Management & Organization Final Review

Liz is an executive assistant. She recently changed executives. The new executive keeps telling her to stop checking on him when he travels. If there is a problem he will call her, otherwise no news is good news. The new executive is trying to decrease

role ambiguity.

Ch. 15 Things to Know

Incentive pay system suggests that managers knew more than workers, economic gain was the primary motivator, the work is inherently unpleasant and the money is more important than the job. The human relations approach emphasizes the role of social processes in the workplace. The basic assumptions are that employees want to feel useful and important, that employees have strong social needs, and that these needs are more important than money in motivating them. Maslow's hierarchy of needs states that people are motivated to satisfy five groups of needs in order. You should probably know this for the final, this is something still discussed in the workplace as being a guiding light for employee practices. - Physiological - food and air. - Security - housing or a job. - Belongingness - love, affection, and acceptance by one's peers. - Esteem - self-image and self-respect and recognition and respect from others. - Self-actualization - continued growth and individual development. Another popular content perspective is the two-factor theory of motivation which suggests that people's satisfaction and dissatisfaction are influenced by two independent sets of factors - motivation factors and hygiene factors. Hygiene doesn't mean personal hygiene, it means things like salary, security, workplace conditions. Individual human needs play a role in motivation as well. The three most important individual needs are achievement, affiliation, and power. Expectancy theory rests on four basic assumptions. 1. Behavior is determined by a combination of forces in the individual and in the environment. 2. People make decisions about their own behavior in organizations. 3. Different people have different types of needs. 4. People make choices from among alternative plans of behavior, based on their perceptions of the extent to which a given behavior will lead to desired outcomes. To determine equity, a person compares his or her ratio of outcomes (pay, recognition) to inputs (time, experience) to someone else's ratio. Goal-setting theory of motivation assumes that behavior is a result of conscious goals and intentions. By setting goals for people, a manager should be able to influence their behavior. There are four basic kinds of reinforcement that can result from behavior - positive reinforcement, avoidance, punishment, and extinction. Empowerment is the process of enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority. Participation is the process of giving employees a voice in making decisions about their own work. Work teams are one method used to empower workers. Another method is to change the team's overall method of organizing, such as eliminating layers from its hierarchy and becoming more decentralized. A compressed work schedule is working a full 40-hour week in fewer than the traditional five days. Flexible work schedules, sometimes called flextime, is a work schedule in which employees have some control over the hours they choose to work. For example, employees might report to work early or late, take a short or long lunch, and leave early or late. Telecommuting (this seems like a really old school term to me, I feel like it's more called virtual working or simply "work from home" these days) allows employees to spend part of their time working offsite, usually at home. Merit pay refers to pay awarded to employees on the basis of the relative value of their contributions to the organization. Incentive pay systems are among the oldest forms of performance-based rewards. A major advantage of incentives relative to merit systems is that incentives are typically a one-shot reward and do not accumulate as part of the individual's base salary. Also, because the plans focus on one-time events, it is much easier to change the focus of the incentive plan.

Toyota added a plug in version of the Prius. This is an example of

organization change.

