exam 2
hierarchy of authority
an organisations chain of command specifying the relative authority of each member
boundaries organizations
an organization whose members are linked by computers, email, computer-aided design systems, video-conferencing and cloud based software, and who rarely if ever see on fact to face
functional structure
an organizational structure composed of all the departments that an organization requires to produce its goods and services
matrix structure
an organizational structure that simultaneously groups people and resources by function and product
input stage (feedforward control)
anticipate problems before they occur
self reinforcer
any desired or attractive outcome or award that a person can give himself or herself for good performance
input
anything a person contributes to his or her job or organization -time, effort, skills, knowledge, work behaviors
outcome
anything a person gets from a job or an organization-pay, job security, autonomy, accomplishment
stuck in the middle
attempting to simultaneously pursue both a low-cost strategy and a differentiation strategydifficult to achieve low cost with added cost of differentiation strategy
Carnegie Steel Company was a U.S. steel producing company. The company controlled not only the mills where the steel was made, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore, the railroads that transported the coal to the factory, and the coke ovens where the coal was cooked. This is an example of
backward vertical integration
Coca-Cola buys a company that makes artificial sweetener that it will use to produce its sugar-free beverages.
backward vertical integration
McDonald's buys chicken ranches to provide eggs to its restaurants
backward vertical integration
prosaically motivated behavior
behavior performed to benefit or help others
intrinsically motivated behavior
behavior that is performed for its own sake
extrinsically motivated behavior
behavior that is performed to acquire material or social rewards or to avoid punishment
Hot Topic has no walls in the work space. This helps workers fulfill which of Maslow's needs?
belongingness
The process of comparing one company's performance on specific dimensions with the performance of high-performing organizations to decide how successful a change effort has been is known as
benchmarking
Top managers at Swirly Sweets, a candy manufacturer, consult with middle and first-line managers to revise their marketing strategy. This approach will lead to
bottom-up changes to minimize resistance from employees and uncertainty
rolling wave plan
broad until it gets closer and add more detail as it approaches
Nela attempts to walk Logan through the development, manufacturing, and sales goals and processes for the potential new electric yachts. What type of planning is she trying to do?
business-level plan
disadvantage of divisional structure
can get very inefficient
Francisco's subordinates are clashing over the fact that Dean believes in ________ authority while Charlotte is advocating for ________ authority.
centralized; decentralized
Kimberly weighs Jane's performance against the standard performance for her job level.
compare
Campbell sold Godiva Chocolates and invested the money in its core soups business.
concentration in a single industry
When managers receive immediate feedback on how efficiently inputs are being transformed into outputs so managers can correct problems as they arise, this is ________ control.
concurrent
BJ's Brewery: BJ's has installed a new set of automatic sensors to continually monitor the cultivation temperature, dissolved oxygen, and pH level of their beer as it brews.
concurrent controls
JPH Hospital: Each patient's wristband is checked each time medicine is administered to insure that it is being given to the correct patient.
concurrent controls
LaReine's Sports Designs: At each step in the manufacturing process, specific workers check that the correct buttons and zippers are being used and that the hems have been sewn correctly.
concurrent controls
According to ________ theory, managers should choose a structure that fits the circumstances affecting their organization the most.
contingency
clan control
control exerted on individuals and groups in an organization by shared values and Normas standards of behavior and expectations
A plan that indicates which industries and national markets an organization intends to compete in is a(n) ________-level strategy.
corporate
Redbox is an example of a company with a ________ strategy.
cost-focus
Gondwona, LLC: Has noticed that productivity and performance are highest when individuals from different departments work together throughout the design, production, and rollout stages of new product development.
cross-functional teams
inter culture
culture that leads to values and Normas that fail to motivate or inspire employeesleads to STAGNATION and often failure over time
extinction
curtailing the performance of a dysfunctional behavior by eliminating whatever is reinforcing them
The process of giving lower-level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources refers to ________ authority.
decentralizing
If the manager in the video has identified the resistance of employees as an obstacle for this organizational merger, he could have taken actions to decrease the negative effects of it. In other words, the manager could have done a more effective job on which of the following steps in the change process?
deciding on the change to make
Which of the following is true about organizational culture?
Employee actions and decisions are guided by internalized organizational norms
Brandon is really upset. He feels he puts in more time and energy than his coworkers, but they are paid more than he is.
