MAN Study Guide Exam 2

Environment

there are two types of organizational environment: stable (one that remains relatively constant over time) and unstable (subject to uncertainty and rapid change).

Perception

the set of processes by which an individual becomes aware of and interprets information about the environment

organizational size

the total number of full-time or full-time equivalent employees

Realistic Job Preview (RJP)

Part of the selection process that provides an applicant with honest and complete information about a job and the work environment.

Labor Management Relations Act

Passed in 1947 to limit union power; also known as the Taft-Hartley Act

civil rights act of 1991

amended the original civil rights act, making it easier to bring discrimination lawsuits while also limiting punitive damages that can be awarded in those lawsuits

job characteristics approach

an alternative to job specialization that does take into account the work system and employee preferences

functional departmentalization

groups together those jobs involving the same or similar activities (the word function is used here to mean organizational functions such as finance and production, rather than the basic managerial functions, such as planning or controlling)

there are three major forms of interdependence

1. pooled 2. sequential 3. reciprocal

Advantages of bureaucracies

- its elements (such as reliance on rules and employment based on expertise) often improve efficiency - help minimize favoritism or bias (because everyone must follow the rules) and make procedures and practices very clear to everyone

disadvantages of bureaucracies

- results in inflexibility and rigidity. Once rules are created and put in place, making exceptions (even when warranted) or changing them (when circumstances change) is often difficult. - often results in the neglect of human and social processes within the organization

advantages of matrix structure

-added flexibility -increased productivity -higher morale -increases in creativity and innovation -personal development of team members

Reengineering Process

1. Develop goals and a strategy for reengineering effort 2. Emphasize top management's commitment to the reengineering effort 3. Create a sense of urgency among members of the organization 4. Start with a clean slate; in effect, re-create the organization 5. Optimize top-down and bottom-up perspectives

The matrix form of organization design is most often used in one of three situations

1. a matrix may work when there is strong pressure from the environment - ex) intense external competition may dictate the sort of strong marketing thrust that is best spearheaded by functional department, but the diversity of a company's products may argue for product departments 2. a matrix may be appropriate when large amounts of information need to be processed - ex) creating lateral relationships by means of a matrix is one effective way to increase the organization's capacity for processing information 3. the matrix design may work when there is pressure for shared resources. - ex) a company with ten product departments may have resources for only three marketing specialists. a matrix design would allow all the departments to share the company's scarce marketing resources

Big Five Personality Traits

1. agreeableness 2. conscientiousness 3. neuroticism 4. extraversion 5. openness

three primary advantages of product departmentalization

1. all activities associated with one product or product group can be easily integrated and coordinated 2. the speed and effectiveness of decision making are enhanced 3. the performance of individual products or product groups can be assessed more easily and objectively, thereby improving the accountability of departments for the results of their activities

Organizations can be characterized along two primary dimensions

1. differentiation: the extent to which the organization is broken down into subunits - a firm with many subunits is highly differentiated; one with few subunits has a low level of differentiation 2. integration: the degree to which the various subunits must work together in a coordinated fashion. For example, if each unit competes in a different market has its own production facilities, they may need little integration

three primary advantages of functional departmentalization

1. each department can be staffed by experts in that functional area. 2. supervision is facilitated because an individual manager needs to be familiar with only a relatively narrow set of skills 3. coordinating activities inside each department is easier

job characteristics approach suggests that jobs should be diagnosed and improved along five core dimensions

1. skill variety: the number of things a person does in a job 2. task identity: the extent to which the worker does a complete or identifiable portion of the total job 3. task significance: the perceived importance of the task 4. autonomy: the degree of control the worker has over how the work is performed 5. feedback: the extent to which the worker knows how well the job is being performed

Four basic situational factors

1. technology 2. environment 3. size 4. organizational life cycle

Five basic characteristics of bureaucracy

1. the organization should adopt a distinct division of labor, and each position should be filled by an expert 2. the organization should develop a consistent set of rules to ensure that task performance is uniform 3. the organization should establish a hierarchy of positions or offices that creates a chain of command from the top of the organization to the bottom 4. managers should conduct business in an impersonal way and maintain an appropriate social distance between themselves and their subordinates 5. employment and advancement in the organization should be based on technical expertise, and employees should be protected from arbitrary dismissal

