Management 3100 Test 3
Decision
A choice made from among available alternatives
Four Stages of Life Cycle
Birth Stage Youth Stage Midlife Stage Maturity Stage
Accountability
Managers must report and justify work results to the managers above them
Authority
Refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources
For Profit Organization
These are formed to make money, or profit, by offering products or services
Non Profit Organization
These are formed to offer services to some clients, not to make a profit
Mutual Benefit Organization
These are voluntary collectives whose purpose is to advance members' interests
Organizational Chart
a box-and-lines illustration showing the formal lines of authority and the organizations official positions or work specializations
Matrix Structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures-vertical and horizontal
Espoused Values
are the explicitly stated values and norms preferred by an organization
Mechanistic Organization
authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
Organic Organization
authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
Predictive Modeling
data-mining technique used to predict future behavior and anticipate consequences of change.
NonRational Model of Decision Making
explain how managers make decisions; they assume that decision making is nearly always uncertain and risky, making it difficult for managers to make optimal decisions.
Simple Structure
has the authority centralized in a single person, a flat hierarchy, few rules, and low work specialization
Hierarchy of Authority
is a control mechanism for making sure the right people do the right things at the right time
Organizational Structure
is a formal system of task and reporting relationships that coordinates and motivate an organization's members so that they can work together to achieve the organization's goals
Intuition Model
is making a choice without the use of conscious thought or logical inference
Responsibility
is the obligation you have to perform the tasks assigned to you
Delegation
is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
Satisficing Model
is when managers seek alternatives until they find one that is satisfactory, not optimal
Incremental Model
managers take small ,short-term steps to alleviate a problem
GroupThink
occurs when members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation.
Divisional Structure
people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions
Functional Structure
people with similar occupational specialties are put together in formal groups
Observable Artifacts
physical manifestations such as manner of dress, awards, myths, and stories about the company, rituals, and ceremonies, and decorations, as well as visible behavior exhibited by mangers and employees
Span of Control
refers to the number of people reporting directly to a given manager
Organization Culture
sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members
Bounded Rationality
suggests that the ability of decision makers to be rational is limited by numerous constraints • Such as complexity, time, and money.
Division of Labor
the arrangement of having discrete parts of a task done by different people
Coordinated Effort
the coordination of individual efforts into a group or organization wide effort
Decision Making
the process of identifying and choosing alternative courses of action
Analytics
the term used for sophistical forms of business data analysis
Risk Propensity
the willingness to gamble or to undertake risk for the possibility of gaining an increased payoff.
Common Purpose
unifies employees or members and gives everyone an understanding of the organization's reason for being
Enacted Values
which represent the values and norms actually exhibited in the organization
Four Steps in Rational Decision Making
• Stage 1 o Identify the problem or opportunity • Stage 2 o Think up alternative solutions • Stage 3 o Evaluate alternatives & select a solution • Stage 4 o Implement & evaluate the solution chosen.