MIDTERM 1 BUSN102

Max Weber's Organization Theory

1) job descriptions 2) written rules, decision guidelines, and detailed records 3) consistent procedures, regulation, and policies 4) staffing and promotion based on qualification [BUREAUCRACY]

Fayol's Equity principal

A manager she treating please and here's with respect and justice. This includes of course the treatment of women

hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Self-managed

A team is empowered to make decisions without management approval

virtual corporation

A temporary networked organization made up of replaceable firms that join and leave as needed.

inverted organization

An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.

Benchmarking

Comparing an organization's practices, processes, and products against the world's best.

Who holds the "power of the purse" in the Federal Government?

Congress

staff personnel

Employees who advise and assist line personnel in meeting their goals.

Fayol's order principal

Materials and people should be placed and maintained in the proper location within an organization

a case of negligence

McDonald and old woman severely burned by hot coffee

Who initiates the budget-making process?

President

Departmentalization

Process of organizing employees into groups or units to accomplish specific organizational goals The dividing of organizational functions into separate units.

Restructuring

Redesigning an organization so that it can more effectively and efficiently serve its customers.

examples of administrative agencies

Securities and Exchange Commission (SEC), the federal communication's commission and the equal employment opportunity commission (EEOC)

Fayol's esprit de corps principle

States that a spirit of pride and loyalty should be created among people in the firm

Fayol's clear communication channels principle

States that all workers should be able to reach others within the firm quickly and easily

Fayol's Authority principle

States that managers have the right to give orders and the power to enforce obedience. Authority and responsibility or related: whenever authorities exercise responsibility arises meaning that managers are beginning to empower employees

Fayol's subordination of individual interests to the general interest principal

States workers are to think of themselves as a coordinated team. The goals of the team are more important than the goals of the individual workers. Examples are football and basketball teams

managing change

The evolving business environment has made ____________ a critical managerial function.

chain of command

The line of authority that moves from the top of a hierarchy to the lowest level.

span of control

The number of subordinates a manager supervises or should supervise.

hierarchy of authority

The principle of _______________ means that each person should know to whom they report, and that managers should have the right to give orders and expect others to follow.

departmentalization

The process of setting up individual departments to do specialized tasks is called:

Economies of Scale

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

Informal organization

The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is, the human side of the organization that does not appear on any organization chart.

core competencies

Those functions that the organization can do as well as or better than any other organization in the world.

networking

Using communications technology and other means to link organizations and allow them to work together on common objectives.

Organizational or corporate culture

Widely shared values within an organization that provide unity and cooperation to achieve common goals. Usually the culture of an organization is reflected in it's stories, traditions, and myths.

digital natives

Young people who have grown up using the Internet and social networking.

What makes up the public debt?

all money that govt. has borrowed and not repaid, plus interest

4 factors that influence span of control

ambiguity (tall), experts (wide), accessibility of information, work style of subordinates

what is the difference between intentional tort and negligence

an intentional tort is a willful act that results in injury. An intentional tort is a willful act that results in injury. Negligence deals with unintentional behavior that causes harm or injury.

Julie recently started working at a major urban university. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the university's business. As a recent business graduate, Julie realized that the university operated in a(n) ___________ environment.

bureaucratic

Accountants at Idle Time Gaming, Inc., have a big job! Although they work with state-of-the-art systems that create financial statements every day, the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is ______________.

for efficiency, the employees can coordinate work within the function.

How does fiscal policy influence the economy?

increases spending or taxes, slows inflation, increases employment

Why is government fiscal policy important?

influences economy, runs the country

A.J. was a newly hired attorney for Idle Time Gaming, Inc. Even though he reported directly to the president of the company, A.J. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, A.J. could have probably handled. A.J. also noted that the HR manager's administrative assistant was the go-to person for a number of things that would make life easier at work. A.J. was recognizing the _________________ culture at Idle Time Gaming.

informal organization

Even though he is not a manager, Mr. Bilko is the one to see in the company when there is something you need. He will get it quickly, and can avoid the red tape that often delays action. Mr. Bilko is also the one to see if you need advice or help. Mr. Bilko is an important member of the firm's:

informal structure

A Japanese auto company recognized the quality of air-conditioning systems that a U.S. company in Indiana successfully manufactured for the U.S. auto industry. Rather than build its own, it ______________ the air-conditioning component of its models to the U.S. company, which provided several jobs for skilled tradespersons in that state

insourced

Why can the federal govt. borrow at a lower interest rate than private borrowers?

