MGMT 370 Final Exam

Team structure

- An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying functional hierarchy.

board of directors

- BOD ensures that the corporation is being managed so as to increase stockholder wealth. The board is normally called on to approve major strategic decisions and to hire key employees like CEO

Matrix

- Enhances organizational flexibility. - Creates high motivation and increased organizational commitment for team members. - Gives team members opportunity to learn new skills. - Provides an efficient way for the organization to use its human resources. - Uses team members as bridges to their departments for the team. - Useful as a vehicle for decentralization. •Employees are uncertain about reporting relationships. •Managers may view design as an anarchy in which they have unlimited freedom. •The dynamics of group behavior may lead to slower decision making, one-person domination, compromise decisions, or a loss of focus. •More time may be required for coordinating task-related activities.

BCG matrix

- Evaluates a portfolio of businesses on the growth rate of their respective markets and each business's relative share of its market. - Classifies the types of businesses in a diversified firm's portfolio as: - "Dogs" have small market shares and no growth prospects. - "Cash cows" have large shares of mature markets. - "Question marks" have small market shares in quickly growing markets. - "Stars" have large shares of rapidly growing markets.

Product life cycle

- The product life cycle provides a useful framework for evaluating the changing phases of a product. - birth, growth, maturity, decline

mission

- a definition of an organizations fundamental purpose and its basic functions - An organization's mission defines its fundamental purpose—what it values and how it wishes to conduct itself. A mission statement is a formal written declaration of the organization's purpose that contains all, or at least most, of the following: The firm's philosophy Its primary products and markets The intended geographic scope The nature of the relationships between the firm, its stakeholders, and society

sociocultural dimension

- changing demographics, values/attitudes/trends

Why is change important?

- competitive advantage - provides challenge (can produce innovation within products or culture that will build sustainable advantage) - opportunity for employees - possibility of forced change from internal or external forces

internal environment

- consists of the owners, managers, employees, and board of directors

Virtual structure

- designers, producers, suppliers, distributors --> brokers/managers

Leadership Traits

- drive, desire to lead (motivation) - honesty/integrity - self confidence - cognitive ability - business knowledge & emotional intelligence

barriers to entry

- economies of scale of current participants - high capital requirements - cost to buyers (customers) to switch to new supplier - brand identity - cost advantages that would be difficult to overcome - proprietary or difficult technologies - government policy

Ways to overcome resistance to change:

- education/communication - employee participation - managerial support - negotiation - manipulation, coercion or co-optation

corporate governance

- formal system of oversight, accountability and control for organizational decisions & resources -

Strategic Management

- involves formulating and implementing strategies to take advantage of business opportunities and meet competitive challenges - Strategy Formulation: The set of processes involved in creating or determining the organization's strategies; it focuses on the content of strategies. Strategy Implementation: The methods by which strategies are operationalized or executed within the organization; it focuses on the processes through which strategies are achieved. Strategic management: consists of the processes an organization undertakes to develop and implement its strategic plan. Central to strategic planning and strategic management is the development of a strategy, a course of action for implementing strategic plans and achieving strategic goals. A strategy must have four components: scope, resource deployment, synergy, and distinctive competence. Synergy Organization's resources should be linked so that the combined performance of its subunits is greater than if those units were operating alone. How can strategies help business to create more synergies within the company.

plan

- set of activities intended to achieve goals, whether for an entire organization, department, or an individual. - Planning does not necessarily guarantee success. Planning benefits organizations by forcing managers to focus on the organization's present status and environment. Planning also provides a mechanism for coordinating the activities of groups and individuals. Planning can help create an environment conducive to motivating managers and employees.

SWOT analysis

- strengths, weaknesses, opportunities, threats - EVALUATING ORGANIZATIONAL STRENGTHS: Organizational strengths are skills and abilities enabling an organization to conceive of and implement strategies. Common organizational strengths are organizational capabilities possessed by numerous competing firms. Distinctive competencies are useful for competitive advantage and superior performance. Imitation of distinctive competencies removes the competitive advantage of the competency. - EVALUATING ORGANIZATIONAL WEAKNESSES: Organizational weaknesses are Skills and capabilities that do not enable an organization to choose and implement strategies that support its mission. Weaknesses can be overcome by: investments to obtain the strengths needed. modification of the organization's mission so it can be accomplished with the current workforce. Competitive disadvantage occurs when an organization fails to implement strategies being implemented by competitors.

organizing

- the 2nd basic managerial function; it follows planning and decision making - involves shaping the organization over time and is never truly finished - involves grouping activities and resoucres - can help the organization be flexible

organizational goals

- the gap btwn actual and anticipated sales - Achieving the operational goals leads to fulfillment of the tactical goals, which leads to fulfillment of the strategic goals.

