Management - Exam 1

Horizontal organizational structures

A "flatter" organizational structure often found in matrix organizations where individuals relish the breath and development that their team offers.

Joan Woodward

A British scholar who did her work in the 1950s and 1960s. She argued that contingencies, such as technology, play a role in how much training workers should receive.

Organizational structures

A broad term that covers both mechanistic and organic organizational structures.

Critical thinking

A disciplined process of evaluating the quality of information, especially by identifying logical fallacies in arguments.

Networked-team structure

A form of the horizontal organization.

Devil's advocate

A group member who intentionally takes on the role of being critical of the group's ideas in order to discourage groupthink and encourage deep thought and discussion about issues prior to making decisions.

McKinsey 7-S model

A popular depiction of internal organizational dimensions.

Evidence-based decision-making

A process of collecting the best available evidence prior to making a decision.

Brainstorming

A process of generating as many ideas or alternatives as possible, often in groups.

Virtual structure

A recent organizational structure that has emerged in the 1990's and early 2000's as a response to requiring more flexibility, solution based tasks on demand, less geographical constraints, and accessibility to dispersed expertise.

Adam Smith

Adam Smith proposed the ideas of division of labor, specialization, and coordination within a corporation.

Geographic structure

An Organizational option aimed at moving from a mechanistic to more organic design to serve customers faster and with relevant products and services; as such, this structure is organized by locations of customers that a company serves.

Open system

An open system interacts with the environment to gain resources.

Divisional structure

An organizational structure characterized by functional departments grouped under a division head.

Matrix structure

An organizational structure close in approach to organic systems that attempt to respond to environmental uncertainty, complexity, and instability.

Identify different types of organizational structures, and their strengths and weaknesses

An understanding of Mechanistic vs Organic Structures and Systems and how they differ and how these major concepts help classify different organizational structures is crucial to recognizing organizational structures. Finally, the issue of organizational complexity and its impact on organizational structure needs to be understood. You should be able to discuss the evolution of different types of Organizational Structures. You should understand and identify the six types of organizational structures, and the advantages and disadvantages of each: Functional, Divisional, Matrix, Geographic, Networked Team, and Virtual.

Identify contemporary external forces pressuring organizations

An understanding of the various industries and organizations 'fit' with different types of environment in crucial. There are small and large organizations that face environments that are either stable of unstable and managing the organization by recognizing their environment is a crucial skill.

Mechanistic organizational structures

Best suited for environments that range from stable and simple to low-moderate uncertainty and have a formal "pyramid' structure.

Carl G. Barth

Carl G. Barth (1860-1939), mathematician, developed a slide rule for calculating how much steel to cut.

Chester Barnard

Chester Barnard (1886-1961) argued that the executive purpose was to gain resources from members within the organization by ensuring that they perform their jobs and that cooperation exists between various groups within the organization.

Satisficing

Choosing the first acceptable solution to minimize time spent on a decision.

Process conflict

Conflict about the best way to do something; conflict that is task-oriented and constructive, and not focused on the individuals involved

Relationship conflict

Conflict between individuals that is based on personal (or personality) differences; this type of conflict tends to be destructive rather than constructive.

14 principles of management

Created by Henri Fayol.

Five functions of management

Created by Henri Fayol: planning, organizing, staffing, controlling, and directing.

Adhocracy culture

Creates an environment of innovating, visioning the future, accepting of managing change, and risk taking, rule-breaking, experimentation, entrepreneurship, and uncertainty.

Modern bureaucracy

Decisions should be made on a formal basis, rather than what a bureaucrat felt was correct. Weber stressed that knowledge, not birth circumstances, should be the basis of hiring and promotion within a bureaucracy.

Nonprogrammed decisions

Decisions that are novel and not based on well-defined or known criteria.

Programmed decisions

Decisions that are repeated over time and for which an existing set of rules can be developed.

Corporate culture

Defines how motivating employees' beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in.

Competing Values Framework

Developed by Kim Cameron and Robert Quinn this model is used for diagnosing an organization's cultural effectiveness and examining its fit with its environment.

Elton Mayo

Elton Mayo (1880-1949) researched, theorized, and developed human relations theory based on an experiment at the Hawthorne plant on how to manage workers and to improve production.

