Chapter 7 Creating a Flexible Organization

What are the 2 main reasons why large organizations prefer to not use a chart?

1) Its difficult to chart even a few dozen positions, much less thousands. 2) larger organizations are almost always changing parts of their structure, therefore a chart would change before even being completed.

What are 3 ways to reduce the negative effects of job specialization?

1. Job rotation 2. Job enlargement 3. Job enrichment

Ad hoc committee

A committee created for a specific short-term purpose

Task force

A committee established to investigate a major problem or pending decision

Organization chart

A diagram that represents the positions and relationships within an organization.

Informal group

A group created by members themselves to accomplish goals that may or may not be a relevant to an organization

Organization

A group of two or more people working together to achieve a common set of goals.

What are the 3 steps in delegation?

A manager must.. 1. Assign responsibility 2.Grant authority 3.Create accountability

Functional authority

A stronger form. The authority of staff managers to make decisions an issue directors about their areas of expertise.

Why/how is Job specialization needed?

A) the "job" of most organizations is too large for one person to handle. B) when a worker has to learn one specific, highly specialized task, that individual can learn it quickly and perform it better. C) a worker repeating the same job does not lose time changing operations.

What are the advantages of matrix structures?

Add it to flexibility, increasing productivity, raise morale, and nurture creativity and innovation

Line manager

Air position in which a person makes decisions and gives orders to sub ordinate to achieve the organizations goals.

Standing committee

Air relatedly permanent committee charged with performing some reoccurring task

Decentralized organization

An organization in which management conscioucly attempts to spread authority widely in the lower levels of the organization.

Centralized organization

An organization that systematically works to concentrate authority at the upper levels of the organization.

Matrix structure

An organizational structure that combines vertical and horizontal lines of authority, usually by superimposing product departmentalization a functionally departmentalized organization Page 201; Figure 7-6

Grapevine

And formal communications network within an organization

Network structure

And organizational structure in which administration is the primary function, and most other functions are contracted out to other firms.

Line structure

And organizational structure in which the chain of command goes directly from person to person throughout the organization.

Line-and-staff structure

And organizational structure that utilizes the chain of command for my line structure in combination with the assistance of staff managers. This is most common in larger organizations.

Fragmented culture

Are a reflect and self contained introvert, have a high autonomy drive and strong desire to work independently, have a strong sense of self

Delegation

Assigning part of a managers work and power to other workers.

Why is Delegation important?

Because no manager can do everything by oneself and because its vital in developing the skills and abilities of subordinates.

What are the negative effects of Job specialization?

Boredom from repeating the same job, and bored employees may be absent from work frequently, not put much effort into their work, and even sabotage the company's efforts to product quality products.

What are the most common bases for organizing a business into effective departments?

By function, by product, by location, and by customer.

What are the disadvantages of using committees?

Committee deliberations take longer than individual actions and unnecessary compromise may take place within the committee or the opposite maker as one person dominates the committee process

Who works for the organization that is NOT part of the direct chain of commands, and what positions do they hold?

Directors of legal services, Director of human resources, and public affairs; they hold Advisory and Staff positions.

Cons of a network structure

Does not manufacture the product itself, as if you were a permanent employees consisting of top management an hourly clerical workers, at least facilities and equipment as well as temporary workers are increased or decreased as organizations need change, there is limited formal structure.

Cross functional team

Eight team of individuals with varying specialties, expertise, and skills that are brought together to achieve a common task.

Network culture

Extrovert energized by relationships, tolerant of ambiguities and have low needs for structure, can spot politics and act to stop "negative" politics, consider yourself easygoing, affable, and loyal to others

What happens if the span of management is wide?

Fewer levels are needed an organization is flat

Pros of a network structure

Flexibility that allows organization to adjust quickly to change, consist of a lot of teams working together, it's more likely to survive the loss of an important member.

Mercenary culture

Goal oriented and have an obsessive desire to complete tasks, driver on competitive energy, keep relationships out of work and develop them

Departmentalization by location

Grouping activities according to the defined geographic area in which they are performed.

Departmentalization by customer

Grouping activities according to the needs of various customer populations.

Departmentalization by product

Grouping activities related to a particular product or service.

Departmentalization by function

Grouping jobs that relate to the same organizational activity.

What are the disadvantages for matrix structures?

Having a please report to more than one supervisor can cause confusion about who is in charge, teams may take longer to resolve problems and issues than individuals working alone, personality clashes, poor communication, undefined individual roles, unclear responsibilities, and difficulties finding ways to reward individual and team performance simultaneously. This structure can also be expensive.

