MGMT Test 2 Chapter 7

clan-based

A ______________ organization is run by a behaviorist, and it responds readily to the environment but may not be efficient.

ambidextrous

A company that handles work efficiently while still surveying its environment to determine what changes it needs to make to stay competitive is ________________.

Scientific Management

A focus on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods

Bureaucratic approach

An extreme form of organizational control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and instructions. This type of organization is likely to be very efficient but not very responsive to the company's environment.

Vertical Specialization

How much an employee creates, executes, and administers activities in a certain area of the firm

Horizontal Specialization

The breadth of activities that are performed in a certain job

organizational design

The formal systems, levers, and decisions an organization adopts or employs in pursuit of its strategy.

Division of Labor

The manner in which work in a firm is divided among employees.

Organizational structure

The pattern of organizational roles, relationships, and procedures that enable coordinated action among employees.

Delegation

The process by which managers transfer decision rights to individual employees.

delegation

When a manager gives an employee decision rights, the manager is involved in __________ . This is the process by which managers transfer decision rights to individual employees.

Unfair discrimination

_____________involves making a business decision, such as a promotion, based on non-business-related criteria.

bureaucratic approach

A company with a ___________ is run according to strict rules and regulations. Employees are closely supervised by their managers, who regularly say what should be happening in the organization. This is an extreme form of control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and instructions.

Silos

A functional or divisional unit that operates by its own rules and guidelines and does not openly share information with other units.

Divisional structure

A structure that groups diverse functions into separate divisions.

Functional structure

A structure that organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales, and accounting.

Network structure

A structure where "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.

Matrix structure

A structure where both divisional and functional managers have equal authority in the organization.

Clan approach

A type of organizational control that includes self-supervising teams that are responsible for a set of tasks.

Contingent view

A view of the firm where effective organizational structure is based on fit or alignment between the organization and various aspects in its environment

Centralized organization

An organizational structure characterized by formal structures that control employee behavior by concentrating decisions in a top-down, hierarchical fashion.

Decentralized organization

An organizational structure where key decisions are made at all levels of the firm, not mandated from the top.

silo

Engineering is often an organizational ________________ with its own rules and procedures. Other functional units such as sales can have difficulty finding out what engineers are working on at any given time. This is a functional or divisional unit (like engineering) that operates by its own rules and guidelines and does not openly share information with other units. This refers to the functional or divisional units of a company.

decentralized

In a ____________ organization, decision-making rights are shared up and down the organization structure. People at all levels of the company make key business decisions. These key decisions are made at all levels of the firm, not mandated from the top.

Decision Rights

Rights that include initiating, approving, implementing, and controlling various types of strategic or tactical decisions.

vertical specialization

Taking on tasks formerly assigned to one's manager or subordinates is an example of ___________.

matrix structure

The Bechtel Corporation has a _____________ Employees report to both project managers and functional managers. This gives both divisional and functional managers equal authority in the organization. Horizontal reporting relationships in this structure help to improve communication between employees in different functional areas. Combines a vertical structure with an equally strong horizontal overlay. Suppose that Al's Autos created a structure with truck and car divisions. Parts, service, and sales employees would all come to the divisional meetings, thereby improving communication.Unfortunately, one of the drawbacks of this structure 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.C & J Construction has a matrix structure. In a matrix organization, employees have both a functional and a product (divisional) manager. Although this can create a politically charged environment, it is particularly effective in a project-based environment in which employees need to have communication across functions.

Human Relations Movement

The belief that organizations must be understood as systems of interdependent human beings who share a common interest in the survival and effective functioning of the firm

Mutual adaptation

The process by which firms impact the nature of their overarching industrial environment and adapt their organization in response to evolving contextual factors.

Organizers

Those who believe that more control is warranted in organizational design to ensure that jobs are performed satisfactorily and efficiently.

Behaviorists

Those who support a more open organizational structure where roles and responsibilities are loosely defined.

functional structure

Traditional organizations often have a ____________ in which employees are grouped by what they do: research and development, engineering, accounting, finance, human resource management, and customer relations. This organizes a firm in terms of the main activities that need to be performed, such as production, marketing, sales, and accounting. Employees in functional organizations are highly specialized and, as a result, highly efficient. However, this efficiency comes at a cost. When jobs are divided by specialty, horizontal communication is decreased, and decision making can take longer.