Equity theory
Mira believes she is paid more than her coworkers for doing the same work. She plans to work harder to deserve the additional pay
Equity theory
Caroline isn't motivated because she doesn't care at all about the rewards being offered for outstanding performance
Expectancy theory
Scott is providing training on the new machinery to his workers so that they will believe that they can perform to standard.
Expectancy theory
managers by objectives (MBO)
-a goal-setting process in which managers and each of his or her subordinates NEGOTIATE specific goals and objectives for the subordinate to achieve and the periodically evaluate the extent to which the subordinate is achieving those goals (BALANCED SCORECARDS)
a good control system should:
-be flexible so managers can respond as needed(don't be a slave to the system) -provide accurate info about the organization -provide information in a timely manner
organizational learning
-keeping fresh-managers try to increase organizational members ability to understand and appropriately respond to changing conditions -impetus for change -can help members make decisions about changes
problems with output control
-managers must create output standards that motivate at all levels -standards should not cause managers to behave in inappropriate ways to achieve organizational goals
organizational control and change
-need to improve operations -need to respond to new events -managers must balance the need for an organization to improve the way it currently operates the need for it to change in response to new, unanticipated events
global strategy
-selling the same standardized product and doing the same basic marketing approach in each national market -cost savings -culnerable to local competitors
Which of the following describes the purpose of managerial control?
-setting goals-arranging tasks around goals -assessing goal accomplishment -taking corrective actions
Melissa is an engineer at Acme Consulting. She used to work from 8:30am to 5:30pm, but her boss told her she could come in at 9am because of her great performance last year. However, this year Melissa is constantly arriving late to work. Her supervisor is looking to utilize extinction to remedy this behavior. Which of the following would be an example of extinction in this situation?
Having Melissa go back to working from 8:30am to 5:30pm
According to Herzberg's theory, more hygiene needs do what?
Lower dissatisfaction
SMART goals
Specific, Measurable, Attainable, Realistic, Timely
Which of the following factors is most likely to be considered an opportunity in a SWOT analysis?
The company sells a line of healthy products, and the local market is becoming more health conscious
job design
The process by which managers decide how to divide tasks into specific jobs
job simplification
The process of reducing the number of tasks that each worker performs
employee stock option
a financial instrument that entitles the bearer to buy shares of an organizations stock at a certain price during a certain period of time or under certain conditions
bottom up change
a gradual or evolutionary approach to change in which managers at all levels work together to develop a detailed plan for change
Skill variety is the extent to which
a job requires that an employee use a wide range of abilities and knowledge.
expectancy
a perception about the extent to which effort will result in a certain level of performance
instrumentality
a perception about the extent to which performance results in the attainment of outcomes
self efficacy
a persons belief about his or her ability to perform a behavior successfully
informational justice
a persons perception of the extent to which his or her manager provides explanation for decisions and the procedures used to arrive at them
distributive justice
a persons perception of the fairness of the distribution of outcomes in an organization
interpersonal justice
a persons perception of the fairness of the interpersonal treatment he or she receives from whoever distributes outcomes to hum or her
procedural justice
a persons perception of the fairness of the procedures that are used to determine how to distribute outcomes in an organization
learning
a relatively permanent change in persons knowledge or behavior that results from practice or experience
needs
a requirement or necessity for survival and well being
profit sharing
a share of an organization profits
need for achievement
a strong desire to perform challenging tasks well and meet personal standards for excellence
equity theory
a theory of motivation that focuses on peoples perceptions of the fairness of their work outcomes relative to their inputs
social learning theory
a theory that takes into account how learning and motivation are influenced by peoples thoughts and beliefs and their observations of other people behaviors
The level of involvement, investment, and degree of risk is highest in
a wholly owned foreign subsidiary
Which statement about Maslow's Hierarchy of Needs theory is true?
Physiological needs relate to food, water and shelter.
Betsy McLaughlin enjoys tackling new concepts, being an entrepreneur, and challenges. She has a high need for
achievement
Hot Topic encourages employees to move around in the company to develop new types of teams and to take on new challenges. This helps to motivate them by filling their need for
achievement
what are the best goals
SMART goals
Which of the following would assist Logan in most effectively formulating strategy?