Strategic, tactical, and operational goals/plans

- top level manager + 5 yrs = strategic goal/plan - middle level manager + 1-5 yrs = tactical goal/plan - lower level manager + 1 yr or less = operational goal/plan -Organizations set goals for a variety of areas, including market standing, innovation, productivity, physical or financial resources, profitability, manager performance and development, worker performance, and public responsibility. Organizations develop three types of goals: - The firm's highest-level managers set strategic goals, which deal with such general topics as the firm's growth, new markets, or new goods and services. - Tactical goals: the intermediate goals of the firm, are designed to stimulate actions necessary for achieving the strategic goals. - Operational goals are more specific and address activities that must be performed before tactical goals can be fulfilled. Achieving the operational goals leads to fulfillment of the tactical goals, which leads to fulfillment of the strategic goals.

Reasons for resistance to change

- uncertainty/insecurity - threats to self-interest and power and influence - different perceptions of change effects & outcomes - fear of loss of social networks, power, security, and familiar procedures

technological dimension

- wireless technology, software, internet, computers, phones - The technological dimension of the general environment refers to the knowledge and process of changing inputs (resources, labor and money) to outputs (goods and services)

steps in planning

1) Create mission statement 2) Assess the current situation 3) State goals 4) Evaluate gap between current position and goals 5) Specify assumptions about the future 6) Create the plan 7) Implement the plan 8) Evaluate the results - A plan is a set of activities intended to achieve goals, whether for an entire organization, department, or an individual. At the most basic level, a plan is a road map that answers the fundamental question, "How do we get there from here?" Planning does not necessarily guarantee success. However, companies and managers who develop specific plans have a definite head start in reaching goals and a distinct advantage over those who do not adequately plan. Planning benefits organizations by forcing managers to focus on the organization's present status and environment. Planning also provides a mechanism for coordinating the activities of groups and individuals. Planning can help create an environment conducive to motivating managers and employees. The focus and coordination arising from planning can lead to higher performance levels, as organizational members recognize the firm's overall goals. Assess the current situation: Before a company can make any plan, it must evaluate the current status of the internal organization by determining: The extent of the organization's resources: financial assets, employee skills, technology, and data about the work process The firm's working relationship with its suppliers, financial backers, and consumers The plan is the document that designates methods, time frames, alternate procedures, and who is to implement it. Once the organization has assessed its present status and set goals for the future, the next step is to determine how much difference there is between the current situation and organizational goals—the gap between actual and anticipated states. Are the changes needed to close this gap major or minor? Is it necessary to develop a plan that will require a dramatic amount of time, effort, and resources by the organization or merely an increase in the level of current organizational activities? Create a plan: The process of creating a plan can be broken down into four basic steps: Determining alternatives Evaluating alternatives Selecting an alternative Specifying the steps

Functional structure and Functional departmentalization

1. Functional structure is the grouping of jobs according to similar economic activities like finance, mkt, production & ops. - efficient and useful for capturing economies of scale - can make comm. across departments difficult and costly - weaknesses: turf wars, miscommunication, working at cross-purposes 2. Functional departmentalization organizes work and workers into separate units responsible for particular business functions or areas of expertise. A common functional structure might have individuals organized into accounting, sales, marketing, production, and human resources departments. Benefits: - work can b done by highly qualified specialists - lowers cost by reducing duplication - less problematic communication and coordination Weaknesses: - decision making is slow/bureaucratic - employees narrow focus to their department & lose sight of broader goals and issues - accountability/performance r difficult to monitor

Job rotation, job enlargement, job enrichment

1. 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. Another way to counter the disadvantages of specialization is to enlarge the job. 2. Job enlargement is increasing the number of different tasks that a worker performs within one particular job. So, instead of having to perform just one task, workers with enlarged jobs would be given several tasks to perform. 3. 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.