Ch. 18 Things to Know

A group consists of two or more people who interact regularly to accomplish a common purpose or goal. A team is a group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities. Types of Groups and Teams - functional, interest group, task group. If teams are cohesive and have high performance standards, and if they are managed effectively, they can make great contributions to the organization. Poorly-managed teams may contribute little or detract from organization performance. Team development (you'll hear this actually be discussed in industry some. It will show up on the final). - Forming, storming, norming, and performing. - During the forming stage, the group members get acquainted and begin to test the limits of acceptable behavior. - Storming begins with a lack of unity and uneven interaction patterns; there may be some conflict as well. - During norming, the group members determine their role in the group as well as how the group should interact and begin working toward goal accomplishment. - Group members enact their roles and group efforts are directed toward goal attainment during the performing stage Role ambiguity arises when the sent role is unclear and the individual does not know what is expected of him or her. Role ambiguity can stem from poor job descriptions, vague instructions from a supervisor, or unclear cues from coworkers. Norms are standards of behavior that the group accepts and expects of its members. Norms define the boundaries between acceptable and unacceptable behavior. Norms do not always generalize or transfer from one group to the next. What is accepted in one group may be frowned on in another. Cohesiveness is the extent to which members are loyal and committed to the group; the degree of mutual attractiveness within the group. In a highly cohesive team, members work well together, support and trust one another, and are generally effective at achieving their goals. A team that lacks cohesiveness is not very coordinated, its members do not necessarily support one another, and it may have a difficult time achieving its goals. 1. Five factors can increase cohesiveness in a group or team. - One of the strongest is intergroup competition, when two or more groups are in direct competition. - Personal attraction to the group increases cohesiveness. - Favorable evaluation of the entire group by outsiders increases cohesiveness. - If all group members agree on their goals, cohesiveness is likely to increase. - The more frequently members of the group interact with one another, the more likely the group is to become cohesive. Conflict is a disagreement between two or more individuals or groups. 1. The disagreement may be superficial or very strong. It can be short-lived or exist for months or even years. It may be work-related or personal. 2. Most people assume conflict should be avoided but certain kinds of conflict may be beneficial. As long as conflict is handled in a cordial and constructive manner, it is serving a useful purpose in the organization. If there is no conflict, members may become complacent and apathetic causing performance and innovation to suffer. A moderate level of conflict can spark motivation, creativity, innovation, initiative, and raise performance. Too much conflict can produce hostility and lack of cooperation, lowering performance. Negotiation is the process in which two or more parties (people or groups) reach agreement on an issue even though they have different preferences regarding that issue. Four primary approaches to negotiation have dominated the research: individual differences, situational characteristics, game theory, and cognitive approaches. - Individual differences assumed the key to successful negotiation was selecting the right negotiator who had the appropriate demographic characteristics or personality. - Situational characteristics are the context within which negotiation takes place. S - Game theory uses mathematical models to predict the outcome of negotiation situations. This requires every alternative and outcome be analyzed with probabilities and numerical outcomes reflecting the preferences of each outcome. - The cognitive approach recognizes that negotiators often depart from perfect rationality and tries to predict how and when negotiators will make these departures.

Ch. 14 Things to Know

A psychological contract is 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. It is neither written on paper nor are the terms negotiated. There are several possible reasons for an imperfect person-job fit. 1. Organizational selection procedures are imperfect. 2. Both people and organizations change. 3. Each individual is unique. Individual differences may contribute to or detract from the job depending on the circumstances. Attempting to consider both individual differences and contributions in relation to inducements and contexts is a major challenge for organizations. The "Big Five" Personality Traits (you can almost guarantee a question or two will come from this on the final exam).Contemporary researchers have identified five fundamental personality traits that are especially relevant to organizations. Commonly called the "Big Five" personality traits, it is a popular personality framework based on five key traits. 1. Agreeableness refers to a person's ability to get along with others. 2. Conscientiousness is the number of things a person can effectively work on at one time. 3. Negative emotionality refers to which a person is poised, calm, resilient, and secure. 4. Extraversion is a person's comfort level with relationships. 5. Openness refers to a person's rigidity of beliefs and range of interests. The Myers-Briggs Framework... definitely something that is used in industry and will show up on the final exam.Based on the work of Carl Jung, this framework assesses personality along four key dimensions. 1. Extroversion (E) versus Introversion (I). Extroverts get their energy from being around other people, while introverts are worn out by others and need solitude to recharge their energy. 2. Sensing (S) versus Intuition (N). The Sensing type prefers concrete things, while intuitives prefer abstract concepts. 3. Thinking (T) versus Feeling (F). Thinking individuals bases their decisions more on logic and reason, while feeling individuals base their decisions more on feelings and emotions. 4. Judging (J) versus Perceiving (P). People who are the judging type enjoys completion or being finished, while perceiving types enjoy the process and open-ended situations. Yet another way to think about personality at work is the concept of emotional intelligence or EQ. This is the extent to which people are self-aware, manage their emotions, motivate themselves, express empathy for others, and possess social skills.There are five dimensions of EQ. 1. Self-awareness refers to a person's capacity for being aware of how they are feeling. 2. Managing emotions refers to a person's capacities to balance anxiety, fear, and anger so they do not interfere with getting things accomplished. 3. Motivating oneself refers to a person's ability to remain optimistic in the face of failure. 4. Empathy refers to a person's ability to understand how others are feeling. 5. Social skill refers to a person's ability to get along with others and establish positive relationships. The conflict that individuals may experience among their own attitudes is called cognitive dissonance. Some people seem to have a higher degree of positive affectivity. They have 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. Others, those with negative affectivity, have a tendency to be generally downbeat and pessimistic, see things in a negative way, and seem to be in a bad mood. Stress is an individual's response to a strong stimulus, called a stressor. The creative process often follows four distinct stages. - Preparation occurs when an individual is getting ready to be creative and can include education and experiences. - Incubation is a period of low intensity during which the individual takes a break from the problem, allowing it to mature and develop. - Insight is the spontaneous breakthrough that allows a new understanding of some problem or situation. It may emerge gradually or suddenly and can be triggered by an external or internal event. - Verification follows breakthrough and is used to determining the validity of the insight. Organizations can attempt to promote creativity by making it a part of the firm's culture and by integrating creative activities with the reward system. Another important type of work-related behavior is that which results in withdrawal. This is essentially when people disengage, become disgruntled, or leave the job altogether. Abseentism is often a common withdrawal behavior Organizational citizenship refers to the behavior of individuals that makes a positive overall contribution to the organization. The determinant of organization citizenship behaviors is likely to be a complex mosaic of individual, social, and organizational variables.

