LearnSmart Ch. 7

Managing high information processing demands strategies

1. Reduce the need for information by creating slack resources: extra resources that organizations can rely on in a pinch. 2. Increase Information Processing Capability: An organization can do this by investing in information systems or engaging in knowledge management: capitalizing on the intellects and experience of the organizations human assets to increase collaboration and effectiveness. Can be done by creating horizontal relationships.

Strategic Alliance

A formal relationship created among independent organizations with the purpose of joint pursuit of mutual goals. Done to develop new technologies, enter new markets, and reduce manufacturing costs through outsourcing. Not only can alliances help companies to move ahead faster and more efficiently, but they also are sometimes the only practical way to bring together the variety of specialists needed.

Six Sigma Quality

A method of systematically analyzing work processes to identify and eliminate virtually all causes of defects, standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction

Specialization

A process in which different individuals and units perform different tasks

ISO 9001

A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of producers and consumers. 1. Customer focus 2. Leadership 3. Involvement of People 4. Process Approach 5. Systems approach to management 6. Continual Improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationships.

Just-in-time (JIT)

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed. The supplying work centers do not produce the next lot of product until the consuming work centers requires it. Concentrates on reducing time in manufacturing.

Lean Manufacturing

An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement. The emphasis is on quality, speed, and flexibility more than on cost, efficiency, and hierarchy.

Matrix Organization

An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager. Hybrid form in which functional and divisional forms overlap. managers and staff personnel report to two bosses. Each project manager draws employees from each functional area to form a group for the project. The people working on those projects report tot he project manager as well as to the manager of their functional area.

Centralized Organization

An organization in which high-level executives make most decisions and pass them down to lower levels for implementation

Decentralized Organization

An organization in which lower-level managers make important decisions

Learning Organization.

Being responsive requires continually learning new ways to act. Some experts say the only sustainable advantage is learning faster than the competition. An organization skilled at creating, acquiring, and transferring knowledge and modifying its behavior to reflect new knowledge and insights.

The board of Directors, led by the ____________________ makes major decisions, subject to corporate charter and bylaw provisions. Boards select, assess, reward, and perhaps replace the CEO; determine the firms strategic direction and review financial performance; and ensure ethical, socially responsible, and legal conduct.

Chairperson

Functional Organization

Departmentalization around specialized activities such as production, marketing, research and development, and human resources. specialized and grouped according ot business functions and the skills they require.

Divisional Organization

Departmentalization that groups units around products, customers, or geographic regions. Each division houses every function. In the divisional organizational chart, each division has its own operations, marketing, and finance departments. Seperate divisions may act almost as separate businesses or profit centers and work autonomously to accomplish the goals of the entire enterprise.

Standardization

Establishing common routines and procedures that apply uniformly to everyone. Constrains actions and coordinates units by regulating-spelling out-what people do.

The boards membership usually includes some top executive called ____________ ___________.

Inside Directors

Coordination by Plan

Interdependent units create deadlines and objectives that contribute to a common goal. Specifying exact rules and procedures for integrating is difficult; a more flexible alternative is to establish shared shared goals and schedules for interdependent units.

simultaneous engineering

Team based approach results in higher quality product that is designed for efficient manufacturing and customer needs. Speeds up research and product development. Incorporates the issues and perspective of all the functions, -and customers and suppliers-from the beginning of the process.

Delegation

The assignment of new or additional responsibilities to a subordinate

Accountability

The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance

mass customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products.

Organization Chart

The reporting structure and division of labor in an organization. Provides a picture of the reporting structure (who reports to whom) and the various activities that are carried out in different jobs. The boxes represent different work. The titles in the boxes show the work performed by each unit. Solid lines indicate reporting and authority connections and superior-subordinate relationships. The horizontal layers indicate levels of management. All persons or units of the same rank and reporting to the same person are on one level.

Technology

The systematic application of scientific knowledge to a new product, process, or service. The methods, processes, systems, and skills used to transform resources (inputs) into products (outputs).