How did Elton Mayo influence management theory, and how did the human relations movement affect current management theory?

Elton Mayo noted the role of nonmonetary motivators and attitudes in terms of the workplace. Barnard developed the idea of the zone of indifference. Follett developed ways to resolve conflict without the use of compromise or domination.

Hierarchy culture

Emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, careful decision making.

Technological forces

Environmental influence on organizations where speed, price, service, and quality of products and services are dimensions of organizations' competitive advantage in this era.

Complex-Unstable environments

Environments that have a large number of external elements, and elements are dissimilar and where elements change frequently and unpredictably

Complex-Stable environments

Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly.

Simple-Unstable environments

Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably.

Simple-Stable environments

Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly.

Natural disaster and human induced environmental problems

Events such as high-impact hurricanes, extreme temperatures and the rise in CO2 emissions as well as 'man-made' environmental disasters such as water and food crises; biodiversity loss and ecosystem collapse; large-scale involuntary migration are a force that affects organizations.

Henri Fayol

Fayol's administrative theory was the first general statement on management theory.

Motion studies

Film studies of work.

Market culture

Focuses on delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, competing and getting things done.

Clan culture

Focuses on relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching.

executive managers

Generally, a team of individuals at the highest level of management of an organization.

What are the advantages and disadvantages of group decision-making, and how can a manager improve the quality of group decision-making?

Groups can make better decisions than individuals because group members can contribute more knowledge and a diversity of perspectives. Groups will tend to generate more options as well, which can lead to better solutions. Also, having people involved in making decisions that will affect them can improve their attitudes about the decision that is made. However, groups sometimes fail to generate added value in the decision-making process as a result of groupthink, conflict, or suppression of dissent. Managers can improve the quality of group decision-making in a number of ways. First, when forming the group, the manager should ensure that the individual group members are diverse in terms of knowledge and perspectives. The manager may also want to assign a devil's advocate to discourage groupthink. Managers should also encourage all group members to contribute their ideas and opinions, and they should not allow a single voice to dominate. Finally, they should not allow personality conflicts to derail group processes.

How do bureaucratic and administrative management complement scientific management?

Henri Fayol and Max Weber made notable contributions to the development of management thought. Fayol focused on top managers, and Weber focused on middle managers. Fayol's administrative theory was the first general statement on management theory. He stressed the need for collective action and vision from top management. Weber developed the idea that organizations should be formalized and legalistic in their operations.

Henry Gantt

Henry Gantt (1861-1919) developed the Gantt chart, which allowed for the process of control to occur.

Internal dimensions of organizations

How an organization's culture affects and influences its strategy.

Dominance

In dominance, one dictates the terms of the arrangement.

Integration

In integration, both parties state their preferences and attempt to reach an agreement.

Socio-cultural environment forces

Include different generations' values, beliefs, attitudes and habits, customs and traditions, habits and lifestyles.

Stakeholders

Individuals or groups who are impacted by the organization. These include owners, employees, customers, suppliers, and members of the community in which the organization is located.

What are the characteristics that effective managers display?

Management is the process of planning, organizing, directing, and controlling the activities of employees in combination with other resources to accomplish organizational goals. Managerial responsibilities include long-range planning, controlling, environmental scanning, supervision, coordination, customer relations, community relations, internal consulting, and monitoring of products and services. These responsibilities differ by level in the organizational hierarchy and by department or function. The twenty-first-century manager will differ from most current managers in four ways. In essence, he will be a global strategist, a master of technology, a good politician, and a premier leader-motivator.

What are the basic characteristics of managerial decision-making?

Managers are constantly making decisions, and those decisions often have significant impacts and implications for both the organization and its stakeholders. Managerial decision-making is often characterized by complexity, incomplete information, and time constraints, and there is rarely one right answer. Sometimes there are multiple good options (or multiple bad options), and the manager must try to decide which will generate the most positive outcomes (or the fewest negative outcomes). Managers must weigh the possible consequences of each decision and recognize that there are often multiple stakeholders with conflicting needs and preferences so that it often will be impossible to satisfy everyone. Finally, managerial decision-making can sometimes have ethical implications, and these should be contemplated before reaching a final decision.