SWOT analysis
Trisch, an employee of NMN Corp., shows consistent interest in setting clear goals for his performance and is ready to take up challenging roles. He asks his manager to provide feedback on his performance regularly. In the context of McClelland's needs, Trisch is likely to possess a high need for
achievement
punishment
administering an undesired or negative consequence when dysfunctional behavior occurs
What is not a characteristic of a good control system?
all-inclusive
The owner of a local restaurant wants to implement job enlargement in his restaurant. To do so, he would probably
allow servers to rotate job functions, such as serving and greeting, on a daily basis.
IKEA: Offers low-price, home furnishings with good design and quality.
differentiation
Toyota: Is known for providing extremely high quality manufacturing on all of its various lines of automobiles whether they are inexpensive entry models or top-end luxury models.
differentiation
When managers focus on distinguishing the organization's products from those of competitors on one or more important dimensions, such as quality or after-sales service and support, this is considered a ________ strategy.
differentiation
Which strategy requires a high level of understanding of what consumers value?
differentiation
disadvantages of functional structure
difficult for departments to communicatepreoccupation with own departments and losing sight of organizational goals
Plutone Inc.: Has a functional structure with just two departments: operations and marketing. It's a new, small company, and everyone knows everyone else.
direct contact
The most immediate and potent form of behavior control is
direct supervison
differentiation
distinguishing an organizations products of competitors on aimension, such as product design, quality, or water-sales service
The corporate-level strategy of expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services is an example o
diversification
product team structure
employees are permanently assigned to cross-functional team and report only to the product team manager or to one of his direct subordinates
commission pay
employees pay is based on a percentage of sales that the employee makes
price-rate pay
employees pay is based on the number of units that the employee produces
The theory of motivation that concentrates on people's perceptions of the fairness of their work outcomes relative to, or in proportion to, their work inputs is
equity
Dinika sets the desired cooling temperature range for a particular step in the manufacture of the new metal product.
establish
Kang-Lin sets the anticipated optimal speed of the conveyor belt in the chocolate factory.
establish
Betsy McLaughlin states that it is important to her employees to be recognized for what they contribute. On Maslow's hierarchy, this would motivate people through their need for
esteem
Caitlin increases the output goal for her team after noting that the members consistently finish assigned work early.
evaluate
Kenny notes that the coolant temperature has consistently been below expectation and orders a machinery check
evaluate
underpayment inequity
exists when a person perceives that his own outcome-input ratio is less than the ratio of a referent.
overpayment inequity
exists when a person perceives that his own outcomes input ration is greater than the ratio of a referent
diverstification
expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services
Hot Topic promotes from within. Workers know that if they perform well, they may be promoted from the store to the headquarters. This is an example of instrumentality, a part of ________ theory.
expectancy
in equity theory, inputs usually refer to
experience
need for power
extent to which an individual desires to control or influence others
need for affiliation
extent to which and individual is concerned about establishing and maintaining good interpersonal relations, being liked, and having the people around him or her get along with each other
Not promoting idle conversation in order to help ensure work is accomplished is an example of what?
extinction
The concert reimbursement program is an example of a(n) ________ motivator.
extrinsic
Standard operating procedures are mechanisms for clan control.
false
True or false? Apple, a company with a strong product line, probably has strong bargaining power of suppliers.
false
True or false? Reducing an employee's compensation because of poor performance is known as negative reinforcement
false
True or false? When a goal is not met, a manager should assume that employees were not performing to their utmost potentia
false
top-down change
fast, revolutionary approach in which top managers identify what needs to be changed, decide what to do, then move quickly to implement change -overnight
_________ is the extent to which actually doing a job provides a worker with clear and direct information about how well he or she has performed the job.
feedback
Alice's Diner: Requests that guests fill out an online survey concerning their satisfaction with the restaurant.
feedback controls
Grand Avenue Auto: Monitors customers complaints in order to discover any problem areas or processes in the repair shop.
feedback controls
McLaughlin Electric: One month after installing new electrical systems, a representative visits the client to make sure everything is working correctly.
feedback controls
Acme Pharmacy: Carefully checks the purity of all ingredients that will be used in manufacturing medications.
feedforward controls
GB's Restaurant: The head chef, Grace, shops each morning for fresh fish and produce. She knows that she can only prepare wonderful food if the raw ingredients are of the highest quality.
