Management Ch 7-9

Organizing
refers to the deployment of organizational resources to achieve strategic goals
Organization structure
the framework in which the organization defines how tasks are divided, resources are deployed, and departments are coordinated
Organization chart
the visual representation of an organization’s structure
Work specialization
sometimes called division of labor, is the degree to which organizational tasks are subdivided into individual jobs
Chain of command
an unbroken line of authority that links all individuals in the organization and specifies who reports to whom
Authority
the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes desired by the organization
Responsibility
the flip side of the authority coin; it refers to the duty to perform the task or activity that one has been assigned
Accountability
means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
Delegation
when managers transfer authority and responsibility to positions below them in the hierarchy
Line authority
refers to the formal power to direct and control immediate subordinates, or staff authority
Staff authority
refers to the right to advise, counsel, and recommend in the manager’s area of expertise
Span of management
sometimes called span of control, refers to the number of employees reporting to a supervisor
Tall structure
is characterized by an overall narrow span of management and a relatively large number of hierarchical levels
Flat structure
is characterized by an overall broad span of management and relatively few hierarchical levels
Decentralization
means that decision authority is pushed down to lower organization levels
Centralization
means that decision authority is located near top organization levels
Departmentalization
the basis for grouping individual positions into departments and departments into the total organization
Functional structure
groups employees into departments based on similar skills, tasks, and use of resources
Divisional structure
groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks
Matrix approach
uses both functional and divisional chains of command simultaneously, in the same part of the organization
Two-boss employees
report to two supervisors simultaneously
Matrix boss
a functional or product supervisor responsible for one side of the matrix
Top leader
oversees both the product and the functional chains of command and is responsible for the entire matrix
Cross-functional team
a group of employees from various functional departments that meet as a team to resolve mutual problems
Permanent team
a group of employees from all functional areas permanently assigned to focus on a specific tasks or activity
Team-based structure
one in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish organizational goals
Virtual network structure
the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization
Modular approach
one in which a manufacturing company uses outside suppliers to provide large chunks or a product such as an automobile, which are then assembled into a final product by a few employees
Coordinating
refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments
Collaboration
means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose
Task force
a temporary team or committee formed to solve a specific short-term problem involving several departments
Project manager
a person responsible for coordinating the activities of several departments for the completing of a specific project
Reengineering
refers to the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed
Relational coordination
refers to frequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect
Small-batch production
a type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification
Mass production
characterized by long production runs to manufacture a large volume of products with the same specifications
Continuous process production
involves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries
Technical complexity
refers to the degree to which complex machinery is involved in the production process to the exclusion of people
Service technology
characterized by intangible outputs and direct contact between employees and customers
Organizational change
the adoption of a new idea or behavior by an organization
Disruptive innovation
refers to the innovations in products, services, or processes that radically change competition in an industry, such as the advent of streaming video or e-books
Ambidextrous approach
means incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations
Product change
a change in the organization’s products or services
Technology change
refers to a change in production processes-how the organization does its work
Exploration
involves designing the organization to encourage creativity and the initiation of new ideas
Creativity
the generation of novel ideas that may meet perceived needs or respond to opportunities for the organization
Idea incubator
an organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics
Horizontal linkage model
means that several departments, such as marketing, research, and manufacturing, work closely together to develop new products
Open innovation
extends the search for and commercialization of innovative ideas beyond the boundaries of the organization
Crowdsourcing
an open innovation approach that taps into ideas from around the world and lets thousands or hundreds of thousands of people participate in the innovation process, usually via the Internet
Idea champion
a person who sees the need for change and is passionately committed to making it happen
New-venture team
one structural mechanism that promotes entrepreneurship that is a unit separate from the mainstream organization that is responsible for initiating and developing innovations
Skunkworks
a variation of the new-venture team that is a separate informal, highly autonomous, and often secretive group that focuses on breakthrough ideas
New-venture fund
provides financial resources from which individuals or teams can draw to develop new ideas, products, or businesses
People change
refers to a change in the attitudes and behaviors of a few employees
Culture change
a major shift in the norms, values, and mindset of the entire organization
Organization development (OD)
a planned, systematic process of change that uses behavioral science techniques to improve an organization’s health and effectiveness through its ability to cope with environmental changes, improve internal relationships, and increase learning and problem-solving capabilities
