Organizations as Machines

Question 1

What is an Organizational Structure?

Answer 1

A formal arrangement of people and tasks.

Question 2

Mention an explain the 6 elements of Organizational Design.

Answer 2

1) Work specialization (individual jobs, duties)
2) Departmentalization (grouping in departments -> Organization)
3) Chain of command (hierarchy, authority, responsibility)
4) Span of control (wider/narrow span, # of managed people)
5) Centralization/Decentralization (decision in the top level or lower levels)
6) Formalization (standardization, rules, procedures, flows, activities)

Question 3

Name the 3 organizational theories and their main representatives:

Answer 3

• Scientific Management (Taylor Schmidt)
• Administrative Principles (Fayol)
• Bureaucratic Organizations (Weber)

Question 4

Explain the Scientific Management theory (Taylor, Schmidt):

Answer 4

+ Selecting the right individuals (qualifications and motivations)
+ Workers have different outputs/results
+ Maximum prosperity for the employer AND each employee
+ Individuals have motivations, characters, traits
+ Development of individuals
+ Keeping workers content on management
+ Rational usage of humans and machines = output
+ Inefficiency corrected through systematic management

Question 5

Explain the Administrative Principles theory (Fayol):

Answer 5

It describes the 14 principles of management:
* Division of work, authority/responsibility, discipline, unity of command, unity of direction, general interest, remuneration, centralization, line of authority, order, equity, stability, initiative, harmony.

Question 6

Explain the Bureaucratic Organizations theory (Weber):

Answer 6

+ Bureaucracy as the ideal, efficient model of an organization.
+ Rational and legal authority (fair, no charismatic authority, no unjust traditional authority).
+ Formal codification of rules, regulations, competencies.
+ Hierarchy defined, path, office and persons are separated.

Question 7

List some Pros and Cons of the Bureaucratic Organizations theory:

Answer 7

Pro:
+ Division of labor
+ Clear hierarchy is provided
+ Formal selection (no nepotism)

Cons:

• Working by the rules (in a minimum way)
• Limited adaptation or innovation
• Depersonalization (people = numbers)

Question 8

According to the Administratives Principles of Fayol, which were early descriptions of a manager’s job:

Answer 8

• Planning (anticipate and plan)
• Organizing (provision of elements)
• Command (orders)
• Coordination (harmonization)
• Control (correct errors)

Question 9

Summarize the Classic Organizational Theory

Answer 9

+ Efficiency is achieved rationally and technically (best-way)
+ Control and supervision is needed (top-down view)
+ Defined tasks and rules
+ Money = motivator of employees

Question 10

Explain the 3 different types of managers and their tasks:

Answer 10

+ Top managers (CEO,CIO,CFO): Strategic decisions
+ Middle managers (Division, head of departments): Operational decisions, assignments
+ First-line managers (Supervisors, team leaders): Realization, assignments
+ Non-managerial workers

Question 11

What does the managerial work involves? (Star schema)

Answer 11

A manager has:

• Functions
• Skills
• Tasks
• Activities
• Roles

Question 12

Functions of Managers (the CEO):

Answer 12

POSDCORB:
Planning (the actions)
Organizing (the structure)
Staffing (recruit, work conditions)
Directing (delegation)
COordinating (interrelate, link)
Reporting (to superiors)
Budgeting (design/control budgets)

Question 13

The (3) important management skill levels are:

Answer 13

• Technical skills (process, engineering, specialized skills)
• Social/Human skills (individuals, groups, emotional intelligence)
• Analytical/Conceptual skills (solve complex problems, situations)

Question 14

Describe the 3 key management roles:

Answer 14

Inter-personal roles:
+ Figure head, representative to the outside
+ Coordinator/networker

Informational roles:
+ Information hunter (radar, business intelligence
+ Information broker (sender)
+ Speaker (to the outside)

Decision roles:
+ Entrepreneur/innovator (changes, opportunities)
+ Firefighter (problem solver, lead task forces)
+ Resource allocator (schedules, budgets, portfolios)
+ Negotiator (contracts, agreements)

Question 15

Describe the characteristics of the Activities of a manager in the reality:

Answer 15

• Open ended of work (scarce time, no beginning/end, high paced)
• Work day fragmentation (several short activities, interruptions)
• Oral communication is preferred (most work is direct interaction)
• Contacts (interaction with partners, heterogeneous network)

Question 16

Describe the Appex Case and its main takeaways:

Answer 16

+ Appex being takeover by EDS (involves easier access to resources, loss of decision in autonomy, mandatory adoption of systems and procedures)
+ Structural changes followed quickly
+ Different organizational structures were applied

Question 17

Based on the Appex Case, which ones are basic forms of organizational structures? Describe them. (Revise this answer).

Answer 17

• Circular (innovative)
• Functional (activities, division of labor, clear tasks/responsibilities, clear career paths)
• Divisional (functions that produce the same product, unique profit centers, separate business)
• Matrix (combines functional and divisional structures, teems share knowledge and strengths)
• Network (contracting out business functions with cheaper sources, external relations).

Question 18

Describe the metaphor “Organizations as Machines”:

Answer 18

+ Rationalism is used, hierarchy, division of labor, reductionist view of people
+ Relations are mechanical and orderly
+ Routinized, efficient, reliable, predictable = enough to fulfill a task
+ The manager is can be seen as an engineer

+ The “engineer” (manager) has to: designed a network of interdependent parts, arrange them in sequence and define points of resistance and rigidity.

Question 19

Key elements and takeaways of the reading “The Manager’s Job: Folklore and Facts”:

Answer 19

Folklore vs Facts:
A manager is a reflective, systematic planner:
* High peace of work in reality
* Brief, varied, discontinuity in activities
* More orientation to action

No regular duties to perform:
* Regular duties are presente in form of rituals, ceremonies and negotiations

Senior management needs aggregated info by MIS:
* Preference for: oral communication, telephone calls, meetings

Management is a science, profession:
* Intuition and judgement plays a key role: scheduling, processing information and deciding.

Question 20

What does Mintzberg thinks about the education of managers?

Answer 20

+ Management is learned through experience, rooted in context.
+ Business Education should be merit-based for practicing managers (based on performance)
+ MBAs don’t create managers out of employees