Three basic forms of technology identified by Woodward

1. unit or small batch technology: the product is custom-made to customer specifications or produced in small quantities. organizations using this form of technology include a tailor shop specializing in custom suits, a printing shop that produces business cards and company stationery, and a photography studio 2. large-batch or mass-production technology: the product is manufactured in assembly line fashion by combining component parts into another part or finished product. Examples are automobile manufacturers like Subaru, appliance makers like Whirlpool Corporation, and electronics firms like Philips 3. Continuous- process technology: raw materials are transformed to a finished product by a series of machine or process transformations. the composition of the materials themselves is changed. Examples are petroleum refineries like ExxonMobil and Shell, and chemical refineries like Dow Chemical and Hoechst AG

the chain of command has two components

1. unity of command 2. scalar principle

National Labor Relations Act

A 1935 law, also known as the Wagner Act, that sets ip a procedure for employees to vote on whether to have a union. If they vote for a union, management is required to again collectively with the union

performance appraisal

A formal assessment of how well an employee is doing his or her job

Enterprise Resource Planning (ERP)

A large-scale information system for integrating and synchronizing the many activities in the extended enterprise - businesses work to implement technological and operations change by installing and using complex and integrated software systems like ERP - in most cases, these systems are purchased from external vendors who then tailor their products to the client's unique needs and requirements - companywide processes, such as materials management, production planning, order management, and financial reporting, can a;; be managed through ERP

organization development (OD)

A planned effort that is organization-wide, and managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge

Behaviorally Anchored Rating Scale (BARS)

A sophisticated method in which supervisors construct a rating scale where each point on the scale is associated with behavioral anchors.

force field analysis

A technique for determining which forces drive a proposed change and which forces restrain it.

Internal forces

A variety of forces inside the organization may cause change. - if top management revises the organization's strategy, organization change is likely to result. - as sociocultural values shift, for example, workers' attitudes toward their job may also shit- and workers may demand a change in working hours or working conditions

team organization

An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying hierarchy - within such an organization, people float from project to project as necessitated by their skills and the demands of those projects.

self-efficacy

An individual's belief that he or she is capable of performing a task. - people with high self-efficacy believe that they can perform well on a specific task, whereas people with low self-efficacy tend to doubt their ability to perform a specific task

Example

At Maytag, the assembly line for producing washing machine water pumps was systematically changed so that work that had originally been performed by six workers, who passed the work sequentially from one person to another, was performed by four workers, each of whom assembled a complete pump

Equal Employment Opportunity Commission

Charged with enforcing Title VII of the Civil Rights Act of 1964

validation

Determining the extent to which a selection device is really predictive of future job performance

OD Techniques

Diagnostic activities, Team Building, Survey Feedback, Education, Intergroup Activities, Third-Party Peacemaking, Process Consultation, Life and Career Planning, Coaching and Counseling, Planning and Goal Setting

national labor relations board (NLRB)

Established by the Wagner Act to enforce its provisions

cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions - the conflict individuals may experience among their own attitudes

Lewin's Change Model

Kurt Lewin, a noted organizational theorist, suggested that every changes requires three steps: 1. Unfreezing 2. Changing 3. Refreezing - the first step is unfreezing: individuals who will be affected by the impending change must be led to recognize why the change is necessary - the second step is the implementation of the change itself - the third step is refreezing, which involves reinforcing and supporting the change so that it becomes a part of the system

replacement chart

Lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement

Equal Pay Act of 1963

Requires that men and women be paid the same amount for doing the same job

emotional intelligence (EQ)

The extent to which people are self-aware, manage their emotions, motivate themselves, express empathy for others, and possess social skills

knowledge workers

Workers whose contributions to an organization are based on what they know - include computer scientists, engineers, physical scientists

diversity

a characteristic of a group or organization whose members differ from one another along one or more important dimensions, such as age, gender, ethnicity

chain of command

a clear and distinct line of authority among the positions in an organization

a third reason that people resist change is due to different perceptions

a manager may make a decision and recommend a plan for change on the basis of his or her own assessment of a situation

attribution

a mechanism through which we observe behavior and attribute a cause to it

Bureaucracy

a model of organization based on a legitimate and form system of authority

the legal environment of HRM

a number of laws regulate various aspects of employee-employer relations, especially in the areas of equal employment opportunity, compensation and benefits, labor relations, and occupational safety and health

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves

reactive change

a piecemeal response to events and circumstances as they develop - because reactive change may be hurried, the potential for poorly conceived and executed change is increased. Planned change is almost always preferable to reactive change

job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it

positive affectivity

a tendency to be relatively upbeat and optimistic, have an overall sense of well-being, see things in a positive light, and seem to be in a good mood

Myers-Briggs Type Indicator

a test according to Carl Jung's personality types in an attempt to figure out one's personality Extraversion (E) versus introversion (I). Extraverts get their energy from being around other people, whereas introverts are worn out by others and need solitude to recharge their energy. Sensing (S) versus intuition (N). The sensing type prefers concrete things, whereas intuitives prefer abstract concepts. Thinking (T) versus feeling (F). Thinking individuals base their decisions more on logic and reason, whereas feeling individuals base their decisions more on feelings and emotions. Judging (J) versus perceiving (P). People who are the judging type enjoy completion or being finished, whereas perceiving types enjoy the process and open-ended situations.