feedforward controls
Kat's Cradle: When material is ordered for use in making children's sleepwear, the supplier is notified that only flame retardant material is acceptable.
feedforward controls
flat organization
fewer levels of authority relative to company size
The primary advantages of a divisional structure are __________________.
flexibility and responsiveness
scallion plan
focused on reducing expenses or cutting costs
goal setting theory
focuses on identifying the types of foals that are most effective in producing high levels of motivation and performance and explaining why goals have these effects
control system
forma, target:: setting, monitoring, evaluation and feedback systems that provide managers with information about how well the organizations strategy and structure are working
strategic alliances
format agreements that commit 2 or more companies from exchange or share their resources in order to produce and market a product
Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is called
franchising
In what organizational structure is "stovepiping" the biggest problem?
functional
decentralizing authority
giving lower level managers and nonmanagerial employees the right to make important decisions about how to use organizational resources
positive reinforcement
giving people outcomes they desire when they perform organizationally functional behaviors
integrating mechanisms
giving/organizing tools that managers can use to increase communication and coordination among functions and divisions
international expansion
global strategy
organizational goals
goals should be specific and difficult but attainable
stretch goals
goals that challenge and stretch managers ability but are not out of reach and do not require an impossible high expenditure of managerial time and energy
Satisfying an employee's esteem needs, as described in Maslow's hierarchy of motives, can be accomplished with the policy of
granting promotions and recognizing the accomplishments of individual employees.
power of customers
if there are only a few larger buys they can bargain down prices
line of managers
in the direct line or chain of command who has formal authority over people and resources
If an employee is feeling underpayment (negative) inequity due to less pay than a comparable other, they are most likely to do all of the following except
increase their efforts
level of rivalry
increased competition results in lower profits
job enrichment
increasing the degree of responsibility a worker has over a job
job enlargement
increasing the number of different tasks in a given job by changing the division of labor
pay as a motivation in expectancy
instrumentality, the association between performance and outcomes like pay, must be high for motivation to be high
Delta Wing Global: Is a huge organization with multiple divisions and doing business in many countries. Due to its structural complexity and global size, the company is suffering from a severe lack of integration.
integrating roles and departments
A "passion for the product" works as a(n) ________ motivator.
intrinsic
Betsy McLaughlin loves the team, enjoys the people she works with, and enjoys working alongside people she genuinely likes as human beings. These all act as ________ motivators for her.
intrinsic
Darryl has been handling the print-media advertising for job openings. Next week he will also start handling television and Internet advertising.
job enlargement
David started his job by just taking orders for food. Now his manager has him also seating customers, taking advanced reservations, and making salads.
job enlargement
Lisa-Marie's boss has added financial analysis and tax preparation to her basic accounting tasks.
job enlargement
Adela's team used to be assigned projects with specific instructions on how to do their work. Now, however, they are allowed to bid for new projects and decide for themselves how to structure the tasks in the project
job enrichment
Elena loves her new job. Her manager encourages her to get more training and acquire new skills. As she does, her boss gives her more responsibility over how to do her job.
job enrichment
When Jia is faced with an unusual customer situation, her boss trusts her to think creatively and make decisions about the best way to handle the situation
job enrichment
vicarious learning
learning that occurs when a learner is motivated to perform a behavior by watching another person perform and be reinforced for doing so. -also called observational learning
Freshair Cooling Systems is utilizing management by objectives when
managers and their subordinates together determine the subordinates' goals.
global geographic structure
managers located different divisions in each of the world regions where the organization operates this structure used when managers are pursuing a multi domestic strategy
Ultimo manufacturing is utilizing bureaucratic control when
managers use a comprehensive system of rules and SOPs to regulate behavior.
