Introduction to Business - Chapter 7

Determine how organizations assign responsibility for tasks and delegate authority.

Delegation of authority means assigning tasks to employees and giving them the power to make commitments, use resources, and take whatever actions are necessary to accomplish tasks. It lays responsibility on employees to carry out assigned tasks satisfactorily and holds them accountable to the superior for the proper execution of their assigned work. The extent to which authority is delegated throughout an organization determines its degree of centralization. Span of management refers to the number of subordinates who report to a particular manager. A wide span of management occurs in flat organizations; a narrow one exists in tall organizations.

What word reflects the rationale for specialization in the workplace?

Efficiency

Distinguish between groups and teams

A groups is two or more persons who communicate, share a common identity, and have a common goal. A team is aw small group whose members have complementary skills, a common purpose, goals and approach and who hold themselves mutually accountable. The major distinction is the individual performance is most important in groups, while collective work group performance counts most in teams.

line-and-staff structure

A structure having a traditional line relationship between superiors and subordinates and also specialized managers - called staff managers - who are available to assist line managers

Which principle means that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome?

Accountability

Describe how communication occurs in organization

Communication occurs both formally and informally in organizations. Formal communication may be downward, upward, horizontal and even diagonal. Informal communication takes place through friendships and the grapevine.

Compare and contrast some common forms of organizational structure.

Line structures have direct lines of authority that extend from the top manager to employees at the lowest level of the organization. The line-and-staff structures has a traditional line relationship between superiors and subordinates, and specialized staff managers are available to assist line managers. A multi-divisional structure gathers departments into larger groups called divisions. A matrix, or project management, structure sets up teams from different departments, thereby creating two or more intersecting lines of authority.

Explain the importance of organizational culture

Organizational culture is the firm's shared values, beliefs. traditions, philosophies and role models for behavior. It ensures that all members of a company share values and suggests rules for how to behave and deal with problems within the organization.

_____ can cause serious problems for a company, in part because it may take longer for the organization as a whole to implement decisions and to respond to changes and problems on a regional scale.

Overcentralization

A company has three main product lines: cleaning products, laundry products, and paper products. If it organizes its jobs around these product lines, it is using which form for departmentalization?

Product

Identify the types of groups that exist in organizations

Special kinds of groups include: * tasks forces * committees * project teams, * product development teams * quality assurance teams * self-directed work teams

Describe how organizational structures develop

Structure is the arrangement or relationship of positions within an organization, it develops when managers assign work activities to work groups and specific individuals and coordinate the diverse activities required to attain organizational activities. Organizational structure evolves to accommodate growth, which requires people with specialized skills.

Describe how specialization and departmentalization help an organization achieve its goals

Structuring an organization requires that management assign work tasks to specific individuals and groups. Under specialization, managers break labor into small, specialized tasks and assign employers to do a single task fostering efficiency. Departmentalization is the grouping of jobs into working units (departments, units, groups, or divisions). Businesses may departmentalize by function, product, geographic region, or customer or they may combine two or more of these.

organizational culture

a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior

self-directed work team (SDWT)

a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer

Committee

a permanent, formal group that performs a specific task

team

a small group whose members have complementary skills; have a common purpose, goals, and approach; and hold themselves mutually accountable

product development teams

a specific type of project team formed to devise, design, and implement a new product

centralized organization

a structure in which authority is concentrated at the top and very little decision-making authority is delegated to lower levels.

multi-divisional structure

a structure that organizes departments into larger groups called divisions

matrix structure

a structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project-management structure

task force

a temporary group of employees responsible for bringing about a particular change

organizational chart

a visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication

An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.

centralized

Dante works at a manufacturing plant. He has been asked by upper management to be part of a formal group that will specifically work with union laborers to address all concerns and draft company policy regarding union benefits. Dante has been asked to be part of a ______..

committee

At Belinda's company, when pressed to meet a deadline, every worker is expected to put in overtime hours and work together to get the job done. This commitment to teamwork is part of the company's ______.

culture

Rather than have the top level of management make all the decisions, Jake's company gives all lower-level managers the authority to make decisions for his or her department. Jake's company operates as a(n) ______ organization.

decentralized

If Pete was tasked with developing an organizational structure for his company, he would ______.

define the various positions in the company and their relationship to one another