investing is safe with govt., securities' interest can't be taxed

ABC Company was awarded a bid to build an energy-efficient motor for a large government heating and cooling project. The requirements of the project included a timeline of one year to build and deliver the system. In order to provide a quality product and stay within the time requirements, ABC Company set up a _____________ organization, whereby employees from various functions of the business would join a team to see this project through, from start to finish. Upon completion, the team would disband and members would return to their respective functional units.

matrix

although tort often are noncriminal acts courts can award victims compensation if

the conduct that cause the harm is considered intentional.

Transparency refers to ____________.

the seamless operation of organizational partners, so that each is perceived as an integral part of the operation, and appears to be part of the same company

Fayol's Principles of Organization

unity of command, hierarchy of authority, division of labor, subordination of individual interests to the general interests, authority, degree of centralization, clear communication channels, order, equity, esprit de corps

ABC Company desires a successful product launch for its new product venture. Looking outside of its industry, the company solicited the advice of companies JKL and MNO, known for successful product introductions in past years. The business term used to describe the practice of looking toward others to develop a model approach is called _____________.

Benchmarking

A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?

Control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.

The first step in the process of organizing a business is to:

Determine the work that needs to be done

Fayol's Unity of command principal

Each worker is to report to one, and only one, boss. The benefits of this principle are obvious. What happens if two different bosses give you two different assignments? Which one shall you follow? To prevent such confusion each person should only report to one manager.

line personnel

Employees who are part of the chain of command that is responsible for achieving organizational goals. Those directly responsible for achieving the organizations production goals by issuing orders and forcing discipline

Fayol's division of labor principal

Functions are to be divided into areas of specialization such as production, marketing, and finance.

cross-functional self-managed teams

Groups of employees from different departments who work together on a long-term basis.

Fayol's hierarchy of authority principal

I'll worker should know to whom they report. Manager should have the right to give orders and expect others to follow.

pleasing customers

In the past, the major purpose of organizational design was to facilitate the needs of management in making their job easier, rather than ___________________.

discuss the difference between statutory and common law

Statutory law is written law, and includes state and federal constitutions, legislative enactments and so forth. Common law is the body of law that comes from decisions handed down by judges which becomes precedent.

real time

The present moment or the actual time in which something takes place.

formal organization

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts. A formal organization include both line and staff or it may be other forms such as a matrix. Formal is a more inclusive term

Who does federal borrowing?

Treasury Dept.

1 implied limitation on power to tax

can't tax states in exercise of government functions

Which of the following would not be used to describe a company with a positive corporate culture?

closer supervision of employees

In order to build the next generation of gaming software, Idle Time Gaming, Inc., put together a ______________ structure. The structure consisted not only of employees but also suppliers, distributors, and customers, who joined the company experts to pursue the company's objectives.

cross-functional team

difference between demand-side and supply-side economics

d- govt. should spend money s- govt. should cut taxes

criminal law

defines crimes, establishes punishments, and regulates the investigation and prosecution of people accused off committing crimes

Robin Banks is a supervisor for a large, bureaucratic organization on the West Coast. According to the views of a bureaucratic organization, this means that Robin should:

do her work and let middle- and upper-level managers do the decision making.

federal agencies

federal trade commission and food and drug administration

During the past recession, Cali-Bration Company created a __________ organization, when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Cali-Bration realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.

flat

How can both inflation and deflation hurt the economy?

i- consumers can't buy things d- people can't borrow money, farmers/producers receive less money for their products

In order to more quickly respond to customer needs, Hewlett-Packard is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that HP is moving toward a _______________ structure.

more decentralized

civil law

proceedings cover noncriminal acts- marriage, personal injury suits, and so on

Dewey, Cheatum, and Howe is a car company that makes four models, a hybrid sport utility, a sports car, a four-door sedan, and a compact car. Workers at Dewey basically work on only one type of vehicle, and separate marketing and product development processes are designed for each type of vehicle, to better serve the customers for each type of vehicle. Dewey, Cheatum, and Howe is departmentalized by

product

The rule of "strict liability" refers to

product liability. It is the idea that a company can be liable for damages caused by placing a product on the market with a defect even if the company did not know of the defect at the time of the sale.

