MODULE 1 - UNIT 3 Flashcards
meaning of input
receive instructions & resources from external sources
meaning of transformation
process this internally
meaning of output
deliver finished goods/ service to external users
supplies, knowledge, machinery, & labor are procured w/ the money received
from the sale of the enterprise’s products and services.
input
resources received thru input channels must be converted into the product & services offered by the organization
transformation
products & services produced by org is delivered to its customers
output
in this stage, enterprise satisfies its clients and receives nourishment to renew itself through the input process.
output
All organizations share the ff six traits
- Holistic and Synergistic w/ Clearly Defined Boundaries
- Purposeful Activity & a Primary Task
- Operates as an Open System
- Hierarchy of Systems
- Seek a State of Stability and Equilibrium
- Self-regulating
➔ made up of interconnected parts that are both dependent on & supportive of each other.
➔ each component acts on, & is acted upon, by other members of the system, resulting in a cause-and effect syndrome.
Holistic and Synergistic w/ Clearly Defined Boundaries
system’s reason for being is a commonly shared goal.
Purposeful Activity & a Primary Task
important concept bcs even most comprehensive system must receive inputs from outside its boundaries to survive.
Operates as an Open System
➔ internal components change & become progressively more specialized as org increases in size & sophistication.
➔ results in the dev’t of their own character yet maintain remain under the umbrella of the superior organization
Hierarchy of Systems
can be both a strength & a source of frustration to managers, whose job is to influence the behavior/ direction of the group.
Seek a State of Stability and Equilibrium
➔ to be successful, a system depends on specific behaviors occurring at exactly the right time.
➔ business org relies on the management process to monitor performance and provide info to its members.
Self-regulating
Work Specialization aka
DIVISION OF LABOR
despite the apparent advantages of specialization, many orgs are moving away from this principle bcs
- w/ too much specialization, employees are isolated & perform only small, boring tasks.
- if that person leaves the company, his specialized knowledge may disappear as well.
an unbroken line of authority that links all persons in an org & defines who reports to whom.
chain of command
two underlying principle of chain of command
unity of command
scalar principle
difference between unity of command and scalar principle
unity of command: employee should have one & only one supervisor to whom he/ she is directly responsible
scalar principle: line of authority that includes all employees in the organization
formal & legitimate right of manager to make decisions, issue orders, & allocate resources to achieve organizationally desired outcomes.
authority
give three important underlying principles of authority:
- based on organizational position, & anyone in the same position has the same authority.
- accepted by subordinates
- flows down the vertical hierarchy.
three types of authority
LINE AUTHORITY
STAFF AUTHORITY
FUNCTIONAL AUTHORITY
type of authority that gives manager the right to direct work of his/ her employees & make many decisions without consulting others.
LINE AUTHORITY
type of authority that supports line authority by advising, servicing, and assisting, but typically limited.
STAFF AUTHORITY
type of authority that delegated to an indiv. or dep’t over specific activities undertaken by personnel in other departments.
FUNCTIONAL AUTHORITY
why would an org create positions of functional authority?
this authority breaks the unity of command principle by having individuals report to two bosses. The answer is that functional authority allows specialization of skills and improved coordination.
downward transfer of authority from a manager to a subordinate.
DELAGATION
four steps if they want to successfully delegate responsibilities to their teams:
- Specifically assign tasks to individual team members
- Give team members the correct amount of authority to accomplish assignments
- Make sure that team members accept responsibility
- Create Accountability
supervisor delegates ______, but the
_____ is shared
authority;responsibility
managers can build accountability into their organizational structures by
monitoring performances & rewarding successful outcomes.
managers often find accomplishing this step (CREATE ACCOUNTABILITY) difficult for the following reasons:
-delegation requires planning, and planning takes time
-managers may simply lack confidence in the abilities of their subordinates.
-managers experience dual accountability.
-managers may refrain from delegating bcs they are insecure about their value to the org.
MANAGERS LEARN TO DELEGATE EFFECTIVELY by: 4 principles
- Principle 1: Match the employee to the task
- Principle 2: Be organized & Communicate clearly
-Principle 3: Transfer Authority & Accountability w/ the task - Principle 4: Choose the level of delegation carefully
WHAT PRINCIPLE:
- consider the employees to whom they delegate tasks.
- indiv. selected should possess skills & capabilities needed to complete the task.
- should delegate to employees who will view their accomplishments as personal benefits.
Principle 1: Match the employee to the task
WHAT PRINCIPLE:
- have clear understanding of what needs to be done, what deadlines exist, & what special skills are required.
- capable of communicating their instructions effectively
Principle 2: Be organized & Communicate clearly
WHAT PRINCIPLE:
➔ can’t walk away from task/ person to whom task is delegated.
➔ maintain some control of both the process and the results of the delegated activities.
Principle 4: Choose the level of delegation carefully
WHAT PRINCIPLE:
➔ delegation process is doomed to failure if indiv to whom task is delegated is not given the authority to succeed at accomplishing the task & is not held accountable for the results
➔ provide the employees w/ necessary resources & power to succeed
Principle 3: Transfer Authority & Accountability w/ the task
SPAN OF CONTROL AKA
SPAN OF MANAGEMENT
refers to the number of workers who report to one manager
SPAN OF CONTROL
SPAN OF CONTROL SHOULD BE EITHER
WIDE SPAN OF MANAGEMENT
NARROW SPAN OF MANAGEMENT
WIDE SPAN vs NAROW SPAN
WIDE SPAN: exists when manager has large subordinates
NARROW SPAN: exists when manager has few subordinates
span of control may be wide when:
- manager & subordinates are very competent.
- organization has well-established set of standard operating procedures.
- Few new problems are anticipated.
span of control may be narrow when:
- workers are located far from one another physically.
- great deal of interaction is required between supervisor and workers.
- new problems arise frequently.
CENTRALIZED VS DECENTRALIZED ORG
Centralized org: systematically works to concentrate authority at the upper levels
Decentralized org: management consciously attempts to spread authority to the lower org levels
POSSIBLE DETERMINANTS TO DETERMINE IF AN ORG IS DECENTRALIZED OR CENTRELIZED
- The external environment in which the firm operates
- The nature of the decision itself
- The abilities of low-level managers
- The Organization’s Tradition of Management
two simultaneous organizational structures that may complement, but often compete w/ eo
- formal bureaucracy
-informal groups
officially sanctioned by owners of institution & is given the authority and responsibility to carry out the organization’s designated duties.
Formal Bureaucracy
➔ develop from interaction of people w/ common interest.
➔ these can arise from within the org thru the day-to-day activities of people working together or
informal groups
FIVE STEPS OF ORGANIZATIONAL PROCESS
- Review plans & objectives
- Determine the work activities necessary to accomplish objectives
- Classify & Group the necessary work activities into manageable units
- Assign activities & Delegate Authority
- Design a hierarchy of relationships
manager should determine the vertical (_____) and horizontal (_____) relationships of org as a whole.
decision-making; coordinating
shows hierarchical relationships between functional areas; visual depiction of the organization.
organizational chart