Mr. Jones, the president of a firm gives the responsibility for all marketing activities to the vice president of marketing and the responsibility of financial matters to the CFO. In doing so, the president has _______ and has established a relationship and accountability between himself and his subordinates.

delegated authority

The arrangement of jobs around the needs of various types of customers is know as ______.

departmentalization by customer group

According to psychologist Ivan Steiner, team productivity peaks at about _____ team members. People become less motivated and group coordination becomes more difficult after that size.

five

When a company looks to departmentalize by areas of business like Japan, America, and Australia it is exemplifying departmentalization by ______.

geographic location

delegation of authority

giving employees not only tasks, but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks

project teams

groups similar to task forces that normally run their operation and have total control of a specific work project

The simplest organizational structure is the _______ structure, in which direct lines of authority extend from the top manager to employees at the lowest level of the organization.

line

In a pizza parlor the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a ______.

line organization

Problems with overstaffing and ambiguous lines of communication are potential problems with _____ structures.

line-and-staff

A structure having a traditional line relationship between superiors and subordinates and also specialized managers---called staff managers---who are available to assist line managers is known as a ______.

line-and-staff structure

A firm is looking to restructure its organization into larger groups. It is deciding whether to organize its departments on the basis of geography, customer type, or product. Either way, structuring the firm in this way is utilizing the ______ structure.

multidivisional

A _____ span of management is appropriate when superiors and subordinates are not in close proximity, the manager has many responsibilities in addition to the supervision, the interaction between superiors and subordinates is frequent, and problems are common.

narrow

With its current product line being sold in a saturated and mature market, Wonder widgets wants to develop a new product that will put the company at the forefront of emerging technology. It has assembled a team to devise, design, and implement this new product. What type of team has Wonder widgets created?

product-development team

Quality-assurance teams are also referred to as

quality circles

Cybill's manager wanted her to design the new ad campaign for the firm's new product. She was given all the necessary resources to complete the task. Cybill understands that her manager is going to hold her accountable to make sure the ad campaign is executed successfully. This exemplifies the concept of ______.

responsibility

The functional approach to departmentalization is common in ______ organizations.

small

quality assurance teams (or quality circles)

small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems

The owner of a flower shop has three employees. Two employees are better at arranging flowers in a vase while the third is skilled at preparing the flowers to be arranged. Separating the employees by these skills is called ______.

specialization

Jasper is a production manager. He is responsible for assigning work tasks to his employees and coordinating their activities to help the firm reach its objectives. As such, Jasper is helping to develop the organization's ______.

structure

Customer Departmentalization

the arrangement of jobs around the needs of various types of customers

structure

the arrangement or relationship of positions within an organization

specialization

the division of labor into small, specific tasks and the assignment of employees to do a single task

Geographical Departmentalization

the grouping of jobs according to geographic location, such as state, region, country, or continent

Departmentalization

the grouping of jobs into working units usually called departments, units, groups, or divisions

Functional Departmentalization

the grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources

organizational layers

the levels of management in an organization

span of management

the number of subordinates who report to a particular manager

responsibility

the obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work

product departmentalization

the organization of jobs in relation to the products of the firm

The arrangement or relationship of positions within an organization is referred to as ______

the organization's structure

Accountability

the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome

line structure

the simplest organizational structure, in which direct lines of authority extend from the top manager to the lowest level of the organization

restructure

to change the basic structure of an organization

group

two or more individuals who communicate with one another, share a common identity, and have a common goal

types of formal communication

upward - flows from lower to higher levels of the organization downward - traditional flow of communication from upper organizational levels to lower organizational levels horizontal - exchange of information among colleagues on the same organizational level, such as across or within departments, who inform, support and early coordinate activities both within the department and between other departments diagonal - when individuals from different departments communicate

A _____ span of management is appropriate when superiors and subordinates are located close to one another, the manager has few responsibilities other than supervision, subordinates are highly competent, and there are specific operating procedures in place.

wide

grapevine

an informal channel of communication, separate from management's formal, official communication channels

decentralized organization

an organization in which decision-making authority is delegated as far down the chain of command as possible

Job dissatisfaction, poor work quality, more injuries, and high employee turnover are all negative consequences of ______.

overspecialization *think factory assembly line work

A McDonald's restaurant anywhere in the world has an atmosphere and look that represents the company's values of cleanliness, quality service, and value. This is an example of ______.

organization culture

To find out the relationships among people in a company one may consult the company's ______.

organizational chart