Example

a worker in a warehouse might unload trucks on Monday, carrying incoming inventory to storage on Tuesday, verify invoices on Wednesday, pull outgoing inventory from storage on Thursday, and load truck on Friday. Thus, the jobs do not change, but instead workers move from job to job. Unfortunately, for this very reason, job rotation has not been especially successful in enhancing employee motivation or satisfaction

functional design (U-form)

an arrangement based on the functional approach to departmentalization - this design ha been termed the U-form (for unitary) approach - under the U-form arrangement, the members and units in the organization are grouped into functional departments such as marketing and production - functionally based designs are most commonly used in small organizations because an individual CEO can easily oversee and coordinate the entire organization. As an organization grows, the CEO finds staying on top of all functional areas increasingly difficult

organizational commitment

an attitude that reflects an individual's identification with and attachment to an organization

Job Satisfaction or Dissatisfaction

an attitude that reflects the extent to which an individual is gratified by or fulfilled in his or her work

stress

an individual's response to a strong stimulus called a stressor

mechanistic organization

an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication - similar to the bureaucratic model, most frequently found in stable environments

virtual organization

an organization that has little or no formal structure. - such an organization typically has only a handful of permanent employees and a very small staff and administrative headquarters facility. - as the needs of the organization change, its managers bring in temporary workers, lease facilities, and outsource basic support services to meet the demands of each unique situation. As the situation changes, the temporary workforce changes I parallel with some people leaving the organization and others entering. Facilities and the services subcontracted o others change as well. Thus, the organization exists only in response to its needs. - also its online

organization change

any substantive modification to some part of the organization

job enrichment

assumes that increasing the range and variety of tasks is not sufficient by itself to improve employee motivation - to implement job enrichment, managers remove some controls from the job, delegate more authority to employees, and structure the work in complete, natural units. These changes increase subordinates' sense of responsibility

external recruiting

attracting job applicants from outside the organization

situational view of organization design

based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors

matrixvdesign

based on two overlapping bases of departmentalization. - the foundation of a matrix is a set of functional departments. A set of product groups, or temporary departments, is then superimposed across the functional departments. Employees in a matrix are simultaneously members of a functional department (such as engineering) and of a project team - at the top of the organization are functional units headed by VPs of engineering, production, finance, and marketing. Each of these managers has several subordinates. Along the side of the organization are a number of positions called project manager. Each project manager heads a project group composed of representatives or workers from the functional departments. The project groups, or teams, are assigned to designated projects or programs. - Martha Stewart also uses a matrix organization for her lifestyle business. the company was first organized broadly into media and merchandising groups, each of which has specific product and product groups. Layered on top of this structure are teams of lifestyle experts organized into groups such as cooking, crafts, and weddings. Each of these groups is targeted toward specific customer needs, but they work as necessary across all of the product groups. For example, a wedding expert might contribute to an article on wedding planning for a Martha Stewart Living magazine, contribute. story idea for a cable TV program, and supply content for a Martha Stewart website. This same individual might also help select fabrics suitable for wedding gowns for retailing

planned change

change designed and implemented in an orderly and timely fashion in anticipation of future events

process innovation

change in the way a product is conceived, manufactured, or disseminated

managerial innovations

changes in the management process by which products and services are conceived, built, and delivered to customers

Technical innovations

changes in the physical appearance or performance of a product or service of the physical processes through which a product or service is manufactured

product innovations

changes in the physical characteristics or performance of existing products or services or the creation of brand new products or services

Location Departmentalization

groups jobs on the basis of defined geographic sites or areas - the defined sites or areas may range in size from a hemisphere to only a few blocks of a large city

external forces

come from the organization's general and task environments - in the political arena, new laws, court decisions, and regulations affect organizations - the technological dimension may yield new production techniques that organizations need to explore - the economic dimension is affected by inflation, the cost of living, and money supplies - the sociocultural dimension, reflecting societal values, determines what kinds of products or services will be accepted in the market - for example steep increases in oil prices a few years ago caused consumer demand for low gas mileage big cars and trucks to plummet and demand for fuel efficient smaller cars and trucks to increase

attitudes

complexes of beliefs and feelings that people have about specific ideas, situations, or other people

