Management 3100 Test 3

Decision

A choice made from among available alternatives

Four Stages of Life Cycle

Birth Stage Youth Stage Midlife Stage Maturity Stage

Accountability

Managers must report and justify work results to the managers above them

Authority

Refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources

For Profit Organization

These are formed to make money, or profit, by offering products or services

Non Profit Organization

These are formed to offer services to some clients, not to make a profit

Mutual Benefit Organization

These are voluntary collectives whose purpose is to advance members' interests

Organizational Chart

a box-and-lines illustration showing the formal lines of authority and the organizations official positions or work specializations

Matrix Structure

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

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

Predictive Modeling

data-mining technique used to predict future behavior and anticipate consequences of change.

NonRational Model of Decision Making

explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.

Simple Structure

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

Hierarchy of Authority

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

Organizational Structure

is a formal system of task and reporting relationships that coordinates and motivate an organization's members so that they can work together to achieve the organization's goals

Intuition Model

is making a choice without the use of conscious thought or logical inference

Responsibility

is the obligation you have to perform the tasks assigned to you

Delegation

is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy

Satisficing Model

is when managers seek alternatives until they find one that is satisfactory, not optimal

Incremental Model

managers take small ,short-term steps to alleviate a problem

GroupThink

occurs when members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation.

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

Observable Artifacts

physical manifestations such as manner of dress, awards, myths, and stories about the company, rituals, and ceremonies, and decorations, as well as visible behavior exhibited by mangers and employees

Span of Control

refers to the number of people reporting directly to a given manager

Organization Culture

sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members

Bounded Rationality

suggests that the ability of decision makers to be rational is limited by numerous constraints • Such as complexity, time, and money.

Division of Labor

the arrangement of having discrete parts of a task done by different people

Coordinated Effort

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

Decision Making

the process of identifying and choosing alternative courses of action

Analytics

the term used for sophistical forms of business data analysis

Risk Propensity

the willingness to gamble or to undertake risk for the possibility of gaining an increased payoff.

Common Purpose

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

Enacted Values

which represent the values and norms actually exhibited in the organization

Four Steps in Rational Decision Making

• Stage 1 o Identify the problem or opportunity • Stage 2 o Think up alternative solutions • Stage 3 o Evaluate alternatives & select a solution • Stage 4 o Implement & evaluate the solution chosen.