CEO's can share their authority with other key members of the ________ ___________ __________. Typically consist of the CEO, president, chief operating officer, chief financial officer, chief technology officer, chief human resources officer, and other key executives.

Top Management Team

Strategically, companies must commit to excellence and leadership in capabilities and strengthen them; then they can win market share for specific products. (T/F)

True

Organizationally, the corporation should be viewed as a portfolio of capabilities, not just products and businesses. (T/F)

True; Managers therefore: 1. Identify existing core capabilities 2. Acquire or build core capabilities that will be important for the future 3. Keep investigating in capabilities, so the firm remains world class and better than competitors 4. Extend capabilities to find new applications and opportunities for the markets of tomorrow.

Coordination by Mutual Adjustment

Units interact with one another to make accommodations in order to achieve flexible coordination. The simplest, most flexible approach to coordination may just be to have people talk to one another.

network organization

a collection of independent, mostly single-function firms that collaborate on a good or service. Describes not one firm but a web of relationships among many firms. Flexible arrangements among designers, suppliers, producers, distributors, and customers in which each firm s able to capitalize more fully on its own distinctive core capability.

computer-integrated manufacturing (CIM)

a complete system that designs products, manages machines and materials, and controls the operations function helped make mass customization possible. Encompasses a host of computerized production efforts, including computer aided design and computer aided manufacturing. These systems can produce high variety and high volume products at the same time. they also offer greater control and predictability of production processes, reduced waste, faster throughput times, and higher quality.

Mechanistic Organization

a form of organization that seeks to maximize internal efficiency

unity of command principle

a structure in which each worker reports to one boss, who in turn reports to one boss

Defferentiation

an aspect of the organization's internal environment created by job specialization and the division of labor

Total Quality Management (TQM)

an integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques that result in high-quality goods and services

Organic Structure

an organizational form that emphasizes flexibility. Depends heavily on an informal structure of employee networks.

The authority officially vested in the board of directors is assigned to a _____________ __________ __________, who occupies the top of the corporate hierarchy. They are personally accountable tot eh board and to the owners for the organizations performance

chief executive officer (CEO)

An important perspective on strategy and organization hinges on an organizations ____________ _____________.

core capability

Continuous Process

highly automated and has a continuous production flow Structure can return to a more organic form because less supervision is needed. There are fewer rules and communication tends to be more informal.

Board of Directors

in corporations, the owners are the stockholders. But because there are many stockholders and they generally lack timely information, few are directly involved in managing the company. Stockholders elect a board of directors to oversee it.

as organizations differentiate their structures, managers must figure out how to __________ the various activities

integrate

Managers often describe a firms structure by looking at its

organization chart

A well understood, developed, core capability can enhance a comany's ________________ and _____________.

responsiveness and competitiveness

Large corporations have boards of directors that are elected by ________.

stockholders

Integration occurs through __________ __________ that enhance collaboration and coordination.

structural mechanisms

Large Batch

technologies that produce goods and services in high volume Mass production technologies. structure tends to be mechanistic, with more rules, formal procedures, and centralized decision making. Communication tends to be more formal, hierarchical authority more prominent.

Small Batches

technologies that produce goods and services in low volume. Structure tends to be organic with few rules and formal procedures, and decision making tends to be decentralized. Emphasis is on mutual adjustment among people

Modular/Virtual Network

temporary arrangements among partners that can be assembled and reassembled to adapt to the environment

Division of Labor

the assignment of different tasks to different people or groups

Integration

the degree to which differentiated work units work together and coordinate their efforts.

Authority

the legitimate right to make decisions and to tell other people what to do

Span of control

the number of subordinates who report directly to an executive or supervisor. Differences in this affect the shape of an organization.

Formalization

the presence of rule and regulations governing how people in the organization interact. Simple, often written, policies regarding attendance, dress, and decorum.

Coordination

the procedures that link the various parts of an organization to achieve the organizations overall mission