Ch.8 MGMT

Disadvantages of Functional Departmentalization

- Cross- department coordination can be difficult -may lead to slower decision making

Advantages of Matrix Departmentalization

- allows companies to efficiently manage large complex tasks - gives much more diverse set of expertise and experience

Advantages of functional Departmentalization

-Allows work done by highly qualified specialists - lowers costs by reducing duplication -makes communication and coordination easier

organic organizations

-Characterized by a broadly defined jobs and responsibilities - decentralized authority and horizontal communication based on task knowledge -better suited to more dynamic environments -focuses on intraorganizational processes - Activities within an organization that transform inputs into outputs valued by customers

Mechanistic organizations

-Characterized by specialized jobs and responsibilities -follows centralized authority and vertical communication -departmentalization, authority, job design best suited to these kinds of organizations - better suited to more stable environments -focuses on organizational structure

Advantages of Product Departmentalization

-allows people to specialize in one area of expertise - makes it easier to assess performance -makes decision making faster

Disadvantages of Product Departmentalization

-duplication -coordination across different product departments

Disadvantages of Geographic Departmentalization

-duplication of resources - difficult to coordinate departments

Disadvantages of Customer Departmentalization

-duplication of resources - workers might please customers but hurt business

Advantages of Customer Departmentalization

-focuses organization on customer needs -allows companies to specialize products and services to customer needs

Advantages of Geographic Departmentalization

-helps companies respond to different markets -reduce costs by locating unique resources closer to customers

Disadvantages of Matrix Duplication

-high level of duplication - confusion and conflict between project bosses - requires much more management skill

Decentralization of organizational authority

-location of a significant authority in the lower levels of the firm -workers closest to the problem authorized to make decisions to solve problems on their own

Departmentalization

Subdividing work and workers into separate organizational units responsible for completing particular tasks

A disadvantage of matrix departmentalization is that it violates the principle of unity of command.

True

Organizational Structure

Vertical and horizontal configuration of departments, authority, and jobs within a company.

Matrix Departmentalization

a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together

Unity of command

a management principle that workers should report to just one boss.

Reengineering

fundamental rethinking and radical design of business processes

Which of the following is a collection of activities that take place among companies to transform inputs into outputs that customers value?

inter organizational process

The central concern of the job characteristic model (JCM) is ______.

internal motivation

Job specialization

job comprises a smaller part of a larger task; easy to learn; low variety; high repetition; efficient and economical for organization but boring repetitive and uninspiring for employees

_____ seeks to overcome the deficiencies of specialized jobs by increasing the number of tasks that a worker performs within one particular job.

job enlargement

________ is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed.

reengineering

_________ is the fundamental rethinking and radical design of business processes.

reengineering

Staff Authority

right to advise others who are not subordinates in the chain of command

Line Authority

right to command immediate subordinates in the chain of command

Job rotation, job enlargement and Job enrichment

seek to modify jobs to keep benefits of specialized jobs and reduce their disadvantages

cons of inter-organizational processes

show difficulty in controlling the quality of work done by network partners, require excessive managerial skills

________ is a job composed of a small part of a larger task or process.

Job specialization

________ is the vertical line of authority that clarifies who reports to whom throughout the organization.

Chain of command

________ is the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

Delegation of Authority

________ means increasing the number of different tasks that a worker performs within one particular job.

Job enlargement

Which of the following is an advantage of product departmentalization?

Makes it easier to assess performance

_______ is the vertical and horizontal configuration of departments, authority, and jobs within a company.

Organizational structure

Virtual organizations

Part of a network of several companies working together to solve customer problems or provide specific products

Organizing work and workers into separate units responsible for producing particular products or services is known as:

Product Departmentalization

Simple Matrix

a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources

complex matrix

a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems

Pros of inter-organizational processes

allowing sharing costs, fast and flexible

Delegation of authority

assignment of authority and responsible to a subordinate to complete managers tasks

_________ is the vertical line of authority that clarifies who reports to whom throughout the organization.

chain of command

Inter-organizational Process

collection of activities among companies to convert inputs into outputs valued by customers

Organizational Process

collection of activities that transform inputs into outputs valued by customers.

line function

contributes in creating or selling the company products

Duplication of resources is a disadvantage of all types of departmentalization except _____.

functional

An organization uses ________ when workers closest to the problem are authorized to solve problems on their own.

decentralization

________ is subdividing work and workers into separate organizational units responsible for completing particular tasks.

departmentalization

task interdependence

level of collective action required to complete a piece of work.

Centralization of organizational Authority

location of max authority at the upper levels of the firm

________ organizations are characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.

mechanistic

An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants is called a(n) ________ organization.

modular

Job design

number, kind, and variety of tasks that individual workers perform in doing their jobs

Which type of organization is characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge?

organic organization

________ is the collection of activities that transform inputs into outputs that customers value.

organizational process

Which term describes the vertical and horizontal configuration of departments, authority, and jobs within a company?

organizational structure

Geographic Departmentalization

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

Functional Departmentalization

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

Customer Departmentalization

organizing work and workers into separate units responsible for particular kinds of customers

Product Departmentalization

organizing work and workers into separate units responsible for producing particular products or services

Modular organizations

outsources noncore business activities to outside companies

Standardization

solving problems by consistently applying the same rules, procedures, and processes

Jennifer Lee works in the legal department of a large pharmaceutical manufacturer. It is her job to do things like advise managers on employment law and review legal contracts. Jennifer's position has what type of authority?

staff

Staff Function

supports line activities

________ is the extent to which collective action is required to complete an entire piece of work.

task interdependence

Decentralization

the location of a significant amount of authority in the lower levels of the organization

Organizational Authority

the right to give commands, take action, and make decisions to achieve organizational objectives

Chain of command

the vertical line of authority that clarifies who reports to whom throughout the organization