around groups of customers (divisional organization)
Customer divisions
Divisions are structured around geographic regions (divisional organization)
Geographic divisions
The product approach to departmentalization offers a number of potential advantages (the divisional organization)
- Information needs are managed more easily because people work closely on only one product. 2. People are committed full-time to a particular product line, so they are aware of how their jobs and to the broader scheme. 3. Test responsibilities are clear, and managers are more independent and accountable. 4. Managers receive broader training. Because the product structure is more flexible than the functional structure, it is best suited for unstable environments, when an ability to adapt rapidly to change is important
The matrix approach has a number of strengths (matrix organizational structure)
- Cross functional problem-solving leads to better informed and more creative decisions. 2. Decision-making is decentralized to a level where information is processed properly and relevant knowledge is applied. 3. Extensive communication networks help process large amount of information 4. With decisions delegated to appropriate levels, higher management levels are not overloaded with operational decisions. 5. Resource utilization is sufficient because key resources are shared across several important programs or products at the same time. 6. Employees learn the collaborative skills needed to function in an environment characterized by frequent meetings and more informal interactions 7. Dual career ladders are elaborated as more career options become available on both sides of the organization
A network organization
The broker serves as a network architect who envisions a set of groups or firms whose collective expertise could be focus on a particular good or service
Designer role
The broker serves as a network cooperator who takes the initiative to lay out the flow of resources and relationships and make certain that everyone shares the same goals, standards, payments and the like.
Process engineering role
The broker serves as a network developer who nurtures and enhances the network to make certain the relationships are healthy and mutually beneficial
Nurturing role
Temporary arrangements among partners that can be assembled and reassembled to the to the environment; also called virtual networks
Modular network
A person who assembles and coordinates participants in a network
Broker
Establishing common routines and procedures that apply uniformly to every
Standardization
The presence of rules and regulations governing how people in the organization interact
Formalization
Interdependent units are required to meet deadlines and objectives that contribute to a common goal
Coordination by plan
Managing high information – processing demands
Units interact with one another to make accommodations in order to achieve flexible coordination
Coordination by mutual adjustment
A former relationship created among independent organizations with the purpose of joint pursuit of mutual goals
Strategic alliance
In organization skills at creating, quarreling and the transfer of knowledge, and at modifying its behavior to reflect new knowledge and insights
Learning organization
An organization in which top management ensures that the consensus about the direction in which the business is heading
High involvement organization
Managers who want to strengthen the firm’s competitiveness need to focus on several related issues:
- Identify existing core capabilities 2. Acquire or build core capabilities that will be important for the future. 3. Keep investing in capabilities, so the firm remains world-class and better than competitors. 4. Extend capabilities to find new applications and opportunities for the markets of tomorrow
It is not enough for an organization to have valuable resources that provide capabilities. Those resources need to be managed by 3 things:
- Accumulate the right resources 2. Combine the resources in ways that give the organization capabilities. 3. Leverage or exploit their resources
Managers must devote plenty of time to developing the human relationships and the partnership. The best alliances are true partnerships that meet the following criteria:
- Individual excellence: both partners add value, and their motives are positive 2. Importance: both partners want the relationship to work because the health and meet long-term strategic objectives. 3. Interdependence: the partners need each other, each helps the other reach its goals. 4. Investment: the partners to vote financial and other resources to the relationship. 5. Information: the partners communicate openly of articles, technical data, problems, and changing situations. 6. Integration: reporters develop shared ways of operating. 7. Institutionalization: to relationship has formal status with clear responsibilities. 8. Integrity: both partners are trustworthy and honorable
How do firms, true learning organization’s? There are a few important ingredients:
- They share ideas. 2. The benchmark. 3. They carefully review success and failures. 4. The search constantly for new knowledge. 5. Their people engage in discipline thinking and attention to detail.
An integrated approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that results in high quality goods and services
total quality management (TQM)
A series of quality standards developed by a committee working under the international organization of standardization to improve total quality in all businesses for the benefit of producers and consumers
ISO 9001
The systematic application of scientific knowledge to a new product, process or service
Technology
Technologies that produce goods and services in low volume
Small batch
Technologies that produce goods and services in high volume
Large batch
A process that is highly automated and has a continuous production for
Continuous process
The production of varied, individually customized products of the low cost of standardized, mass-produced products
Mass customization
In operation that strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement
Lean manufacturing
A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed
Just in time (JIT)