The management with Carson Tech International are interested in implementing a functional structure. To do so, they should establish
manufacturing, marketing, research and development, and finance divisions.
tall organizations
many levels of authority relative to company size
An organizational structure in which each kind of customer is served by a self-contained division is called a ________ structure.
market
Devon is an accountant in an accounting group. He is also a member of the product development program for the latest version of his firm's consumer gadget. It is most likely that Devon works in a ___________ structure.
matrix
Benson assesses machine tolerance settings once each day.
measure
Cynthia calculates the turnover rate for her division.
measure
Rose compares the actual freezer temperature against the temperature required by the company regulations.
measure
leverage ratios
measures how much debt or equity is used to finance operations: debt-to-asset and time-covered ratios
activity ratios
measures of how efficiently managers are creating value from assets: inventory turnover, days sales outstanding ratios
profit ratios
measures of how efficiently managers convert resources into profits -return on investment
liquidity ratios
measures of how well managers protect resources to meet short term debt-current and quick ratios
Which of the following activities is management performing if they are at step two of the control process?
measuring actual outputs resulting from the behavior of employees
behavior control
mechanisms: direct supervision, management by objective, rules and standard iterating procedures
output stage
mechanisms: financial measures of performance, organizational goals, operating budgets
organizational culture/clan control
mechanisms; values, norms, socialization
A(n) __________ is a broad declaration of an organization's overriding purpose, or what it is seeking to achieve from its activities.
mission statement
According to Herzberg's theory, Hot Topic's empowering their workers, providing interesting work, and publicly recognizing excellent performance would be classified as
motivator factors
organizational change
movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness
When a company customizes products and marketing strategies to specific national conditions, it is adopting a(n) ________ strategy.
multi-domestic
Herzberg's Motivation-Hygiene Theory
need theory that distinguishes between motivator needs (related to the nature of the work itself) and hygiene needs (related to the physical and psychological context in which the work is performed) and proposes that motivator needs must be met for motivator and who satisfaction to be high.
Shawn is required to be in the office Monday through Friday, but would really value the ability to work from home one day a week. Based on Shawn's above-average performance last year, his boss is allowing him to work from home on Fridays. This is an example of which of the following?
negatie reinforcement
The term "span of control" refers to the
number of subordinates who report directly to one manager.
Using piece-rate pay, management bases an employee's pay on the
number of units each employee produces
bureaucratic control
ontrol of behavior by means of a comprehensive system of rules and standard operating procedures
The process through which managers try to increase members' abilities to understand and appropriately respond to changing conditions is known as
organizational learning
pas as motivation in learning theory
outcomes are distributed upon performance of functional behaviors
pay as a motivation in equity theory
pay is given in relation to inputs
pay as motivation in goal setting theory
pay is linked to attainment of goals
In a matrix organizational structure,
people and resources are grouped by function and product.
high valence
people desire the outcomes that result from high performance
operant conditioning
people learn to perform behavior that lead to desired consequences and learn not to perform behaviors that lead to undesired consequences
high instrumentality
people perceive that high performance leads to the recipe of certain outcomes
high expectancy
people perceive that if they try hard, they can perform at a high level
According to expectancy theory, if expectancy is high, people
perceive that if they try hard, they can perform at a high level.
direction
possible behaviors an individual could engage in
benchmarking
process of comparing one company performance on specific dimensions with ht performance of other high performing organizations
controlling
process where managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals
Johnson & Johnson: They make a lot of products, some of which are very different from others. J&J is organized to focus on quality and customer satisfaction for each of its product lines.
product
in equity theory, outputs usually refer to
recognition
concentration on a single industry
reinvesting a company's profits to strengthen its competitive position in its current industry
motivator needs
relate to the nature of the work itself—autonomy, responsibility, interesting work.
hygiene needs
relate to the physical and psychological context in which the work is performed
Eggo Waffles buys a syrup-producing company to increase its market share in the breakfast foods industry.
related diversification
__________ is the strategy of entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses.
related diversification
An organization is using an adaptive organizational culture when employees receive rewards based on
their performance.
need theoriesMaslows Hierarchy of Needs
theories of motivation that focus on what needs people are trying to satisfy at work and what outcomes will satisfy those needs
learning theories
theories that focus on increasing employee motivation and performance by linked the outcomes that employees receive to the performance of desired behaviors and the attainment of goals
Companies in industries where there is little cost, including time or money, necessary to enter the marketplace are most vulnerable to the
threats of new entrants
For domestic or regional airlines or routes, there is always the option of taking a car, bus, or train. This describes which of Porter's Five Competing Forces?
threats of substitution
outsource
to use outside suppliers and manufactures to produce goods and serrvices
The employees in the video complain about their new roles and duties in the new organization, which indicates that they did not participate in many of the decision making processes before the merger occurred, and the top managers made most of the decisions. This can be an example of
top-down change
As organizations become larger, they tend to become more divisional in nature.
