Management - Part 3

_____________ defined four types of organization based on management style, stating that System 4 organization should be the most efficient in achieving its goals.

*Rensis Likert* He proposed System 4 organization, 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.This is known as the Acceptance Theory of Authority, and opposes the classical idea that authority is ordained by position.

A _________ relationship is the relationship between a superior and his subordinate.

*Reporting* A reporting relationship consists of the superior, who has authority over the subordinate, and the subordinate who is responsible to the superior for his actions.

______________ is an obligation to achieve some result or perform some task.

*Responsibility*

The ______ principle states that every organization needs to have a clear line of authority from the top of the organization to the bottom.

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

An organization's _____ depends on the number of levels of management. If one has many levels of supervision and narrow spans of control, it is a tall organizational structure.

*Shape* A flat structure would have few levels of management and broad spans of control.

____ of control is the number of subordinates reporting to a given superior.

*Span* A narrow span of control indicates few supervised, which a broad span of control means that one manager supervises many.

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

*Span* Span of Control was one of the principles defined by Henri Fayol.

The most ______ form of departmentation is functional departmentation.

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

__________ technology is where the company produces the same product for long periods of time, automatically taking in raw materials and turning them into finished products.

*Continuous* This is known as Continuous Process Technology (CPT). An example of an organization using CPT is an oil refinery, or a soap factory.

________ departmentation is based on the customers or types of customers.

*Customer* For example, in a clothing department store, there may be a teen shop, a junior shop, and a bridal shop.

________________ 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.

*Decentralization*

__________ is where a manager allocates authority downward to a subordinate.

*Delegation* Responsibility still falls on the manager, and cannot be delegated.

_______________ is the process of dividing large groups into smaller, more workable groupings.

*Departmentation* Departmentation involves grouping together positions with their functions and responsibilities under other parts of the organization structure.

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

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

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

*Enlargement* While job enrichment, expands a position vertically with responsibility and depth, job enlargement involves simply adding more work. For example, giving a dishwasher a broader range of things to wash is job enlargement. Another term for this is horizontal loading.

Job __________ involves adding vertically to a job by giving the position planning and controlling responsibilities.

*Enrichment* Job enrichment is designed to increase worker motivation by giving them responsibility, and opportunities for professional growth and achievement.

In a break-even chart, the break-even point is that point on the graph where the total revenue ______ total costs. Therefore, increasing the overhead for an operation would raise the break-even point.

*Equals* 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.

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

*Exception* This is known as the exception principle, and was defined by Henri Fayol.

_____________ is the extent to which an organization depends on written rules and procedures.

*Formalization* Mechanistic organizations are more formalized than organic organizations.

In 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. The advantage of promoting ___________ is that it increases morale.

*From within* The big advantage of a policy of promoting from within the organization is that it is 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.

__________ authority is where staff managers have limited authority over subordinates of line managers.

*Functional* Typically, staff authority can only advise line positions, they cannot give orders in a line position's authority or jurisdiction. Keep in mind, staff authority and staff positions are two different things--same with line authority and line positions.

____ Planning boils down to 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.

*Hr* HR Planning (Human Resources Planning) is simple--determining the personnel needs for a company.

____ positions are directly related to the purpose of an organization.

*Line* 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.

____ authority is the right to act, to make decisions, and to command.

*Line* Line Authority is the authority a superior wields over his direct subordinates. The two types of authority are line and staff.

________ planning is 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

*Manpower*

______ departmentation is a 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.

*Matrix* 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..

___________ structure of organization is believed to work best with mass production/assembly line technology based organizations

*Mechanistic*

In contrast to bureaucratic or mechanistic organizations, _______ organizations are more informal, there is less rigid specialization, and there is a greater focus on personal relationships.

*Organic* This describes organic organizations--they are supposed to be flexible and well-suited for a rapidly changing environment; i.e. computer software development.

__________ is the management function in which the work is divided and a structure of authority is established

*Organizing* This is known as organizing, and is one of the five functions of management.

Some important characteristics for ___________ appraisals are that they should evaluate employees in an objective, consistent and fair way.

*Performance* Performance appraisals should be fair and unbiased. Companies are under both social and legal obligation to be objective.

Human resources management is also known as _________ management and is the administration of the staffing function.

*Personnel*

A ____ network is 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.

*Pert* 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.

The __________ of organization is usually associated with Henri Fayol's 14 principles of management, which he defined in his classical management theory.

*Principles* Fayol's 14 principles included unity of command, unity of direction, esprit de corps, authority being equal to responsibility, and others.

_______ departmentation involves grouping positions according to the different steps in a process.

*Process* For example, a manufacturing plant may be divided into drilling, grinding, welding, assembling and finishing departments.

_______ Departmentation is where positions which support or are directly related to a product or product category are grouped together

*Product* For example, General Motors has Chevrolet, Pontiac, Buick, and other divisions for the different brands of cars it produces.

______________, another term for division of labor, is where employees carry out the activities they are more qualified for and adept at performing.

*Specialization* 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.

_____ authority is the right to advise, or recommend to line personnel.

*Staff*

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

*Staff* For example, in a car manufacturing company, medical staff or public relations people would be considered to support the line positions--the people who create and sell the product.

The ________ function of management provides the people to fill the positions created by the organizing function.

*Staffing* The functions of management include planning, organizing, staffing, directing, and controlling.

In Rensis Likert's System 4 organization, the leader of a group is often a ___________ in a higher decision making group. He is known as a linking.

*Subordinate* 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.

___________ departmentation is grouping activities according to the places where operations are located.

*Territorial* Territorial departmentation can also be called regional, area, or geographic departmentation.

________ defined three types of technology.

*Woodward* Joan Woodward defined three types of technology--unit and small batch, mass production/assembly line, and continuous process technology.

Chester Barnard defined the __________ Theory of Authority, which states that authority's effectiveness depends on whether or not the subordinates accept the authority over them.

*Acceptance* This is known as the Acceptance Theory of Authority, and opposes the classical idea that authority is ordained by position.

______________ is the obligation one gets when he uses authority which has been assigned to him.

*Accountability* People with authority can be held accountable for how they use their authority.

_____ of departmentation are the two main ways in which groups are split up into departments.

*Bases* They include "internal bases" which departmentalize within a company by function or product, and "external bases" which involve departments divided based on geography (location) and customers.

It is commonly believed that applying classical principles of management results in either ____________ or mechanistic organization.

*Bureaucratic* The 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.

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

*Centralization* One of Henri Fayol's 14 principles of classical management states centralization as a rule.

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

*Chain of command* In an organization, an employee does not normally report directly to the president--he reports to his supervisor, who reports to his superior, and so on, until perhaps it reaches the president himself.

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

*Chart*

The _______ management theory is associated with Henri Fayol.

*Classic* Classic management theory is sometimes called administrative management and is attributed to Henri Fayol. The five functions of management he proposed were planning, organizing, commanding, coordinating, and controlling.

Henri Fayol's principle of the unity of _______ states that each subordinate should report to and be accountable to only one superior.

*Command*