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59 Cards in this Set

  • Front
  • Back
in which the work is divided and a structure of authority is established.
organization chart
shows the authority relationships between the various positions and departments in an organization.
Line authority
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.
Staff authority
the right to advise, or recommend to line personnel.
obligation to achieve some result or perform some task.
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.
Human Resource Planning
an organization must decide on whether to adopt a policy of promoting from within, or to simply promote the best candidates it can find.
promoting from within
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.
chain of command
the set of authority-responsibility relationships which link superiors and subordinates in an entire organization.
reporting relationship
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.
Line positions
directly related to the purpose of an organization
For example, in a marketing organization, sales is a line position.
Staff positions
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.
Functional authority
staff managers have limited authority over subordinates of line managers.
staff authority
can only advise line positions, they cannot give orders in a line position's authority or jurisdiction.
classic management theory/
administrative management
classic management theory is associated with Henri Fayol.

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

Fayol's 14 principles of management
included unity of command, unity of direction, esprit de corps, authority being equal to responsibility, and others
unity of command
states that each subordinate should report to and be accountable to only one superior.
Unity of direction
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.
scalar principle
also known as the chain of command principle, and basically states that there needs to be a clear-cut established chain of command.
break-even chart
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.
exception principle (Fayol)
states that management should deal only with the exceptions--the cases where the performance of their subordinates does not meet standards.
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.
span of control (fayol)
principle which states that there is a limit to the number of subordinates a manager can effectively supervise.
Classical management theory
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.
PERT network
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
organic organizations
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.
Acceptance Theory of Authority
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.
System 4 organization
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.
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.
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.
internal bases
which departmentalize within a company by function or product
external bases
which involve departments divided based on geography (location) and customers
functional departmentation
positions are grouped based on a common organizational purpose or function. For example, finance, marketing, and engineering are functionally organized.
performance appraisals
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.
Process departmentation
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.
Product Departmentation
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.
Customer departmentation
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.
Territorial departmentation
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.
Matrix departmentation
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..
Span of control
number of subordinates reporting to a given superior
narrow span of control
indicates few supervised
broad span of control
one manager supervises many.
HR Planning
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
organization's shape
depends on the number of levels of management
tall organizational structure
has many levels of supervision and narrow spans of control
flat structure
would have few levels of management and broad spans of control.
organizational structure in which the authority and responsibility to make the most important decisions are at the top of the organization.
the extent to which an organization depends or written rules and procedures
Mechanistic organizations
more formalized than organic organizations.
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.
where a manager allocates authority downward to a subordinate. Responsibility still falls on the manager, and cannot be delegated.
Joan Woodward defined three types of technology
unit and small batch, mass production/assembly line, and continuous process technology.
Mechanistic structure of organization
works best with mass production/assembly line technology based organizations
Continuous technology (CPT)
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.
Job enrichment
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
Job enlargement/horizontal loading
involves adding to the position horizontally, by requiring more duties of a similar level of skill.
staffing function of management
provides the people to fill the positions created by the organizing function
Human resources management
also known as personnel management and is the administration of the staffing function.
Manpower planning
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