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Intro to Business > chapter 9 > Flashcards

chapter 9 Flashcards

1
Q

what does a manager engaged in organizing do?

A

they allocate resources (people, equipment and money) to achieve a company’s objectives

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2
Q

what does structuring an organization do?

A

it results in resource allocation, the division of labour and setting up departments to do specific tasks and assigning authority to managers

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3
Q

what are the three levels of management?

A

top managers
middle managers
first line managers

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4
Q

what are ornery fayol’s 10 principles of organization?

A

unity of command
hierarchy
division of labour
subordination of individual interest to general interest
authority
degree of centralization
clear communication channels
order
equity
esprit de corps (team spirit)

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5
Q

why is unity a principle of organization?

A

each worker is to report to one, and only one boss to eliminate concussion between different managers objectives

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6
Q

why is hierarchy of authority a principle of organization?

A

all workers should know who they should report to with problems and decisions and managers should have the right to give orders and expect others to follow

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7
Q

why is division of labour a principle of organization?

A

functions are to be divided into areas of specialization such as production, marketing and finance to function as efficiently as possible

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8
Q

why is subordination of individual interest to the general interest a principle of organization?

A

workers are to think of them themselves as a coordinated team, where the goals of the team are more important than individual goals

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9
Q

why is authority a principle of organization?

A

managers have they right to give orders and the power to enforce obedience

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10
Q

why is degree of centralization a principle of organization?

A

the amount of power making vested in top management should vary by circumstances, this degree of centralization can create unity between stores and the company

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11
Q

why is clear communication channels a principle of organization?

A

all workers should be able to reach others in the firm quickly and easily with a formal communication channel

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12
Q

why is order a principal of organization?

A

materials and people should be placed and painted in the proper location and people should be able to find what or who when they need it

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13
Q

why Is equity a principle of organization?

A

a manager should treat employees and peers with respect and justice so people feel like they are a part of a team

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14
Q

why is esprit de corps (team spirit) a principal of organization?

A

a spirit of pride and loyalty should be created among the firm so people are motivated to help the company reach the organizational goal

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15
Q

what did weber study?

A

the hierarchy of many significant historical organizations

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16
Q

what did weber think made employees better?

A

less decision making done by employees and bureaucracy

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17
Q

what were Weber’s 4 organizational principles?

A

job descriptions
written rules
procedures, regulations, policies
staffing/ promotions based on qualifications

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18
Q

why are job descriptions one of webers organizational principles?

A

because job descriptions keeps people focused and know what they should be doing when they come in to work everyday

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19
Q

why are written rules one of webers organizational principles?

A

so there is a written guide line for people to follow

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20
Q

why are procedures, regulations and policies one of webers organizational principles?

A

because they take the decision making out of the employees hands and gives them something to follow

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21
Q

why is staffing and promotions based on qualifications one of webers organizational principles?

A

because this makes a fair work environment for everyone

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22
Q

what does an organizational structure do?

A

it outlines the various roles within an organization and how the organization can departmentalize

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23
Q

what are the two activities that managers engage in to build an organizational structure?

A

specialization
departmentalization

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24
Q

what is specialization?

A

identifying activities that that need to be performed to achieve the organizations objective and breaking those activities in to tasks that can be performed by individuals or groups of employees (dividing tasks in to smaller jobs)

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25
Q

what are the 2 advantages to specialization?

A

efficiency
capitalizes on skills

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26
Q

why is efficiency an advantage to specialization?

A

because everyone has specific jobs to people can focus on their job and do it to the best of their abilities

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27
Q

why is capitalizes on skills, strengths and experience an advantage of specialization?

A

it lets people people bring and use their own personal skills to help the company achieve its organizational goal

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28
Q

what is the disadvantage of specialization?

A

repetitive tasks may lead to boredom, employee dissatisfaction, decreased performance, increased absenteeism and turnover

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29
Q

why would specialization lead to boredom, employee dissatisfaction, decreased performance, increased absenteeism and turnover?

A

because employees are coming in and doing the same specific tasks everyday and that could lead to their dissatisfaction

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30
Q

what is departmentalization?

A

departmentalizations is dividing an organization into separate units by their function

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31
Q

what is functional organizational structure?

A

the grouping of workers into departments based on similar skills, expertise or resources use

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32
Q

what are the 3 advantages of departmentalization?

