Management Exam 3/ Hopkins
Within the legal environment, what are the major laws that affect Compensation and benefits and what do they mean?
-Fair Labor Standards Act... establishes minimum wage and mandated overtime pay for work in excess of 40 hours per week -Equal Pay Act of 1963... requires that men and women be paid the amount for doing the same job -Employee Retirement Income Security Act of 1974 (ERISA)... regulates how organizations manage their pension funds -Family and Medical Leave Act of 1993... requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies
What is meant by a flat (wide) versus a tall span of control organization?
-Flat Structures lead to higher levels of employee morale and productivity - Tall Structures are typically more expensive and typically have more communication problems.
What are the 4 common bases of Departmentalization?
-Function departmentalization -Product departmentalization -Customer departmentalization -Location departmentalization
What are the alternatives to Job Specialization?
-Job Rotation -Job Enrichment -Job Enlargement -Work Teams
Within the legal environment, what are the major laws that affect Labor Relations and what do they mean?
-National Labor Relations Act... spells out procedures by which employees can establish labor unions and requires organizations to bargain collectively with legally formed unions; also known as the Wagner Act -National Labor Relations Board (NLRB)...Wagner Act enforcement vehicle -Labor-Management Relations Act 1947... limits union power and specifies management rights during a union-organizing campaign; also known as the Taft-Hartley Act
Within the legal environment, what are the major laws that affect Occupational safety and health and what do they mean?
-Occupational Safety and Health Act of 1970 (OSHA)... mandates the provision of safe working conditions -OSHA requires that employers: 1. Provide a workplace that is free from hazards (that may cause death or serious physical harm) 2. Obey the safety and health standards established by the Department of Labor
What are the potential biases of the two forms of performance appraisals?
-Recency Error: occurs when an evaluator makes a judgment based only on the most recent performance. -Halo Error: occurs when an evaluator allows performance in one dimension of the job to spread to all dimensions.
What are some emerging issues in HR?
-Sexual Harassment... forbidden under Title VII, more victims confront the problem in court -Alcohol and drug abuse... court rulings define alcoholics and drug addicts as disabled and are protected under the same laws -AIDS... covered under disability laws -Employee privacy... can you refuse to hire due to social media postings?
Within the legal environment, what are the major laws that affect Equal Employment Opportunity and what do they mean?
-Title VII of the Civil Rights Act of 1964... forbids discrimination on the basis of sex, race, color, religion, and national origin in all areas of the employment relationship -Age Discrimination in Employment Act...outlaws discrimination against people older than 40; passed in 1967 and amended in 1978 and 1986 -Equal Employment Opportunity Commission (EEOC)... federal agency charged with enforcing Title VII and other anti discrimination laws -Various Executive Orders... (mainly executive order 11246 in 1965) required employers with government contracts to engage in affirmative(check slide 5 in "Managing HR" -Pregnancy Discrimination Act... forbids discrimination against women who are pregnant -Vietnam Era Veterans Readjustment Assistance Act... requires affirmative hiring for Vietnam veterans -Americans with Disabilities Act... prohibits discrimination against people with disabilities. Requires employers to make reasonable accommodation for employees. -Civil Rights Act of 1991... makes it easier for employees to sue an organization for discrimination but limits punitive damage awards if they win
What is meant by total compensation?
-Wages: hourly compensation -Salary: pay for total contribution, not hours worked -Incentives: pay tied to specific performance -Benefits: vacation, insurance, pension, etc.
What do teams need?
1. Clear mission (purpose) 2. Clear goals and scope 3. Clear authority 4. Clear rules of engagement... how will we operate
What are the 7 factors that affect an organization's span of control?
1. Competence of supervisor and subordinates (greater competence, the wider the span) 2. Physical dispersion of subordinates (less dispersion, the wider the span) 3. Extent of non-supervisory work in manager's job (less non-supervisory work, the wider the span) 4.Degree of required interaction (less interaction required, the wider the span) 5. Extent of standardized procedures (more standardization, the wider the span) 6. Similarity of tasks being supervised (more similar tasks, the wider the span) 7. Frequency of new problems (less frequency, the wider the span)
What are the 6 basic building blocks managers use in constructing an organization?
1. Designing Jobs 2. Grouping Jobs 3. Establishing Reporting Relationships 4. Distributing Authority 5. Coordinating Activities 6. Differentiating Among Positions
What are Max Weber's 5 guidelines for bureaucratic design?
1. Distinct division of labor... each position should be filled by an expert 2. Consistent rules and uniform task performance... helps to make sure that task performance is uniform 3. A chain of command from top to bottom...(hierarchy of positions or offices) 4. Impersonal Managers... appropriate social distance between managers and subordinates should exist 5. Employment based on technical expertise... employees should be safe from random dismissal, based on skill levels instead
What are the 4 basic forms of organizational design?
