principles of management (chapters 4, 6, 7)

Organizational design

Process of constructing and adjusting an organization's structure to achieve its strategy and goals

Refreezing

involves reinforcing and supporting the change so that it becomes a permanent part of the system

programmed decisions

are routine and repetitive choices made by individuals or organizations in response to frequently occurring situations -decision that is relatively structured or recurs with some frequency (or both) - Routine decisions - low ambiguity

What is the process of grouping jobs according to some logical arrangement? a. Job rotation b. Industrialization c. Centralization d. Departmentalization e. Job enrichment

d. Departmentalization

A company has built a new manufacturing plant to increase production. This scenario illustrates which step in the Lewin model of organization change? a. Entropy b. Reengineering c. Refreezing d. Implementation e. Unfreezing

d. Implementation

Which dimension of the job characteristics approach deals with the perceived importance of the task? a. Skill variety b. Autonomy c. Specialization d. Task significance e. Task identity

d. Task significance

Which of the following concepts suggests that there must be a clear and unbroken line of authority that extends from the lowest to the highest position in the organization? a. Decentralization b. Entropy c. Unity of command d. The scalar principle e. Synergy

d. The scalar principle

Job enrichment

designing or redesigning a job by incorporating motivational factors into it

Which dimension of the job characteristics approach deals with the degree of control the worker has over how the work is performed? a. Skill variety b. Task significance c. Delegation d. Task identity e. Autonomy

e. Autonomy

Learning organization

facilitates the lifelong learning and personal development of all its employees

intuition

feelings, beliefs, and hunches that come readily to mind, require little effort and information gathering and result in on-the-spot decisions

organization change

any substantive modification to some part of the organization

product innovation

changes in physical characteristics/performance of existing products or services

process innovation

changes in the way products or services are manufactured, created, or distributed

incremental innovation

new products/services that modify the existing ones

Decision making

-the act of choosing one alternative from among a set of alternatives - Recognizing + defining the nature of a decision situation, and choosing the best alternative and putting it into practice

steps in rational decision making

1. Recognizing and defining the decision situation 2. Identifying alternatives 3. Evaluating alternatives 4. Selecting the best alternative 5. Implementing the chosen alternative 6. Following up and evaluating the results

Chain of command

A clear and distinct line of authority among the positions in an organization

bounded rationality

A concept suggesting that decision makers are limited by their values and unconscious reflexes, skills, and habits

State of Risk

A condition in which the availability of each alternative and its potential payoffs and costs are all associated with probability estimates

state of uncertainty

A condition in which the decision maker does not know all the alternatives, the risks associated with each, or the likely consequences of each alternative

State of Certainty

A condition in which the decision maker knows with reasonable certainty what the alternatives are and what conditions are associated with each alternative

Which of the following statements is true in the context of decision making under a condition of uncertainty? a. A decision maker clearly knows all the risks associated with alternatives to a problem. b. A decision maker greatly relies on intuition, judgment, and experience. c. A decision maker is able to estimate the payoffs and risks associated with alternatives. d. A decision maker identifies only two alternatives to the decision situation. e. A decision maker puts in the least effort and uses a pre-determined structure for decision making.

A decision maker greatly relies on intuition, judgment, and experience.

The Classical Model of Decision Making

A prescriptive approach to decision making that tells managers how they should make decisions ° Managers are logical and rational ° Optimum decision ° Decisions will be in the organization's best interests

Team organization

An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying hierarchy

Job specialization

It is the degree to which the overall task of the organization is broken down and divided into smaller parts

Satisficing

The tendency to search for alternatives only until one is found that meets some minimum standard of sufficiency - More art than science

external forces

- Come from the organization's general and task environment - Forces the organization to alter the way in which it competes

The administrative model

- Descriptive approach to decision making - decision-making model that argues that decision makers 1. use incomplete + imperfect information 2. are constrained by bounded rationality 3. tend to "satisfice" when making decisions

UPS programmed decision making example:

- How do drivers park? - How to locate the package to deliver? - Where to pump gas? - How to lift and lower packages

Tall organizations

- Narrow spans of control - Foster more communication problems - Expensive because of the larger number of managers involved

Why do people resist change?