Cooperation

_________________ involves using informal methods such as culture and incentive to encourage people in the organization to come together in the spirit of serving customers. This involves using informal organizational design changes, such as culture and incentives, to help employees focus on customers. Once these changes are implemented, employees get a good idea of the importance of customer needs and relationships. Giving employees rewards for creating products that customers like helps to ensure that the company has an informal culture that supports this kind of behavior. An example: You give employees rewards for creating new products that are hits with customers. Last year, you gave more than $10,000 to two employees who designed the company's biggest selling product of the year.

Informal structure and politics are critical to consider when designing an organization because if they are not effective the design of the organization will not matter. When determining whether to make a company centralized or decentralized, be sure to consider who has the best information in the organization because those people are the ones who should be using their information to make decisions. Also consider the strategy of the organization because efficiency is more related to centralized organizations and creativity is more related to decentralized organizations. In addition, companies tend to become more centralized as they age. You would expect to see younger companies with more decentralized organizations.

Which of the following choices make accurate statements about organizational design?

horizontal specialization

You run a tutoring business. Recently, you told tutors who had been coaching children in English that they were now going to be coaching students in biology as well. In doing so, you increased the _____________ of their work. This refers to the breadth of activities that are performed in a certain job. An example would be taking on tasks that were previously performed by one's coworkers

Centralized, Bureacratic, and formal

__________, __________, and ____________organizations tend to bring decision making to managers in an organization, rather than giving it to individual employees.

Coordination

____________ involves creating structural mechanisms and processes at a firm that allow workers to coordinate their activities to focus more exclusively on creating value for the customer. It is the practice of setting up an organizational structure that supports links between silos. This allows employees to work more closely together and to serve customers more effectively. Creating a cross-functional group is an example of an organizational structure that brings employees from different silos together. Focusing these employees on the customer helps to make sure the company as a whole is more customer-centric.An example: After looking at the overall design of your organization, you get worried that the company has too many silos. Employees aren't communicating with one another. So you create a new customer communication department that is charged with bringing information about customer desires to every department in the company.

Connection

_______________ involves developing relationships with parties outside the firm to increase the value of the firms offerings. Restructure the organization's boundaries, bringing customers inside the company and sending employees outside the company to interact with customers. By outsourcing computer services, you free your company and employees to focus on serving your most important barbell customers. This increases the connection between customers and employees, along with your company's competitive advantage. An example: You've realized that servicing the company's computers is not one of your company's competitive strengths. You decide to outsource that task to others and spend more time on creating and selling the barbells that are your company's main product.

capability development

_______________ involves helping employees at a firm develop the right skills needed to better serve customers. This involves developing the skills of employees so that they can better serve customers. This can be done both through formal training and the informal training that occurs as a person moves from job to job during a career. Giving employees career paths that make use of many different skills develops their abilities and helps them to serve customers more effectively. An example: You know how important it is for employees to be able to work across multiple product lines and to work effectively with other teams while doing so. You create career paths that allow employees to jump from department to department within the company. An employee might be working for engineering on one product, but sales on another.

network organizations

_______________ put employees in work clusters, working closely with groups both inside and outside the organization.These are organized in work clusters

Decentralization

________________ refers to pushing decision making toward the level of front-line employees. Degree to which decision-making authority is given to lower levels in an organization's hierarchy. Decentralization refers to how decisions are made in the organization. In a decentralized company, decisions get made up and down the organizational ladder. This can be a very effective form of decision-making, especially in an environment requiring flexibility, but it is not always efficient.

Divisional structures

__________________ divide organizations by product or geography. A structure that groups diverse functions into separate divisions.

Centralization and bureaucratization

___________________ and ____________ would involve taking decision rights away from employees.

network structure

an organizational structure in which administration is the primary function, and most other functions are contracted out to other firms. Having lack of control over certain departments/divisions is a problem most associated with which type of organizational structure? A structure where "knowledge workers" are organized to work as individual contributors or to be a part of a work cluster that provides a certain expertise for the organization.A 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. Because networks are made up of many companies, employees are less likely to feel that they are working for the central company—instead, their loyalties lie with the smaller organizations in the network.