BUS137-03IN Principle of Management, CH 9, 10, 11

Functional departmentalization disadvantages

1. cross-department coordination can be difficult- Managers and employees are often more interested in doing what right for their function than in doing whats right for the entire organization. 2. Marketing typically pushes for spending more money to make more products with more capabilities to meet customer needs. 3. As companies grow, functional departmentalization may also lead to slower decision making and produce managers and workers with narrow experience and expertise

Product departmentalization disadvantage

1. duplication 2. duplication result in higher cost. 3. challenge of coordinating across the different product departments

why managers should delegate

1. gives more help so managers dont have to do all the work themselves 2. takes off more responsibilities off the managers back

matrix departmentalization distinguish from other departmentalization

1. most employees report to two bosses, one from each core part of the matrix. 2. by virtue of their hybrid design, matrix structures lead to much more cross-functional interaction than other forms of departmentalization. 3. because of the high level of cross-functional interaction matrix departmentalization requires significant coordination between managers in the different parts of the matrix

Two types of matrix

1. simple matrix 2. complex matrix

unity of command purpose

1. to prevent the confusion that might arise when an employee receives conflicting commands from two different bosses. 2. companies don't necessarily have to have a matrix organization to violate unity of command-they can do so by appointing two CEOs.

psychological states that must occur for work to be internally motivating

1. workers must experience the work as meaningful; 2. they must experience responsibility for work outcomes. 3. workers must have knowledge of results

matrix departmentalization understanding

The horizontal reporting relationships in matrix structures help to improve communication among employees in different functional areas. Suppose that Al's Autos created a matrix structure with truck and car divisions. Parts, service, and sales employees would all come to the divisional meetings, thereby improving communication.

Job rotation

attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills. At the same time this makes work less boring and more satisfying for working

reciprical interdependence

different jobs or groups work together in a back and forth manner to complete the process -

pool interdependence

each job or department contributes to the whole independently

Reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quilty, service and speed -fundamental-managers must ask themselves, why do we do what we do? why we do it the way we do? the usually answer is because that the way we always done it -radical- reengineering is about significant changes. its about throwing the old way of getting work done. - reengineering changes an orgainzations orientation from vertical to horizontal -instead of taking orders from upper management, lowers-and middle-level managers and workers take orders from a customer who is at the beginning and end of each process. -decreases sequential interdependence -decrease pool interdependence by redesigning work so that formerly independent jobs or departments now work together to complete processes -increase reciprocal interdependence by making groups or individuals responsible for larger, more complete processes in which several steps may be accomplished at the same time

input sentence

i use my keyboard to put information into the computer

Simple matrix

in which managers in different parts of the matrix negotiate conflicts and resources directly

complex matrix

in which specialized matrix managers and departments are added to the organizational structure

interorganizational process

is a collection of activities that occur among companies to transform imputs into outputs that customers work together to crearte a product or service that keeps customers happy.

chain of command`

is the vertical line of authority that clarifies who reports to whom throughout the organization. people higher in the chain of command have right, if they so choose, to give commands, take action, and make decisions concerning activities occurring anywhere below them in the chain

what determines the different function within the organization

line function and staff function

Job specialization

occurs when a job is composed of a small part of a larger task or process. Specialized jobs are characterized by simple, easy to learn steps -low variety; and high repetition -they can be boring -they are economic -it takes little time to learn and master -when experienced workers quit or are absent , the company can replace them with new employees and lose little productivity

geographic departmentalization

organizes work and workers into separate unites responsible for doing business in particular geographic areas.

Customer departmentalization

organizes work and workers into separate unites responsible for particular kinds of customers

Product departmentalization

organizes work and workers into separate unites responsible for producing particular products or services.

modular organizations

outsource all remaining business activities to outside companies, suppliers, specialists, or consultants

product explain

product structure that clusters employees together so that they can focus on a particular product. This is a more decentralized structure than the traditional functional structure, and product managers are given a good deal of control over their divisions. This can improve horizontal communication between functional departments and produce a more flexible organization. At the same time, having similar functions in each division can cause duplication of effort across the organization.

staff function

such as accounting, human resources, or legal services, does not contribute directly to creating or selling the company's products but instead supports line activities.

unity of command

which means that workers should report to just one boss. means that only one person can be in charge at a time.