Employee Information System (Skills Inventory)

computerized system containing information on each employee's education, skills, work experiences, and career aspirations

internal recruiting

considering present employees as applicants for available positions

technology

consists of the conversion processes used to transform inputs (such as materials or information) into outputs (such as products or services) - most organizations use multiple technologies, but an organization's most important one is called its core technology

unity of command

suggests that each person within an organization must have a clear reporting relationship to one and only one boss

diversity and multicultural training

designed to better enable members of an organization to function in a diverse and multicultural workplace

Innovation Process

development, application, launch, growth, maturity, decline

reciprocal interdependence

exists when activities flow both ways between units. This is the most complex form. - Mariott hotels operate with reciprocal interdependence - The reservations department, front-desk check-in, and housekeeping are all reciprocally interdependent. - reservations has to provide front-desk employees with information about how many guests to expect each day, and housekeeping needs to know which rooms require priority cleaning

Forces of change

external and internal

Title VII of the Civil Rights Act of 1964

forbids discrimination in all areas of the employment relationship - the intent of Title VII is to ensure that employment decisions are made on the basis of an individual's qualifications rather than on the basis of personal biases.

a decentralized organization is one in which decision-making power and authority are delegated as far down the chain of command as possible

in a centralized organization, decision-making power and authority are retained at higher levels in the organization

Perhaps the biggest cause of employee resistance is uncertainty

in the face of impending change, employees may become anxious and nervous. They may worry about their ability to meet new job demands, they may think that their job security is threatened, or they may simply dislike ambiguity

divisional design (M-form)

in this design, (M-form for multidivisional) a product form of organization is also used, however the divisions are related. - it is based on multiple businesses in related areas operating within a larger organizational framework. this design results from a strategy of related diversification. - Walt Disney Company (theme parks, movies, television, and merchandising units, all interrelated)

job rotation

involves systematically moving employees from one job to another

Conglomerate design (H-form)

is used by an organization made up of a set of unrelated business. -the H-form (for holding, as in holding company) approach is essentially a holding company that results from unrelated diversification - this approach is based loosely on the product form of departmentalization. Each business or set of businesses is operated by aa general manager who is responsible for its profits or losses, and each general manager functions independently of the others - In an H-form organization, a corporate staff usually evaluates the performance of each business, allocates corporate resources across companies, and shapes decisions about buying and selling businesses. The basic shortcoming of the H-form design is the complexity associated with holding a large number of diverse operations difficult. - other firms that use the H-form design include General Electric (aircraft engines, appliances, medical equipment, financial services, lighting products, plastics, and other unrelated businesses) and Tenneco (pipelines, auto parts, financial services, and other unrelated businesses)

collective bargaining

negotiation of wages and other conditions of employment by an organized body of employees.

incremental innovations

new products, services, or processes that modify existing ones. Firms that implement racial innovations fundamentally shift the nature of the competition and the interaction of firms within their environments

radical innovations

new products, services, or technologies developed by an organization that completely replace the existing products, services, or technologies in an industry

job speculation and departmentalization involves breaking down jobs into small units and then combining those jobs into departments/

once this has been accomplished, the activities of the departments must be linked- systems must be put into place to keep the activities of each department focused on the attainment of organizational goals

learning organization

one that works to facilitate the lifelong learning and personal development of all its employees while continually transforming itself to respond to changing demands and needs - the idea is that the most consistent and logical strategy for achieving continuous improvement is by constantly upgrading employee talent, skill, and knowledge - for example if each employee in an organization learns one new thing each day and can translate that knowledge into work-related practice, continuous improvement will logically flow. Indeed, organizations that wholeheartedly embrace this approach believe that only through constant learning by employees can continuous improvement really occur. - In recent years, many different organizations have implemented this approach. For example, Shell Oil purchased an executive conference center north of its headquarters in Houston. The center boasts state-of-the-art classrooms and instructional technology, lodging facilities, a restaurant, and recreational amenities such as a golf course, a swimming pool, and tennis courts. Line managers at the firm rotate through the Shell Learning Center, as the facility has been renamed, and serve as teaching faculty. Such teaching assignments last anywhere from a few days to several months.

