Intro to Business Exam 2
How does arbitration work when attempting to settle disputes between management and labor?
process of settling a labor-management dispute by having a third-party make a decision
The grouping of people, tasks, and resources into organizational units is called departmentalization. ________________ departmentalization is based on the goods or services produced or sold by the organizational unit. (For example, in a hospital, there are outpatient/emergency services, pediatrics, cardiology, and orthopedics).
product
What are the 3 main parts of a company mission statement?
purpose, values, and action
A manager's __________________ is the number of employees the manager directly supervises. It can be as narrow as two or three employees or as wide as 50 or more.
span of control
What are tactics that labor can use to pressure a contract settlement?
strike: employees temporarily walk off the job and refuse to work boycott: workers refuse to buy the products of a targeted employer work slowdown: workers perform jobs at a slower than normal pace
What are the advantages of a Matrix Structure?
teamwork, efficient use of resources, flexibility, higher performance, ability to balance conflicting objectives, etc.
Know what they address and what area of employment they relate to: Equal Employment Opportunity Act
federal agency enforcing several discrimination-related laws
When discussing Leadership in Business, there are 5 Primary Sources of Power:
legitimate, reward, coercive, expert, and referent
What is meant by a "virtual corporation"?
A network of independent companies linked by information technology to share skills, costs, and access to one another's markets
What is a contingent worker?
A person who prefers temporary employment, either part-time or full-time.
A dotted line on an organizational chart represents a ______________ reporting relationship.
less formal
What are the similarities and differences between males and females and their approach to leadership in the organization?
Contrary to predictions, research has shown that female managers are not necessarily more nurturing or supportive than male manager. However, research does show that female leaders tend to be more democratic when making decisions and male leaders tend to be more autocratic.
What is a Matrix Structure?
sometimes used along with the line-and-staff structure
Assume that a university wants to hire a new college recruiter. Which of the following would be considered a "Job Specification"?
The college recruiter must hold a Bachelor's degree in human resource management or a related field.
There are several actions that labor unions can take in an effort to resolve a conflict with an employer. One such strategy involves the employees trying to keep customers and others from doing business with employer. This strategy is called ___________________.
a boycott
Which of the following statements is true of a "flat" organizational structure?
a flat organization is a decentralized organization
What is a Grievance in work relations?
a formal complaint by an employee or the union that management has violated some part of the labor contract
Which of the following statements is true of a "tall" organizational structure?
a tall organization has a narrow span of control
what has been proven to be the best predictor of job success?
ability, skill, aptitude, or general knowledge
What are some common arguments that employers use to discourage unionization of its employees?
an employee can always come directly to management with a problem, pay and benefits are very similar to the leading firms in the industry, etc.
contrast: Application forms, tests, interviews, drug tests, references
application forms: common first step; most are online now tests: ability, skill, aptitude, general knowledge relevant to a particular job; usually the best predictor of job success interviews: popular for selection although they are often a poor predictor of job success drug tests: becoming more common references: used often but have been shown to have limited value....why do you think that is?
__________________ is the process of settling a labor-management dispute by having a third party make a decision
arbitration
________________ are directive leaders, allowing for very little input from subordinates. These leaders prefer to make decisions and solve problems on their own and expect subordinates to implement solutions according to very specific and detailed instructions.
autocratic leaders
What are the advantages of group decision making?
bring more information and knowledge to the process, offers diversity, higher-quality decisions, participation of group members
Which of the following is an advantage of the matrix organizational structure?
by pooling the skills and abilities of various specialists, the company can increase creativity and innovation and tackle more complex tasks
Jessica is the marketing manager of a company who is experiencing a technical problem in obtaining the most current sales data from the company database. Jessica contacts the IT specialist of the company to help her solve her problem. What type of power does the IT specialist have over Jessica?
expert power
How do they differ according to decision-making authority and delegation of authority?
centralized: organization in which most decision-making authority is held by upper-level management decentralized: organization in which a great deal of decision-making authority is delegated to levels of management at points below the top
Lizzy is the marketing manager of a company who threatens to fire any employee who does not meet their monthly sales quota. What type of power is Lizzy using over her staff?
coercive power
_______________ is derived from an individual's ability to threaten negative outcomes.
coercive power
Management is the process of guiding the development, maintenance, and allocation of resources to attain organizational goals. Managerial work can be divided into 4 activities. Which of the following is NOT one of these activities?
consulting
The set of attitudes, values, and standards of behavior that distinguishes one organization from another is called ________________. It evolves over time and is based on the accumulated history of the organization, including the vision of the founders.
corporate culture
t/f: Research has shown that female managers are more nurturing and supportive of their subordinates than male managers are.
false
What is the difference between a Centralized Organization and a Decentralized Organization?
decentralized: wide span of control, flat organizational structure centralized: narrow span of control, tall organizational structure
How do they differ according to span of control?
decentralized: wide span of control. This is called a flat organizational structure. centralized: narrow span of control. This is called a tall organizational structure.