1. Functional (U-form) design 2. Conglomerate (H-form) design 3. Divisional (M-form) design 4. Matrix design *5. Hybrid design
What are factors that reduce group cohesiveness?
1. Group size 2. Disagreement on goals 3. Intragroup competition 4. Domination 5. Unpleasant Experiences
What are factors that increase group cohesiveness?
1. Intergroup connection 2. Personal attraction 3. Favorable evaluation 4. Agreement on goals 5. Interaction
What are two types of performance appraisals and what do they mean?
1. Objective: measures are concrete measures of performance. Performance vs specific measurable goals. 2. Judgmental: methods include rating and ranking of performance.
What two span of controls did Ralph C. Davis describe and what do they mean?
1. Operative Span: up to 30 subordinates (for lower-level managers) 2. Executive Span: limited to 9 subordinates (for middle and top managers)
What are the 8 dimensions of quality?
1. Performance → a product's primary operating characteristic; examples are automobile acceleration and a television's picture clarity. 2. Features → supplements to a product's basic functioning characteristics, such as power windows on a car. 3. Reliability → a probability of not malfunctioning during a specified period. 4. Conformance → the degree to which a product's design and operating characteristics meet established standards. 5. Durability → a measure of product life. 6. Serviceability → the speed and ease of repair. 7. Aesthetics → how a product looks, feels, tastes, and smells. 8. Perceived Quality → as seen by a customer.
What are the 3 vital components of the HRM environment?
1. Strategic Importance 2. Legal environment 3. Social environment
What are the 5 components of Jay Galbraith's STAR model of organizational design?
1. Strategy...Direction 2. Structure...Power 3. Processes...Information 4. Rewards...Motivation 5. People...Skills
What are the two components chain of command is comprised of and what do they mean?
1. Unity of Command: Each person has clear reporting relationship to one boss. 2. Scalar Principle: A clear and unbroken line of authority from lowest to highest position.
What are the 6 components execution deals with?
1. Value Chain 2. Elements 3. Process 4. Control systems 5. People 6. Resource deployment
What is the Chain of Command?
A clear and distinct line of authority among positions in an organization.
What is a Team?
A group of workers that functions as a unit, often with little or no supervision, to carry out work-related tasks, functions, and activities.
What is a Functional group?
A permanent group created by the organization to accomplish a number of purposes with an unspecified time horizon
What is Line Position?
A position that is responsible for the achievement of organizational goals. -Very formal authority -Low administrative intensity
What is Staff Position?
A position that provides expertise, advice, and support for line positions.
What is Benchmarking?
A process of learning how other firms do things in an exceptionally high quality manner.
What is Total Quality Management (TQM)?
A strategic commitment by top management to change its whole approach to business to make quality a guiding factor in everything the organization does.
What are the 3 forms of authority?
Advise Authority: managers can choose whether to seek input or not. Compulsory Advice: they have to consider the advice, but not listen to it. Functional Authority: formal and legitimate authority.
What is Value-added analysis?
An evaluation of all work activities, material flows, and paperwork to determine the value they add for customers.
What is Job Enlargement?
An increase in job tasks and responsibilities to make a position more challenging. It is a horizontal expansion, which means that the tasks added are at the same level as those in the current position.
What is the Bureaucratic model of organizational design? What are the strengths and weaknesses?
An organization based on a legitimate and formal system of authority -Strengths: Efficiency is improved, favoritism is prevented, procedures and practices are very clear -Weaknesses: Causes an organization to be rigid and inflexible, exceptions and changes to the rules are often difficult to implement, often neglects human and social processes
System 1 design?
Anchors one end of the continuum; similar to the bureaucratic model
System 4 design?
Anchors the other end of the continuum; similar to the behavioral model
What is Matrix design and in what situation would it apply?
Based on two overlapping bases of departmentalization -Project managers are responsible for project groups -A multiple-command structure results when an individual reports to a functional superior and to one or more project managers -This design is common in three scenarios: 1. Strong environmental pressure 2. Large amounts of information need processing 3. Pressure for shared resources exist -Advantages: More flexibility, more committed and motivated team members, enhances cooperation, allows decentralization, human resources are used efficiently, and employees are able to learn new skills. -Disadvantages: Reporting relationships are uncertain, people take advantage of unlimited freedom, and coordination time increases. For groups, decision time increases, focus can be lost, compromise can occur too much, and individuals can dominate over others.
How does Corporate level strategy affect organizational structure design?
Choices will partially determine design. -Single-product strategy: functional departmentalization and mechanistic design -Related diversification: requires a high level of coordination -Unrelated diversification: hierarchical reporting system
What are the basic issues in establishing reporting relationships?
