Principles Of Management Exam 3

Front 1

Organization chart:

Back 1

a diagram that illustrates the reporting lines between units and people within the organization

Front 2

The organization chart conveys four kinds of information?

Back 2

1. Boxes represent different units
2. Titles in each box show the work performed by that person
3. Reporting relationships are shown by the lines connecting superiors and subordinates
4. Levels of the organization are indicated by the number of vertical layers in the chart

Front 3

Differentiation

Back 3

Organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies

Front 4

2 Types of Differentiation

Back 4

Division of Labor and Specialization

Front 5

Division of Labor

Back 5

work of the organization is divided into smaller tasks

Front 6

Specialization

Back 6

process of identifying particular tasks and assigning them to departments, teams, or divisions

Front 7

Integration

Back 7

Various units coordinate their work to achieve common goals

Front 8

Characteristics of Vertical Control

Back 8

Hierarchy, Span of control, Authority, Responsibility, Accountability, Delegation

Front 9

Hierarchy:

Back 9

a pyramid showing relationships among levels

Front 10

Span of control:

Back 10

the number of employees directly reporting to a person

Front 11

Authority:

Back 11

right to make a decision

Front 12

Responsibility:

Back 12

an employee’s duty to perform the assigned task

Front 13

Accountability:

Back 13

manager’s expectation that the employee will accept credit or blame for his or her work

Front 14

Delegation:

Back 14

process of giving authority to a person (or group or team) to make decisions and act in certain situations

Front 15

3 Barriers to delegation

Back 15

1. Failure to define authority and responsibility clearly
2. Managers fear to delegate to others
3. Cultural values

Front 16

Vertical Design: Building Blocksfor Effective Delegation

Back 16

1. Establish goalsand standards
2. Involvement
3. Provide training
4. Ensure clarity
5. Expect completedwork
6. Timely feedback

Front 17

Centralization (Vertical Design)

Back 17

concentration of authority at the top of an organization or department

Front 18

Decentralization (Vertical Design)

Back 18

delegation of authority to lower level employees or departments

Front 19

Interrelated Factors Affecting Decision to Centralize or Decentralization

Back 19

1. Desire for uniformityof policy
2. Competency levels of managers and employees
3. Need forformal controlmechanisms
4. Environmental influences that require uniformity

Front 20

Major types of Horizontal Organization Design

Back 20

1. Functional Design
2. Product Design
3. Network Design
4. Geographical Design

Front 21

Functional Design

Back 21

Grouping managers and employees according to their areas of expertise and the resources they use to perform their jobs

Front 22

Benefits of Functional Design

Back 22

1. Supports skill specialization
2. Reduces duplication of resources & increases coordination with the function
3. Enhances career development & training within functional area
4.Allows superiors and subordinates to share common expertise
5. Promotes high-quality technical decision making

Front 23

Potential Pitfalls of Functional Design

Back 23

1. Inadequate communication across functional areas
2. Conflicts over product priorities
3. Focus on departmental rather than organizational issues and goals
4. Develops managers who are experts only in a narrow field

Front 24

Product Design

Back 24

All functions that contribute to a product are organized under one manager, Divides the organization into self-contained units

Front 25

Potential Benefits of Product Design

Back 25

1.Permits fast changes in a product line
2.Allows greater product line visibility
3.Fosters a concern for customer demand
4.Clearly defines responsibilities for each product line
5.Develops managers who can think across functional lines

Front 26

Potential Pitfalls of Product Design

Back 26

1. Inefficient utilization of skills and resources
2. Not fostering coordination of activities across product lines
3. Encourages politics and conflicts in resource allocation across product lines
4. Limits career mobility for personnel outside their own product lines

Front 27

Geographical Design

Back 27

Organizes activities around location; Helps to develop competitive advantage in each region according to that area’s customers, competitors, and other factors

Front 28

Potential Benefits of Geographical Design

Back 28

1. Facilities and the equipment used for production and/or distribution all in one place, saving time and costs
2. Able to develop expertise in solving problems unique to one location
3. Understanding of customers’ problems and desires in the location
4. Getting production closer to raw materials and suppliers

Front 29

Potential Pitfalls of Geographical Design

Back 29

1. Duplication of functions, to varying degrees, at each regional or individual unit location
2. Conflict between each location’s goals and the organization’s goals
3. Adds levels of management and extensive use of rules and regulations to coordinate and ensure uniformity of quality among locations

Front 30

Network Design

Back 30

Subcontracts some or many of its operations to other firms and coordinates them to accomplish specific goals; Sometimes called virtual organizations; Connects people regardless of their locations

Front 31

Potential Benefits of Network Design

Back 31

1. Ability to gain special knowledge and skills of others without having to hire employees
2. Allows managers the flexibility to work with a wide variety of different suppliers, customers, and other organizations

Front 32

Potential Pitfalls of Network Design

Back 32

1. Other organizations may fail to live up to established deadlines
2. Managers must constantly monitor the quality of work provided by other organizations
3. Employees in the outsourced organization may not hold the same values and sense of time urgency to which employees in the organization are committed

Front 33

Organic Systems

Back 33

1. Tasks tend to be ill defined
2. Tasks are continually adjusted and redefined through communication as situations change
3. Network structure of control, authority, and communication
4. Communication and decision making are both vertical and horizontal, depending on where information and expertise reside
5. Communication emphasizes the form of mutual influence and advice among all levels

Front 34

Mechanistic System

Back 34

1. Tasks are highly specialized
2. Tasks tend to remain rigidly defined unless changed by top management
3. Specific roles are prescribed for each employee
4. Hierarchical structure of control, authority, and communication
5. Communication and decision making are primarily vertical, top-down
6. Communication emphasizes directions and decisions issued by superiors

Front 35

Pooled interdependence:

Back 35

Sequential interdependence: the orderly step-by-step flow of information, tasks, and resources from one individual or team to another within the same unit or from one unit to another (e.g., football teams)
little sharing of information or resources among individuals within a unit or among units in the performance of tasks (e.g., golf teams)

Front 36

Interdependence:

Back 36

the degree of coordination required between individuals and units to transform information and raw materials into goods and services

Front 37

Sequential interdependence:

Back 37

the orderly step-by-step flow of information, tasks, and resources from one individual or team to another within the same unit or from one unit to another (e.g., football teams)

Front 38

Reciprocal interdependence:

Back 38

the need for every individual and unit to work with every other individual and unit; information and resources flow back and forth freely until the goal is achieved (e.g., volleyball teams)