Management principles chpt 10,12,14

Matrix approach

combines aspects of both functional and divisional structures simultaneously, in the same part of the organization.

Decentralization

decision authority is pushed downward to lower organization levels.

Staff authority

is narrower and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise.

Matrix boss

is the product or functional boss, who is responsible for one side of the matrix.

Line departments

perform tasks that reflect the organization's primary goal and mission.

Modular approach

a manufacturing company uses outside suppliers to provide entire chunks of a product, which are the assembled into a final product by a handful of workers.

Functional structure

also called a U-form (unitary structure), activities are grouped together by common function from the bottom to the top of the organization. Grouped by common skills and resources.

Cross- functional teams

consist of employees from various functional departments who are responsible to meet as a team and resolve mutual problems.

Organization structure

defined as 1. the set of formal tasks assigned to individuals and departments. and 2. formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of manager's control. 3. the design of systems to ensure effective coordination of employees across departments.

Small-batch production

firms produce goods in batches of one or a few products designed to customer specification.

Permanent teams

groups of employees who are organized in a way similar to a formal department. Emphasis on horizontal communication and information sharing because representatives from all functions are coordinating their work and skills to complete a specific organizational task. Authority is pushed down to lower levels, and front-line employees are often given the freedom to make decisions and take action on their own.

Flat structure

has a wide span, is horizontally dispersed, and has fewer hierarchial levels.

Tall structure

has an overall narrow span and more hierarchical levels.

Staff departments

include all those that provide specialized skills in support of line departments.

Project manager

is a person who is responsible for coordinating the activities of several departments for the completion of a specific project.

Task force

is a temporary team or committee designed to solve a problem involving several departments.

Service technology

is characterized by intangible outputs and direct contact between employees and customers. Examples of service firms include banks, hotels, and fast food places. Service technologies tend to have more flexible horizontal structures.

Departmentalization

is the basis for grouping positions into departments and departments into the total organization.

Responsibility

is the duty to perform the task or activity as assigned.

Authority

is the formal and legitimate right of the manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes. Distinguished by three characteristics: 1. Authority is vested in organizational positions, not people. 2. Authority flows down the vertical hierarchy. 3. Authority is accepted by subordinates.

Span of management

is the number of employees reporting to a supervisor. Sometimes called span of control, this characteristic of structure determines how closely a supervisor can monitor subordinates.

Delegation

is the process managers use to transfer authority and responsibility to positions below them in the hierarchy.

Collaboration

means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what any of the individuals or departments could achieve working alone.

Centralization

means that decision authority is located near the top of the organization

Line authority

means that people in management positions have formal authority to direct and control immediate subordinates.

Virtual network strucutre

means that the firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

Accountability

means that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Divisional structure

occurs when departments are grouped together based on similar organizational outputs. Also called M-form (multi divisional) or decentralized form, separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses, or profit centers.

Top leader

oversees both the product and functional chains of command. Maintain power balance between the two sides of the matrix. If disagreements arise between them, top leader handles it. Essentially responsible for entire matrix.

Relational coordination

refers to "frequent, timely, problem-solving communication carried out through employee relationships of shared goals, shared knowledge, and mutual respect." Isn't a structural device or mechanism such as a project manager, but rather is part of the very fabric and culture of the organization.

Organizing

refers to the deployment of organizational resources to achieve strategic goals.

Coordination

refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.

Reengineering

refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

Work specialization

sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs.

Mass production

technology is distinguished by standardized production runs.

Technical complexity

the differences between the three manufacturing technologies. It is the degree to which machinery is involved in the production to the exclusion of people.

team-based structure

the entire organization is made up of horizontal teams that coordinate their work and work directly with customers to accomplish the organization's goals.

Continuous process production

the entire workflow is mechanized in a sophisticated and complex form of production technology.

Two-boss employees

those who report to two supervisors simultaneously, must resolve conflicting demands from the matrix bosses. They must work with senior management to reach joint decisions. They need excellent human relations skills with which to confront managers and resolve conflicts.

Chain of command

unbroken line of authority that links all employees in an organization and shows who reports to whom. Associated with 2 underlying principles- 1. Unity of command- means that each employee is held accountable to only one supervisor. 2. Scalar principle- refers to a clearly defined line of authority in the organization that includes all employees.

Organization chart

visual representation of an organization's structure. Kind of like a hierarchy level display.