Principles Of Management Clep--Ic Part 3

Front 1

Organizing

Back 1

in which the work is divided and a structure of authority is established.

Front 2

organization chart

Back 2

shows the authority relationships between the various positions and departments in an organization.

Front 3

Line authority

Back 3

the right to act, to make decisions, and to command.

the authority a superior wields over his direct subordinates.

two types of authority are line and staff.

Front 4

Staff authority

Back 4

the right to advise, or recommend to line personnel.

Front 5

Responsibility

Back 5

obligation to achieve some result or perform some task.

Front 6

Accountability

Back 6

the obligation one gets when he uses authority which has been assigned to him. People with authority can be held accountable for how they use their authority.

Front 7

Human Resource Planning

Back 7

an organization must decide on whether to adopt a policy of promoting from within, or to simply promote the best candidates it can find.

Front 8

promoting from within

Back 8

good for employee morale. Other than that, it puts the organization at a disadvantage because it severely restricts the pool of qualified, potential candidates for a position.

Front 9

chain of command

Back 9

the set of authority-responsibility relationships which link superiors and subordinates in an entire organization.

Front 10

reporting relationship

Back 10

relationship between a superior and his subordinate.

consists of the superior, who has authority over the subordinate, and the subordinate who is responsible to the superior for his actions.

Front 11

Line positions

Back 11

directly related to the purpose of an organization
For example, in a marketing organization, sales is a line position.

Front 12

Staff positions

Back 12

support the line positions--for example human resources, or the medical staff.

support those in the line positions and are not directly related to the mission or purpose of the organization.

Front 13

Functional authority

Back 13

staff managers have limited authority over subordinates of line managers.

Front 14

staff authority

Back 14

can only advise line positions, they cannot give orders in a line position's authority or jurisdiction.

Front 15

classic management theory/
administrative management

Back 15

classic management theory is associated with Henri Fayol.

The five functions of management he proposed were planning, organizing, commanding, coordinating, and controlling.

fayol=POCCC

Front 16

Fayol's 14 principles of management

Back 16

included unity of command, unity of direction, esprit de corps, authority being equal to responsibility, and others

Front 17

unity of command

Back 17

states that each subordinate should report to and be accountable to only one superior.

Front 18

Unity of direction

Back 18

states that there should be one head and one plan for a group working towards an organizational objective

basically means that everyone is working towards accomplishing an organizational goal should be following the same plan under the direction of one person.

Front 19

scalar principle

Back 19

also known as the chain of command principle, and basically states that there needs to be a clear-cut established chain of command.

Front 20

break-even chart

Back 20

the break-even point is that point on the graph where the total revenue equals total costs. Therefore, increasing the overhead for an operation would raise the break-even point. Increasing overhead would raise, or increase, the break-even point. More overhead means more total costs for the company, which means the company would have to bring in more revenue to break even.

Front 21

exception principle (Fayol)

Back 21

states that management should deal only with the exceptions--the cases where the performance of their subordinates does not meet standards.

Front 22

Specialization

Back 22

division of labor, is where employees carry out the activities they are more qualified for and adept at performing. Specialization also involves dividing the work into simple tasks; this can be seen in assembly line jobs, where the work is highly specialized. For example, one assembly line worker's entire job may be just to put one screw into each machine that passes by.

Front 23

span of control (fayol)

Back 23

principle which states that there is a limit to the number of subordinates a manager can effectively supervise.

Front 24

Classical management theory

Back 24

can result in either a bureaucratic or mechanistic organization. Both are based on rational-legal authority and have a strict structure dominated by rules and policies. They are rigid and inflexible, but suitable for a stable, predictable environment.

Front 25

PERT network

Back 25

a planning tool which involves breaking down the steps to achieving a goal into a series of events. The events are represented as circles, or nodes, and connected by arrows which represent the time required to reach that event. A PERT network is a popular planning and control tool because it allows planning the sequence of events and the timing. It does not take into account things such as employee motivation, however, and timing can be shorter or longer than predicted

Front 26

organic organizations

Back 26

more informal, there is less rigid specialization, and there is a greater focus on personal relationships.

-they are supposed to be flexible and well-suited for a rapidly changing environment; i.e. computer software development.

Front 27

Acceptance Theory of Authority

Back 27

Chester Barnard

states that authority's effectiveness depends on whether or not the subordinates accept the authority over them.

opposes the classical idea that authority is ordained by position.

