Chapter 8 Flashcards
the managerial function that involves the deployment of resources in a way that will achieve strategic goals
organizing
a system of consciously coordinated activities of two or more people
organization
organization formed to make money, or profits, by offering products or services
for-profit organization
organization formed to offer services to certain clients, not to make a profit
nonprofit organization
voluntary collectives whose purpose is to advance members’ interests
mutual-benefit organizations
a system of tasks and reporting relationships that coordinate and motivate an organization’s members so that they can work together to achieve the organization’s goals
organizational structure
a system of shared beliefs and values that develops within an organization and guides the behavior of its members; “social glue”
organizational culture
“a stool with three legs” made up of the organization’s structure, culture, and human resource management systems
organizational architecture
a _____ has an internal focus and values flexibility rather than stability and control; values cohesion, job satisfaction, collaboration, employee development and commitment
ex: Duck Dynasty = family culture
clan culture
a ____ has an internal focus and values stability and control over flexibility; ensures promptness, efficiency, and effectiveness
ex: McDonald’s
hierarchy culture
a ____ has an external focus and values flexibility; values adaptivity, creativity, and flexibility in the face of environmental change
ex: Google
adhocracy culture
a ____ has a strong external focus, is driven by competition, and values stability and control; focuses on effectiveness, as shown by profits, flexibility, and results (considered more important than job satisfaction and employee development)
ex: Brown & Brown Insurance
market culture
job satisfaction and organization commitment are highest for which type of culture?
clan culture
objective growth and objective profit are lowest for which type of culture?
clan culture
subjective innovation and subjective growth are highest for which type of culture?
market culture
quality of products and subjective profit are equal for:
clan, market, and adhocracy cultures
three layers of organizational culture
observable artifacts
values
basic assumptions
these include the physical manifestations of cultures, such as how employees dress, how managers act, how the office is decorated, etc.
observable artifacts
the explicitly stated values and norms preferred by an organization
espoused values
values and norms actually exhibited by the organization
enacted values
invisible, preconscious, and unobservable core values that are meant to guide employee perception and behavior, but are taken for granted and thus are hard to change
basic assumptions
how do employees learn culture?
stories, rituals, material symbols, language
many companies are tied to their founders and their founders’ beliefs
ex: Walt Disney
hero
a narrative based on true events, which is repeated - and sometimes embellished - to emphasize a particular view
stories
the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments
rituals
an object, act, quality, or event that coveys meaning to others
material symbols
used to familiarize new hires with the values, expected behaviors, and social knowledge needed to succeed in a specific organization
socialization
when new employees try to establish an understanding of the workplace’s culture and dynamics
learning process
when new employees adjust themselves to fit the organization’s culture
adjustment process
4 functions of an organization’s culture
- provide organizational identity
- facilitate collective commitment
- promote social-system stability
- providing direction
the founder’s values, the industry and business environment, the national culture, and the senior management’s vision and behavior
antecedents of culture
a combo of observable facts, espoused and enacted values, and basic assumptions of employees
organizational culture
organizational design and the rewards systems
organizational structure
socialization, mentoring, decision making, group dynamics, communication, empowerment, and leadership
group and social processes
common elements of all organizations
- a common purpose
- coordinated effort
- division of labor (work specialization)
- hierarchy of authority
- span of control
- authority
- centralization of authority
the number of people reporting directly to a single manager
span of control
when a manager has a small number of people reporting to him or her
narrow span of control
when a manager has many people reporting to him or her
wide span of control
when an organization has many levels and narrow spans of control
it is tall and narrow
when an organization has just a few levels and wide spans of control
it is flat and wide
wide spans of control are easier/better for…
standardized tasks
narrow spans of control are best for…
complex or specialized tasks
refers to the obligation to report and justify work results to people higher in the organizational hierarchy
accountability
the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
delegation
______ managers have the authority to make decisions and usually have people reporting to them; indicated by a solid vertical line on an organization chart
ex: vice presidents, heads of accounting
line managers
______ have authority functions; they provide advice, recommendations, and research to line managers; indicated by dotted horizontal lines on an organization chart
ex: legal counsels, human resource depts
staff personnel
in organizations with ______, higher-level managers make decisions; often associated with theory x perspective
centralized authority
in organizations with ______, decisions are made by middle-level and supervisory-level managers to whom higher managers have delegated power; often associated with theory y perspective
decentralized authority
involves the establishment of optimal organizational structures that will establish accountability and responsibility and ultimately help the firm achieve its strategy
organizational design
involve vertical management hierarchies and clear reporting relationships