Team building
an OD intervention that enhances cohesiveness by helping groups of people learn to work together as a team
Survey feedback
OD change agents survey employees to gather their opinion regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results
Large-group intervention
an OD approach that brings together people from different parts of the organization (and often including outside stakeholders) to discuss problems or opportunities and plan for change
Unfreezing
the stage in which people are made aware of problems and the need for change
Change agent
an OD specialist who contracts with an organization to help managers facilitate change
Changing
the “intervention” stage of OD, when change agents teach people new behaviors and skills and guide them in using them in the workplace
Refreezing
people have incorporation new values, attitudes, and behaviors into their everyday work and the changes become institutionalized in the culture
Need for change
a disparity between actual and desired performance
Force-field analysis
a technique for determining which forces drive a proposed change and which forces restrain it
Human resource management (HRM)
refers to the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals
Human capital
refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees
Discrimination
means making hiring and promotion decisions based on criteria that are not job-relevant
Affirmative action
requires that employers take positive steps to guarantee equal employment opportunities for people within protected groups
Employer brand
similar to a product brand except that it promotes the organization as a great place to work, rather than promotion a specific product or service
Contingent workers
are people who work for an organization, but not on a permanent or full-time basis, including temporary placements, independent contractors, freelancers, and part-time employees
Telecommuting
means using computers and telecommunications equipment to perform work from home or another remote location
Human resource planning
refers to the forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies
Matching model
a human resources approach in which the organization and the individual attempt to match each other’s needs, interests, and values
Recruiting
refers to activities or practices that define the desired characteristics of applicants for specific jobs
Selection
the process of assessing the skills, abilities, and other attributes of applicants in an attempt to determine the fit between the job and each applicant’s characteristics
Application form
a selection device that collects information about the applicant’s education, previous work experience, and other background characteristics
Assessment center
used to select individuals with high managerial potential based on their performance on a series of simulated managerial tasks
Work sample tests
managers may administer these to applicants for frontline positions to evaluate their performance in completing simulated tasks that are a part of the job
On-the-job-training (OJT)
an experienced employee is asked to teach a new employee how to perform job duties
Social learning
refers to using social media tools to network and learn informally
Corporate university
an in-house training and development facility that offers broad-based learning opportunities for employees
Performance appraisal
the process of observing and evaluating an employee’s performance, recording the assessment, and providing feedback
360-degree feedback
uses multiple raters, including self-rating, to appraise employee performance and guide development
Stereotyping
a performance evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics
Halo effect
occurs when a manager gives an employee the same rating on all dimensions of the job, even though performance may be good on some dimensions and poor on others
Behaviorally anchored rating scale (BARS)
a performance evaluation technique that relates an employee’s performance to specific job-related incidents
Compensation
refers to all monetary payments and all nonmonetary goods or benefits used to reward employees
Job evaluation
the process of determining the value of jobs within an organization through an examination of job content
Wage and salary surveys
show what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization
Pay-for-performance
also called incentive pay, means tying at least a portion or compensation to employee effort and performance
Rightsizing
also called downsizing, refers to reducing the company’s workforce intentionally to the point where the number of employees is deemed right for the company’s current situation
Exit interview
an interview conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization
Diversity
defined as all the ways in which employees differ
Inclusion
the degree to which an employee feels like an esteemed member of a group in which his or her uniqueness is highly appreciated
Diversity of perspective
is achieved when a manager creates a heterogeneous team made up of individuals with diverse backgrounds and skill sets
Managing diversity
which means creating a climate in which the potential advantages of diversity for organizational performance are maximized while the potential disadvantages are minimized
Prejudice
the tendency to view people who are different as being deficient
When does discrimination occur?
when someone acts out their negative attitudes toward people who are the targets of their prejudice
Stereotype
a rigid, exaggerated, irrational belief associated with a particular group of people
Stereotype threat
occurs when a person who, when engaged in a task, is aware of a stereotype about his or her identity group suggesting that he or she will not perform well on that task
Ethnocentrism
the belief that one’s own group is inherently superior to other groups
Monoculture
a culture that accepts only one way of doing things and one set of values and beliefs
Ethnorelativism
the belief that groups and subcultures are inherently equal
Pluralism
describes an environment in which the organization accommodates several subcultures, including employees who would otherwise feel isolated and ignored
Glass ceiling
an invisible barrier that separates women and minorities from senior management positions