A moderate level of conflict in an organization can lead to all EXCEPT which of the following?

Apathy

Which of the following factors would NOT satisfy Maslow's physiological needs?

Clothing

Ch. 19 Things to Know

Control is the regulation of organizational activities in such a way as to facilitate goal attainment. A good analogy to think about Control is that of a space flight to Mars. After a rocket is launched, NASA scientists continually monitor its progress toward its target or goal. During the flight, they may have to make periodic corrections to nudge it back on course. Some corrections may be large, others small; some will be in one direction, others in a different direction, and there will be some periods when no corrections are needed. This process of monitoring progress toward the goal and then making required corrections is control. They'll then take everything they learned from the process to apply it to their next flight to Mars. To some people, the very idea of control conjures up images of Big Brother and a loss of personal freedom. The manager's job is to maintain adequate control without infringing on individual rights. Figure 19.1 and its depiction of the four basic purposes of control. A properly designed control system can help managers anticipate, monitor, and respond to changing circumstances. In the middle: "Control helps the organization" On top: "Adapt to environmental change" & "Limit the accumulation of error" On bottom: "Cope with organizational complexity" & "Minimize costs" As organizations expand and create a variety of products, organizational complexity increases. Control cannot be maintained without a well-planned and well-developed control system. Effective control can help to minimize costs and boost output. Effective control systems can eliminate waste, lower labor costs, and improve output per unit of input. Most organizations define areas of control in terms of the four basic types of resources they use: physical, human, information, and financial. - Control of physical resources includes inventory management, quality control, and equipment control. - Control of human resources includes selection and placement, training and development, performance appraisal, and compensation. Organizations attempt to control behavior toward higher performance and away from unethical behaviors. - Control of information includes sales and marketing forecasting, environmental analysis, public relations, production scheduling and economic forecasting. - Financial control involves managing the organization's debt, ensuring the firm has enough cash on hand, and that receivables are collected and bills are paid on time. The control of financial resources is the most important area, because it relates to the control of all the other resources. a) Operations control focuses on the processes the organization uses to transform resources into products or services. Quality control is one type of operations control. b) Financial control is concerned with the organization's financial resources. c) Structural control is concerned with how the elements of the organization's structure are serving their intended purpose. d) Strategic control focuses on how effectively the organization's strategies are succeeding in helping the organization meet its goals. Responsibility for control resides with all managers. Most large organizations have one or more specialized managerial positions called controllers. A controller is a position in organizations that helps line managers with their control activities. More and more often, control resides with employees as well. As discussed in Chapter 18 and other spots in this book, many organizations today are relying on work teams. To make work teams most effective, the organization must empower them to make decisions and do their own work. In addition, it must allow them to handle much of their own control functions as well. Steps in the Control Process Regardless of the type or levels of control systems, there are four fundamental steps in any control process. 1. Establishing standards. A control standard is a target against which subsequent performance is compared. Standards should be derived from the organization's goals, expressed in measurable terms, and focused on important and relevant performance indicators 2. Measuring performance. Performance measurement is a constant, ongoing activity for most organizations. For control to be effective, performance must be valid.**grades you give papers/tests are a measure of performance. 3. Compare performance against standards. Comparing performance against standards will result in one of three outcomes: a performance that is higher, lower, or even with the standards. The timetable for comparing performance to standards depends on a variety of factors, including the importance and complexity of what is controlled. 