Decentralization is the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions. Which of the following is a benefit of a decentralized organization?
decision-making is quicker
define coercive power
derived from a person's ability to threaten negative outcomes
define reward power
derived from a person's control over rewards
define expert power
derived from a person's extensive knowledge in one or more areas
define referent power
derived from a person's personal charisma and the respect and/or admiration the person inspires
define legitimate power
derived from a person's position in the firm
Know what they address and what area of employment they relate to: Age Discrimination in Employment Act
discrimination against people older than 40 years is illegal
Assume that Anthony has been a salesperson for the Beta Company for over 20 years. Because of his experience and success at the company, his coworkers will ask his opinions and advice when handling difficult accounts. This is an example of ____________ power.
expert
Know what they address and what area of employment they relate to: Occupational Safety and Health (OSHA) Act of 1970
federal law setting and enforcing guidelines for protecting workers from unsafe conditions and potential health hazards in the workplace
Know what they address and what area of employment they relate to: Title VII of the Civil Rights Act of 1964
forbids discrimination in all areas of the employment relationship; Outlaws discrimination based on race, gender, religion, and national origin
Know what they address and what area of employment they relate to: Americans with Disabilities Act
forbids discrimination on the basis of disabilities and requires employers to provide reasonable accommodations for disabled employees
What are the differences between formal groups and informal groups in an organization?
formal: sanctioned by the organization and are directed toward accomplishing organizational goals informal: based on social relationships and not sanctioned by the organization
The grouping of people, tasks, and resources into organizational units is called departmentalization. ________________ departmentalization is based on the primary functions performed within an organizational unit (marketing, finance, production, sales, and so on).
functional
What 2 forms of departmentalization does a matrix structure combine?
functional and product
What are the 5 traditional forms of departmentalization?
functional, product, process, customer, and geographic
When discussing Organizational Structures, there are 5 forms of departmentalization:
functional, product, process, customer, and geographic
A __________________ is a formal complaint by an employee or the union that management has violated some part of the contract.
grievance
what are the disadvantages of group decision making?
groups take longer time to reach a solution, may pressure others to conform, lacks accountability
What are the 6 traditional steps in the employee selection process?
initial screening, employment testing, selection interview, background and reference checks, physical examination, and decision to hire
What is the difference between Internal Recruiting and External Recruiting?
internal recruiting: considering present employees as candidates for openings external recruiting: attracting persons outside the organization to apply for jobs
What is a Mission Statement?
it briefly describes the purpose of a company
What is the difference between a Job Analysis, Job Description, and Job Specification? know how to apply to examples
job analysis: A study of the tasks required to do a job well job description: A list of the tasks and responsibilities of a job job specification: A list of the skills, knowledge, and abilities a person must have to fill a job
What are the benefits that Labor Unions stress when organizing a union for a group of employees?
job security, improved benefits, higher pay, and grievance procedures
Know what they address and what area of employment they relate to: Equal Employment Opportunity Commission (EEOC)
legally mandated nondiscrimination in employment on the basis of race, creed, sex, or national origin
Atticus is the Operations Manager of a firm who prepares the weekly work schedule for employees. Toby needs the day off next Saturday to attend a friend's wedding. What type of power does Atticus have over Toby?
legitimate power
What are the 5 Primary Sources of Power possessed by an organizational leader?
legitimate, reward, coercive, expert, and referent
What is meant by a Line and Staff Organization?
line organization: designed with clear lines of authority and communication flowing from the top managers downward; managers have direct authority over all activities staff positions: as the business grow and becomes more complex, the line organization may be enhanced by adding staff positions to complete the "Line and Staff Organization"
In daily operations, people in ______________ are directly involved in the process used to create goods and services
line positions
Be able to identify line functions and staff functions on an organizational chart.
line: president, vp's of something, sales manager, supervisor, etc. staff: assistants to president, specialists of vp's
Be able to identify the 5 types of departmentalization if shown an organizational chart.