Front 28

System 4 organization

Back 28

Rensis Likert

which emphasizes that each manager works with his team to make the best possible decision. It is based on a decentralized, interlocking participative-group structure.

Front 29

linking

Back 29

the leader of a group is often a subordinate in a higher decision making group. He is known as a linking. This leader would be known as a "linking pin," because he links two groups together. In system 4, each manager acts almost as a representative for his team, and is a subordinate in a higher level team, whose leader is part of an even higher level team, and so on.

Front 30

Departmentation

Back 30

the process of dividing large groups into smaller, more workable groupings. Departmentation involves grouping together positions with their functions and responsibilities under other parts of the organization structure.

Front 31

internal bases

Back 31

which departmentalize within a company by function or product

Front 32

external bases

Back 32

which involve departments divided based on geography (location) and customers

Front 33

functional departmentation

Back 33

positions are grouped based on a common organizational purpose or function. For example, finance, marketing, and engineering are functionally organized.

Front 34

performance appraisals

Back 34

should evaluate employees in an objective, consistent and fair way. Performance appraisals should be fair and unbiased. Companies are under both social and legal obligation to be objective.

Front 35

Process departmentation

Back 35

grouping positions according to the different steps in a process. For example, a manufacturing plant may be divided into drilling, grinding, welding, assembling and finishing departments.

Front 36

Product Departmentation

Back 36

where positions which support or are directly related to a product or product category are grouped together. For example, General Motors has Chevrolet, Pontiac, Buick, and other divisions for the different brands of cars it produces.

Front 37

Customer departmentation

Back 37

based on the customers or types of customers. For example, in a clothing department store, there may be a teen shop, a junior shop, and a bridal shop.

Front 38

Territorial departmentation

Back 38

First is the mission statement, second is setting of goals, and next is strategic planning, in the hierarchy of plans. Strategic planning, also known as long-range planning comes after setting the goals. In this stage is where a broad idea of how to achieve the set goals is determined.

Front 39

Matrix departmentation

Back 39

hybrid type of departmentation and is used when a company needs to complete a project which demands close, integrated work between people from various departments. An example is if a company is developing a new fighter aircraft--a project manager would be in charge of a semi-permanent department consisting of people from engineering, research, finance, etc..

Front 40

Span of control

Back 40

number of subordinates reporting to a given superior

Front 41

narrow span of control

Back 41

indicates few supervised

Front 42

broad span of control

Back 42

one manager supervises many.

Front 43

HR Planning

Back 43

determining the personnel needs for a company--i.e. the kind, skills, and number of people needed in the future, and how to meet this need

Front 44

organization's shape

Back 44

depends on the number of levels of management

Front 45

tall organizational structure

Back 45

has many levels of supervision and narrow spans of control

Front 46

flat structure

Back 46

would have few levels of management and broad spans of control.

Front 47

Centralization

Back 47

organizational structure in which the authority and responsibility to make the most important decisions are at the top of the organization.

Front 48

Formalization

Back 48

the extent to which an organization depends or written rules and procedures

Front 49

Mechanistic organizations

Back 49

more formalized than organic organizations.

Front 50

Decentralization

Back 50

involves an organizational structure in which the authority and responsibility to make decisions is not all kept in a central headquarters, but in lower levels out in the field.

Front 51

Delegation

Back 51

where a manager allocates authority downward to a subordinate. Responsibility still falls on the manager, and cannot be delegated.

Front 52

Joan Woodward defined three types of technology

Back 52

unit and small batch, mass production/assembly line, and continuous process technology.

Front 53

Mechanistic structure of organization

Back 53

works best with mass production/assembly line technology based organizations

Front 54

Continuous technology (CPT)

Back 54

where the company produces the same product for long periods of time, automatically taking in raw materials and turning them into finished products.An example of an organization using CPT is an oil refinery, or a soap factory.

Front 55

Job enrichment

Back 55

involves adding vertically to a job by giving the position planning and controlling responsibilities. Job enrichment is designed to increase worker motivation by giving them responsibility, and opportunities for professional growth and achievement

Front 56

Job enlargement/horizontal loading

Back 56

involves adding to the position horizontally, by requiring more duties of a similar level of skill.

Front 57

staffing function of management

Back 57

provides the people to fill the positions created by the organizing function

Front 58

Human resources management

Back 58

also known as personnel management and is the administration of the staffing function.

Front 59

Manpower planning

Back 59

the planning portion of the staffing function, and involves determining the kind of people which will be required in the future, and how to insure that they will be available