4. Consider corrective action. Once the comparison between performance and standards has been made, one of three actions is appropriate: (1) maintain the status quo (do nothing), (2) correct the deviation, or (3) change the standard. Operations control focuses on the processes used by the organization to transform inputs into finished products or services.The three forms of operations control are preliminary, screening, and postaction and occur at different points in relation to the transformation process. Most organizations employ a wide variety of techniques to facilitate operations control. For example, even though Ford forces its suppliers to improve the quality of parts they ship to the automaker, Ford still pays attention to screening and postaction control. Financial control is concerned with the organization's financial resources.This means control of financial resources as they flow into the organization (revenues, shareholder investments), are held by the organization (working capital, retained earnings), and flow out of the organization (pay, expenses). Budgets serve four primary purposes. - They help managers coordinate resources and projects. - They help define the established standards for control. - They provide guidelines about the organization's resources and expectations. - Budgets allow the organization to evaluate manager performance and organizational units. Two major forms of structural control, bureaucratic control and decentralized control, represent opposite ends of a continuum. A few organizations fall precisely at one extreme or the other, most tend toward one end but may have specific characteristics of either. Bureaucratic control is an approach to organization design characterized by formal and mechanistic structural arrangements. It follows the bureaucratic model with the goal of employee compliance.These organizations rely on strict rules and a rigid hierarchy, insist that employees meet minimally acceptable levels of performance, and often have a tall structure. They focus their rewards on individual performance and allow only limited and formal employee participation.Most colleges and universities also rely heavily on bureaucratic control. Decentralized control is an approach to organizational control based on informal and organic structural arrangements.Its goal is employee commitment to the organization. It relies heavily on group norms and a strong corporate culture, and gives employees the responsibility for controlling themselves. Employees are encouraged to perform beyond minimally acceptable levels. Organizations using this approach are usually relatively flat. They direct rewards at group performance and favor widespread employee participation. Microsoft uses decentralized control. Members generally support the organization and work well together. Consequently, they need fewer rules and regulations. Strategic control is aimed at ensuring that the organization is maintaining an effective alignment with its environment and moving toward achieving its strategic goals.To ensure strategic control, an organization must focus on how well its structure, leadership, technology, human resources, and information and operational control systems are working to enact the strategic path selected. Because of both their relatively large size and the increased complexity associated with international business, global organizations must take an especially pronounced strategic view of their control systems.One very basic question is whether to manage control from a centralized or decentralized perspective. Under a centralized system, each organizational unit around the world is responsible for frequently reporting the results of its performance to headquarters. Organizations that use a decentralized control system require foreign branches to report less frequently and in less detail. To use the control process, managers must recognize the characteristics of effective control and understand how to identify and overcome occasional resistance to control. Control systems tend to be most effective when they are integrated with planning and when they are flexible, accurate, timely, and objective.The more explicit and precise the linkages between planning and control are, the more effective the control system will be. To achieve this, one must account for the control system as the plans are developed. Many employees resist control, especially if they feel overcontrolled, if they think control is inappropriately focused or rewards inefficiency, or if they are uncomfortable with accountability. Overcontrol occurs when an organization attempts to control too many things. This becomes problematic when the control directly affects employee behavior. Troubles arise when employees perceive attempts to limit their behavior as being unreasonable. The best way to overcome resistance to control is to create effective control to begin with. If control systems are properly integrated with planning and if controls are flexible, accurate, timely, and objective, the organization will be less likely to overcontrol, to focus on inappropriate standards, or to reward inefficiency.