Situational approaches to Leadership: LPC Fiedler's Contingency Theory

1. LPC: Fiedler's Contingency Theory Fiedler's contingency theory states that in order to maximize workgroup performance, leaders must be matched to the right leadership situation. - The first basic assumption of Fiedler's theory is that leaders are effective when the work groups they lead perform well. Contingency theory assesses leader by the conduct and performance of the people they supervise instead of judging leaders by the effectiveness by what they do (initiating structure and consideration) or who they are (traits). Fiedler's also assumes that leaders are generally unable to change their leadership styles and that they are more effective when their styles are matched to the proper situation. The third assumption is that the favorableness of a situation for a leader depends on the degree to which the situation permits the leader to influence the behavior of group members. Thus, Fiedler's third assumption is consistent with our definition of leadership, which is the process of influencing others to achieve group or organizational goals.

Models of Planned change

1. Lewin's Model of Change = unfreezing (disruption, discrepancies observed, perceived performance gap), moving (transition, development of new behaviors, values, attitudes), refreezing (stabilization, supporting mechanisms, new organizational state reinforced) 2. Congruence model of change = emphasizes interrelationships. inputs (raw material, envr. factor, customer feedback, strategy) --> processes (tech, hr, culture, structure) --> outputs (finished products, group commitment/cohesiveness, job satisfaction, turn over) 3. Comprehensive Model of Planned Change = step by step plan for change (recognize need for change, motivate change, create a vision, develop political support, manage transition and sustain momentum for the change)

Managers vs. Leaders

1. Management = planning and budgeting, status quo, short-term, organizing, staffing, structuring, controlling, builders, problem-solving 2. Leadership = direction, vision, change, long-term, architects, inspiring and motivating Leaders are concerned w/ doing the right thing, while managers are concerned w/ doing things right.

Planned change vs reactive change

1. Planned = deliberate restructuring of operations and behavior, often in anticipation of forces or seeing a gap developing 2. Reactive = react spontaneously to external/internal forces, do little to modify forces, a performance gap requires a change

Levels of Strategic Management

1. Societal (top management) - social responsibility 2. Corporate (top management) - decides what type of business to be in 3. Business (divisional management) - a business level strategy would determine how to best compete in a particular market 4. Functional (lower-level management)

Starbucks decided to open stores in China. What type of change is Starbucks doing? 1.Change in Strategy 2. People, processes and culture change 3.Change in Organization structure and design 4.Change in technology and operations

1. change in strategy (w/ Market and Global activity)

Types of organizational change:

1. changing strategy: involves changing the firm's fundamental approach to doing business (ex: market, types of products, business-level strategy, global activity) 2. organization structure and design: change in departmentalization, hierarchical reporting relationships, line-staff relationships, and overall design 3. technology & operations: to keep pace w/ massive environmental changes and competitive challenges (ex: IT, equipment, work processes, work sequences, control systems) 4. people, processes, and culture: changing the processes of communicating, motivating, leading and interacting in groups (ex: abilities and skills, performance, perceptions, expectations, attitudes, values, culture)

How do firms become diversified?

1. development of new products 2. backward/forward vertical integration - Backward vertical integration: Beginning a business that furnishes resources previously handled by a supplier. - Forward vertical integration: Beginning a business previously handled by an intermediary and selling more directly to customers. 3. merger w/ another firm - To diversify through vertical integration. - To create or exploit synergies that reduce the combined organizations' costs of doing business to increase revenues. 4. acquisition of another firm - To acquire complementary products or services linked by a common technology and common customers.