true
On average, firms that plan make more money
true
Procedural justice become even more important when there is a perceived distributive justice violation
true
Joe has the same qualifications (education and experience) as Chelsea, and they work for the same company. Joe finds out that Chelsea is earning a higher salary than him, even though they both do the same job. Based on equity theory, what is Joe most likely to experience?
underpayment (negative) inequity
When an individual's own outcome-input ratio is perceived to be less than that of a referent, ________ exists.
underpayment inequity
General Electric purchases a plumbing supply manufacturing company.
unrelated diversification
adaptive culture
values and norms help an organization to build momentum and to grow and change as needed to achieve its goals and be affective
persistence
whether an individual will keep trying or give up
Task significance refers to the:
worker feeds that the task is meaningful to the organization
feedback
worker gets direct information about how well the job is done
task identity
worker involved in all tasks of the job from the beginning to the end of production process
The manager should have done a better job in balancing the need to improve operations with the need to
respond to new events
staff managers
responsible for managing a specialist function
A plan that is updated every year to take account of changing conditions is called a(n) ________ plan.
rolling
problems with bureaucratic control
rules easier to make than to discard, leading to bureaucratic and red tape and slowing -loss of flexibility, new ideas, and create e problem solving
What is NOT a componenet of motivation?
satisfaction
An individual's belief about his or her ability to perform a behavior successfully is called
self-efficacy
B2B network structure
series of strategic alliances that an organization creates with suppliers, manufactures, and distributors to produce and market a product
The concept that proposes that motivation results not only from direct experience of rewards and punishments but also from a person's thoughts and beliefs is the ________ theory.
social learning
An organization is using feedforward control when
suppliers are given strict criteria for the desired quality of raw materials they should supply.
Procter & Gamble uses a joint sales force to sell both its laundry detergent products and its bath soap products to the same supermarket chains. This is an example of
synergy
Sarah is a manager at a retail store that sells mobile devices. After reviewing the store's sales records over the past several months, she determines that the store needs to sell more devices to boost its sales. Accordingly, she tells employees that they will be expected to sell at least 5 phones per day and that she will assess the number of sales each employee makes after a month has passed. Most employees met this requirement, but a few sold fewer than 5 phones per day. Sarah decides not to approach these underperforming employees for fear of being disliked. Which of the following steps in the control process did Sarah not take?
taking corrective action
Beta Corp.: Has found that two of its divisions are having problems with delayed payments from the same few customers. This problem needs to be solved ASAP.
task force
allocating authority: span of control
the # of subordinates who report directly to managers
strategic leadership
the ability of the CEO and top managers to convey a compelling vision to their subordinates of what they want their organization to achieve
Dean brings up the ambiguity branch managers at First National Bank face. He believes senior leadership needs to make it clear what managers' most important priorities are, and align the organizational architecture around it. This thinking most closely resembles which of the following principles?
the importance of integrating mechanisms
time horizon
the intended duration of a plan
authority
the power to hold people accountable for their actions to make decisions concerning the use of organizational resources
organizing
the process by which managers establish the structure of working relationships among employees to achieve goals
motivation
the psychological forces that determine the direction of a persons behavior in an organization, a persons level of effort, and a persons level of persistence
organizational culture
the shared set of beliefs, expectations, values, norms, and work routines that influences how members of an organization relate to one another and work together to achieve goals
expectancy theory
the theory that motivates will be high when workers believe that high levels of effort lead to high performance and high performance leads to the attainment of desired outcomes
job characteristics and descriptions
1. skill variety 2. task identity 3. task significance 4. autonomy 5. feedback
3 types of temporal control
1. input stage 2. concession stage 3. output stage
4 steps in organizational change process
1. Assess the need for change 2. Decide on the change to make 3. Implement the change4. Evaluate the change
4 steps I organizational control
1. establish the standards of performance, goals, or targets against which performance is to be evaluated 2. measure actual performance 3. compare actual performance against chosen standards of performance 4. evaluate the result and initiate corrective action if the standard is not being achieved
McClelland's Needs for achievement, affiliation and power
1. need for achievement 2. need for affiliation 3. need for power
Janelle has increased the autonomy of her workers and offered them challenging projects.