customer departmentalization advantage

1. is that it focuses the organization on customer needs rather than on products or business functions. 2. creating separate departments to serve specific kinds of customers allows companies to specialize and adapt their products and services to customer needs and problems

matrix departmentalization disadvantage

1. is the high level or coordination required to manage the complexity involved in running large, ongoing projects at various levels of completion. 2. are known for complete confusion and conflict between project bosses in different parts of the matrix. 3. Disagreements or misunderstandings about schedules, budgets, availability of employees with particular functional expertise are common in matrix structures.

matrix departmentalization advantage

1. it allows companies to manage in an efficient manner large, complex tasks such as researching, developing, and marketing pharmaceuticals or carrying out complex global businesses 2. avoids duplication. 3. pool of resources available to carry out large, complex tasks

product departmentalization advantage

1. it allows managers and workers develop a broader set of experiences and expertise related to an entire product line. 2. it makes it easier for top managers to assess work unit performance. 3. decision making should be faster because managers and workers are responsible for the entire product line rather than for separate functional departments; fewer conflict compare to functional departmentalization

Functional departmentalization advantages

1. it allows work to be done by highly qualified specialists. 2. While the accountants in the accounting department take responsibility for producing accurate revenue and expense figures, the engineers in research and development can focus their efforts on designing a product that is reliable and simple to manufacture. 2. It lowers cost by reducing duplication. 3. with everyone in the same department having similar work experience or training, communication and coordination are less problematic for departmental managers

geographic departmentalization disadvantage

1. it can lead to duplication of resources. 2. difficult to coordinate departments that are literally thousands of miles from each other and whose managers have vary limited contact with each other

Decentralization advantage

1. it develops employee capabilities throughout the company and leads to faster decision making and more satisfied customers and employees

Decetralization advantage

1. it develops employee capabilities throughout the company and leads to faster decision making and more satisfied customers and employees

customer departmentalization disadvantage

1. like product departmentalization it duplicates resources. 2. the emphasis on meeting customers needs may lead workers to make decisions that please customers but hurt the business

the responsibilities of delegating

1. means that the manager is now completely responsible for task completion. Good managers need to trust their subordinates to do the job. 2. the managers gives the subordinate full authority over the budget, resources, and personnel needed to do the job. 3. is the authority and responsibility to do the job and in return is accountable for getting the job done. managers delegate their managerial authority and responsibility to subordinates in exchange for results

modular organization explain

1. modular-is used because the business activities purchased form outside companies can addetd and dropped as needed 2. is that they can cost significantly less to run than traditional organizations because they pay for outsourced labor, expertise, or manufacturing capabilities only when needed 3. the disadvantage is the loss of control that occurs when key business activities are outsourced to other companies

delegate three transfer

1. the manager transfers full responsibility for the assignment to the subordinate. 2. the manager gives full authority to the subordinate over the budget, resources, and personal need to do the job, 3. subordinates must have the same tools and information at their disposal that managers had when they were responsible for the same task, 4. subordinates accountability

geographic departmentalization advantages

1. they can reduce cost by locating unique organizational resources closer to customers. 2. it helps companies respond to the demands of different markets. This can be very helpful sells in different countries.

Matrix drawbacks

1.Unfortunately, one of the drawbacks of matrix structures is an increase in organizational politics and more company meetings. In the Al's Auto example, employees would have to attend truck or car meetings along with sales, parts, or service meetings. Politics can get complicated because, far from losing access to their managers, employees report to two managers, and there will likely be supervisory power struggles.

virtual network explain

A virtual network structure is a loose association of companies that is run by a small centralized group. This group is responsible for outsourcing work to the appropriate companies in the network. For example, if C & J Construction were first and foremost a construction company, it could develop relationships with engineering and sales companies so that it could outsource that work and focus on construction.

Functional departmentalization

One of the most common organizational structure. Organizes work and workers into separate unites responsible for particular business functions or areas of expertise. Not all have the same functions. A common functional might have them organized into accounting, sales, marketing, production, and human resources departments

Organic organizations

are characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralization authority and horizontal communication based on task knowledge -works best in dynamic; changing business environment

Mechanistic organizations

are characterized by specialized jobs and responsibilities environment; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication -works best in stables

Delegating of authority

assign authority task for a subordinate to complete a task that the manager normally does

Job enrichment

attempts to overcome the deficiencies in specialized work by increasing the number of tasks and by giving workers the authority and control to make meaningful decisions about their work.