A

employees can develop skills in depth

the company can achieve economies of scale and maximize efficiency

good coordination within the function and top management can easily direct and control various department’s activities

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33
Q

what are the 5 disadvantages of departmentalization?

A

lack of communication about goals among different departments

individual employees may begin to identify with their departments goals rather than the goals of the organization

the companys response to external changes may be to narrow

people may not be trained to take broad based senior managerial responsibilities

people in the same department tend to think alike

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34
Q

why is lack of communication among goals among different departments a disadvantage of departmentalization?

A

because different departments might have goals that contradict themselves like; finance cutting budget and marketings new AD campaign, this can lead to disagreement and departments not reaching their departmental goal

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35
Q

why is individual employees may begin to identify with their departments goals rather than with the goals of the organization as a whole a disadvantage of departmentalization?

A

because the employees may become more focused on reaching their departments goals and not reaching the companies goal

36
Q

why is the company response being to narrow to external changes a disadvantage of deparmentalizing?

A

because when they make changes they keep the departments goals in mind and don’t think about the big picture company goals in mind

37
Q

why would people may not be trained to take broad based senior managerial responsibilities a disadvantage of departmentalization?

A

because people only want to stay a function expert in their department and not want to work in a more broad position

38
Q

why would people in the same department tending to think alike a disadvantage of departmentalization?

A

because then people and not brining their own individual skills and ideas the to company they start to group think and hinder creativity

39
Q

what are the 5 ways to departmentalize?

A

by product
by function
by customer group
by geographic location
by process
(review slides 16&17 of chapter 9 for charts)

40
Q

what is functional organization?

A

a process of grouping people together who have comparable skills and perform similar tasks

41
Q

who normally uses functional organization?

A

typically small- medium sized companies group their people by business function

42
Q

what is an example of functional organization?

A

people in accounting are grouped together
people in finance are grouped together
people in marketing and sales are grouped
people in Human Resources are grouped
people in production are grouped
people in research and development are grouped

43
Q

why would depth in employee skill development be an advantage of departmentalization by function?

A

because they work and specialize in one skill so they become really good in their area of work

44
Q

why would economies of scale by centralizing all resources and experts in one area be an advantage of departmentalization by function?

A

because than the company can operate as efficiently as possible and everyone can work in their specialty and help the company achieve the organizational goal

45
Q

why is better coordination of activity an advantage of departmentalization by function?

A

because each group knows their task and role in helping the company succeed

46
Q

what is divisional organization?

A

the process of forming divisions according to products, customers, process or geography so the companies ability to respond to changes in the firms environment is enhanced

47
Q

what are product divisions?

A

making divisions that strictly work one on product of the company, each product has its own research and development division and marketing team

48
Q

what is the 1 benefit to products divisions?

A

this allows individuals in the division to focus all their effort on the products produced by their division

49
Q

what is the 1 downside to product divisions?

A

it results in higher costs because corporate services such as finance and marketing are duplicated

50
Q

what are the 4 kinds of divisional organization?

A

products
customers
process
geography

51
Q

what is customer divisions?

A

a company that is structured according to its customer categories

52
Q

what is an example of customer divisions?

A

Johnson and Johnson’s operating companies are groups in to 3 customer based business segments:

consumer business (goods sold to the public)

pharmaceuticals (prescription drugs sold to pharmacies)

professional business (medical devices and diagnostics products used by hospitals and clinics)

53
Q

what is process divisions?

A

when a company organizes based on the several steps of production

54
Q

what is an example of process divisions?

A

bowater Thunder Bay, canadian company that harvests treed and processes wood in to news print and pulp. Bowater has the divisions:

tree cutting
chemical processing
finishing

55
Q

what is geographical divisions?

A

a process that enables companies that operate in several locations to be responsive at the local level

56
Q

what is an example of geographical divisions?

A

Adidas is organized according to the regions of the world that they operate in, they have eight different regions and each one reports in performance separately in their annual reports

57
Q

what is centralized authority?

A

when decision-making authority is maintained at the top level of management at the company headquarters

58
Q

what is decentralized authority?

A

when decision-making authority is delegated to lower level managers and employees who are more familiar with local conditions than headquarters management could be

59
Q

what are the 4 benefits of centralized authority?