Herzberg's Motivator-Hygiene Theory
Nicholas has been working hard to ensure his subordinates have good working conditions, adequate pay and excellent supervision.
Herzberg's Motivator-Hygiene Theory
effort
How hard an individual will work
Elise was planning to motivate her top worker by offering support for getting an MBA. But that worker's home just burned down, so instead Elise is giving him an early bonus and an advance on pay to help him rebuild.
Maslow's Hierarchy of Needs Theory
Tony has a good home, a safe job and great friends. The promise of a promotion is what is currently motivating him to perform at a high level.
Maslow's Hierarchy of Needs theory
Curtis always gives good performance reviews to his workers. He doesn't want to risk bad feelings within the group or toward hi
McClelland's Needs Theory
Aileen always volunteers for the most challenging tasks and works very hard to be as close to perfect as possible in all her assigned tasks.
McClelland's Needs theory
operating budget
a blueprint that states how managers intend to allocate and use the resources they control to attain organizational goals effectively and efficiently
mission statement
a brand declaration of an organizations purpose that identifies the organizations products and customers and distinguishes the organizations from its competitors
knowledge management system
a company specific virtual information system that systematized the knowledge of its employees and facilities the sharing and integration of their expertises
Organizational ________ is the process by which managers create a specific type of organizational structure and culture so that a company can operate in the most efficient and effective way.
design
What is one of the worst goals you can give someone?
do your best
global product structure
each product division, not country or regional managers takes responsibility for deciding where to manufacture its products and how to market them in foreign countries
product structure
each product line or business is handled by a self-contained division
geographical structure
each region of a country or area of the world is served by.a self-contained division
advantage of functional structure
efficiency and contro lencourages learning from others doing similar jobs easy for managers to monitor and evaluate workers
negative reinforcement
eliminating or removing undesired outcomes when people perform organizationally functional behaviors
autonomy
employee has freedom to schedule task and carry them out
skill variety
employee uses a wide range of skills
cross-functional teams
groups of managers brought together from different departments to perform organizational tasks
According to Porter, an organization is "stuck in the middle" when it
has not made the choice between a low-cost strategy and a differentiation strategy.
valence
how desirable each of the available outcomes from a job or organization is to a person
planning
identifying and selecting appropriate goals and courses of action fro an organization
Which of the following is an example of step one in the organizational change process?
looking at internal reports to assess which departments have been failing to perform
output stage (feedback control)
manage problems after they have arisen
conversion stage (concurrent control)
manage problems as they occur
In which of the following structures do managers organize divisions according to the type of good or service they provide?
product structure
Newell Rubbermaid: The main focus is on individual product lines. Each line is managed by people drawn from functional specialties throughout the organization.
product team
If a CEO uses "Return on Investment" to control their firm, what type of financial measurement are they using?
profit ratio
power of suppliers
if there are only a few suppliers of important items, supply cost rises
McDonald's: Their structure addresses the fact that there are important differences in what customers in one country like versus what customers in a different country like.
geographic
Emilio used to spend his time working directly with customers, packing orders, and making sure they were shipped on time. His boss redesigned his job, and now he works only in packing.
job simplification
Lauren's job has changed. Instead of checking the patient orders, prepping the patient, taking the X-ray, and developing the X-ray, she now only takes the actual X-ray.
job simplification
Parminder used to put together whole special-order computers. However, now he is only responsible for the monitor preparation.
job simplification
Acme Ltd.: Both marketing and R&D have ideas for new products, but there is no real line of communication between the two departments. No one is sure whom to approach in the other department.
liaison roles
Southwest Airlines: Has trained its ground crews to turn around a plane in half the time of other airlines thus slashing overhead. They also offer less frills than other airlines, again keeping overhead low.
low-cost
Walmart: Keeps distribution centers fairly far away from its stores but the lower expense of the real estate outside the cities provides one method to gain more profit than its competitors.
low-cost
Dell: Dell found that there are significant differences among its customers, even though they all might use the same Dell products and services.
market
Branch managers at First National Bank report to both a retail banking manager and a central operations officer. One of the managers is focused on sales and the other on control measures. What type of organizational structure does this most closely resemble?
matrix
Lockheed Martin: Has a flexible structure that tries to capture the benefits of both organizing around activities and organizing around outputs.