look at chapter 7 powerpoint
Be able to identify a Matrix Structure if shown an organizational chart.
look at chapter 7 powerpoint slides
The ________________ combines two different forms of departmentalization, functional and product. This structure brings together people from different functional areas of the organization (such as manufacturing, finance, and marketing) to work on a special project. Each employee has two direct supervisors: the line manager from her or his specific functional area and the project manager.
matrix structure
What are the advantages and disadvantages of narrow and wide spans of control?
narrow: advantages are allows high degree of control and disadvantages are more levels of management mean it's more expensive wide: advantages are fewer level of management and disadvantages are allows for less control
The optimal span of control is determined by the location of the workers. The more locations, the ____________ the span of control.
narrower
What is meant by "span of control" in an organizational structure?
number of people supervised by one manager
look at in-class assignment #2
okayyy
What are the 4 main activities of Management?
planning, organizing, leading, and controlling
what are the disadvantages of a matrix structure?
power struggles, confusion among team members, lack of cohesion
The grouping of people, tasks, and resources into organizational units is called departmentalization. _______________ departmentalization is based on the production process used by the organizational unit. (For example, a furniture production company would have lumber cutting and treatment, furniture finishing, and shipping).
process
define division of labor
process of dividing work into separate jobs and assigning tasks to workers
Assume that Lourdes is a new employee with a company and wants to make a good impression among her coworkers and managers. She notices that many of the respected employees eat lunch at a specific nearby restaurant. She also notices that they come into the office on time in the morning and usually stay about 30 minutes past normal business hours in the evening. Lourdes begins to do the same in hopes that she will be one day be considered for a promotion. This is an example of ___________ power.
referent
Derek is a junior level accountant of a company who is hoping to get promoted to a senior level position. The senior level accountants are going out to a nearby restaurant after work and they invite Derek. Even though Derek is very tired, he goes with them because he wants to be accepted by them. The senior level accountants have what type of power over Derek?
referent power
Define chain of command
reporting relationships within a company
Know what they address and what area of employment they relate to: Family and Medical Leave Act (FMLA) of 1993
requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies
Know what they address and what area of employment they relate to: Equal Pay Act of 1963
requires that men and women be paid the same amount for doing the same job
Assume that the President of a company grants pay raises and bonuses for managers who met their goals. This is an example of ________________.
reward power
Stephanie is the CEO of a company who told the members of the Finance Department that if they volunteered to be a poll worker for the upcoming election, she would provide them with a $300 bonus. What type of power is Stephanie using over the Finance Dept. employees?
reward power
Know what they address and what area of employment they relate to: Fair Labor Standards Act
sets a minimum wage and requires the payment of overtime rates for work in excess of 40 hours per week
What is the difference between solid lines and dotted lines in an organizational chart?
solid line: represents a formal chain of command dotted line: represents a less formal reporting relationship
define specialization of labor
the degree to which the tasks are subdivided into smaller jobs
What is meant by "dotted line reporting"?
the person at the end of that line may not be an immediate and permanent manager, such as in the case of special projects
Define HRM
the process of hiring, developing, motivating, and evaluating employees to achieve organizational goal
Which of the following statements is true of an organization with a wide span of control?
there are fewer levels of management so there is increased efficiency and reduced costs
Which of the following statements is true of an organization with a narrow span of control?
there are fewer subordinates so the manager is more familiar with each individual
Centralization is the degree to which formal authority is concentrated in one area or level of the organization. In a highly centralized structure, ____________________ makes most of the key decisions in the organization.
top management
What are the 3 levels of the Management Pyramid? Also, be able to match typical job titles to the 3 different levels.
top management: CEO/VP's middle management: regional manager, division head, director, etc. supervisory management: supervisor, team leader, etc.
True or False: In a post-Covid future, companies will implement more options for workers to work from home or work remotely
true
True or False: In the United States, organized labor has faced tumultuous times during the last several decades due to declining union membership, loss of factory jobs, dwindling political clout, and the shifting of jobs outside the United States.
true
Be able to explain different compensation systems: wages, salary, incentive programs, bonus
wages: compensation in the form of money paid for time worked salary: compensation in the form of money paid for discharging the responsibilities of a job incentive programs: special compensation program designed to motivate high performance bonus: individual performance incentive in the form of a special payment made over and above the employee's salary
The optimal span of control is determined by the level of skill and motivation of the workers. The higher the skill level and motivation, the ___________ the span of control.
wider