Job enlargement

increases the number of different tasks that a worker performs within one particular job. - instead of being assigned just one task, workers with enlarged jobs are given several task to performs. -many workers report being stress when their job is enlarge -many feel that enlarge job as simply more work, especially if they are not given additional time to complete the additional tasks

empowerment

is a feeling of intrinsic motivation in which workers perceive their work to have meaning and perceive themselves to be competent, having an impact, and capable of self determination -work has meaning when it is consistent with personal standards and beliefs -workers feel competent when they believe they can perform a activity with skill -empowerment-can lead to changes in organizational processes because meaning, competence, impact, and self-determination produce empowered employees who take active rather than passive roles in their work

matrix departmentalization

is a hybrid structure in which two or more forms of departmentalization are used together. The most common matrix combines the product and functional forms of departmentalization, but other forms may also be used

departmentalization

is a method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks. ex, ebay has separate department or divisions payments or division for payment systems, warehousing and logistics, and maketplaces, and selling

line function

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

line function

is an activity that contributes directly to creating or selling the companys products.

job characteristics model (JCM)

is an approach to job redesign that seeks to formulate jobs in ways that motivate workers and leads to positive work outcomesob -the primary goal of the model is to create jobs that result in positive personal and work outcomes, such as internal work motivation, satisfaction with ones job, of the JCM is internal motivation.

Internal motivation

is motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss. -if workers feel taht performing the job well is itself rewarding then the job has internal motivation

Virtual organization

is part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other -consist of product design, purchasing, manufacturing, advertising, and information technology -working relationship between modular organizations and outside companies tend to be more stable and longer lasting than the shorter, often temporary, relationships found among the virtual companies in a network alliance -they let companies share cost, and because members can quickly combine their efforts to meet customers needs, they are fast and flexible -they can be after work has been outsourced, it can be difficult to control the quality of work done by network partners -is that tremendous managerial skills are required to make a network of independent organizations work well together, especially because their relationships tend to be short and based on a single task or project

standardization

is solving problems by consistently apply the same rules, procedures, and processes

standardization

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

feedback

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

delegation of authority

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

Organizational process

is the collection of activities that transform inputs into outputs that customer seem to value. How do things get done?

Autonomy

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

task significance

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

Task identity

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

decentralization

is the location of a significant amount of authority in the lower levels of the organization. An organization is decentralized if it has a high degree of delegation at all levels. Workers closet to the problems are authorized to make the decisions necessary to solve the problems on their own

Decentralization

is the location of a significant amount of authority in the lower levels of the organizations. An organization is decentralized if it has a high degree of delegation at all levels. 1. In decentralized organization , workers closet to problems are authorized to make the decisions necessary to solve the problems on their own

Centralization authority

is the location of most authority at the upper level of the organization. managers make most decisions, even the relatively small ones

centralization

is the location of most authority at the upper levels of the organization. In a centralize organization , managers make most decision, even the relatively small ones.

skill variety

is the number of different activities performed in a job

staff authority

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

staff authority

is the right to advise but not command others who are not subordinates in the chain of command. can ask if Jack can be hire but not order Jack to be hire

Line authority

is the right to command immediate subordinates in the chain command. Can issue orders and make sure they are carried out

line authority

is the right to command immediate subordinates in the chain of command.

authority

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

Organizational structure

is the vertical and horizontal (achievement) configurations of departments, authority and jobs within a company. Who reports to whom? and who does what? and where is the work done?

chain of command

is the vertical line of authority that clarifies who reports to whom throughout the organization. They have the right to take charge of the people below their chain or them any way they please.

empowering workers

means permanently passing decision making authority and responsibility from managers to workers -for workers to be fully empowered, companies must give them the information and resources they need to make and carry out good decisions and then reward them for taking individual initiative. -in other words employees wont feel very empowered if they constantly have someone looking over their shoulders -company managers assign points to projects based on perceived value -programmers decided which projects to work on and are rewarded for choosing higher value projects (with more points)

staff function

such as accounting, human resources, or legal services, does not contribute directly to creating or selling the company's products but instead supports line activities. Ex, marketing managers might consult with the legal staff to ensure the wording of an advertisement is within the law

output sentence

the computer output data is shown on the screen

task interdependence-

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

Job design

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

Job design

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

intraorganizational process

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

Unity of command

which means that workers should report to just one boss. Meaning only one person can be in charge. helps employees to not be confuse about having two bosses

sequential interdependence

work must be performed in succession because one groups or jobs outputs become the outputs for the next group or job