- Uncertainty - threatened self-interests - Different perceptions of change effects and outcomes

Flat organization

- Wide spans of control - higher levels of employee morale and productivity - more administrative and supervisory responsibility because there are fewer managers

job rotation

- exposes a worker to a variety of specialized job tasks over time - systematically moving employees from one job to another

job enlargement

-Increases the number of activities in a job -To overcome the boredom of overspecialized work and the difficulty of coordinating work

Reasons for failing to innovate

-lack of resources -failure to recognize opportunities -resistance to change

internal forces

Cause the organization to change its structure and strategy; some internal forces are responses to external pressures

Product departmentalization

Grouping activities around products or product groups

Customer departmentalization

Grouping activities around the type of customers

Location departmentalization

Grouping activities on the basis of defined geographic sites or locations

functional departmentalization

Grouping jobs involving the same or similar activities

Departmentalization

Grouping of jobs according to some logical arrangement

Unfreezing

Individuals must be shown why the change is necessary

Radical Innovation

New products/services that completely replace the existing ones

Autonomy

The degree of control the worker has over how the work is performed

Task identity

The extent to which the worker does a complete or identifiable portion of the total job

Span of control

The number of people who report directly to a particular manager

Skill variety

The number of things a person does in a job

Delegation

The process by which a manager assigns a portion of his or her total workload to others

Coordination

The process of linking the activities of various departments of the organization

Decentralization

The process of systematically delegating power and authority throughout the organization to middle and lower-level managers

Centralization

The process of systematically retaining power and authority in the hands of higher-level managers

reactive change

a piecemeal response to circumstances as they develop

S&L Computer services has separate divisions to focus on the needs of individual consumers, small businesses, and large businesses. This is an example of which type of departmentalization? a. Customer b. Centralized c. Functional d. Location e. Product

a. Customer

What must a decision maker understand in order to make the most effective decision possible? a. The situation driving the decision b. Whether there is a problem or an opportunity c. Whether the decision is programmed or nonprogrammed d. Who is affected by the decision e. Feasible alternatives

a. The situation driving the decision

Professor Chavez needs to choose a biology textbook for her class. Both textbooks under consideration are known for the clarity and extensiveness of their content. When Chavez chooses a textbook, she is making a decision in a state of _____. a. certainty b. irrationality c. imperfect information d. risk e. ambiguity

a. certainty

R&D at Venus Electronics Inc. has created an innovative new device. Management now needs to decide if Venus should launch this device as its next new product. This is an example of a(n) _____ decision. a. nonprogrammed b. structured c. programmed d. operational e. standard

a. nonprogrammed

Bounded rationality is assumed in the _____ model of decision making. a. administrative b. classical c. irrational d. groupthink e. rational

administrative

Work teams

allows an entire group to design the work system it will use to perform an interrelated set of tasks

Non-programmed decisions

also known as non-routine decisions, refer to choices that are unique, unstructured, and typically require a creative or novel approach -a decision that is relatively unstructured - Less frequent decisions

Virtual organization

an approach to an organization design that relies on little to no formal structure

What is the process of systematically retaining power and authority in the hands of higher-level management? a. Decentralization b. Centralization c. Pooled interdependence d. Span of management e. Coordination

b. Centralization

What is one of the factors that makes an alternative infeasible? a. Decrease in expenditure b. Legal barriers c. Low costs d. Increase in production capacity e. Increased satisfactoriness

b. Legal barriers

Which of the following suggests that each person within an organization must have a clear reporting relationship to one and only one boss? a. Flat hierarchy b. Unity of command c. Span of management d. Entropy e. Scalar principle

