Chapter 8 management review

decentralized authority

important decisions are made by middle-level and supervisory-level managers

common elements of an organization

1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority ~ unity of command 5. span of control 6. authority, responsibility, delegation 7. centralization vs. decentralization

3 levels of organizational culture

1. observable artifacts 2. espoused values 3. basic assumptions

________ is(are) another way of describing a vertical hierarchy.

A chain of command

Online retailer Amazon relies heavily on a hierarchy culture to manage its vast and complex shipping processes. ________ are part of Amazon's hierarchy culture.

An internal focus and values stability and control

________ enables a manager to make decisions, give orders, and utilize resources. For example, the manager of a local pizzeria has the right to hire and fire drivers based on their punctuality, performance, and customer-service ratings.

Authority

Elly and Sylvia, owners of Gaia Organic Foods, do not have a formal policy about dress code and work procedures because they see their company as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. ________ are the core beliefs that represent the core values of Gaia Organic Foods' culture.

Basic assumptions

Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their employees' job satisfaction and commitment. At their café, Paul and Betsey have built a

Clan culture

Ralph, the manager of a busy hardware store, knows that he needs to entrust many of his tasks to managers and other employees. ________ is this process of assigning tasks to lower-level managers and employees. Ralph follows the 70% rule, which states that he should assign tasks to employees who can perform each task at least 70% as well as Ralph can.

Delegation

Hewlett-Packard founders David Packard and William Hewlett created a close-knit organizational culture that gave a lot of responsibility to employees and fostered innovation within the company. ________ are individual responsibility and the importance of innovation.

Espoused values

A company with a market culture has a strong internal focus, and it concentrates on developing the business and marketing plans, as well as helping employees market their product(s).

False

An organizational structure is a set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its environments.

False

During a meeting, Tammy, a branch manager for USA Bank, pointed to the corporate organization chart on the wall. Tammy remarked that "These people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Laura (our CEO) and the vice presidents of our organization are up here, indicated on the organization chart by a solid line vertical line." ________ are indicated on the organization chart by a solid line ________, and ________ are indicated by a dotted line.

Line managers; staff personnel

________ are the rituals and ceremonies of a company, as well as the manner of dress, awards, myths and stories told about a company.

Observable artifacts of organizational culture

Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that binds the members of our company together." Adam was referring to his company's

Organizational culture

Jean-Paul, the store manager at an H&M outlet, was speaking with Patty, his new assistant manager, about the store's system of job relationships; he also explained whom she will report to and who will report to her. Jean-Paul said, "This structure is one of the things that motivates our employees to work together to achieve our company's goals." Jean-Paul was telling Patty about the store's

Organizational structure

Changing organizational culture is essentially a teaching process, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors.

True

The arrangement of having discrete parts of a task done by different people is known as division of labor.

True

Two advantages of decentralization are that (1) managers are encouraged to solve their own problems (2) decisions are made more quickly, increasing the organization's flexibility and efficiency.

True

centralized authority

important decisions are made by higher-level managers

A hierarchy of authority is ________. Most military organizations are known for having a strong hierarchy of authority.

a control mechanism for making sure the right people do the right things at the right time

unity of command

a management principle that workers should report to just one boss

matrix structure

an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal

virtual structure

an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections

Espoused values

are the explicitly stated values and norms preferred by an organization

mechanistic organization

authority is centralized, tasks and rules are clearly specified, and employees are closely supervised

organic organization

authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks

organization chart

box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations

Four Types of Organizational Culture

clan, adhocracy, market, hierarchy

Organizations using a matrix structure

contain two command structures, in which some people report to two bosses.

Symbols, stories, heroes, and rites and rituals are ways in which ________ is (are) most often transmitted to employees.

culture

Ford Motor Co. has separate divisions for passenger cars, for large trucks, and for farm products. Ford is an example of an organization with

customer divisions

According to Lawrence and Lorsch, the stability of an organization's environment determines the degree of

differentiation or integration that is appropriate

Tomás, a sales associate in the furniture department of the Larkspur Department Store, reports to Carolina, the furniture department manager. This morning, Carolina asked Tomás to change the price tags on the desk chairs. While working on this task, David, the computer department manager, told Tomás that he wanted him to unload some computers. Tomás is confused about what to do because under the principle of unity of command,

employees should report to no more than one manager.

modular structure

firm assembles product chunks provided by outside contractors

3 types of organizations

for-profit, nonprofit, mutual-benefit

The structure of Sandal Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. Sandal Mart has a ________ structure.

functional

market culture

has a strong external focus and values stability and control

adhocracy culture

has an external focus and values flexibility

Clan culture

has an internal focus and values flexibility rather than stability and control

hierarchy culture

has an internal focus and values stability and control over flexibility

simple structure

has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

staff personnel

have authority functions; they provide advice, recommendations, and research to line managers

line managers

have authority to make decisions and usually have people reporting to them

boundaryless organization

is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors

organizational structure

is a formal system of task and reporting relationships that coordinates and motivates an organizations members so that they can work together to achieve the organizations goal

organizational design

is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies

Differentiation

is the tendency of the parts of an organization ro disperse and fragment

Integration

is the tendency of the parts of an organization to draw together to achieve a common purpose

Organizations that are formed to offer services to clients and not make a profit are ________, whereas, ________ are those organizations that are formed to make money, or profits, by offering products or services.

non profit organizations for profit organizations

hollow structure

often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

flat organization

one with an organizational structure with few or no levels of middle management between top managers and those reporting to them

Organizational design is concerned with an organization developing

optimal structures of accountability and responsibility to execute its strategies

divisional structure

people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions

functional structure

people with similar occupational specialties are put together in formal groups

Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an organization with ________ divisions.

product

person-organization fit

reflects the extent to which tour personality and values match the climate and culture in an organization

Enacted values

represent the values and norms actually exhibited in the organization

Jim was recently promoted to the position of dining room supervisor at The Crab Shack, and he is now responsible for making decisions on numerous matters in the dining room and giving orders to the serving staff. At the same time, Jim has the obligation to perform the many new tasks assigned to him as a supervisor, such as overseeing the closing work and the cleaning of the dining room. Jim's obligations are known as his

responsibility

Alana, the children's department manager at Shoe Mart, has eight employees in her department, also known as her ________. All of eight of these employees report directly to her.

span of control

horizontal design

teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries

coordinated effort

the coordination of individual efforts into a group or organization wide effort

Organizational culture

the set of shared, taken for granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments

common purpose

unifies employees or members and gives everyone an understanding of the organization's reason for being