Clarifying the chain of command and the span of management.
What are Hybrid systems of organizational design?
Combinations and remixes of the main 4 organizational designs. It is fairly common to have hybrid systems.
What is a Management team?
Consists mainly of managers from various functions like sales and production; coordinates work among other teams
What is a Group?
Consists of two or more people who interact regularly to accomplish a common goal or purpose.
What is an Informal or Interest group?
Created by its members for purposes that may or may not be relevant to those of the organization.
What is a Task group?
Created by the organization to accomplish a relatively narrow range of purposes within a stated or implied time horizon.
What is Functional (U-form) design and in what situation would it apply?
Design based on the functional approach to departmentalization (U=Unitary) -Units are grouped into functional departments -Takes a lot of coordination -These work well in manufacturing companies -(Same pros/cons as functional departmentalization)
How does Business level strategy affect organizational structure design?
Directly influences an organization's design -Defender strategy: tall and centralized -Prospector strategy: flat and decentralized
Why is effective execution more important than strategy?
Effective execution is more important than strategy because execution is about the actual doing of the strategy. Execution is much harder than simply developing strategy and requires a lot of coordination.
In the Global Business System, what is meant by Execution?
Execution is all about effectiveness, efficiency, priorities, and tactics.
What are the stages of a group team or team development?
Forming, Storming, Norming, Performing
What is Job Enrichment?
Giving an employee additional responsibilities previously reserved for his manager or other higher-ranking positions. Higher level of responsibility. This usually causes training costs to increase and workers wanting to be paid more.
What is Product Departmentalization?
Grouping activities around products or product groups. This is typically used by a lot of larger businesses. -Advantages: Activities are integrated and coordinated, faster decision making, very clear accountability -Disadvantages: Higher administrative costs
What is Customer Departmentalization?
Grouping activities to respond to and interact with specific customers and customer groups. -Advantage: Skilled specialists are used to deal with unique customers -Disadvantage: Larger administrative staff
What is Departmentalization?
Grouping jobs according to some logical arrangement linked to size. This becomes especially necessary with a lot of growth because managers cannot oversee all workers.
What is Function Departmentalization?
Grouping jobs involving the same or similar activities. -Advantages: Staffed by experts, easily able to coordinate activities, narrow set of skills -Disadvantages: Slower decision making, looser idea of a system
What is Location Departmentalization?
Grouping jobs on the basis of defined geographic sites or areas. -Advantage: Ease of responsiveness to customer -Disadvantage: More administration
What is the primary role of HR?
Human Resource Management (HRM)... the set of organizational activities directed at attracting, developing, and maintaining an effective workforce. Critical for effectiveness and competitiveness.
What is meant by HR planning?
Human resource planning involves assessing trends, job analysis, forecasting supply and demand of labor, and then developing appropriate strategies for addressing any differences.
What is meant by the union organization process?
If employees want to form a union, the law prescribes a specific set of procedures that both employees and the organization must follow
What is a Quality Circle?
It is declining in popularity. This comprises workers and supervisors and they meet intermittently to discuss workplace problems
What is the Behavioral model of organizational design? What are the strengths and weaknesses?
It stresses attention to developing work groups and concern with interpersonal processes. -Strengths: Emphasizes human behavior because it stresses the importance and value of an organization's employees. Much more humanistic. -Weaknesses: Argues that there is one best way to design an organization when this is not the case.
What does organizational culture look like? What are its elements?
It's all about how a company works together as a team. It is composed of the following: 1. Artifacts... the visible aspect of the company 2. Beliefs and Values... things that are known by the company 3. Assumptions... what is embedded and unique to a company
What are the 8 important processes that fall along an organizational design continuum?
Leadership, motivation, communication, interactions, decision making, goal setting, control, and performance goals
What can force culture change?
Mergers, acquisitions, and rapid changes can all cause cultures to change rapidly
What is a Problem-Solving team?
Most popular type of team; comprises knowledge of workers who gather to solve a specific problem and then disband
What is Divisional (M-form) design and in what situation would it apply?
Multiple businesses in related areas operate within a larger organizational framework (M=Multidivisional) -Activities can be centralized or decentralized -Biggest advantage is the opportunity for coordination and sharing of resources -Can typically outperform functional and conglomerate designs
What is a Virtual team?
Newer type of work team where the members interact in a virtual arena; members enter and leave the network as needed and have the option to take turns serving as leader. Comprised of people from remote work sites who work together online
What is Authority?
Power legitimized by the organization
What does role disruption result in?
Results in 3 different things: 1. Role Ambiguity... lack of clarity 2. Role Conflict...conflicting demand or conflicts with personal values in 2 or more roles 3. Role Overload... the role exceeds the individual's capabilities to perform
What is meant by Supply Chain Management?
