Chapter 2

Management Science Theory -

A contemporary approach to management that focuses on the use of rigorous quantitative techniques to help managers make maximum use of organizational resources to produce goods and services.

Organic Structure -

A more open organizational structure in which authority is decentralized to middle and first-line managers and tasks and roles are left ambiguous to encourage employees to cooperate and respond quickly to the unexpected.

Mechanistic -

A relativity closed organizational structure in which authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

Bureaucracy -

Originally defined by Weber as a formal system of organization and administration designed to ensure efficiency and effectiveness.

Discipline -

Results in respectful relations between organizational members and reflects the quality of an organization's leadership and manager's ability to act fairly and equitably.

Standard Operation Procedures -

Specific sets of written instructions about how to perform a certain aspect of a task.

Equity -

The Fayol principle of management that stated all organisational members are entitles to justice and respect.

Line of Authority -

The chain of command extending from the top to the bottom of an organization.

Synergy -

The gain in performance that results when individuals and departments coordinate their actions.

Contingency Theory -

The idea that the organizational structures and control systems managers choose depend on the characteristics of the external environment in which the organization operates. The crucial message is that there is no best way to organize.

Tenure -

The length of employment.

Specialization -

The main benefit of the division of labor.

Management -

The planning, organizing, leading, and controlling of human and other resources to achieve organizational goals efficiently and effectively.

Authority -

The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources. This gives managers the right to direct and control their subordinates' behavior to achieve organizational goals.

Job Specialization -

The process by which a division of labor occurs as different workers specialize in different tasks over time.

Organizational Environment -

The set of forces and conditions that operate beyond and organization's boundaries, but affect a manager's ability to acquire and utilize resources.

Behavioral Management -

The study of how managers should personally behave to motivate employees and encourage them to perform at high levels and be committed to achieving organizational goals.

Administrative Management -

The study of how to create and organizational structure and control system that leads to high efficiency and effectiveness.

Scientific Management -

The systematic study of relationships between people and tasks for the purpose of redesign that work process to increase efficiency.

Standard operating procedures (SOPs), rules, and norms are important in a bureaucratic system because:

They guide performance by specifying the best ways to accomplish tasks.

Theory Y -

A set of positive assumptions about workers that leads to the conclusion that a manager's task is to create an environment that encourages commitment to organizational goals and provides opportunities for workers to be imaginative and to exercise initiative and self-direction.

Closed System -

A system that is self-contained and, thus, not affected by changes occurring in its external environment.

Open System -

A system that takes in resources from its external environment and converts them into goods and services that are then sent back to that environment for purchase by customers.

Order -

Fayol's principle that is the methodical arrangement of positions to provide employees with career opportunities to satisfy their needs.

Rules -

Formal written instructions that specify actions to be taken under different circumstances to achieve specific goals.

Lack of Unity of Direction results in:

Ineffective organization where activities are unfocused and individuals and groups work at cross-purposed.

Initiative -

Is important to an organization because it encourages innovation and creativity.

Fayol -

Management theorist that suggested that the interests of the organization must take precedence over the interests of the individual.

Fayol's 14 Principles of Management :

Managers have the right to give orders and the power to exhort subordinates for obedience.

The elements of discipline include:

Obedience, energy, application, and respect for authority.

Centralization:

One of Fayol's principles where authority should reside.

Norms -

Unwritten informal codes of conduct that prescribe how people should act in particular situations and that are considered important by most members of the group organization.

Scientific Management -

When managers study the relationships between people and tasks so that they can redesign the work process to increase efficiency.

Taylor developed four principles to increase _____ in the workplace.

efficiency

Rewards to employees should be _____.

equitable