What do managers do to help organizations achieve top performance?

Managers perform a variety of functions in organizations, but amongst one of the most important functions they perform is communicating with direct reports to help their organizations achieve and exceed goals.

What do managers do to help organizations achieve top performance?

Managers perform a variety of roles in organizations, but amongst one of the most important functions they perform is communicating with direct reports to help their organizations achieve and exceed goals. Managers perform three major types of roles within organizations, interpersonal roles, informational roles, and decisional roles. the extent of each of these roles depends on the manager's position within the organizational hierarchy.

How can a manager improve the quality of her individual decision-making?

Managers tend to get better at decision-making with time and experience, which helps them build expertise. Heuristics and satisficing can also be useful techniques for making programmed decisions quickly. For nonprogrammed decisions, a manager can improve the quality of her decision-making by utilizing a variety of other techniques. Managers should also be careful to not skip steps in the decision-making process, to involve others in the process at various points, and to be creative in generating alternatives. They should also engage in evidence-based decision-making: doing research and collecting data and information on which to base the decision. Effective managers also think critically about the quality of the evidence that they collect, and they carefully consider long-term outcomes and ethical implications prior to making a decision.

Mary Parker Follett

Mary Parker Follett (1868-1933) found a way to utilize the tenets of the human relations movement to solve some of the issues with scientific management.

Heuristics

Mental shortcuts that allow a decision maker to reach a good decision quickly. They are strategies that develop based on prior experience.

Nebuchadnezzar

Nebuchadnezzar (605 BC-c. 562 BC) was a pioneer in the development of incentives in that he gave greater rewards to workers who were productive.

Decisional role

One of the three major roles that a manager assumes in the organization.

Informational role

One of the three major roles that a manager assumes in the organization.

Interpersonal role

One of the three major roles that a manager assumes in the organization.

Define the external environment of organizations

Organizations must react and adapt to many forces in their internal and external environments. The context of the firms such as size and geographic location impact how environmental forces affect each organization differently. An understanding of the forces and they currently affecting organizations and pressuring structural change is crucial.

What is the difference between programmed and nonprogrammed decisions?

Programmed decisions are those that are based on criteria that are well understood, while nonprogrammed decisions are novel and lack clear guidelines for reaching a solution. Managers can establish rules and guidelines for programmed decisions based on known fact, which enables them to reach decisions quickly. Nonprogrammed decisions require more time to resolve; the decision maker may need to conduct research, collect additional information, gather opinions and ideas from other people, and so on.

Sun Tzu

Sun Tzu developed subdivisions, various rankings of authority, and the use of colors as coordination between units.

Reflective system

System of decision-making in the brain that is logical, analytical, and methodical.

Reactive system

System of decision-making in the brain that is quick and intuitive.

How did contingency and systems management transform management thought?

Systems management developed the concept that management is an open system in that organizations interact with the environment to gain resources. Since organizations require resources from the environment, this constrains what managers can do. The contingency school explained that there were no universal laws in management, due to a wide variety of variables that influence relationships. Modern management is based on theory.

Frederick Winslow Taylor

Taylor is known as the father of scientific management.

How did Frederick Winslow Taylor influence management theory, and how did efficiency in management affect current management theory?

Taylor was the man that added the scientific method to management. He developed the four principles of scientific management and the notion of time study. Henry Gantt developed his famous chart, which allowed managers to track what was done versus supposed to be done. Frank and Lillian Gilbreth added motion study to Taylor's time management.

Hammurabi

The Code of Hammurabi was a listing of 282 laws that regulated conduct on a wide variety of behaviors, including business dealings, personnel behavior, interpersonal relations, punishments and a wide variety of other outcomes.

How did the Italian Renaissance affect the progression of management theory?

The Crusades and various travelers brought new knowledge from both the Muslim and Chinese societies. In addition, there was a rediscovery of trade throughout Europe. These factors led to the establishment of the Renaissance that took place initially in Italy. The development of the printing press saw a distribution of these ideas across Europe. The Renaissance saw a reemergence of trade. The Renaissance also saw the development of the idea of the corporation and double-entry accounting. In fact, some of the first multinational corporations have their genesis in the Italian Renaissance.

