Organizational Theory, Design And Change: Chapter 5

Front 1

Tall organization

Back 1

an organization in which the hierarchy has many levels relative to the size of the organization.

Front 2

Flat organization

Back 2

an organization that has few levels in its hierarchy relative to its size.

Front 3

Problems with tall hierarchies

Back 3

communication problems
motivation problems
bureaucratic costs

Front 4

principle of minimum chain of command

Back 4

an organization should choose the minimum number of hierarchical levels consistent with its goals and environment in which it operates.

Front 5

Span of control

Back 5

the number of subordinates a manager directly manages.

When subordinates' tasks are complex and dissimilar, a manager's span of control needs to be small.

When subordinates' tasks are closely interrelated, coordination and control are greater challenges.

Front 6

Bureaucracy

Back 6

a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with rules and standard operating procedures.

Front 7

Rational-legal authority

Back 7

the authority a person possesses because of his or her position in an organization.

Front 8

Max Weber's principles of bureaucracy

Back 8

1 - A bureaucracy is founded on the concept of rational-legal authority.

2 - organizational roles are held on the basis of technical competences, not because of social status, kinship, or heredity.

3 - a role's task responsibility and decision-making authority and its relationship to other roles in the organization should be clearly specified.

4 - the organization of roles in a bureaucracy is such that each lower office in the hierarchy is under the control and supervision of a higher office.

5 - rules, standard operating procedures, and norms should be used to control the behavior and the relationship among roles in an organization.

6 - administrative acts, decisions, and rules should be formulated and put in writing.

Front 9

Role conflict

Back 9

the state of opposition that occurs when two or more people have different views of what another person should do and, as a result, make conflicting demands on the person.

Front 10

Role ambiguity

Back 10

the uncertainty that occurs for a person whose tasks or authority are not clearly defined.

Front 11

Advantages of Bureaucracy

Back 11

Lays the ground rules for designing an organizational hierarchy that efficiently controls interactions between organizational levels.

Reduces transaction costs.

Separates the position from the person.

Fosters differentiation, increases the organization's core competences, and improves its ability to compete in the marketplace.

Front 12

Disadvantages of Bureaucracy

Back 12

managers fail to properly control development

employees come to rely too much on rules and SOPs to make decisions

Front 13

Management by Objective (MBO)

Back 13

a system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets.

1- Specific goals and objectives are established at each level of the organization.

2- Managers and their subordinates together determine the subordinates' goals.

3- Managers and their subordinates periodically review the subordinates' progress toward meeting goals.

Front 14

Empowerment

Back 14

the process of giving employees throughout an organization the authority to make important decisions and to be responsible for their outcomes.

Front 15

Self-managed teams

Back 15

work groups consisting of people who are jointly responsible for ensuring that the team accomplishes its goals and who lead themselves.

Front 16

Cross-functional teams

Back 16

formal work groups of employees from across an organization's different functions who are empowered to direct and coordinate the value creation activities necessary to complete different programs or project.

Front 17

Contingent workers

Back 17

Workers who are employed for temporary periods by an organization and who receive no indirect benefits such as health insurance or pensions.

Front 18

Factors affecting the shape of the hierarchy

Back 18

Horizontal differentiation
Centralization
Standardization