mgmt ch. 9

Interorganizational process

a collection of activities that take place among companies to transform inputs into outputs that customers value

Simple matrix

a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources

Complex matrix

a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort our conflicts and problems

Matrix departmentalization

a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together

Job specialization

a job composed of a small part of a larger task or process

Unity of command

a management principle that workers should report to just one boss

When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and

accountability

Line function

an activity that contributes directly to creating or selling the company's products

Staff function

an activity that does not contribute directly to creating or selling the company's products, but instead supports line activities

Job characteristics model (JCM)

an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes

Organic organization

an organization characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge

Mechanistic organization

an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication

Virtual organization

an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services

Modular organization

an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

Work can be formed into natural work units by

arranging tasks according to logical or meaningful groups

The second part of traditional organizational structures is

authority

Organizational authority is traditionally characterized by

chain of command

Managers can exercise their authority directly by

completing tasks themselves, or they can choose to pass on some of their authority to subordinates

two types of matrix

complex and simple

A class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do?

create an organizational structure with vertical and horizontal configurations

Large accounting agencies typically have separate departments that deal with households, businesses, and governments. To better serve the needs of their clients, many of these accounting agencies use __ departmentalization

customer

An Indian cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. Cardinal Varkey Vithayathil stated in a published interview that the Indian church has been forced "to depend on the Roman curia for too many matters." He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for

decentralization

___ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

delegation of authority

Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses

departmentalization

The primary disadvantage of customer departmentalization is

duplication

The primary disadvantage of geographic departmentalization is

duplication of resources

Empowerment

feeling of intrinsic motivation, in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination

The last job redesigned technique offered by the model, opening feedback channels

finding additional ways to give employees direct, frequent feedback about their job performance

departmentalization is defined as organizing work and workers into separate units responsible for particular business functions or areas of expertise

functional

Which of the following statements about functional departmentalization is true?

functional departmentalization allows work to be done by highly qualified specialists

Reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed

Reengineering =

fundamental, radical, processes, dramatic

People higher in the chain of command have the right, if they so choose, to

give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain

Job enlargement

increasing the number of different tasks that a worker performs within one particular job

Job enrichment

increasing the number of tasks in a particular job of giving workers the authority and control to make meaningful decisions about their work

A second dimension of authority is the distinction between

line and staff authority

In terms of the chain of command, ___ authority is the right to command immediate subordinates, while ___ authority is the right to advise but not command others who are not subordinates

line; staff

Commerce Insurance Services have five divisions. They are personal; core commercial; main street business; major commercial; and benefits. The company is also departmentalized along product lines. Commerce Insurance Services uses ___ departmentalization

matrix

The primary advantage of ___ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication

matrix

With ___ departmentalization, most employees report to two bosses

matrix

___ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization

matrix

notorious for confusion and conflict between project bosses in different parts of the matrix

matrix function

5 types of departmentalization

matrix, geographic, customer, product, functional

Internal motivation

motivation that comes from the job itself rather than from outside rewards

is the collection of activities that transform inputs into outputs that customers value

organizational process

Geographic departmentalization

organizing work and workers into separate units responsible for doing business in particular geographic areas

Functional departmentalization

organizing work and workers into separate units responsible for particular business functions or areas or expertise

Customer departmentalization

organizing work and workers into separate units responsible for particular kinds of customers

Product departmentalization

organizing work and workers into separate units responsible for producing particular products or services

Job rotation

periodically moving workers from one specialized job to another to give them more variety and the opportunity to used different skills

Empowering workers

permanently passing decision making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions

Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ___ departmentalization

product

The most common matrix combines the

product and functional forms of departmentalization are used together

Vertical loading

pushing some managerial authority down to workers

Disagreements or misunderstandings about

schedules, budgets, available resources, and the availability of employees with particular functional expertise are common in matrix structures

Establishing client relationships increases

skill variety, autonomy, and feedback by giving employees direct contact with clients and customers

Standardization

solving problems by consistently applying the same rules, procedures, and processes

Combining tasks increases skill variety and task identity by joining separate,

specialized tasks into larger work modules

___ is the process of solving problems by consistently applying the same rules, procedures, and processes

standardization

Departmentalization

subdividing work and workers into separate organizational units responsible for completing particular tasks

Feedback

the amount of information the job provides to workers about their work performance

Delegation of authority

the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

Intraorganizational process

the collection of activities that take place within an organization to transform inputs into outputs that customers value

Organizational process

the collection of activities that transform inputs into outputs that customers value

Task significance

the degree to which a job is perceived to have a sustainable impact on others inside or outside the organization

Task identity

the degree to which a job, from beginning to end, requires the completion of whole and identifiable piece of work

Autonomy

the degree to which job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job

Task interdependence

the extent to which collective action is required to complete an entire piece of work

Decentralization

the location of a significant amount of authority in the lower levels of the organization

Centralization of authority

the location of most authority at the upper level of the organization

Skill variety

the number of different activities performed in a job

Job design

the number, kind, and variety of tasks that individual workers perform in doing their jobs

Staff authority

the right to advise, but not command, others who are not subordinates in the chain of command

Line authority

the right to command immediate subordinates in the chain of command

Authority

the right to give commands, take action, and make decisions to achieve organizational objectives

Chain of command

the vertical line of authority that clarifies who reports to whom throughout the organization

Organizational structure

the virtual and horizontal configuration of departments, authority, and jobs within a company

As a result of their structures, matrix organizations automatically violate the principle of

unity of command

One of the key assumptions underlying the chain of command is

unity of command

Reciprocal interdependence

work completed by different jobs or groups working together in back-and-forth manner

Pooled interdependence

work completed by having each job or department independently contribute to the whole

Sequential interdependence

work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job