Industrial Revolution

The Industrial Revolution occurred between roughly 1760 and 1900 and saw the emergence of the modern factory.

How did the Industrial Revolution affect the progression of management theory?

The Industrial Revolution was a product of a combination of factors, including the spread of learning from the Italian Renaissance, the improvement of transportation, the Market Revolution, and technology. In addition, scholars such as Adam Smith provided support for the ideas of division of labor, specialization, and coordination within a corporation, allowing for the development of factories. This economic shifted created the need for managers.

Italian Renaissance

The Italian Renaissance was a major leap of knowledge and learning that had economic and business implications.

Emotional intelligence

The ability to understand and manage emotions in oneself and in others

Decision-making

The action or process of thinking through possible options and selecting one.

What are the two systems of decision-making in the brain?

The brain processes information to make decisions using one of two systems: either the logical, rational (reflective) system or the quick, reactive system. The reflective system is better for significant and important decisions; these generally should not be rushed. However, the reactive system can be lifesaving when time is of the essence, and it can be much more efficient when based on developed experience and expertise.

Bounded rationality

The concept that when we make decisions, we cannot be fully rational because we don't have all the possible information or the cognitive processing ability to make fully informed, completely rational decisions.

Contingency school

The contingency school explained that there were no universal laws in management, due to a wide variety of variables that influence relationships and create unique situations, and that each situation required a different response.

Functional structure

The earliest and most used organizational designs.

Creativity

The generation of new or original ideas.

first-line management

The level of management directly managing nonmanagerial employees

middle management

The managers in an organization at a level just below that of senior executives.

Organic organizational structures

The opposite of a functional organizational form that works best in unstable, complex changing environments.

Domain

The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise's purpose.

Groupthink

The tendency of a group to reach agreement very quickly and without substantive discussion. Suppression of dissent

Escalation of commitment

The tendency of decision makers to remain committed to poor decision, even when doing so leads to increasingly negative outcomes.

Confirmation bias

The tendency to pay attention to information that confirms our existing beliefs and to ignore or discount information that conflicts with our existing beliefs.

Frank and Lillian Gilbreth

Their major contribution was motion studies.

What barriers exist that make effective decision-making difficult?

There are numerous barriers to effective decision-making. Managers are limited in their ability to collect comprehensive information, and they are limited in their ability to cognitively process all the information that is available. Managers cannot always know all the possible outcomes of all the possible options, and they often face time constraints that limit their ability to collect all the information that they would like to have. In addition, managers, like all humans, have biases that influence their decision-making, and that can make it difficult for them to make good decisions. One of the most common biases that can confound decision-making is confirmation bias, the tendency for a person to pay attention to information that confirms her existing beliefs and ignore information that conflicts with these existing beliefs. Finally, conflict between individuals in organizations can make it challenging to reach a good decision.

Unity of command

Unity of command stresses that each worker should have only one supervisor.

Describe management in the ancient world.

We can track the concept of management from its development under the Sumerians. The Sumerians provided the concepts of writing and record keeping that allowed for an urban economy to develop, which in turn led to the establishment of small businesses. The Egyptians helped to pioneer the ideas of specialization of labor, span of control, and hierarchy of command. Sun Tzu developed subdivisions, various rankings of authority, and coordination. The Greeks and Romans built forerunners of the modern corporation and guilds.

Max Weber

Weber developed the idea that organizations should be formalized and legalistic in their operations.

Suppression of dissent

When a group member exerts his or her power to prevent others from voicing their thoughts or opinions.

Zone of indifference

Workers would comply with orders if they were indifferent to them. This does not mean they have to agree with the orders. Rather the zone of indifference suggests that workers need merely to be indifferent to an order to follow it.

Explain how organizations organize to meet external market threats and opportunities

You should understand and identify the six types of organizational structures, and the advantages and disadvantages of each structure: Functional Divisional Matrix Geographic Networked Team Virtual You should also understand why the internal dimensions of an organization matter with regard to how it fits with its external environment.

Compromise

in a compromise, neither side gets what it wants. The best each side could get is what each can agree too.