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15 Cards in this Set

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What is Capitalism

An economic system characterized by the private ownership of the means of production, the pursuit of profit, and market competition.

What is a bureaucracy

A formal organization with a clear hierarchy of authority and a clear division of labor; emphasis on impersonality of positions and written rules, communications, and records.

Army, Postal Service, College, Government

What is a formal organization?

A secondary group designed to achieve explicit objectives.

What are the five characteristics of a bureaucracy?

1. Seperate levels flowing downward and accountability flowing upward


2. division of labor


3. written rules


4. written communications and records


5. impersonality and replaceability.

What is goal displacement

An organization replacing old goals with new ones.


Also called goal replacement

March of Dimes.

What are the dysfunctions of bureaucracies?

1.Red Tape: bureaucracies can be bound by rules that the results defy logic.


2.Lack of communication between units: sometimes the units within bureaucracies fail to communicate with one another and end up working at cross-purposes.


3.Bureaucracy incompetence (Peter Principle). Each employee is promoted to his or her level of incompetence.

What is the Peter Principle?

An observation that people who perform well in a bureaucracy come to the attention of higher ups and are promoted for their achievements until they reach their level of incompetence.

What are the causes of alienation on the job?

Perceived in terms of roles, rules and functions rather than as individuals, many workers in bureaucracies begin to feel more like objects; people with boring repetitive tasks.


The workers lack of connection to the product of their labor, caused by being assigned to repetitive tasks on a small part of a product, leads to a sense of powerlessness and normalness. Some quit, some wait it out waiting for retirement, staying because of seniority.

What are voluntary organizations?

Groups made up of people who voluntarily organize on the basis of some mutual interest; also known as voluntary memberships and voluntary organizations.

Boy scouts, chamber of commerce, alcoholics anonymous, unions, health clubs, political parties

What are the seven functions of voluntary associations?

1.They advance particular interests.


2.They offer people an identity.


3.They help maintain social order.


4.Some mediate between the government and the individual.


5.By providing training in organizational skills, some groups help people climb the occupational ladder.


6.Some groups help people into the political mainstream (NAACP)


7.Some pave the way for social change. (Greenpeace, Sea Shepards)

What is the inner circle and what are the problems that can occur in voluntary organizations?

The key members of a voluntary organization, its inner circle, often can grow distant from the regular members. They become convinced that only they can be trusted to make the groups important decisions, creating an iron law of oligarchy.

What is the iron law of oligarchy?

Robert Michels term for the tendency of formal organizations to be dominated by a small, self-perpetuating elite (the inner circle). People are excluded from leadership because they don't represent the inner circles values, or even the way they look or their background.

What is corporate culture?

The values, norms, and other orientations that characterize corporate work settings.

What is a self fulfilling stereotype?

Preconceived ideas of what someone is like that lead to the person's behaving in ways that match that stereotype.

What is hidden corporate culture?

Stereotyping the traits that make high-performing and under performing workers, which end up producing both types of workers.