b. Unity of command

Managers can overcome resistance to change by _____. a. limiting the involvement of employees in the change process b. announcing the change far in advance c. letting employees know about the change only after it has been successfully implemented d. minimizing communication during the change process e. not letting employees know about the change

b. announcing the change far in advance

The term span of management refers to the _____. a. extent to which authority is delegated at the individual level b. number of people reporting to a particular manager c. process of grouping jobs according to some logical pattern d. extent to which authority is systematically delegated to middle and lower levels of management e. number of managers assigned to a department

b. number of people reporting to a particular manager

When the low-indicator light turns red on the frozen drink machine, Kareem follows an established set of procedures to refill and reset the machine. In doing so, he's making a(n) _____ decision. a. intuitive b. programmed c. irrational d. unstructured e. strategic

b. programmed

ProDairy Inc. reduced the prices of its products to combat competitors that were selling dairy products at lower prices. This scenario illustrates a force for change present in the _____ of an organization. a. supply chain b. task environment c. demographic environment d. internal environment e. legal-political environment

b. task environment

At Gamma Inc., there are separate departments of employees who specialize in sales, service maintenance, customer service, and accounting. Which form of departmentalization does Gamma use? a. Location departmentalization b. Customer departmentalization c. Functional departmentalization d. Sequential departmentalization e. Product departmentalization

c. Functional departmentalization

Delta Corp. introduced a new set of policies, giving its employees more flexibility in work hours. This decision was made in response to complaints from employees about fatigue. Which step of the rational decision-making process is illustrated in the scenario? a. Selecting the alternative b. Defining the situation c. Implementing an alternative d. Evaluating decision effectiveness e. Evaluating the possible alternatives

c. Implementing an alternative

What is a piecemeal response to circumstances as they develop? a. Premeditated change b. Planned change c. Reactive change d. Natural change e. Programmed change

c. Reactive change

Which of the following statements is true in the context of decision making under a state of risk? a. The decision maker seldom considers his or her past experience while making the decision. b. The decision maker clearly knows the alternatives. c. The decision maker uses probability estimates to assess alternatives. d. The decision maker has an accurate understanding of the payoffs of all the alternatives. e. The decision maker is least likely to choose a bad alternative.

c. The decision maker uses probability estimates to assess alternatives.

Substantive modification to some part of an organization is known as organization a. synergy b. entropy c. change d. maturity e. implementation

c. change

According to the Lewin model of organization change process, refreezing involves _____. a. the implementation of the change b. informing people about the change c. reinforcing the change so that it becomes a part of the system d. recognizing why the change is necessary e. repeating the organization change process at frequent intervals

c. reinforcing the change so that it becomes a part of the system

Amina, the senior marketing manager, has estimated costs and has forecasted sales for the company's new product. However, there are many unknowns in both the new product development and market conditions that she cannot predict. Amin is making new product launch decisions under a condition of _____. a. ambiguity b. certainty c. uncertainty d. risk e. security

c. uncertainty

Planned change

change that is designed and implemented in an orderly and timely fashion in anticipation of future events

Which stage of the Lewin model of organization change involves managers letting people who will be affected by an impending change know the reasons for the change? a. Recognizing b. Refreezing c. Transforming d. Unfreezing e. Implementing

d. Unfreezing

One of the disadvantages of job specialization is that it _____. a. makes it difficult to develop specialized equipment to assist with a job b. requires workers to handle different tasks at a time c. does not help a worker become proficient at a task d. does not offer challenges or stimulation to workers e. increases the transfer time between tasks

d. does not offer challenges or stimulation to workers

Job _____ was developed as a limited approach specifically intended to increase the total number of tasks workers perform. As a result, all workers perform a wide variety of tasks, which presumably reduces the level of job dissatisfaction. a. deskilling b. rotation c. specialization d. enlargement e. enrichment

d. enlargement

Decisions made by top managers involving strategy, such as mergers and acquisitions, are examples of _____ decisions. a. structured b. frequent c. operational d. nonprogrammed e. programmed

