MGT 370 Chapter 7-15 Reading Notes

An important distinction in many organizations is between ____ and ____ authority, reflecting whether managers work in line departments or staff departments in the organization's structure.

-line -staff

what are the OD steps ?

1. unfreezing 2. changing 3. refreezing

Another fundamental characteristic of organization structure is ____, which is the basis for grouping positions into departments and departments into the total organization.

departmentalization

With a ______, the organization attempts to develop innovative products unique to the market.

differentiation strategy

refers to innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books.

disruptive innovation

The primary difference between divisional and functional structures is that in a ______ , the chain of command from each function converges lower in the hierarchy

divisional structure

The _____ employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks.

divisional structure groups

What two underlying principles are associated with the concept chain of command ?

-Unity of command -Scalar principle

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

delegation

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

small batch production

Organizations perform a wide variety of tasks. A fundamental principle is that work can be performed more efficiently if employees are allowed to ____

specialize.

includes the right to advise, recommend, and counsel in the staff specialists' area of expertise. Staff authority is a communication relationship; staff specialists advise managers in technical areas.

staff authority

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

staff departments

Structural Advantages and Disadvantages

-Functional: Advantages:(Efficient use of resources; economies of scale, In-depth skill specialization and development, Top manager direction and control) Disadvantages: (Poor communication across functional departments, Slow response to external changes; lagging innovation, Decisions concentrated at the top of hierarchy, creating delay -

_____ is appropriate for a cost leadership strategy, which typically occurs in a stable environment.

A mechanistic, vertical structure

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

Accountability

technology is distinguished by standardized production runs. A large volume of products is produced, and all customers receive the same product.

mass production

______ is needed for a differentiation strategy and when the organization needs flexibility to cope with an uncertain environment.

An organic, horizontal approach

the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.

Authority

A strategy to obtain innovation by buying other companies, recognizing that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms.

Innovation by acquisition

____ pertain to the hierarchical level at which decisions are made.

Centralization and decentralization

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.

Collaboration

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

Coordination

With a divisional structure, also called an _____ , separate divisions can be organized with responsibility for individual products, services, product groups, major projects or programs, divisions, businesses, or profit centers

M-form (multidivisional) or a decentralized form

_____uses both functional and divisional chains of command simultaneously, in the same part of the organization.

Matrix approach

a functional or product supervisor responsible for one side of the matrix.

Matrix boss

The characteristics of vertical structure are portrayed in the ____, which is the visual representation of an organization's structure.

Organization Chart

is a planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organization's health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem-solving capabilities.

Organization development

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

Organization structure

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

Organizing

a group of employees from all functional areas permanently assigned to focus on a specific task or activity

Permanent teams

this characteristic of structure determines how closely a supervisor can monitor subordinates

The span of management is the number of employees reporting to a supervisor. Sometimes called the span of control,

The success of the matrix structure depends on the abilities of people in key matrix roles. _______ , those who report to two supervisors simultaneously, must resolve conflicting demands from the matrix bosses.

Two-Boss employees

_____ is the degree to which organizational tasks are subdivided into separate jobs.

Work specialization, sometimes called division of labor

means incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations.

ambidextrous approach

means encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives

bottom up approach

means that decision authority is located near top organization levels.

centralization

_____ is an unbroken line of authority that links all employees in an organization and shows who reports to whom.

chain of command

the entire workflow is mechanized in a sophisticated and complex form of production technology. Because the process runs continuously, it has no starting and stopping.

continuous process production

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

coordination

With a _____, the organization strives for internal efficiency.

cost leadership strategy

the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization.

creativity

composed of employees from about the same hierarchical level, but from different areas of expertise.

cross functional teams

an open innovation approach used by many companies, taps into ideas from around the world and lets thousands or hundreds of thousands of people participate in the innovation process, usually via the Internet.

crowd sourcing

In the United States and Canada, the trend over the past 30 years has been toward greater ______ of organizations

decentralization

means that decision authority is pushed down to lower organization levels.

decentralization

involves designing the organization to encourage creativity and the initiation of new ideas.

exploration phase

is characterized by an overall broad span of management and relatively few hierarchical levels.

flat structure

The matrix can be highly effective in a complex, rapidly changing environment in which the organization needs to be _____

flexible, innovative, and adaptable

In a ______ activities are grouped together by common function from the bottom to the top of the organization. As these structure groups positions into departments based on similar skills, expertise, work activities, and resource use.

functional structure, also called a U-form (unitary structure),

An alternative for assigning divisional responsibility is to group company activities by _____

geographic region or customer group

means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products.

horizontal linkage model

a person who sees the need for and champions productive change within the organization.

idea champion

an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics.

idea incubator

Innovation often requires _____ because it takes the combined expertise of a number of different team players, each with their own areas of specialization, to come up with a single creative, yet realistic, solution.

internal coordination

an OD approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change.

large-group intervention

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

line authority

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

line departments

a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation. New venture teams give free rein to members' creativity because their separate facilities and location unleash people from the restrictions imposed by organizational rules and procedures.

new venture team

Provides resources from which individuals and groups can draw to develop new ideas, products, or businesses

new-venture funds

defined as the adoption of a new idea or behavior by an organization

organization change

Many people prefer the status quo and tend to resist change. The biggest obstacle to organizational change is the fear of _____

personal loss

a change in the organization's product or service outputs.

product change

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

project manager

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

reengineering

refers to "frequent, timely, problem-solving communication carried out through [employee] relationships of shared goals, shared knowledge, and mutual respect."

relational coordination

the flip side of the authority coin; it refers to the duty to perform the task or activity that one has been assigned.

responsibility

Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.

reverse innovation

refers to a clearly defined line of authority in the organization that includes all employees

scalar principle

why do people resist change?

self interest, lack of understanding/trust, uncertainty and different assessment/goals

characterized by intangible outputs and direct contact between employees and customers.

service technology

The top-secret Google X lab is an example of a ____

skunk works

one variation of a new-venture team, a separate small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for a business.

skunkworks

With _____ , OD change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results.

survey feedback

The average span of control used in an organization determines whether the structure is ____

tall or flat

is characterized by an overall narrow span of management and a relatively large number of hierarchical levels.

tall structure

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

task force

gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment

team approach

is one in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals.

team based structure

an OD intervention that enhances cohesiveness by helping groups of people learn to work together as a team.

team building

The difference among the three manufacturing technologies is called technical complexity. Technical complexity is the degree to which machinery is involved in the production to the exclusion of people.

technical complexity

a change in the organization's production process—how the organization does its work. Technology changes are designed to make the production of a product or service more efficient.

technology change

oversees both the product and the functional chains of command and is responsible for the entire matrix.

top leader

When managers have authority exceeding responsibility, they may become ___, using authority to achieve frivolous outcomes.

tyrants

The model works because it enhances the company's customer responsiveness, even though it violates the principle of ______

unity of command

means that each employee is held accountable to only one supervisor

unity of command

A method of departmentalization that extends the idea of horizontal coordination and collaboration beyond the boundaries of the organization

virtual network approach

With a _____, the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.

virtual network structure