Chapter 10 for Management Exam 2

What 3 factors influence centralization and decentralization?

1) Greater change and uncertainty in the environment are usually associated with decentralization 2) The amount of centralization or decentralization should fit the firm's strategy 3) In times of crisis or risk of company failure, authority may be centralized at the top

What two things occur as organizations grow and evolve?

1) New positions and departments are added to deal with factors in the external environment or with new strategic needs 2) Senior managers must find a way to tie all these departments together. Org needs systems

What 3 characteristics distinguish authority?

1) authority is vested in positions, not people 2) authority flows down the vertical hierarchy 3) authority is accepted by subordinates (acceptance theory of authority)

What three things does an organization structure define?

1) how tasks are divided 2) how resources are deployed 3) how departments are coordinated

Define a task force. What type of team or group are they?

A temporary team or committee designed to solve a problem involving several departments

Give examples of staff departments

HR, accounting, marketing, labor relations

What is the highest level of horizontal coordination?

Relational coordination

Define a matrix boss

a functional or product supervisor responsible for one side of the matrix

Define a permanent team

a group of employees from all functional areas permanently assigned to focus on a specific task or activity

Define a cross-functional team

a group of employees from various functional departments that meet as a team to resolve mutual problems

Define collaboration

a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose

Define a project manager

a manager who is responsible for a specific work project that involves people from various functions and levels of the organization

Define the matrix approach

a structural approach that uses both functional and divisional chains of command simultaneously, in the same part of the organization

Define a team-based structure

a structure in which an entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals

What kind of a team is a task force?

a temporary team

Define small-batch production

a type of manufacturing technology that involves the production of good in batches of one or a few products designed to customer specification

What is an organization chart?

a visual representation of an organization's structure

Define the functional structure

activities are grouped together by common function from the bottom to the top of the organization

Define a functional structure

an organization structure in which activities are grouped together by common function from the bottom to the top of the organization

Define a flat structure

an organizational structure characterized by am overall broad span of management and relatively few hierarchal levels

Define a tall structure

an organizational structure characterized by an overall narrow span of management and a relatively large number of hierarchal levels

Define a virtual network structure

an organizational structure in which the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization

Define a divisional structure

an organizational structure that groups employees and departments based on similar organizational outputs (products or services) such that each division has a mix of cantonal skills and tasks

Define the chain of command

an unbroken line of authority that links all individuals in the organization and specifies who reports to whom

What actions does organizing involve?

assigning tasks, grouping tasks into departments and allocating resources

What does centralization mean?

authority is located near the top of organizational levels

What does decentralization mean?

authority is pushed down to lower organizational levels

Give examples of large batch and mass production manufacturing

automobile assembly lines, tobacco products and textiles

Define departmentalization

basis for grouping individual positions into departments and departments into the total organization

What does a top-leader oversee?

both the product and functional chains of command

What is service technology characterized by?

by intangible outputs and direct contact between employees and customers

What is mass production characterized by?

by long production runs to manufacture a large volume of products with the same specification

What teams further horizontal coordination?

cross-functional teams

Give examples of small batch and unit production

custom clothing, special order machine tools, space capsules, satellites and submarines

Define organizing

deployment of organizational resources to achieve strategic goals

What are the fundamental characteristics of a vertical organization structure?

division of labor, chain of command, span of management, centralization and decentralization

What is the primary difference between divisional and functional structures?

divisional structures encourage decentralization and the chain of command converges lower in the hierarchy

What is a disadvantage of the division of labor aka work specialization

employees are isolated and do only a single, boring job; it creates separation and hinders coordination

Give examples of external strategic needs

environmental conditions, strategic direction & organizational goals

Define relational coordination

frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge and mutual respect

What is associated with a mechanistic system?

goals of efficiency and a stable environment

What is associated to the organic system?

goals of innovation and a rapidly changing environment are associated to the organic system

What is an organization with a mechanistic system described as?

highly specialized and characterized by rules, procedures and a clear hierarchy of authority

What is the emphasis on permanent teams?

horizontal communication and information sharing

Which type of teams is a team-based structure made up of?

horizontal teams

How does divisional hierarchy of authority run?

horizontally

Define a two-boss employee

in a matrix structure, a person who reports to two supervisors simultaneously

Define a top-leader

in a matrix structure, the person who oversees both the product and the functional chains of command and is responsible for the entire matrix

Where do strategic goals of efficiency occur?

in more stable environments

Where do goals of innovation and flexibility occur?

in more uncertain environments

Which structures are top-leaders in?

in the matrix structure

What tasks do staff departments perform?

include all those that provide specialized skills in the support of line departments

What does the continuous process production involve?

involves the mechanization of the entire work flow and nonstop production

What does technology include?

knowledge, tools, techniques and activities used to transform organization inputs into outputs

When is centralization high?

mass production

In which structure are two-boss employees?

matrix structure

Define unity of command

means that each employee is held accountable to only one supervisor

What characterizes the organic system?

more horizontal and decision making is decentralized

What is a flat structure characterized by?

overall broad span of management and relatively few hierarchal levels

What characterizes a tall structure?

overall narrow span of management and a relatively large number of hierarchal levels

What does accountability mean?

people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command

What tasks do line departments perform?

perform tasks that reflect the organization's primary goal and mission (make and sell the product)

Give two examples o the continuous process production

petroleum refineries & chemical plants

What do structural decisions take into consideration?

pressures from the bottom up

Define the scalar principle

refers to a clearly defined line of authority in the organization that includes all employees

What type of structure does a mechanistic system have?

rigid, vertical, centralized structure with most decisions made at the top

When is centralization low?

small batch and continuous processes

What is another term for span of management?

span of control

What type of goals does organizing seek to achieve?

strategic

What does the strategy define? and what does organizing define?

strategy= what to do; organizing= how to do it

What are popular contemporary approaches to departmentalization?

team and virtual network structure

Define technical complexity

the degree to which complex machinery is involved in the production process to the exclusion of people

Define the division of labor

the degree to which organizational tasks are subdivided into separate jobs

Define responsibility

the duty to perform the task or activity that one has been assigned

What is a top-leader responsible for?

the entire matrix

Define authority

the formal and legitimate right of a manager to make decisions, issue orders and allocate resources to achieve outcomes desired by an organization

Define line authority

the formal power to direct and control immediate subordinates

Define the organization structure

the framework in which an organization defines how tasks are divided, resources are deployed and departments are coordinated

Define coordination

the managerial task of adjusting and synchronizing the divers activities among different individuals and departments

Define the span of management

the number of employees reporting to a supervisor

Define reengineering

the radical redesign of business processes to achieve dramatic improvements in cost, quality, service and speed

Define staff authority

the right to advise, counsel and recommend in the manager's area of expertise

What do external strategic needs create?

top-down pressure

What are the two underlying principles associated with the chain of command?

unity of command and the scalar principle

How does functional hierarchy of authority run?

vertically

Define delegation

when managers transfer authority and responsibility to positions below them in the hierarchy

What is another name for the division of labor?

work specialization