traditional organizational designs
a structure with centralized authority, a flat hierarchy, few rules, and low work specialization
ex: small mom-and-pop firms in their earliest stages
simple organizational structure
a structure in which people with similar occupational specialties are put together in formal groups
***best for small firms or firms with a single focus
functional organizational structure
advantages of functional structure
- people working together in the same functional area can learn from one another
- managers can easily monitor and evaluate employees
- managers can more easily achieve success bc they are only responsible for one function of the company
disadvantages of functional structure
- it may be hard to facilitate communication between functional groups
- groups might be so focused on achieving success that they lose sight of organization’s overall goals
- there may be a breakdown of processes across functions
a structure in which people with diverse occupational specialties are put together in formal groups with similar products or services, customers or clients, or geographic regions
divisional structure
_______ divisions group activities around similar products or services
ex: Pepsi could have a bev. division and a snack division
product
_______ divisions group activities around common customers or clients
customer
_______ divisions group activities around defined regional locations
geographic
advantages of divisional structure
- greater customization is possible
- coordination is built into the structure
- managers can allocate resources to the appropriate divisions in the most attractive markets
- clear accountability
disadvantages of a divisional structure
- each division has to perform its own functional tasks (unnecessary and costly functional duplication)
- potential for loss of control as diff. divisions may have diff. approaches to work processes and output
- may be hard to maintain a unified sense of identity and organization culture
a structure that combines functional and divisional chains of command in a grid so that there are two command structures – vertical and horizontal
matrix organizational structure
in a ______ structure, employees report to two bosses: their functional manager and their project manager
matrix
advantage of matrix structure
- allows organization to use its employees for projects in addition to traditional functional work
disadvantages of matrix structure
- having two bosses may create problems
- having two goals may create problems
- approach may increase overhead and reduce efficiency
- use of teams may lead to diffusion of accountability for results
______ design involves the use of temporary or permanent teams to break down internal boundaries and improve collaboration
***works in conjunction with cross-functional teams
horizontal
advantages of horizontal structures
- they facilitate organizational learning
- they improve responsiveness to customers
- they enjoy the advantages of teamwork, including flexibility, empowerment, and broader perspectives
disadvantages of horizontal structures
- there may be difficulty separating the organization’s activities into “process” and “non-process”
- could lead to a cinderella problem (individuals not assigned to a team may feel neglected)
- emphasis on cross-functional teamwork might get in the way of functional specialization
- managers may perceive a “loss of turf” and try to inhibit horizontal collaboration
difference between matrix and horizontal design structures
the horizontal structure is MORE EFFICIENT and flatly organized with cross-functional teams; in contrast, a matrix structure merges employees from diff. divisions but RETAINS STRICT chain of command
a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks
***the collaborators may include competitors, suppliers, and customers
boundaryless organization
a structure in which a central core of the organization is complemented by outside, independent firms that provide outsourced goods and services and are linked to the central core via computers
ex: Nike, Apple, Vizio
hollow structure aka “network structure”
advantages of hollow structures
- costs are lower, due to lower overhead and capital expenditures
- firm can purse best sources of specialization and technology when it chooses suppliers
- suppliers may naturally come to improve both on cost and quality
- firm may be able to lower costs and achieve higher quality, making it more flexible and competitive
- firm can easily change part of its production process (switching suppliers)
a structure in which a firm assembles product chunks, or modules, provided by outside contractors
modular structure aka “hollowest of hollow structures”
what is the difference between hollow and modular structure?
in a modular structure, EVERYTHING is outsourced, rather than just a few depts
advantages of modular structure
- may speed up production and lower costs
- firms can take advantage of another firm’s competencies
- firms can experiment with multiple suppliers
- firms can experiment by combining modules in diff ways
disadvantages of modular structure
- not all products and services can be “chunked”
- diff modules may not fit together properly if firm doesn’t properly specify how they should interface
- entire process is only as fast as the slowest supplier
a structure in which the firm creates a company outside a company specifically to respond to an attractive (and often temporary) market opportunity
virtual structure
an organization whose members are geographically separated, usually working through e-mail, collaborative computing, and other computer connections
virtual organization
the link between strategy and structure
- organization structure should be based, in part, on the strategy the organization hopes to implement through its structure
- organizational structure should facilitate the achievement of strategic goals, so strategic goals should drive structure
ex: firm focused on cost-leadership would most likely have a functional, formal structure; firm with diff. strategy would need a more flexible, organic, complex structure