Customer Departmentalization

organization structures its activities to respond to and interact with specific customers or customer groups - the lending activities in most banks, for example, are usually tailored to meet the needs of different kinds of customers (business, consumer, mortgage, and agricultural loans)

Product Departmentalization

organizing work and workers into separate units responsible for producing particular products or services - most larger businesses adopt this form of departmentalization for grouping activities at the business or corporate level

Overcoming Resistance to Change

participation, education and communication, facilitation, force-field analysis

Fair Labor Standards Act

passed in 1938 and amended frequently since then, sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week

Age Discrimination in Employment Act

passed in 1967, amended in 1978, and amended again in 1986, is an attempt to prevent organizations from discriminating against older workers. In its current form, it outlaws discrimination against people older than 40 years.

Americans with Disabilities Act

passed in 1990, forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees

neuroticism

people who are relatively less neurotic will be relatively poised, calm, resilient, and secure and experience less anxiety and stress. - people who are relatively more neurotic will be more excitable, insecure, reactive, and subject to extreme mood swings. They are anxious and vulnerable - people who are less neurotic might be expected to better handle job stress, pressure, and tension. their stability might make them seem more reliable

individual differences

personal attributes that vary from one person to another - physical, psychological, or emotional

authority

power that has been legitimized by the organization

organizational life cycle

progression through which organizations evolve as they grow and mature - the first stage is the birth of the organization. The second stage, youth, is characterized by growth and the expansion of organizational resources. Midlife is a period of gradual growth evolving eventually into stability. Finally, maturity is a period of stability, perhaps eventually evolving into decline.

Agreeableness

refers to a person's ability to get along with others. A high level of agreeableness in people causes them to be relatively gentle, cooperative, forgiving, understanding, and good-natured in their dealings with others

Extraversion

refers to a person's comfort level with relationships - people who are called extraverts are somewhat more sociable, talkative, assertive, and open to establishing new relationships. - introverts are somewhat less sociable, talkative, assertive, and open to establishing new relationships

openness

refers to a person's rigidity of beliefs and range of interests - people with higher levels of openness are willing to listen to new ideas and to change their own ideas, beliefs, and attitudes as a result of new information - people with lower levels of openness tend to be less receptive to new ideas and be less willing to change their minds

development

refers to teaching managers and professionals the skills needed for both present and future jobs

Conscientiousness

refers to the person's ability to manage multiple tasks and to consistently meet deadlines. People who have higher levels of conscientiousness are likely to be more organized, systematic, careful, thorough, responsible, and self-disciplined as they work to accomplish tasks and meet goals - others however tend to take on more tasks than they can manage, and as a result, are somewhat more disorganized, careless, and irresponsible, as well as less thorough and self disciplined

human capital

reflects the organization's investment in attracting, retaining, and motivating an effective workforce

pooled interdependence

represents the lowest level of interdependence. Units with pooled interdependence operate with little interaction- the output of the units is pooled at the organizational level - old navy clothing stores operate with pooled interdependence - each store is considered a "department" by the parent corporation. Each has its own operating budget, staff, and so forth. The stores are interdependent to the extent that the final success or failure of one store affects the others, but they do not generally interact on a day-to-day basis

Family and Medical Leave Act of 1993

requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies

Human Resource Management (HRM)

set of organizational activities directed at attracting, developing, and maintaining an effective workforce

Intrapreneur

similar to entrepreneurs except that they develop a new business in the context of a large organization

Scalar principle

suggests that there must be a clear and unbroken line of authority that extends from the lowest to the highest position I the organization. popular saying "the buck stops here" is derived from this idea- someone in the organization must ultimately be responsible for every decision

job analysis

systematic analysis of jobs within an organization - madde up of two parts 1. the job description lists the duties of a job, the job's working conditions, and the tools, materials, and equipment used to perform it 2. the job specification lists the skills, abilities, and other credentials needed to do the job

training

teaching operational or technical employees how to do the job for which they were hired

negative affectivity

tendency to experience negative emotions and moods, feel distressed, and be critical of oneself and others

Machiavellianism

the degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means - Machiavellian individuals tend to be rational and nonemotional, may be willing to lie to attain their personal goals, may put little weight on loyalty and friendship, and may enjoy manipulating others' behavior - less machiavellian individuals are more emotional, are less willing to lie to succeed, value loyalty and friendship highly, and get little personal pleasure from manipulating others

risk propensity

the degree to which an individual is willing to take chances and make risky decisions