Which of the following is NOT a type of power?

Empathic

Ch. 16 Things to Know

Leadership as a process is the use of noncoercive influence to shape the group's or organization's goals, motivate behavior toward the achievement of those goals, and help define group and organization culture. Leadership and management are related but not the same. A person can be a manager, a leader, both, or neither. For example, when executing plans managers focuses on monitoring results, comparing them with goals, and correcting deviations. In contrast, the leadership side of the same activity focuses on energizing people to overcome bureaucratic hurdles to help reach goals. Power is the ability to affect the behavior of others. One can have power without using it. In organizational settings, there are usually five kinds of power: legitimate, reward, coercive, referent, and expert power. The path-goal theory of leadership suggests that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to those rewards. Path-goal theory assumes leaders can change their style or behavior to meet the demands of a particular situation and depends on two situational factors: the personal characteristics of subordinates and the environmental characteristics of the workplace. Transformational leadership is a leadership that goes beyond ordinary expectations by transmitting a sense of mission, stimulating learning experiences, and inspiring new ways of thinking. Because of rapid change and turbulent environments, transformational leaders are seen as vital to the success of the ness. Probably the most common view of leadership today. The idea is that transformational leadership results in a reciprocal relationship between leaders and subordinates, thus resulting in a more robust sense of purpose for all involved. Strategic leadership is the capability to understand the complexities of both the organization and its environment and to lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment. Strategic leadership is effective when leaders understand the capabilities of their firm, the firm's environment, how the firm is currently aligned with its environment, and the direction of important trends. Political behavior consists of activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one's preferred outcomes. Political behavior may be directed upward, downward, or laterally. In most organizations, political behavior is perceived to be widespread, and top levels are thought to be more political than are lower levels. Common Political Behaviors - Inducement occurs when something is given in return for support. - Persuasion relies on manipulation of logic and emotions. - When a manager does a favor in hopes of receiving one in return, that is called creating an obligation. - Coercion, or the use of force, may be effective in the short-term, but it is often ineffective in the long-term. There are some guidelines for effective management of political behavior. - Be aware that others may assume your motives are political even if they are not. - Give subordinates autonomy, responsibility, challenges, and feedback to reduce political behavior. - Avoid using power if possible. - Get disagreements out in the open, reducing the effectiveness of politics. - Avoid covert activities to avoid even the perception of political behavior. - Keep performance evaluations transparent, tie rewards directly to performance, and minimize competition among mangers for resources. These guidelines are much easier to list than they are to implement. Managers must recognize that political behavior exists and they must manage it in such as way that it will seldom inflict serious damage on the organization.

Sexual harassment policies and laws spell out the consequences for violation of the rules. What kind of reinforcement procedure is this?

avoidance

According to Woodward's findings relative to technology and organization design, the most successful mass-production firms adopt a(n)

bureaucratic structure.

Facebook creates social networks. It uses ____ technology.

continuous-process

The first step in the reengineering process involves

developing goals and a strategy for reengineering.

You are a shift supervisor. This means you are a member of a(n) ____ group.

functional

Speedo operates in a fairly stable environment, Burns and Stalker would agree that the ____ design would be best for Speedo.

mechanistic

At work there is a conference room nicknamed "the meat locker." If Royce has a meeting in there, he is too cold to concentrate. This is an example of ____ demands that can lead to stress.

physical

When the number of H1N1 flu cases in an elementary school reached 10%, classes were postponed. The school could not meet the ____ needs of students and faculty until the flu was gone.

physiological

If, as a supervisor, you have no control over the pay raises, promotions, and rewards, what method of reinforcement are you able to use?

positive reinforcement extinction avoidance punishment all of these choices

Leo showed up late for a meeting. His boss said "10 o'clock means 10 o'clock." She was using

punishment

Shevonda has a great sense of humor. She does not use sarcasm. People love to listen to her tell great stories with dramatic expressions. She has ____ power.

referent

Siemens reorganized its structure. Planning the change were members from HR, strategic planning, communications, operations and the new cluster president. After the change was implemented, the group stopped meeting. This was a(n)

task group

During the Lewin model's second step in the change process

the change is implemented.

Stressors are defined as

the stimuli that cause stress.

The CEO retired abruptly. Her replacement will not be announced until a thorough search is completed. In the meantime, managers are playing it safe. As a result of ____, the managers are resistant to change.

uncertainty

Some fast-food restaurants introduced healthier food options in response to lawsuits. This reactor strategy indicates that those fast-food restaurants

were likely to have either a System 2 or a System 3 design.

Norms are defined as

what is accepted and expected of members.

Which of the following personality traits is NOT one of the "Big Five"?

