Exam 3 Flashcards
chapters: 8, 9, 10
specialization
different people or groups perform those smaller parts of the organizations overall work
differentiation
distinguishes and separates jobs and jobholders from one another
how do you achieve integration?
through structural mechanisms that enhance the collaboration and coordination
the more highly differentiated your firm is….
the greater the need for integration among the different units
formal position authority
generally the primary means of running and organization
informal authority
with particular expertise, experience or personal qualities they might be able to have authority
in corporations who are the owners?
stockholders
stockholders are very busy therefore,
they elect a board of directors to oversee the organization
what are 3 major sets of duties that boards perform?
- selecting, evaluating, rewarding and perhaps replacing the CEO
- determining the firms strategic direction and reviewing financial performance
- ensuring ethical, socially responsible, and legal conduct
board membership usually includes some of company’s top executives called:
inside directors
the best boards tends to be:
active, and thoughtful participants in determining company strategies
many boards focus on legal compliance issues such as:
- audits
- financial reporting
- discrimination laws
board members bring
- credibility and networks that expand business opportunities
- hold executives accountable for their actions
- help company leaders make difficult strategic decisions
top management teams are typically composed of:
- CEO
- president
- chief operating officer
- chief financial officer
- chief information officer
- chief human resource officer
- and other key executives
corporate governance
oversight of the firm by its executive staff and board of directors
what does a hierarchy provide?
management career paths that help organizations retain and develop talented people, giving them gradually more challenging experiences as they prepare for executive positions
span of control
the number of subordinates who report directly to an executive or supervisor
the optimal span maximizes effectiveness because it is:
- narrow enough to permit managers to maintain control over direct reports
- but not so narrow that it leads to over control and too many managers who oversee too few people
what are the steps of the delegation process?
- define the goals succintly
- select the person for the task
- ask for subordinates views about suggested approaches
- give the subordinate the authority, time, and resources to perform the assignment
- review progress at appropriate intervals
vertical structure
authority is the legitimate right to make decisions and to tell other people what to do (board of directors, CEO, top management team)
functional structure
structured around specialized activities such as production, marketing and human resources
divisional structure
a form of departmentalization that groups units around products, customers, or geographic regions
matrix structure
composed of dual reporting relationships which some employees report to two superiors
disadvantages of the matrix structure:
- Unclear responsibilities and competing priorities
- Violation of the unity of command principle
- Accountability Difficult to define
- Conflict and stress for employees who must manage a dual reporting role
- Additional time required for meetings and other communications
- Extensive collaboration needed but not always easy to reward
network organization
a collection of independent, most single function firms that collaborate on a good or service
Ambidextrous Organizations
an organization that is simultaneously good at exploitation and exploration
Mechanistic Organization
a form of organization that seeks to maximize internal efficiency
Organic Structure
an organizational form that emphasizes flexibility
Organizing around core capabilities
knowledge expertise or skills that underlies a company’s ability to be a leader in their field
Dynamic capabilities
higher level strategic capabilities that aid rapid adaptation
Ordinary capabilities
basic administrative and operational functions are needed
what organization is most similar to Max Weber’s bureaucratic structure?
mechanistic structure
A business structure in which employees depend more on one another and relate more informally and personally is a(n) ________ organization
organic
core capability
knowledge, expertise, or skill that underlies a company’s ability to be a leader in providing a range or goods or services
strategic alliance
a formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals
decentralized organization
more decisions are made at lower levels
diseconomies of scale
varied costs associated with an organization being too big
downsizing
the planned elimination of positions or jobs
what organization often speeds decision making?
decentralized
When do managers usually opt for downsizing?
only in response to some kind of pressure
rightsizing refers to
arriving at the size at which a company performs most effectively
3 core players of the strategic triangle
- the company itself
- the competition
- the customer
value chain
sequence of activities that flow from raw materials to the delivery of a good or service, with additional value created at each step for the customer
steps of the value chain
- research and development focus on innovation and new products
- inbound logistics receive and store raw materials and distribute them to operations
- operations transform the raw materials into final product
- outbound logistics warehouse the product and handle its distribution
- marketing and sales identify customer requirements and get customers to purchase the product
- service offers customer support, such as repair, after the item has been bought
When a product or process is defect-free 99.99966 percent of the time, it is said to have met ________ standards
six sigma
TBC (time-based-conditions) are strategies that
reduce the total time needed to deliver goods or services
Large-batch technologies are characterized by
more rules and formal procedures
mass customization
the production of varied, individually customized products at the low cost of standardized, mass produced products
small batches
technologies that produce goods and services in low volume
large batches
technologies that produce goods and services in high volume
continuous process
a process that is highly automated and has a continuous production flow
lean manufacturing
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
concurrent engineering
a design approach in which all relevant functions cooperate jointly and continually in maximum effort aimed at producing high quality products that meet customers needs
structure interview
- situational interview (hypothetical situations)
- behavioral description interview (explores candidates have done in the past)
Employees are a source of competitive advantage when they are
organized
The three stages in the human resources planning process are ________, programming, and evaluating
planning
A job analysis determines
the skills and knowledge needed for a position
The process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance is known as a ________ appraisal
360 degree
An external factor that influences the wage mix is
cost of living
Union strikes today are
not common
What is the legislation called that allows employees to work without having to join a union?
right to work