Business-Level strategies

1. differentiation strategy - quality, service, warranties, reliability, safety, experience, innovative, image, loyalty 2. overall cost leadership strategy - low production cost, saving in logistic, process standardization 3. focus low cost or focus differentiation strategy - specific regional market, or group of buyers

Factors affecting organizational structure:

1. organizational life cycle (birth, growth, maturity, revival, decline) 2. technology - unit or small batch: organic like a photography studio - large-batch/mass-production: mechanic like Ford or GM - continuous-process: organic like Shell gas station 3. strategy 4. size - total # of full time employees 5. environment - mechanistic: slow changes, bureaucratic, stable - organic: fast changes, flexible, informal, unstable, unpredictable - stable env. remain constant over time - unstable envr. subject to uncertainty and rapid change

political/legal dimension

1.Can constrain how a business operates: For instance the Clayton Antitrust Act prevents anticompetitive activity by prohibiting certain type of conduct. Price discrimination, exclusives dealing, being a director of two or more competing corporations and rules relating to mergers and acquisitions 2.Manipulation of the political legal processes can provide major competitive advantages to organizations. Companies can Lobby to obtain certain reforms so that less restriction are applied to their business. 3. The political-legal system provide stability because organizations have the same rules applied to all of them. Most disputes between companies and /or customers are addressed through lawsuits.

Factors influencing the Span of Management

1.Competence of supervisor and subordinates(the greater the competence, the wider the potential span) 2.Physical dispersion of subordinates(the greater the dispersion, the narrower the potential span) 3.Extent of nonsupervisory work in manager's job(the more nonsupervisory work, the narrower the potential span) 4.Degree of required interaction (the less required interaction, the wider the potential span) 5.Extent of standardized procedures(the more procedures, the wider the potential span) 6.Similarity of tasks being supervised (the more similar the tasks, the wider the potential span) 7.Frequency of new problems (the higher the frequency, the narrower the potential span) 8.Preferences of supervisors and subordinates

Chain of command

A clear and distinct vertical line of authority among the positions in an organization. - unity of command: each person within an organization must have a clear reporting relationship to one and only one boss - scalar principle: a clear and unbroken line of authority must extend from the bottom to the top of the organization

organizational design and flexibility

Adapting by building flexibility into structural design. Changes in the organization's structure and the working arrangement among its internal parts. (Example: laying off employees, to reduce costs)

distinctive competence

An organizational strength possessed by only a small number of competing firms

Blake & Mouton's leadership grid

Blake and Mouton used two leadership behaviors = concern for people & concern for production, to categorize five different leadership styles. - Both behaviors are rated on a 9-point scale with 1 representing low and 9 representing high. - Country club management: thoughtful attention to needs of people for satisfying relationship leads to a comfortable, friendly organizational atmosphere and work tempo. Team Management: Work accomplish is from committed people. Interdependence through a common stake in organizational purpose leads to relationships of trust and respect - Impoverished management: Exertion of minimum effort to get required work done is appropriate to sustain organization membership. - Authority-compliance: Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.

A physician practices medicine in a privately-owned clinic, while also supervising a number of professional nurses and office staff. what is the appropriate span of management for each? A.Narrow Span of control B.Simple span of control C.Wide span of control D.Complex span of control

C. Wide span of control - the greater the competence, the wider the potential span

Coordinating Different Parts of the Organization

Coordination Mechanism: Vertical vs. Horizontal 1. Vertical Coordination: - organizational hierarchy: placing one manager in charge of interdependent departments or units - rules and procedures (priority): routine coordination of activities using rules and procedures that set priorities and guidelines for action - liaison personnel: a manager coordinates interdependent units by acting as a common point of contact, facilitating the flow of info 2. Horizontal Coordination: - task forces: used w/ multiple units for complex coordination, disbanded when the coordination need has been met - committees/integrating departments: permanent organizational units that maintain internal integration & coordination on an ongoing basis - electronic coordination: email, cell phones, pdas, etc

Corporate level strategies

Corporate strategy is concerned w/ the organization as a whole, particularly which business or set of businesses the organization should be in. Can be diversification, joint ventures or divestment. Strategic choices: 1. related diversification (synergy): - A strategy in which an organization operates in several different businesses, industries, or markets that are somehow linked. Avoids the disadvantages and risks of a single-product strategy. Advantages: Reduces economic risk by avoiding dependence on a specific business or activity. Reduces overhead costs through economies of scale and economies of scope. Increases overall economic value through complementary strengths and capabilities synergies gained by managing the set of businesses together rather than separately. 2. unrelated diversification/conglomerates (risk/return): - Operates multiple businesses that are not logically associated with one another. Advantages: Stable performance over time due to business cycle differences among the multiple businesses. Allocation of resources to areas with the highest return potentials to maximize corporate performance. Disadvantages: Poor performance due to the complexity of managing a diversity of businesses. Failing to exploit key synergies puts the firm at a competitive disadvantage to firms with related diversification strategies.