How is the grapevine used in business organization?

Information can be transmitted through the grapevine in any direction up down diagonally or horizontally across the organizational structure. Which means that subordinates may pass information to their bosses and executive me realize something to a maintenance worker or there may be an exchange of information between people who work and totally unrelated departments

What are the pro's and con's of Departmentalization by customer?

Is allows the firm to deal efficiently with unique customers. However, the biggest drawback is that a larger-than-usual administrative staff is needed.

What are the pro's and con's of Departmentalization by location?

It allows the organization to respond readily to the unique demands or requirements of the different locations; however, a large administrative staff and an elaborate control system may be needed to coordinate operations across many locations.

What are the pro's and con's to Departmentalization by product?

It makes decision making easier and provides for the integration of all activities associated with the product; however, it causes duplication of specialized activities such as finance, between departments.

What are the major considerations for organizing a business?

Job design, departmentalization, delegations, span of management, and chain of command.

What is the difference between line and staff managers?

Line managers have Line authority which means that they can make decisions and issue directives relating to the organizations goals. Staff managers seldom have this kind of authority and are usually either advisory authority or functional authority. Also have more access to information.

What is the simplest and oldest form of organizational structure?

Line structure

What are the four basic forms of organizational structure?

Line, line and staff, matrix, and networks.

Project manager

Manager in charge of a team

Why do some managers choose to NOT delegate?

Managers may not trust subordinates to complete the tasks, or because the manager is disorganized and they are not able to plan and assign work effectively.

What happens of the span of management is narrow?

More levels are needed and the resulting organization is tall.

What are the four types of corporate cultures

Network culture, fragmented culture, mercenary culture, communal culture

What is the typical organization of a company?

Page 190; Figure 7-1

Staff managers

Position created to provide support, advice, and expertise within an organization.

What must be done for a cross functional team to be successful?

Team members must be given specific information on the job at each performance and must also develop a sense of cohesiveness and maintain good communication among its members

What is the downside of a line structure?

That line managers are responsible for many activities and therefore must have a wide range of knowledge about all of them. Used for smaller organizations.

What are the disadvantages of Departmentalization by function?

The disadvantages are that it can lead to slow decision making and it tends to emphasize the department over the organization as a whole.

Responsibility

The duty to do a job or perform a task.

Advisory authority

The expectation that line managers will consult the appropriate staff manager when making decisions

Corporate culture

The inner rites, rituals, heroes, and values of a firm

Chain of command

The line of authority that extends from the highest to the lowest levels of an organization.

What are some factors of Decentralized firm?

The more complex and unpredictable the environment, the more likely it is that top management will let lower-level managers make decisions; also, the riskier the decisions are, the greater the tendency to centralize decision making. If managers do not have strong decision making skills, top managers will be reluctant to decentralize.

Organizational height

The number of layers, or levels, of management in a firm

Accountability

The obligation of a worker to accomplish an assigned job or task.

Informal organization

The pattern of behavior and interaction that stems from personal rather than official relationship

Authority

The power, within an organization, to accomplish an assigned job or task.

Departmentalization

The process of grouping jobs into manageable units.

Job specialization

The separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.

What is the fourth major step in organizing a business?

The span of management or span of control.

What are some advantages of using committees?

There are several members are able to bring information and knowledge to the task at hand also committees tend to make more accurate decisions and to transmit the results through the organization more effectively.

In what ways can informal groups affect a business?

They can restrict out. Or they can help managers through tight spots they can also cause disagreement and conflict or they can help to boost morale and job satisfaction. They have the power to either improve or worsen employee performance and productivity

What is the 3rd major step in the organizing process?

To distribute power in the organization.

When does a Wide span of management exist?

When a manager has a larger number of subordinates. Generally it may be wide when: 1. The manager and so ordinates are very competent. 2. The organization has a well established set of standard operating procedures. 3. Few new problems I expected to arise

When does a Narrow span of management exist?

When the manager has only a few subordinates. Should be narrow when: 1. Workers are physically located far from one another. 2. The manager has much work to do in addition to supervising workers. 3. A great deal of inter-action is required between supervisor and workers. 4. No problems arise frequently.

After jobs are designed, they're grouped together into...?

Working units, or Departments.

Communal culture

You consider yourself passionate, strong to identify with something bigger than yourself, enjoy being in teams, prepared to make sacrifices for the greater good