Locus of control

Ch. 12 Things to Know

Organization change is any substantive modification to some part of the organization. External forces for change derive from the organization's general and task environments. The general environment includes economic, technological, sociocultural, political-legal, and international dimensions. Because of its proximity to the organization, the task environment is an even more powerful force for change. The task environment includes competitors, customers, suppliers, strategic partners, and regulators. Internal forces, such as organization strategy, can cause an organization to change. Other internal forces for change may be reflections of external forces, such as a sociocultural values shift. It may be rooted in the external environment but the organization must respond directly to internal pressures. Planned change is a change that is designed and implemented in an orderly and timely fashion in anticipation of future events. Reactive change is a piecemeal response to circumstances as they develop. Organization change is a complex phenomenon. Any change must be systematic and logical to have a realistic opportunity to succeed. Managers need to understand the steps in the change process. Countering employee resistance to change is the second part of managing change. The Lewin model (Kurt Lewin) suggests every change requires three steps: The first step is unfreezing the people affected by the impending change must be led to recognize why the change is necessary. Next, comes the implementation of the change itself. Finally, refreezing the people involved by reinforcing and supporting the change until it becomes part of the system. The comprehensive approach to change takes a systems view and delineates a series of specific steps that often lead to successful change. Step 1: recognition of the need for change. This could be reactive or planned change. Managers may recognize high turnover rates. Step 2: establishment of goals for the change. Management may set goals to decrease turnover rates. Step 3: diagnosis of relevant variables. Turnover may a result of low pay, poor working conditions, or poor supervisors. Identifying correct changes requires understanding the problem. Step 4: selection of appropriate change techniques. Of turnover is caused by low pay, a new reward system may be needed. Step 5: planning for implementation of the change. Issues to consider include the costs of the change, its effects on other areas, and the degree of employee participation required. Step 6: actual implementation. Step 7: evaluation and follow-up. For a variety of reasons, some people often resist change. Uncertainty may be the biggest cause of employee resistance to change. Threatened self-interests or the loss of power by some managers within the organization also causes resistance to change Participation is often the most effective technique for overcoming resistance to change. Change can happen within any part of an organization. In general, however, most change interventions involve organization structure and design, technology and operation, or people. In addition, many organizations have gone through business process change programs. Organization change might focus on any of the basic components of organization structure or on the organization's overall design. A change in technology, or how the inputs become outputs, will usually force other changes in the organization. Frequently it may mean the introduction of new machines or a change in the way in which the product is made. A very complex type of technology change is the adoption of enterprise resource planning, or ERP, a large-scale information system for integrating and synchronizing the many activities in the extended enterprise. Introduction of an ERP system will cause many radical changes throughout the organization. Organization development (OD) is a planned, organization-wide effort, managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge. The practice of OD is based on the assumptions that employees have the desire to grow and develop, they have a strong need to be accepted by others, and the design of the organization will influence the way employees behave. Diagnostic activities are used to analyze the current condition of an organization. These techniques can include questionnaires, surveys, interviews, and meetings. Team building activities enhance the effectiveness and satisfaction of individuals and promote overall group effectiveness. Innovation is the managed effort of an organization to develop new products or services or new uses for existing products or services. Without innovation, organizations fall behind competitors. The organizational innovation process consists of developing, applying, launching, growing, and managing the maturity and decline of creative ideas. Innovation development involves the evaluation, modification, and improvement of creative ideas. If a firm lacks resources, for example if it has insufficient money to fund a program of innovation, it may lag behind in innovation. If organizations are not skilled at recognizing and evaluating opportunities, they may fail to invest in an innovation that would have been successful. To increase innovation, it is important to provide financial and nonfinancial rewards to people and groups who are innovative and creative. It is also important to avoid punishing workers for innovation, even if the innovation is ultimately a failure.

Ch. 11 Things to Know

Organization design is the overall set of structural elements and the relationships among those elements used to manage the total organization. A bureaucracy is a model of organization based on a legitimate and formal system of authority. Weber felt bureaucracy was "the one best way" to do things and delineated five basic characteristics of an ideal bureaucracy. Strengths of the bureaucratic model: 1. Several elements often improve efficiency. 2. Helps prevent favoritism. 3. Makes procedures and practices clear to everyone. However, there are disadvantages: 1. Results in inflexibility and rigidity. 2. Making exceptions or changing rules is often difficult. 3. Often results in neglect of human and social processes within the organization. Behavioral Model The behavioral model is a model of organization design consistent with the human relations movement, stressing attention to developing workgroups and concern with interpersonal processes. The behavioral model is based on eight key processes: leadership, motivation, communication, interactions, decision making, goal setting, control, and performance goals. The situational view of organization design is based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors. Four basic situational factors - technology, environment, size, and organizational life cycle are discussed here. Organizational size is the total number of full-time or full-time-equivalent employees. Basic generalizations include large organizations are characterized by higher levels of job specialization, more standard operating procedures, more rules, more regulations, and a greater degree of decentralization. Corporate-Level Strategy It is important for an organization to match its corporate-level strategy to its design. A single-product strategy likely relies on functional departmentalization and can use a mechanistic design. Related diversification requires a high level of coordination and unrelated diversification will likely rely on a hierarchical reporting system. Business-Level Strategy The type of business-level strategy an organization selects directly influences the design of the organization. A defender strategy is likely tall and centralized, have a narrow span of management, and a functional approach to departmentalization, a bureaucratic approach to organization design. A prospecting organization is more likely to be flatter and decentralized with wider spans of management, flexible and adaptable. An analyzer will be between these two extremes. For basic forms or organizational design, most designs fall into one of four basic categories, others are hybrids based on two or more of the basic forms. The functional design is an arrangement based on the functional approach to departmentalization. The conglomerate is used by an organization made up of a set of unrelated businesses. The divisional design, or M form (for multidivisional) is based on multiple businesses in related areas operating within a larger organizational framework. The matrix design is based on two overlapping bases of departmentalization. There is a base of functional departments with a set of product groups superimposed across them. Figure 11.4 shows a basic matrix design. At the top are functional units headed by vice presidents, each with several subordinates. Of new emerging types of organizations, virtual would be important to know...A virtual organization is one with little or no formal structure. Typically there is a handful of permanent employees and a small staff and headquarters facility.