Since the beginning of 2009, Dell has taken a different approach focusing around four customer groups: consumers, corporations, small and midsized businesses, and governments and educational buyers. Dell believes that an outward focus will empower managers to better respond to client needs. A.Product B.Function C.Location D.Customer E.Time

D. customer

Ciplex, a marketing agency, cut down the number of middle managers which allowed the company to reduce costs by 25%. By changing the company structure, Ciplex is turning into a _________ organization. A.tall B.simple C.Location D.flat

D. flat - Flat organizations have few management layers, wide spans of management. This means that flat organizations are decentralized.

Which of the following is NOT one of the elements in the task environment for St. Jude Children's Hospital? A.Patients (customers) B.Local pediatric clinics (competitors) C.Pharmaceuticals sales representatives (suppliers) D.Board of directors (Int. Env.)

D.Board of directors

When Starbucks expands internationally it considers market size, local standard of living, business environment, income level and US sentiment. This is considered in the _________plan. A.Short-term strategic B.Intermediate-term strategic C.Long-term tactical D.Operational E.Long-term strategic

E. long-term strategic

Strategic Business Unit (SBU)

Each business or group of businesses within an organization is engaged in serving the same markets, customers, or products.

Mergers, Acquisitions, Alliances

Firms combine (merge), purchase (acquisition), or form new venture partnerships or alliances. Example = Campbell soup became its own supplier by acquiring a producer of cans.

The Strategic Management Process

First, the organization should identify its mission and strategic goals. Second, the organization should conduct a SWOT analysis—identify the strengths, weaknesses, opportunities, and threats it faces. Third, the organization should formulate a strategy to capitalize on its greatest strengths and to keep its organizational weaknesses from being exploited by competitors and other factors in the environment. The final steps are implementing, evaluating, and controlling the strategic plan.

Customer Departmentalization

Grouping activities to respond to and interact with specific customers or customer groups. advantages: - skilled specialists can deal w/ unique customers or customer groups

resource deployment

How an organization distributes its resources across the areas in which it competes.

Incremental change vs Quantum change

Incremental change = relatively small change in processes & behaviors within just 1 or a few systems/levels of the org. Quantum change = large-scale planned change, involves significantly altering how the firm operates usually by altering multiple organization levels and several of the dimensions of structure, culture, reward systems, strategy and work design

public relations

Information that explains the firms activities in a favorable manner that is regularly transmitted to the public

Leadership Behaviors

Leadership Behaviors Studies: Michigan Studies & Ohio State Studies 1. Michigan Studies - identifies two forms of leader behavior: - Job-centered leader: monitoring progress in task accomplishment, explaining work procedures, directing employees, planning, scheduling work, coordinating employees activities, designed primarily to get tasks completed 2. Ohio State Studies - did not interpret leader behavior as being one-dimensional as did the Michigan State studies. - Initial research assumption: leaders who exhibit high levels of both behavior would be most effective leaders - Identified two basic leadership styles that can be exhibited independently and simultaneously: Initiating-structure behavior & Consideration behavior 1. Initiating-structure behavior: the leader clearly defines the leader subordinate role so that everyone knows what is expected, establishes formal lines of communication, and determines how tasks will be performed. 2. Consideration behavior: show concern for subordinates and attempt to establish a warm friendly and supportive climate.

Responses to power

Managers & Leaders exercise power to garner an appropriate response from subordinates. Responses to power from subordinates fall into three major categories: Commitment―The subordinate does what the leader wants because he or she really wants to. Compliance―The subordinate does only what is required and nothing more. Resistance―This can take many forms, from the subtle (such as working slowly) to the obvious and extreme (such as destroying products).

lobbying

Members of the organization meet with government officials in an attempt to influence their votes on some policy that will affect the organization. Organization influence regulators: lobbying and bargaining. The automobile companies have been successful on several occasions in bargaining with the EPA to extend deadlines for compliance with pollution control and mileage standards.