Supply chain management is the process of managing operations control, resource acquisition and inventory to improve overall efficiency and effectiveness. Supply chain management highly focuses on quality, reliability of the supplier, and getting the best financial terms. -Purchasing: buying materials/resources needed to produce products and services. This is the main part of supply chain management.
What did Lyndall F. Urwick and General Ian Hamilton conclude about the executive span?
That the executive span should never exceed 6 subordinates.
What are some of the differences between a behavioral "autocratic" model and a "system" behavioral model?
The autocratic model focuses more on authority, strength and power. There is a formal management hierarchy where managers control the employees beneath them. On the other hand, the system behavioral model focuses more on creating systems, typically complex ones, to create greater efficiency in an organization. More cooperation and teamwork with a system behavioral model
What is Job Specialization?
The degree to which the overall task of the organization is broken down into smaller components. -Benefits: workers are proficient, lower transfer time, allows for usage of specialized equipment, and training costs are low. -Limitations: can lead workers to becoming bored causing a lower quality of work. Anticipated benefits do not always occur. Extreme specialization should be avoided.
What is Delegation?
The process by which managers assign work to subordinates
What is Coordination?
The process of linking the activities of the various departments in the organization. Primary reason for this is interdependence of departments and work groups for information and resources.
What is Cycle time?
The time needed by the organization to accomplish activities such as developing, making, and distributing products or services.
What is meant by Operations Management?
The total set of managerial activities used by an organization to transform resource inputs into products, services, or both. This is at the core of what organizations do because it adds value and creates products and services.
What is Statistical Quality Control (SQC)?
The use of statistical methods in the monitoring and maintaining of the quality of products and services.
What are common organizational designs for global / international organizations?
These are derivations of the 4 basic forms of organizational design. Pictures on slides 36 and 37 of "Managing Organizational Design"
What is Conglomerate (H-form) design and in what situation would it apply?
These are used by organizations that are composed of a set of unrelated businesses. (H=Holding) -This design is for "holding" companies which results from unrelated diversification -General Manager oversees each business -Corporate staff is responsible for evaluating, allocating, and deciding
What is a Work team?
They are responsible for the daily work of the organization; when empowered, they are self-managed teams. This is a pretty popular team at this point
What 3 things should jobs be?
They should be... -Productive: higher efficiency -Meaningful: jobs should provide a challenge -Aligned: jobs should align with a strategy, workflow, and customer perspective
What are Work teams?
This allows an entire group to design the work system that will be used to perform a related set of tasks.
What is Job Rotation?
This involves moving employees systematically from one job to another.
What is Administrative Intensity? High vs Low?
This is the degree to which managerial positions are concentrated in staff positions. -A high level of this is an organization with many staff positions relative to line positions. -A low level of this reflects more line positions.
What is meant by Job Design?
This is the determination of an individual's work-related responsibilities.
What is Productivity?
This is the economic measure of efficiency. It summarizes what is produced relative to the resources that it uses to produce it.
What is Company productivity?
This is the level of a businesses productivity that is reached by an actual individual company.
What is meant by span of control/ management?
This is the number of people who report to a particular manager.
What is Organization Design?
This is the overall set of structural elements and the relationships among those elements used to manage the total organization. -Organizations often change continuously and are more complex as organizations get larger.
What is Aggregate productivity?
This is the total level of productivity that is reached by a country.
What is Industry productivity?
This is the total productivity achieved by all the firms within an industry.
What is Inventory control in Supply Chain Management?
This manages raw materials, work-in-progress, finished goods, and products in transit. -Know the just-in-time (JIT) method means that materials only arrive when needed. This works to reduce investment in storage space and material costs.
What is meant by healthy conflict?
This occurs when you have a variety of personality types and everyone has their own perspective and views. This causes light levels of conflict that really optimize performance levels
What is Decentralization?
This systematically delegates power and authority to lower-levels
What is Centralization?
This systematically retains power and authority in higher-level managers
What is meant by Organizational Culture?
What we SAY: -values -mission -vision -goals -priorities Norms and Assumptions: -people -places -things -processes -practices -rituals -heritage What we DO: -Live our values, how we spend our time, collaborate vs. dictate, teaming vs solo, accountability, how we use or delegate authority, and how we allocate resources What we BELIEVE: -How we behave, act, and execute ultimately depends on our level of belief.
What is Reciprocal Interdependence?
When activities flow both ways between units.
What is Sequential Interdependence?
When the output of one unit becomes the input for another in sequential fashion.
How do you change an organization's culture? What is the key ingredient necessary to make culture change?
You must change: -What gets rewarded -What gets punished -Allocation of resources -Leaders actions and behaviors -What leaders pay attention to