Ch. 8 Things to Know

The decision-making process includes recognizing and defining the nature of a decision situation, identifying alternatives, choosing the "best" alternative, and putting it into practice. a) "Best" implies that decisions should be effective in helping the organization achieve its goals. b) Decisions can be made in response to either problems or opportunities. c) Outcomes of decisions may occur long after the decision is made. A programmed decision is one that is fairly structured or recurs with some frequency or both. A nonprogrammed decision is relatively unstructured and occurs much less often. Understand Table 8.1 and how it is applied (Steps in Rational Decision-Making). This will show-up on the exam and it's important to understand how to apply it during the Case Study assignment. a) The first step in rational decision making is recognizing that a decision is necessary. To do this, the problem must be defined clearly and fully. b) The second step is to identify alternative courses of action that might be effective. c) Next, managers should evaluate the alternatives generated according to its (in order) feasibility, satisfactoriness, and affordable consequences. d) The next step, the most critical step, is the selection of the "best" alternative. Each alternative should be evaluated, in order, in terms of its feasibility, its satisfactoriness, and its consequences. e) Implementation occurs when managers put the chosen alternative into practice. f) Finally, managers must follow up and evaluate the results to ensure that the alternative chosen has served its original purpose. If it does not, corrective measures must be taken. The administrative model argues that: decision-makers use incomplete and imperfect information; are constrained by bounded rationality; and tend to "satisfice" when making decisions. a) Bounded rationality suggests that decision-makers are limited by their values and unconscious reflexes, skills, and habits, and by incomplete information and knowledge. b) Satisficing suggests that rather than conduct an exhaustive search for the best possible alternative, decision-makers tend to search only until they identify an alternative that meets some minimum standard of sufficiency. Political Forces in Decision Making. A coalition is an informal alliance of individuals or groups formed to achieve a common goal. Intuition is an innate belief about something without conscious deliberation. Escalation of commitment occurs when managers make a decision and become so committed to it that they stay with it even when it appears to have been wrong. Delphi groups are a form of group decision making in which a group is used to achieve a consensus of expert opinion. The Delphi procedure solicits input from a panel of experts who contribute individually. Their opinions are combined and "averaged." These results are fed back to the experts and the process continues until a solution is reached. Delphi groups do not meet in person. Nominal groups are a structured technique used to generate creative and innovative alternatives or ideas. An informed group of participants writes down as many alternatives as it can think of. These ideas are listed on a board in round robin fashion. After the ideas are listed, they are discussed. Then the members vote on the alternatives, and the highest-ranking alternative is selected. Advantages of Group and Team Decision Making 1. The availability of more information and knowledge. 2. Groups tend to generate more alternatives. 3. Participants in group decision making are more likely to accept the group decision and communicate it effectively to others. 4. For all these reasons, groups tend to make more effective decisions.

Many cell phone users are reluctant to change platforms because they do not want to learn a new system. Marketers could overcome this resistance with

education and communication.

Facebook CEO Mark Zuckerberg struck a deal with Spotify CEO Daniel EK for online music service. As CEOs they have ____ power.

legitimate

Leadership is

a process. a property. using influence to shape behavior without using force. a set of characteristics found in people who are leaders. All of these choices.

Which of these is a common reason for joining a group?

Interpersonal attraction Group activities Identification with group goals Instrumental benefits from membership All of these choices

A System 4 design emphasizes

open and extensive interaction processes. supportive relationships. group decision making. high-performance goals. All of these choices

Jerome and Crystal receive a negative email from their boss about their project. When Crystal panics and immediately looks to improve the project, Jerome says, "Don't take it so personally; we are all replaceable, so there is no reason to bust your back over it." Crystal has greater ____ than Jerome.

organizational commitment

How can managers handle political behavior so that it does not do excessive damage?