What is Power & what are the Sources of Power

Power is the ability to affect the behavior of others. 1. Referent power: when one person identifies w/ and admires another 2. Charisma: the ability to inspire admiration, respect, loyalty & desire to emulate based on some intangible set of personality traits - a personal source of power 3. Affiliative power: power is derived by virtue of a person's association w someone else who has some source of power. ex = sub teacher 4. Legitimate power: granted thru the organizational hierarchy (Jeff Bezos) 5. Reward power: the capability to force compliance by means of psychological, emotional, or physical threat 6. Coercive power = capability to force compliance by means of psychological, emotional, or physical threat 7. Referent power = personal power that accrues to someone based on identification, imitation, loyalty, or charisma 8. Expert power = derived from the possession of info or expertise

Decentralization

Systematically delegating power and authority throughout the organization to middle- and lower-level managers. - If you have competent, willing to do it, located in the same building, with little interaction needed, with very clear standardized procedures, being the tasks very similar, with fewer problems problems coming up then the wider the span that you can have. It is easier to decentralize.

Centralization

Systematically retaining power and authority in the hands of higher-level managers.

external environment

The ability to asses the external environment and match a firm's' capabilities with perceived needs is the key to its ability to survive and prosper. The external environment may be thought of as differing among organizations in two dimensions: homogeneity and change. The degree of homogeneity is the extent that the external environment varies from being relatively simple (having few elements that affect the organization) to relatively complex (having many elements that affect the organization). The degree of change refers to the extent that the external environment is relatively stable (change occurs slowly and/or predictably) or relatively dynamic (change occurs rapidly and /or unpredictably) Environmental Change and Complexity Change occurs in two ways: Degree to which change in environment is occurring Degree of homogeneity (simple) or complexity of the environment Uncertainty A driving force that influences organizational decisions. Example Least uncertainty federal paper board, subway: (focuses on a specific market segment, product line limited, stable network of suppliers, faces relatively constant competition). Changes happen slowly and or in consistent manner. Simple + Dynamic: Moderate uncertainty: Clothing manufacturing like Levi Straus (target a particular buyer, but sensitive to fashion changes) Complex + Stable, Ford, Nissan, many relators, suppliers, consumer groups and changes are slow, cars with four wheels are still there Dynamic + Complex Apple, Google, Intel

Classical Approach

The classical approach to job design is based on the principles of division of labor and specialization. - When jobs are divided, they are reduced in complexity and operations until the activities of a single worker can be repeated with ease. - Advantages of specialization: Workers assigned to only one small part of the work process become very knowledgeable about that part very quickly. Specialized tools and equipment can be developed. More products can be made more quickly and for less cost. Disadvantages of specialization: Performing the exact same task over and over becomes boring, which can affect quality. Workers combat monotony by being absent and tardy. Repetitive movements result in fatigue injuries. Specialization allows managers to replace workers fairly quickly and relatively inexpensively, which often makes workers feel insecure.

Diversification

The number of businesses an organization is engaged in and the extent to which these businesses are related to one another

Span of control

The number of ppl reporting to a manager dependent on managers' jobs, company growth rate, and similar factors. - Broad/wide span of control: 1 supervisor on top with 5 employees below - Narrow span of control: 1 supervisor on top w/ 2 employees below w/ 2 lower-level employees below

scope

When applied to strategy, it specifies the range of markets in which an organization will compete.

strategy

a comprehensive plan for accomplishing an organization's goals

Divestment

a strategy of selling off businesses that the company no longer wishes to maintain either because they are failing or because the company has changed its corporate strategy and does not wish to be in those businesses any longer

Michael Porter's Five Forces Model

analyzes an organization, its position in the marketplace, and how information systems could be used to make it more competitive

Organization Change

any substantive modification to some part of the organization (ex work schedules, machinery, employees, units)

Jeff Bezos at Amazon is well know for enforcing a culture of metrics. Amazon tracks its performance against about 500 measurable goals. According to Ohio State studies, what type of behavior is Jeff Bezos using? A.job-centered leader B.initiating structure C.consideration D.authority-compliance leader E.employee-centered leader

b. initiating structure - Initiating-structure behavior: Defines employee's roles through activities such as scheduling, defining work tasks, setting deadlines, criticizing poor work, getting employees to accept work standards, and resolving problems.