A

greater top management control
more efficiency
simpler distribution
stronger brand and corporate image

60
Q

why is greater top management control an advantage of centralized authority?

A

because the top managers are the ones making the decisions and not delegating the decision making down to the lower level management

61
Q

why is more efficiency an advantage of centralized authority?

A

because there is no confusion on what the goals are and there are all the same goals throughout the company so with everyone working to achiever the same goal the company will achieve their goals quicker

62
Q

why is simpler distribution system an advantage of centralized authority?

A

because there is only one line of communication and one person coming up with the goals and making the decisions so the decision can get to all departments and divisions of the company quicker

63
Q

why is stronger brand and corporate image an advantage of centralized authority?

A

because it sets a universal standard of quality and goals for the whole company making their image of their company stronger

64
Q

what are the 4 disadvantages of centralized authority?

A

less responsive to customers
less empowerment
interorganizational conflict
lower morale away from headquarters

65
Q

why is less responsive to customers a disadvantage of centralized decision making?

A

since the decisions need to be made top management they are not able to adapt as quick to please the customers and they don’t know the needs of the local market of the customers

66
Q

why is less empowerment a disadvantage of centralized authority?

A

since all the decision making is done by the top management, the middle managers and employees do not have much say and can make them less engaged in their job due to their lack of evolvement in decision making

67
Q

why is interorganizational conflict a disadvantage of centralized authority?

A

since the desicions are made form up above the middle managers may see some of the decision and not agree with them or know they will not serve the local market and there can be conflict that arrises from that

68
Q

why is lower morale away from head quarters a disadvantage of centralized decision making?

A

since headquarters are making the decisions anyone who is not in head quarters can feel unsatisfied and less engaged in their work because they don’t have the power to make any decisions

69
Q

what are the 4 advantages of decentralized decision making?

A

better adaptation to the customers wants
more empowerment for workers
fast decision making
higher morale

70
Q

why is better adaptation to the customer wants an advantage to decentralized decision making?

A

since the middle managers and employees have more decision making power they are able to adapt quicker and better to the customers wants because the people who are making the decisions are the ones who know the local market

71
Q

why is more empowerment for workers an advantage of decentralized market?

A

since employees and middle managers have more decision making power they will be more engaged in their job and empowering them more

72
Q

why is faster decision making an advantage of decentralized authority?

A

because the lower level managers are able to adapt quicker and dont need to wait of top management to tell them what to do

73
Q

why is higher morale an advantage to decentralized decision making?

A

since managers and employees have more decision making power they will be more satisfied in their job and feel like they have more freedom and power

74
Q

what are the 4 disadvantages to decentralized authority?

A

less efficiency
complex distribution system
less top management control
weekend corporate image

75
Q

why is less efficiency a disadvantage of decentralized authority?

A

managers make their own decisions on their own time and might not be as quick as top managers and employees cannot act on those decision as quickly

76
Q

why is complex distribution system a disadvantage of decentralized authority?

A

because depending on the size of the company there might be a lot of managers and it might be more complex to distribute all of their decisions and goals across the company

77
Q

why is less top management control a disadvantage of decentralized authority?

A

geographic managers have much more control and might not be implementing what the top managers would have wanted

78
Q

why Is weak corporate image a disadvantage of decentralized authority?

A

because with all of the geographic managers making the decisions it might not be as good as the top managers and might make their corporate image worse

79
Q

what are the 4 organizational models?

A

line organization
line and staff organizations
matrix style organizations
self managed teams

80
Q

what are matrix style organizations?

A

when specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure

81
Q

what is the difference between matrix style organizations and self managed teams?

A

matrix style the teams are only work together for a certain project but in self managed teams they work together as a team on a long term basis

82
Q

is there a single organization structure that will lead to success?

A

no

83
Q

what is the goal of an organizational structure?

A

be the best structure to achieve goals as quickly and efficiently as possible

84
Q

what is benchmarking?

A

comparing an organizations practices, process and products against the worlds best

85
Q

what are core competencies?

A

those functions that an organization can do as well as or better than any organization in the world

86
Q

what are the 4 levels in traditional organization hierarchy (from top to bottom)?

A

top management
middle management
supervisory management
front line workers

87
Q

what are the 3 levels in the inverted organization hierarchy (from top to bottom)?

A

empowered front line workers (often teams)
support personnel
top management

Intro to Business (25 decks)

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