matrix
Kraft foods acquires a toy manufacturing company
unrelated diversification
Apple opened stores to sell the computers and other electronic devices it makes
forward vertical integration
Gallo Wines opened a new division to make the bottles it would use for the wines it produces.
forward vertical integration
substitutes
more available substitutes tend to arrive down prices and profits
short term horizon
plans are less than 1 year
establishing major goals:
-goals provide the organization with a sense of directions -stretch the organization to higher levels of performance -goals must be challenging but realistic with a definite period in which they are to be achieved
the nature of the planning process
1. Establish and discover where an organization is at the present time 2. Determine where it should be in the future, its desired future state 3. Decide how to move it forward to reach that future state
why is planning important
1. Planning is necessary to give the organization a sense of direction and purpose 2. Planning is a useful way of getting managers to participate in decision making about the appropriate goals and strategies for an organization 3. A plan helps coordinate managers of the different functions and divisions of an organization to ensure that they all pull in the same direction and work to achieve its desired future state 4. A plan can be used as a device for controlling managers within an organization
levels of planning at a general electirc
1. corporate level 2. business or division level 3. functional level
3 steps of planning
1. determine the organizations mission and goals 2. Formulate strategy 3. Implement strategy
5 forces model
1. level of rivalry 2.potential for entry 3.. power of suppliers 4. power of customers 5. substitutes
defining the busines
1. who are the customers 2. what customers, needed are being satisfied? 3. How are we satisfying customers
Pier 1 Imports: Their structure helps them develop strong capabilities in key organizational tasks.
functional
Based on what you've learned about establishing major goals, which of the following would be an example of the most complete goal for the electric yachts?
Dunamis Motors will sell five electric yachts by the end of this calendar year
Zephyr Paintball: Offers inexpensive equipment to those interested in playing paintball.
focus low-cost
Logan's focus on electric yachts represents what type of business-level strategy
focused differentiation
strategy
a cluster of decisions about what goals to pursue, what actions to take, and how to use resources to achieve goals
St. John: Manufactures high quality, luxury women's ready-to-wear. Jackets are frequently priced at over $1,000.
focused differentiation
SWOT analysis
a planning exercise to identify STRENGTHS and WEAKNESS inside an organization and OPPORTUNITIES and THREATS in the external environment
divisional structure
an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific structure
A resort company caters to couples without children. Vacationers are guaranteed that they will not be annoyed by loud and disruptive children. This company is using which of the following strategies?
focused-differentiation
organizational structure
formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals
Logan says that the people he met in France and the Mediterranean need luxury electric yachts. He would most likely term his conversations with these individuals as the ________ step of the planning process.
formulating strategy
Nike invests it profits into its sportswear product development.
concentration in a single industry
factors affecting organizational structures
contingency factors 1. organizational environment 2. technology 3. strategy 4. human resources
low-cost strategy
driving the organizations total costs down below the total cost of rivals
________ is an example of a company with a Cost-Leadership strategy.
dunkin donuts
potential for entry
east entry leads to lower profits and prices
related diversification
entering a new business or industry to create a competitive advantage n one or more of an organizations existing divisions or business
unrelated diversification
entering a new industry or buying a company in a new industry that is not related in any way to an organizations current business or industry
vertical integration
expanding a company's operations either backward into an industry that produces inputs for its products or forward into an industry that uses distributes or sells its products
Charlotte complains that a lot of turnover is coming from branches that used to be First American before the merger. She claims that the employees there were not used to so much oversight. Based on this information, First American was most likely a(n) ________ organization
organic
synergy
performance gains that result when individuals and departments coordinate their actions
hypercompetition
permanent, ongoing intense competition brought about in an industry by dancing technology or changing customers taste
intermediate-term horizon
plans are 1 to 5 years
long term horizon
plans are usually 5 or more
Redken manufactures shampoo, rinse, and other hair products. It buys a company that manufactures blow dryers, curling irons, and flat irons
related diversification
Which of Porter's forces is influenced by the other four?
rivalry among competitors
focused low cost strategy
seeing. only 1 segment of the overall market
focused differentiation strategy
serving 1 segment and trying to be most differentitation
Which of the following would most highly contribute to tellers needing more layers of approval for daily transactions?
the back develops a taller organization
organizational design
the process by which managers make specific organizing choices that result in a particular kind of organizational structre