Flat organization

created by removing levels of management, organization levels should be linked to clear accountability 1. benefits - lead to higher levels of employee morale/productivity bc of the informal environment - reduced cost - employee empowerment - fewer layers, faster comm. and decisions 2. challenges: - large spans of control - job complexity goes up - younger employees see fewer opportunities - less "entry level" mngment positions

task environment

customers, suppliers, competitors, substitutes, potential new competitors

A manufacturer of recyclable plastic container is operating in an environment that is relatively free of uncertainty. This means that a manufacturer is operating in ____________ environment. A.simple and complex B.stable and complex C.dynamic and simple D.simple and stable E.dynamic and complex

d. simple and stable

A goal is a final result that a firm wishes to achieve and contains several components. What are the components? a. the attribute sought b. the target to be achieved c. an index to measure progress d. a time frame e. all of the above

e. all of the above

Departmentalization

grouping related jobs to form an administrative unit (department, area, center)

secondary stakeholders

groups that have a less formal connection to the organization such as environmentalists, special interest groups and the media

boundary spanner

is an employee such as sales representative or purchasing agent, who spends much of his or her time in contact with other outside the organization. They learn what other organizations are doing and present the current and future status of the organization.

Tall organization

many levels of authority relative to company size - more expensive bc of # of managers involved - fosters more communication problems bc of the # of people information needs to pass thru

Geographic Departmentalization

organizing work and workers into separate units responsible for doing business in particular geographic areas. advantages: - respond to market differences - reduces transportation costs disadvantages: - duplication of resources - difficult to coordinate

Product Departmentalization

organizing work and workers into separate units responsible for producing particular products or services advantages: - one product so all activities r integrated & coordinated - speed/effectiveness of decision making - performance is easy to assess disadvantages: - no coordination among products - administrative costs due to each department having its own functional-area experts

stakeholder

person/group that can affect, or is affected by, an organizations goals or the means to achieve those goals

Authority

power that has been legitimized by the organization

economic dimension

represents the general economic health of the country or region in which the organization operates (unemployment rate & GDP)

organization culture

set of internal values, beliefs, behaviors, customs, attitudes that determine the "feel" of org. - not always the same thru out org. - must b managed so that its strengths benefits the firm's overall effectiveness and long-term success - dysfunctional if RESISTANT to change

stakeholder orientation

the degree to which a firm understands and addresses stakeholder demands. This orientation comprises three sets of activities 1.- the organization -wide generation of data about stakeholders groups and assessment of the firm's effects on these groups, 2.- the distribution of this information throughout the firm, and 3. the organizations responsiveness as a whole to this intelligence

A behavioral approach to job design

the design of jobs based on the view that workers are independent parts of the production process whose individual characteristics should be taken into account in forming jobs

general environment

the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations

negotiation

the organization arrives at a formal, legal agreement with stakeholders thru a discussion that may include cost, time, and method of transportation. Example: labor contracts, sales, agreements,

Delegation

the process by which managers assign a portion of their total workload to others 1. reasons for delegation: - to enable the manager to get more work done by utilizing the skills/talents of subordinates - to foster development of subordinates by having them participate in decision making and problem solving - the number of ppl reporting to a manager

Empowerment

the process of providing employees with the ability to contribute input and take on responsibilities for organizational decisions. Research suggests that employee empowerment and effective communication from managers leads to greater employee satisfaction. To create employee empowerment, leaders must establish a transparent workplace where employees feel encouraged to contribute ideas and communicate with managers.

Organizational structure

the way that managers group jobs into departments and departments into divisions - ex: functional, multidivisional, team, customer, geographic, product, network, holding, matrix, hybrid, virtual

primary stakeholder

those who have a formal or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities

forward integration

when your supplier decides to expand their business by doing your work

What facilitates planning, goals and strategic management process?

•To facilitate planning, goals and plans should be communicated to all members of the organization so that they have an accurate idea of what the organization is attempting to accomplish. •Involving many employees in planning is effective in achieving involvement throughout the organization. •Contingency plans—alternatives to the original plan that allow the organization to continue to function effectively in the face of change—should be developed.