d. nonprogrammed

One of the four coffee machines at Jolanta's coffee shop has broken down three times in two weeks. Jolanta is trying to decide if the problem is a bad machine or if people are just using the machine wrong. Jolanta is currently _____. a. implementing an alternative b. evaluating the results of a chosen alternative c. eliminating feasible alternatives d. recognizing and defining the decision situation e. consulting with other decision makers

d. recognizing and defining the decision situation

According to the job characteristics approach, task identity is _____. a. the extent to which a worker knows how well the job is being performed b. the degree of control a worker has over how the work is performed c. the perceived importance of the task d. the extent to which a worker does a complete portion of the total job e. the number of things a person does in a job

d. the extent to which a worker does a complete portion of the total job

Reasoned judgments

decisions that require time and effort and result from careful information gathering, generation of alternatives, and evaluation of alternatives

Which of the following statements is true about the decision-making process? a. It typically involves only one individual and seldom applies to groups. b. It exclusively applies to problem situations. c. It results in the generation of only one alternative. d. It seldom applies to situations that are positive. e. It requires that the nature of a particular situation be defined.

e. It requires that the nature of a particular situation be defined.

Degan Systems was caught by surprise when new government regulations forced them to stop one of their assembly lines until certain systems were upgraded. As Degan updates the line, they must also find a way to retain both customers and employees during the transition. Degan is experiencing _____ change. a. a force-field analysis of b. sequential c. Planned d. a comprehensive approach to e. Reactive

e. Reactive

Beta LLC has decided to change its promotion and pay policies for technical people who do not wish to become managers. This will allow it to better attract and retain these types of employees. According to the comprehensive approach to change, which step of the change process is this company in? a. Diagnosis of the relevant variables b. Establishment of goals for the change c. Evaluation and follow-up d. Recognition of the need for change e. Selection of appropriate change technique

e. Selection of appropriate change technique

Alpha Motors Inc. was affected by the recession in 2008. The company had to make extensive changes to its organizational structure and design. This scenario illustrates how _____ forces lead management to make changes. a. regulatory b. legal c. technical d. internal e. external

e. external

Tall organizations _____. a. have very few communication problems b. foster employee morale better than flat organizations c. place excessive supervisory responsibilities on managers d. have less managerial expenses than flat organizations e. have more managers than flat organizations

e. have more managers than flat organizations

According to the job characteristics approach, increasing the presence of the five dimensions it identifies will lead to all of the following EXCEPT _____. a. higher-quality performance b. higher satisfaction c. lower absenteeism d. higher motivation e. higher turnover

e. higher turnover

One of the benefits of job specialization is that it _____. a. significantly increases employee satisfaction b. offers new challenges and stimulation to the workers c. eliminates job monotony and fatigue d. decreases boredom and absenteeism among workers e. makes employees proficient at a task

e. makes employees proficient at a task

Modifying the benefits system on a yearly basis to maintain employee satisfaction is most likely to be a _____ change. a. contingency b. reactive c. legal d. general environmental e. planned

e. planned

The classical decision model is a prescriptive approach, meaning that it _____. a. allows no room for flexibility b. provides managers with alternatives c. assumes all decisions are made subjectively d. describes how decisions often are actually made e. tells managers how they should make decisions

e. tells managers how they should make decisions

Authority

power that has been legitimized by the organization

The first step in rational decision making is _____. a. selecting the best alternative b. identifying alternatives c. recognizing and defining the decision situation d. implementing an alternative e. evaluating alternatives Hide Feedback

recognizing and defining the decision situation

Implementing change

the change itself is implemented

Feedback

the extent to which the worker knows how well the job is being performed

Organizational structure

the formal system of task, power, and reporting relationships

Innovation

the managed effort of an organization to develop new products or services or new uses for existing products or services

Task significance

the perceived importance of the task

Steps in the Change Process (Lewin Model)

unfreezing, implementing change, refreezing