Job Specialization

the degree to which the overall task of the organization is broken down and divided into smaller component parts

self esteem

the extent to which a person believes that he or she is a worthwhile and deserving individual

Authoritarianism

the extent to which an individual believes that power and status differences are appropriate within hierarchical social systems like organizations - a person who is highly authoritarian may accept directives or orders from someone with more authority purely because the other person is "the boss" - a person who is not highly authoritarian may still carry out appropriate and reasonable directives from the boss, he or she is also more likely to question things, excess disagreement with the boss, he or sh his more likely to question things, express disagreement with the boss, and even refuse to carry out orders if they are for some reason objectionable

locus of control

the extent to which people believe that their behavior has a real effect on what happens to them - people who believe that individuals are in control of their lives are said to have an internal locus of control - people who think that forces beyond their control dictate what happens to them are said to have an external locus of control

person-job fit

the extent to which the contributions made by the individual match the inducements offered by the organization - in theory, each employee has a specific set of needs that she wants to be fulfilled and a set of job related behaviors and abilities to contribute - thus, if the organization can take perfect advantage of those behaviors and abilities and exactly fulfill his needs, it will achieved a perfect person-job fit

compensation

the financial remuneration given by the organization to its employees in exchange for their work - wages are the hourly compensation paid operating employees - salary refers to compensation paid for total contributions, as opposed to pay based on hours worked - incentives represent special compensation opportunities that are directly tied to performance

innovation

the managed effort of an organization to develop new products or services or new uses for existing products or services

span of management (span of control)

the number of employees reporting to a supervisor - for years, managers and researchers sought to determine the optimal span of management - today we recognize that the span of management is a crucial factor in structuring organizations but that there are no universal, cut-and-dried prescriptions for an ideal or optimal span

basic advantage of customer department

the organization is able to use skilled specialists to deal with unique customers or customer groups.

psychological contract

the overall set of expectations held by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return

delegation

the process by which managers assign a portion of their total workload to others

recruiting

the process of attracting qualified persons to apply for jobs that are open

stereotyping

the process of categorizing or labeling people on the basis of a single attribute. Common attributes from which people often stereotype are race, gender, and age

labor relations

the process of dealing with employees who are represented by a union

departmentalization

the process of grouping jobs according to some logical arrangement

coordination

the process of linking the activities of the various departments of the organization

selective perception

the process of screening out information that we are uncomfortable with or that contradicts our beliefs

decentralization

the process of systematically delegating power and authority throughout the organization to middle-and lower-level managers. it is important to remember that decentralization is actually one end of a continuum anchored at the other end by centralization

centralization

the process of systematically retaining power and authority in the hands of higher level managers

Employee Retirement Income Security Act of 1974 (ERISA)

the purpose of this act is to help ensure the financial security of pension funds by regulating how they can be invested

business process change, or reengineering

the radical redesign of all aspects of a business to achieve major gains in cost, service, or time - ERP is a common platform for changing business processes

the primary reason for coordination is that departments and work groups are interdependent

they depend on one another for information and resources to perform their respective activities - the greater the interdependence between departments, the more coordination the organization requires if the departments are able to perform effectively

benefits

things of value other than direct compensation that the organization provides to its workers. - sick leave, vacation, holidays, unemployment compensation, insurance, social security, workers' compensation

Resistance to change

uncertainty, threatened self-interests, different perceptions, feelings of loss

organic organizations

very flexible and informal model organization design, most often found in unstable and unpredictable environments - Verizon (facing rapid technological change) and Apple (facing both technological change and constant change in consumer tastes) both use organic designs

job enlargement

was developed to increase the total number of tasks workers perform. As a result, all workers perform a wide variety of tasks, which presumably reduces the level of job dissatisfaction

contributions

what the individual provides to the organization effort, ability, loyalty skills, time, competencies - these contributions presumably satisfy various needs and requirements of the organization

for example

when Walt Disney started his company, he did everything himself- wrote cartoons, dew them, added the character voices, and then marketed them to theaters. As the business grew, though, he eventually hired others to perform many of these same functions

adverse impact

when minority group members pass a selection standard at a rate less than 80% of the rate of the majority group

sequential interdependence

when the output of one unit becomes the input for another in a sequential fashion. - this creates a modern level of interdependence - Nissan operates with sequential interdependence - One plant assembles engines and then ships them to a final assembly site at another plant, where the cars are completed. The plants are interdependent in that the final assembly plant must have the engines from engine assembly before it can perform its primary function of producing finished automobiles