chapter 9 Flashcards
no matter the size of a business, do management principles remain similar?
yes
what is job specialization?
Dividing tasks into smaller jobs
what is departmentalization?
Process of setting up individual departments to do
specialized tasks
what is managing change?
a critical managerial function, may
require redesigning whole organizational structure
what led to economies of scale?
Business growth in the 20th century
what is economies of scale?
refers to companies reducing production costs when purchasing raw materials in bulk & producing large amounts at lower prices (supply side of business)
what is economies of scope?
focus on the demand side, refers to efficiencies realized via product bundling & family branding
what was fayol’s book called?
Administration industrielle et générale
what is unity of command? (fayol)
each worker is to report to one & only one boss.
what is hierarchy of authority? (fayol)
all workers should know to whom they report. Managers should have right to give orders & expect subordinates to follow
what is division of labour (fayol)
functions are to be divided into areas of specialization, like production, marketing & finance
what is subordination of individual interests to general interests (fayol)
workers are to think of
themselves as a coordinated team.
what is authority (fayol)
managers have right to give orders & power to enforce obedience
what is degree of centralization (Fayol)?
amount of decision-making power vested in top mgmt should vary by circumstances
what is clear communication channels (Fayol)?
all workers should be able to reach others in the firm quickly & easily.
what is order (Fayol)?
Materials & people should be placed & maintained in proper location.
what is equity (fayol)?
A manager should treat employees & peers with respect & justice.
what is esprit de corps (fayol)?
A spirit of pride & loyalty should be created among people in the firm.
what is weber’s book called?
The Theory of Social & Economic Organizations
what did weber study?
hierarchy of many
significant historical organizations,
what did weber promote?
pyramid-shaped structure
what did weber emphasize?
principles of bureaucracy:
according to Henry mintzberg, is there a single structure that will lead to success for all organizations?
no
what are Current trends like in structure of businesses?
Current trends are toward smaller, more flexible structures that let companies react more quickly to today’s fast- changing, technologically competitive business climate.
when does centralized authority happen?
when decision- making(DM) authority is maintained at top level of mgmt at company’s headquarters.
when does decentralized authority happen?
when DM is delegated to lower-level managers & employees who are more familiar with local conditions than headquarters’ mgmt could be.
what are some advantages of centralization?
greater top management control
more efficient
simple distribution system
strong brand and corporate image
what are disadvantages of centralization?
less responsive to customers, less empowerment, conflicts, lower morale away from headquarters
what are advantages of decentralized?
better adaption to customer wants, more empowerment, faster decision making, higher morale
what are disadvantages of decentralization?
- less efficiency
complex distribution system
less top management control
weakened corporate image
what is span of control?
Refers to the optimum number of subordinates a manager supervises or should supervise.
what are two variables of span of control?
Capabilities of subordinates & manager
– Complexity of job
what are examples of complexity of jobs?
Geographically close
• Functional similarity
• Need for coordination
what are the two structures of span of control?
tall and flat
what is departmentalization?
dividing an organization into separate units, the traditional way is by function.
what is functional structure?
grouping of workers into departments based on similar skills, expertise, or resource use.
what are some other ways to departmentalize?
by product, by function, by customer group, by process, by geographic location
what are advantages of departmentalization?
- employees have skills
- economies of scale by centralizing all resource needs and locating various experts in that area
- coordination of activity
what are disadvantages of departmenralization?
Lack of communication
• Employees identify with department goals instead of company
• Slow response to external demands
• Narrow specialists
• May engage in group think (they think alike) which hinders creativity
what are the four models of organizational models?
- line organizations,
- line-and-staff organizations,
- matrix style organizations
- self-managedteams
what are advantages of line organizations?
Clear authority & responsibility
• Easy to understand
• One supervisor per employee
what are disadvantages of line organizations?
• Inflexible • Few specialists for advice • Long line of communication • Difficult to handle complex decisions
why do many organizations have both line and staff personnel?
To minimize disadvantages of simple line organizations
what is line personnel?
Employees who are part of the chain of command that is responsible for achieving organizational goals.
what is staff personnel?
Employees who advise & assist line personnel in meeting their goals.
what is matrix style organizations?
Specialists from different parts of organization are brought together to work on specific projects but still remain part of a line-and-staff structure.
what are cross functional self managed teams?
groups of employees from different departments who work together on a long-term basis
what is networking?
Using communications technology & other means to link organizations & allow them to work together on common objectives.
what are virtual organizations?
linked via network & interact in real time
is virtual organization structure flexible and responsive?
yes
what is benchmarking?
Comparing an organization’s practices, processes & products against the world’s best.
what are core competencies?
functions that a company can do as well as or better than other companies worldwide.
what is restructuring?
Redesigning an organization so that it can more effectively & efficiently serve its customers.
how would restructuring for empowerment look like?
empowered front line workers then support personnel then top management
what is total quality management (TQM)
Striving for maximum customer satisfaction: by ensuring quality from all departments.
what is continuous improvement?
constantly improving the way an organization operates so that customer needs can be satisfied.
what is re engineering?
fundamental rethinking & radical redesign of organizational processes to achieve dramatic improvements in critical measures of performance
what is grapevine?
Human side of an organization, systems that develop spontaneously
what are examples of informal group norms?
Do your job, but don’t produce more than the rest of the group.
• Don’t tell off-colour jokes or use profane language among group
members.
• Listen to the boss & use his/her expertise, but don’t trust him/her.