Managers should avoid covert actions. Managers should provide employees with autonomy, responsibility, challenge, and feedback. Managers should be aware that even if their plans are not politically motivated, others might perceive them that way. Managers should get disagreements out in the open so that subordinates will have less opportunity for political behavior. All of these choices

In a stable environment organizations tend to be

differentiated

Matt is fresh out of college. He is feeling a bit overwhelmed at work and appreciates his boss's ____ leadership because he needs help at this point.

directive

In a bureaucracy, rules, division of labor, and hierarchies of authority

improve organizational efficiency.

Nate perceives that no matter how much he studies he won't do as well as Carol on the test. What makes it worse is Carol doesn't even study. According to equity theory, Nate will

lower his goal

Which of the following is NOT a reason employees resistant change?

A high level of risk propensity

Evelyn gets her energy from others, likes creative tasks, is logical and likes finishing things. Her traits illustrate the ____ dimensions of the Myers-Briggs Type Indicator.

Extrovert, intuitive, thinking, judge

Big Y, a supermarket chain, decided to remove self-service checkout lanes because they did not speed up the checkout process. This was an example of organization change through a change in

technology and operations.

According to Herzberg's two-factor theory of motivation, the factors presumed to cause dissatisfaction are related to the

work environment

The primary change required to convert to making pipe out of plastic rather than steel or copper is in the area of

work process

Jill enjoys a challenge. She never stagnates. If work is not providing enough growth, then she will train for a marathon. She is working on her ____ needs.

achievement

When a company hires a CEO from the outside, she often will bring with her some trusted and valued employees. This helps her meet her _____ need right away.

affiliation

A group of ten people assembled to do volunteer work for Habitat for Humanity. Cohesiveness was high from the start because they all wanted to be there, helping others, and making a big difference in the lives of a family. Cohesiveness was high due to

agreement on goals.

Workplace bullies use sarcasm, humiliation, and fear to influence others. This is a form of ____ power.

coercive

Kristen worked in a fast-food restaurant to pay for her college tuition. Kristen vowed never to eat fast food again. But years later her small children love nothing better than a fast-food kid's meal. Kristen's acceptance of the kid's menu choice creates

cognitive dissonance.

Doreen likes to focus on one thing at a time and hates interruptions. This refers to her

conscientiousness.

Warren is diligent, slow, and thorough. These are examples of his

contributions.

Serena blames everything on someone else. Nothing is ever her fault. She has a(n)

external locus of control.

To make successful use of the equity theory, managers must remember that

for rewards to motivate employees, employees must perceive them as being fair

Managers and leaders differ in

how they create an agenda. how they achieve the agenda. how they execute plans. the type of outcomes they achieve. All of these choices

After the federal government stepped in to financially help auto makers, the CEOs flew by private jet to D.C. to testify before Congress. The politicians expressed outrage. The CEOs failed

impression management.

Automakers build prototype vehicles first. This requires ____ technology.

small-batch

Which stage of group development is characterized by the resolution of conflict and the development of roles?

Performing

The mobile device security market is expected to quadruple in five years. Anti-virus company Webroot is expanding its mobile device department. This is an example of change in

organization structure and design.

During which stage of group development do the members try out various forms of behavior in an attempt to test the waters and see what will be acceptable in the group?

Forming

Which of the following forms of political behavior is MOST likely to involve giving something to someone in exchange for that person's support?

Inducement

Collene sits with Matt, Chris, Weining, and Architha at lunch. They discuss politics. The group may add or lose a member, and how long they will meet is unclear. What kind of group is this?

Interest

A small-town police force has six patrol officers, two radio dispatch operators, two supervisors, and one police chief. At any time, three patrol officers, one radio operator, and one supervisor are on duty. The police chief works from 8 a.m. to 5 p.m. Because of the size of the organization, a patrol officer can expect to deal with cases of vandalism, car theft, shoplifting, assault and battery, domestic disputes, broken traffic signals, and auto wrecks during a typical shift. Which of the following statements describes a problem that occurs because the police force does not use a bureaucratic organization design?

Its organizational efficiency is much less than it could be.

Bernard Madoff defrauded "friends" and family. He even took money from Holocaust survivors and foundations. This indicates a high level of

Machiavellianism.

Staples print shop prints whatever the customer requests. What class of technology does it use?

Unit production

General Motors frequently asks its employees to measure such things as supervisor effectiveness. This is an OD technique known as ____.

surveys