purpose of Congressional Budget Office in budget process

provide Congress with information about budget

state agencies

public utility commissions and state licensing boards

purpose of OMB in budget process

review proposals for spending money, send them to Congress

Maria Escobar works as an attorney for a large East Coast consulting firm. Maria's job is to act as an advisor to the firm's consultants, to be sure that they do not confront any legal issues when they are working at the various clients' job sites. Maria's position would be classified as a __________ position.

staff

Fayol's degree of centralization principle

states the amount of decision-making power vested in top management should vary by circumstances

Division of labor means ___________.

tasks are divided into areas of specialization among a group of employees

What is the largest source of federal revenue?

taxes-specifically individual income tax

Rachel planned to open a pastry shop in a resort town on the east coast. As she pondered her organizational set-up, she decided she would need four employees to specialize in the creation and production of delicate pastries, and three employees to greet, serve, and sell to customers. One or two of her workers were designated as supervisors. Another preliminary organizational decision that Rachel will most likely tackle is _______________.

the allocation of resources within her operation

Due to his reputation of putting together powerful presentations, Brock was contractually hired by Robotic Life, Inc., to help this firm introduce the value of its new robotic arms and legs to high-net worth investors. Robotic Life hired Brock strictly for this special project. At this stage of its life, the firm operates as a(n) ______________, where it solicits the services of other companies on an "as needed" basis, and then releases them when the job is done.

virtual corporation

6 examples of entitlements

1. food stamps 2. Medicare 3. Medicaid 4. Social Security 5. veteran's pensions and benefits 6. unemployment insurance

3 main economic goals the govt. seeks to achieve

1. full employment 2. price stability 3. economic growth

2 sources of non-tax revenue for federal govt.

1. interest charges 2. seignorage

2 examples of uncontrollable spending

1. interest on public debt 2. entitlements

2 reasons why federal govt. borrows money

1. meet costs of crisis situations 2. pay for large-scale projects

2 examples of controllable spending

1. national parks 2. highways

4 Constitutional limitations on power to tax

1. public purposes only 2. not applied to exports 3. direct taxes equally apportioned among the states 4. indirect taxes must be at the same rate throughout the country

2 primary purposes of taxes

1. raise money to operate government 2. regulate/discourage harmful behavior

what is the definition of a trademark

A trademark is a legally protected name, symbol, or design, or combination of those, that identifies the goods or services of one seller and distinguishes them from those of the competition.

Organization chart

A visual device that shows relationships among people and divides the organization's work; it shows who reports to whom.

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure.

decentralized authority

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be. ADVANTAGES: Better adaptation to customer wants, more empowerment of workers, faster decision-making, Higher morale. WEAKNESSES:Less efficiency, complex distribution system, less top-management control, weakened corporate image

centralized authority

An organization structure in which decision-making authority is maintained at the top level of management at the company's headquarters. ADVANTAGES:Greater top-management control, more efficiency, simpler distribution system, strong brand/corporate image WEAKNESSES:Less responsive to customers, less empowerment, inter-organizational conflict, lower morale away from headquarters

line organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

Beauracracy

An organization with many layers of managers who set rules and regulations and oversee all decisions. A reliance on rules. Companies designed many rules and regulations to give managers control over it is often considered inefficient Max Weber uses this term

purpose of House and Senate

Appropriations Committees in budget process develop spending bills to vote on

A large commercial horse farm provides jobs for over 100 employees, who care for over 300 horses of various breeds. The operation consists of traditional functional units, which include management, marketing, and finance, and 45 veterinarians that specialize in the various breeds of horses owned by the company. Although the firm operates with a CEO, COO, CFO, and a director of marketing, it relies on the veterinarians to make decisions on the appropriate care and environment for the horses. Sometimes the veterinary decisions override marketing and financial concerns even though they operate at a lower level in the organization structure. The commercial farm operates as a(n) _________ organization.

Inverted

Weber's principles of organization Emphases on:

Job descriptions Written, decision guidelines, and detailed records. Consistent procedures, regulations, and policies. Staffing and promotion based on qualifications

Flat Organizational Structure

Organization with a few layers of management between the executive level and the lowest level An organization structure that has few layers of management and a broad span of control. create a flat organization with fewer reporting levels

tall organization structure

Organization with multiple layers of management between top executives and front-line employees An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management. build a tall organization that has many reporting levels