BUS100 Chapter 7

What are the positive and negative effects of specialization?

1. some job specialization is necessary in every organization because the "job" of most organizations is too large for one person to handle. 2. When a worker has to learn one specific, highly specialized task, that individual can learn it quickly and perform it efficiently. 3. a worker repeating the same job does not lose time changing operations, 4. the more specialized the job, the easier it is to design specialized equipment. 5. finally, the more specialized the job, the easier the job training. The most significant drawback is the boredom and dissatisfaction employees may feel when repeating the same job. Bored employees may be absent from work frequently, not put much effort into their work, and even sabotage the company's efforts to produce quality products.

What is corporate culture?

A corporate culture is generally defined as the inner rites, rituals, heroes, and values of a firm. An organization's culture has a powerful influence on how employees think and act. It also can determine public perception of the organization.

What are the four most common bases for departmentalization? ✓ Give an example of each.

Departmentalization by function groups jobs that relate to the same organizational activity. Under this scheme, all marketing personnel are grouped together in the marketing department, all production personnel in the production department, and so on. Departmentalization by product groups activities related to a particular good or service. This approach is used often by older and larger firms that produce and sell a variety of products. E.g. Each department handles its own marketing, production, financial management, and human resources activities. Departmentalization by location groups activities according to the defined geographic area in which they are performed. Departmental areas may range from whole countries (for international firms) to regions within countries (for national firms) to areas of several city blocks (for police departments organized into precincts). For example, Ford has divisions for the Americas, Europe, Asia Pacific and Africa, and China. Departmentalization by customer groups activities according to the needs of various customer populations. The advantage of this approach is that it allows the firm to deal efficiently with unique customers or customer groups. The biggest drawback is that a larger-than-usual administrative staff is needed.

Identify and describe the three steps in the delegation process.

First, the manager must assign responsibility. Responsibility is the duty to do a job or perform a task. Second, the manager must grant authority. Authority is the power, within the organization, to accomplish an assigned job or task. Finally, the manager must create accountability. Accountability is the obligation of a worker to accomplish an assigned job or task. Note that accountability is created but it cannot be delegated.

Differentiate decentralized organization and centralized organization.

In a decentralized organization, management consciously attempts to spread authority widely across various organization levels. A centralized organization, on the other hand, systematically works to concentrate authority at the upper levels.

What are problems associated with each one?

In a tall organization, administrative costs are higher because more managers are needed. Communication may become distorted because information has to pass up and down through more levels. When companies are cutting costs, one option is to decrease organizational height in order to reduce related administrative expenses. In a tall organization, administrative costs are higher because more managers are needed. Communication may become distorted because information has to pass up and down through more levels. When companies are cutting costs, one option is to decrease organizational height in order to reduce related administrative expenses.

In what ways can informal groups affect a business?

Informal groups can be powerful forces in organizations. They can restrict output, or they can help managers through tight spots. They can cause disagreement and conflict, or they can help to boost morale and job satisfaction. They have the power to improve or worsen employee performance and productivity.

What are three ways to reduce the negative effects of specialization?

Job rotation is the systematic shifting of employees from one job to another. Two other approaches—job enlargement and job enrichment—also can provide solutions to the problems caused by job specialization.

How do large and small organizations use organization charts differently?

Most smaller organizations find organization charts useful. They clarify positions and relationships for everyone in the organization, and they help managers to track growth and change in the organizational structure. However, many large organizations, such as ExxonMobil, Kellogg's, and Procter & Gamble, do not maintain complete, detailed charts. First, it is difficult to chart even a few dozen positions accurately, much less the thousands that characterize larger firms. Second, larger organizations are almost always changing parts of their structure. An organization chart would be outdated before it was completed. Increasingly, technology can help even large and complicated organizations implement up-to-date organization charts.

How is the grapevine used in a business organization?

The grapevine is the informal communications network within an organization. Certainly, it would be a mistake to try to eliminate it. People working together, day in and day out, are bound to communicate. A more rational approach is to recognize its existence. For example, managers should respond promptly and aggressively to inaccurate grapevine information to minimize the damage that such misinformation might do. Moreover, the grapevine can come in handy when managers are on the receiving end of important communications from the informal organization.

What are the advantages and disadvantages of using committees?

Their several members are able to bring information and knowledge to the task at hand. Furthermore, committees tend to make more accurate decisions and to transmit their results through the organization more effectively. However, committee deliberations take longer than individual actions. In addition, unnecessary compromise may take place within the committee, or the opposite may occur, as one person dominates (and thus negates) the committee process.

Identify the major considerations when organizing a business.

When a firm is started, management must decide how to organize the firm. These decisions focus on job design, departmentalization, delegation, span of management, and chain of command.

Describe the two spans of management.

Wide management span exists when a manager has a larger number of subordinates. Generally, the span of management may be wide when (1) the manager and the subordinates are very competent, (2) the organization has a well-established set of standard operating procedures, and (3) few new problems are expected to arise. A narrow span exists when the manager has only a few subordinates. The span should be narrow when (1) workers are physically located far from one another, (2) the manager has much work to do in addition to supervising workers, (3) a great deal of interaction is required between supervisor and workers, and (4) new problems arise frequently.

What is the difference between a committee and a task force?

committee is created to perform of purpose short-term (ad hoc) or permanently (standing). a task force is a committee established to investigate a major problem or pending decision.

Describe the four forms of organizational structure. Give an example of each form.

line structure, in which the chain of command goes directly from person to person throughout the organization. Thus, a straight line could be drawn down through the levels of management, from the chief executive down to the lowest level in the organization. A line-and-staff structure not only utilizes the chain of command from a line structure but also provides line managers with specialists, called staff managers. Staff managers provide support, advice, and expertise to line managers, thus eliminating the major drawback of line structures. Staff managers are not part of the chain of command like line managers are, but they do have authority over their assistants The matrix structure combines vertical and horizontal lines of authority, forming a matrix shape in the organization chart. The matrix structure occurs when product departmentalization is superimposed on a functionally departmentalized organization. In a matrix organization, authority flows both down and across and individuals report to more than one superior at the same time. In a network structure (sometimes called a virtual organization), administration is the primary function performed, and other functions such as engineering, production, marketing, and finance are contracted out to other organizations. Frequently, a network organization does not manufacture the products it sells. This type of organization has a few permanent employees consisting of top management and hourly clerical workers.

Explain the four types of corporate cultures. Pride, William M.; Hughes, Robert J.; Kapoor, Jack R.. Foundations of Business (Page 204). Cengage Learning. Kindle Edition.

the networked culture, characterized by a base of trust and friendship among employees, a strong commitment to the organization, and an informal environment. A small nonprofit organization may seek to build a networked culture where employees look out for each other and believe strongly in the organizational mission. Building a networked culture in such an organization is important because employees may have to work long hours for relatively little pay, and a strong sense of community and commitment helps to keep productivity high and turnover low. The phrase mercenary culture may have a negative connotation, but it also involves a high degree of passion, energy, sense of purpose, and excitement for one's work. Pride, William M.; Hughes, Robert J.; Kapoor, Jack R.. Foundations of Business (Page 204). Cengage Learning. Kindle Edition. . In the fragmented culture, employees do not become friends, and they work "at" the organization, not "for" it. Employees have a high degree of autonomy, flexibility, and equality. The communal culture combines the positive traits of the networked culture and the mercenary culture—those of friendship, commitment, high focus on performance, and high energy. People's lives revolve around the product in this culture, and success by anyone in the organization is celebrated by all.