Business X100: EXAM 2 Chapter 8

empower

(v.) to give power or authority to; to enable; to permit

Bench Marking

Compares an organization's practices, process, and products against the world's best

Which management principle is challenged by matrix-style organization?

The flexibility inherent in the matrix-style organization directly challenge the rigid line and line-and-staff organization structures.

organizational culture

The underlying beliefs, assumptions, values, and ways of interacting that contribute to the unique social and psychological environment of an organization

In what way are Line and Line-Staff Organization structures inflexible

There is a structure that flows from top to bottom and certain things might not be able to be addressed in the appropriate time due to time and chain of command.

Delagate

To divide up, especially responsibilities

Centralization concentrates decision-making authority where?

Top management

line-and-staff organization

managers have direct control over the units and employees they supervise but have access to staff specialists for assistance

Cross functional team structure

members come from different functional departments, report to functional manager and project manager

Virtual team structure

members who are geographically dispersed but communicate electronically

Functional Departmentalization

organizing work and workers into separate units responsible for particular business functions or areas of expertise

Disadvantages of tall structure

- Communication and decision-making can be slow due to the many levels of the structure - The organisation can be slow to react to changes in the market - The narrow span of control means that staff can be put under pressure due to the close supervision of managers - The span of control also means that there is less delegation, meaning that employees feel less trusted and therefore less motivated - Employee innovation is less common as workers rarely get to communicate with the senior managers and owners - Higher costs due to the high number of levels

Advantages of a tall structure

- Each staff member has a clearly defined role and knows who to report to - There are many promotion opportunities, which motivates staff and helps the business to retain employees - The narrow span of control gives managers more time for planning, supervision and decision-making as they have less subordinates to supervise - The span of control also allows managers to better support subordinates

Advantages of decentralized decision making

- Encourages company employees to exercise initiative and act responsibly - Promotes greater motivation and involvement in the business on the part of more company personnel - Spurs new ideas and creative thinking - Allows for fast response to market change - Entails fewer layers of management

Disadvantages of flat structure

- Fewer promotion opportunities so quality staff may leave to gain promotion elsewhere - Due to the lack of management levels, staff are delegated more tasks, putting them under more pressure - The wide span of control means that managers have less time to make decisions and plan due to the higher number of subordinates they have to supervise - Subordinates may also receive less support from their managers

Advantages of Centralized decision making

- Fixes accountability through tight control from the top - Eliminates potential for conflicting goals and actions on the part of lower-level managers - Facilitates quick decision making and strong leadership under crisis situations

Advantages of flat structure

- Information can be communicated quickly between levels - The organisation can make decisions and respond quickly to external factors - The wide span of control means that delegation is more common, raising employee motivation and staff morale - Employee innovation is more common, meaning staff feel more empowered - Staff feel less under pressure due to the fact that managers supervise less closely

Disadvantages of centralized decision making

- Lengthens response times by those closest to the market conditions because they must seek approval for their actions - Does not encourage responsibility among lower-level managers and rank-and-file employees - Discourages lower-level managers and rank-and-file employees from exercising any initiative

Disadvantages of narrow span of control

-Less empowerment -Higher costs -Delayed decision making -Less responsiveness to customers

Disadvantages of decentralized decision making

-May result in higher-level managers being unaware of actions taken by empowered personnel under their supervision -Can lead to inconsistent or conflicting approaches by different managers and employees -Can impair cross-unit collaboration

advantages of narrow span of control

-More control by top management -More chances for advancement -Greater specialization -Closer supervision

advantages of broad span of control

-Reduced costs -More responsiveness to customers -Faster decision making -More empowerment

Advantages of Matrix Organization

1.) It gives managers flexibility in assigning people to projects. 2.) It encourages interorganizational cooperation and teamwork. 3.) It can produce creative solutions to product development problems. 4.) It makes efficient use of organizational resources.

disadvantages of broad span of control

1. Fewer chances for advancement 2. Overworked managers 3. Loss of control 4. Less management expertise

disadvantages of matrix organization

1.) It's costly and complex. 2.) It can confuse employees about where their loyalty belongs—with the project manager or with their functional unit. 3.) It requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems. 4.) It may be only a temporary solution to a long-term problem.

Tall Structure

A hierarchical or 'tall' structure has many leaders and layers of management. Span of control is more narrow.

Why are many people turning to Matrix organization?

A matrix organizational structure allows multiple departments to easily communicate and collaborate on a project. Because employees answer to multiple managers as opposed to just the functional manager, issues are resolved more quickly and company-wide interaction is increased.

Digital Natives

A person born or brought up during the age or digital technology

Restructuring

A reorganization of a company with a view to achieving greater efficiency and profit.

Chain of command

A series of executive positions in order of authority

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure. Temporary or permanent reporting of one employee to two persons

line organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

Product Departmentalization

An organizational strategy that divides employees into teams to work on all aspects of a particular project or product line.

decentralized decision making

An organizational structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

centralized decision making

An organizational structure in which decision-making authority is maintained at the top level of management at the company's headquarters.

Flat Structure

An organizational structure that has significantly fewer management layers and significantly wider spans of management control than another organization. Span of control is more broad.

Why might a flight attendant at United Airlines prefer decentralized decision making with respect to customer policies?

Because it would take to long to resolve the issue or want from the customer so lower-level management is easier to make the fast decisions

Customer Departmentalization

Dividing an organization to offer products and meet needs for identifiable customer groups.

What type(s) of team structure will be used in this class this semester?

Functional, self-managed, virtual

Why is coordination at the upper levels of the organization important for the successful implementation of matrix organization structure?

It is important because without coordination and employees being able to talk to more than 1 supervisor things might get chaotic.

Difference between line organization and line-staff organization?

Line is a direct flow from top to bottom and line staff is the same thing but employees report to more than just one supervisor.

Decentralization requires for decision-making responsibility and authority to be dispersed to who?

Lower management, to empower them.

Geographic Location Departmentalization

Organizing work and workers into separate units responsible for doing business in particular geographic areas.

What is done to "flatten" an organizational structure

Radically flatten the structure to minimize layers and increase speed. Empower employees, using delegation to make sure employees understand their roles.

When is centralization vs. decentralization better?

Small organizations typically benefit from centralized organizational structures because owners often remain at the forefront of business operations. Larger organizations usually require a more decentralized structure since such companies can have several divisions or departments.

Functional Team Structure

all team members belong to same function departments

Self-Managed team structure

employees with the skills and ability to manage