Principles of Management ch 9-12

Organizational process
the collection of activities that transform inputs into outputs that customers value
Organizational structure
the vertical and horizontal configuration of departments, authority, and jobs within a company
Functional departmentalization
organizing work and workers into separate units responsible for particular business functions or areas of expertise
Departmentalization
subdividing work and workers into separate organizational units responsible for completing particular tasks
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
Matrix departmentalization
a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together
Geographic departmentalization
organizing work and workers into separate units responsible for doing business in particular geographic areas
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
Simple matrix
a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
Chain of command
the vertical line of authority that clarifies who reports to whom throughout the organization
Authority
the right to give commands, take action, and make decisions to achieve organizational objectives
Line authority
the right to command immediate subordinates in the chain of command
Unity of command
a management principle that workers should report to just one boss
Line function
an activity that contributes directly to creating or selling the company’s products
Staff authority
the right to advise, but not command, others who are not subordinates in the chain of command
Delegation of authority
the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible
Staff function
an activity that does not contribute directly to creating or selling the company’s products, but instead supports line activities
Decentralization
the location of a significant amount of authority in the lower levels of the organization
Centralization of authority
the location of most authority at the upper levels of the organization
Job design
the number, kind, and variety of tasks that individual workers perform in doing their jobs
Standardization
solving problems by consistently applying the same rules, procedures, and processes
Job rotation
periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
Job specialization
a job composed of a small part of a larger task or process
Job enrichment
increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work
Job enlargement
increasing the number of different tasks that a worker performs within one particular job
Internal motivation
motivation that comes from the job itself rather than from outside rewards
Job characteristics model (JCM)
an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes
Task identity
the degree to which a job, from beginning to end, requires the completion of a whole and identifiable piece of work
Skill variety
the number of different activities performed in a job
Autonomy
the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job
Task significance
the degree to which a job is perceived to have a substantial impact on others inside or outside the organization
Mechanistic organization
an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication
Feedback
the amount of information the job provides to workers about their work performance
Intraorganizational process
the collection of activities that take place within an organization to transform inputs into outputs that customers value
Organic organization
an organization characterized by broadly defined jobs and responsibility; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge
Task interdependence
the extent to which collective action is required to complete an entire piece of work
Reengineering
fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed
Sequential interdependence
work completed in succession, with one group’s or job’s outputs becoming the inputs for the next group or job
Pooled interdependence
work completed by having each job or department independently contribute to the whole
Empowering workers
permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions
Reciprocal interdependence
work completed by different jobs or groups working together in a back-and-forth manner
Interorganizational process
a collection of activities that take place among companies to transform inputs into outputs that customers value
Empowerment
feelings of intrinsic motivation, in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination
Virtual organization
an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services
Modular organization
an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants
Cross-training
training team members to do all or most of the jobs performed by the other team members
Work team
a small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes
Traditional work group
a group composed of two or more people who work together to achieve a shared goal
Social loafing
behavior in which team members withhold their efforts and fail to perform their share of the work
Semi-autonomous work group
a group that has the authority to make decisions and solve problems related to the major tasks of producing a product or service
Employee involvement team
a team that provides advice or makes suggestions to management concerning specific issues
Self-designing team
a team that has the characteristics of self-managing teams but also controls team design, work tasks, and team membership
Self-managing team
a team that manages and controls all of the major tasks of producing a product or service
Virtual team
a team composed of geographically and/or organizationally dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task
Cross-functional team
a team composed of employees from different functional areas of the organization
Norms
informally agreed-on standards that regulate team behavior
Project team
a team created to complete specific, one-time projects or tasks within a limited time
Forming
the fi rst stage of team development, in which team members meet each other, form initial impressions, and begin to establish team norms
Cohesiveness
the extent to which team members are attracted to a team and motivated to remain in it
Norming
the third stage of team development, in which team members begin to settle into their roles, group cohesion grows, and positive team norms develop
Storming
the second stage of team development, characterized by conflict and disagreement, in which team members disagree over what the team should do and how it should do it
Structural accommodation
the ability to change organizational structures, policies, and practices in order to meet stretch goals
Performing
the fourth and final stage of team development, in which performance improves because the team has matured into an effective, fully functioning team
Individualism-collectivism
the degree to which a person believes that people should be self-sufficient and that loyalty to oneself is more important than loyalty to team or company
Bureaucratic immunity
the ability to make changes without first getting approval from managers or other parts of an organization
Team diversity
the variances or differences in ability, experience, personality, or any other factor of a team
Team level
the average level of ability, experience, personality, or any other factor of a team
Skill-based pay
compensation system that pays employees for acquiring additional skills or knowledge
Interpersonal skills
skills, such as listening, communicating, questioning, and providing feedback, that enable people to have effective working relationships with others
Gainsharing
a compensation system in which companies share the financial value of performance gains, such as productivity, cost savings, or quality, with their workers
Bona fi de occupational qualifi cation
(BFOQ)
an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are “reasonably necessary to the normal operation of that particular business”;
strictly monitored by the Equal Employment Opportunity Commission
Human resource management (HRM)
the process of finding, developing, and keeping the right people to form a qualified work force
Adverse impact
unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others
Disparate treatment
intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethnic group, national origin, or religious beliefs
Sexual harassment
a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one’s job
Four-fifths (or 80 percent) rule
a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact; a violation of this rule occurs when the selection rate for a protected group is less than 80 percent or four-fifths of the selection rate for a nonprotected group
Hostile work environment
a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment
Quid pro quo sexual harassment
a form of sexual harassment in which employment
outcomes, such as hiring, promotion, or simply keeping one’s job, depend on whether an individual submits to sexual harassment
Job analysis
a purposeful, systematic process for collecting information on the important work-related aspects of a job
Recruiting
the process of developing a pool of qualified job applicants
Job specifications
a written summary of the qualifi cations needed to
successfully perform a particular job
Job description
a written description of the basic tasks, duties, and
responsibilities required of an employee holding a particular job
External recruiting
the process of developing a pool of qualified job applicants from outside the company
Internal recruiting
the process of developing a pool of qualified job applicants from people who already work in the company
Validation
the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be
Selection
the process of gathering information about job applicants to decide who should be offered a job
Background checks
procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants
Employment references
sources such as previous employers or coworkers who can provide job-related information about job candidates
Cognitive ability tests
tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude
Specific ability tests (aptitude tests)
tests that measure the extent to which an applicant
possesses the particular kind of ability needed to do a job well
Work sample tests
tests that require applicants to perform tasks that are actually done on the job
Biographical data (biodata)
extensive surveys that ask applicants questions about their personal backgrounds and life experiences
Interview
a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job
Assessment center
a series of managerial simulations, graded by trained
observers, that is used to determine applicants’ capability for managerial work
Structured interviews
interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions
Unstructured interviews
interviews in which interviewers are free to ask the
applicants anything they want
Needs assessment
the process of identifying and prioritizing the learning needs of employees
Training
developing the skills, experience, and knowledge
employees need to perform their jobs or improve their performance
Objective performance measures
measures of job performance that are easily and directly counted or quantified
Performance appraisal
the process of assessing how well employees are doing their jobs
Rater training
training performance appraisal raters in how to avoid rating errors and increase rating accuracy
Behavioral Observation Scale (BOS)
a rating scale that indicates the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance
Compensation
the financial and nonfinancial rewards that organizations give employees in exchange for their work
360-degree feedback
a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves
Job evaluation
a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it
Employee separation
the voluntary or involuntary loss of an employee
Commission
a compensation system in which employees earn a percentage of each sale they make
Piecework
a compensation system in which employees are paid a set rate for each item they produce
Employee stock ownership plan (ESOP)
a compensation system that awards employees shares of company stock in addition to their regular compensation
Profit sharing
a compensation system in which a company pays a
percentage of its profits to employees in addition to their regular compensation
Wrongful discharge
a legal doctrine that requires employers to have job-related reasons to terminate employees
Stock options
a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price
Outplacement services
employment-counseling services offered to employees who are losing their jobs because of downsizing
Downsizing
the planned elimination of jobs in a company
Phased retirement
employees transition to retirement by working reduced hours over a period of time before completely retiring
Early retirement incentive programs (ERIPs)
programs that offer financial benefits to employees to encourage them to retire early
Functional turnover
loss of poor-performing employees who voluntarily choose to leave a company
Employee turnover
loss of employees who voluntarily choose to leave the company
Dysfunctional turnover
loss of high-performing employees who voluntarily choose to leave a company
Affirmative action
purposeful steps taken by an organization to create
employment opportunities for minorities and women
Diversity
a variety of demographic, cultural, and personal differences among an organization’s employees and customers
Deep-level diversity
differences such as personality and attitudes that are communicated through verbal and nonverbal behaviors and are recognized only through extended interaction with others
Surface-level diversity
differences such as age, sex, race/ethnicity, and physical disabilities that are observable, typically unchangeable, and easy to measure
Age discrimination
treating people differently (e.g., in hiring and fi ring,
promotion, and compensation decisions) because of their age
Social integration
the degree to which group members are psychologically attracted to working with each other to accomplish a common objective
Glass ceiling
the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations
Sex discrimination
treating people differently because of their sex
Disability
a mental or physical impairment that substantially limits one or more major life activities
Racial or ethnic discrimination
treating people differently because of their race or ethnicity
Disposition
the tendency to respond to situations and events in a predetermined manner
Disability discrimination
treating people differently because of their disabilities
Extraversion
the degree to which someone is active, assertive,
gregarious, sociable, talkative, and energized by others
Personality
the relatively stable set of behaviors, attitudes, and
emotions displayed over time that makes people different from each other
Agreeableness
the degree to which someone is cooperative, polite, flexible, forgiving, good-natured, tolerant, and trusting
Emotional stability
the degree to which someone is not angry, depressed, anxious, emotional, insecure, or excitable
Openness to experience
the degree to which someone is curious, broadminded, and open to new ideas, things, and experiences; is spontaneous; and has a high tolerance for ambiguity
Conscientiousness
the degree to which someone is organized, hardworking, responsible, persevering, thorough, and achievement oriented
Awareness training
training that is designed to raise employees’ awareness of diversity issues and to challenge the underlying assumptions or stereotypes they may have about others
Organizational plurality
a work environment in which (1) all members are
empowered to contribute in a way that maximizes the benefits to the organization, customers, and themselves, and (2) the individuality of each member is respected by not segmenting or polarizing people on the basis of their membership in a particular group
Diversity audits
formal assessments that measure employee and
management attitudes, investigate the extent to which people are advantaged or disadvantaged with respect to hiring and promotions, and review companies’ diversity related policies and procedures
Skills-based diversity training
training that teaches employees the practical skills they need for managing a diverse work force, such as flexibility and adaptability, negotiation, problem solving, and conflict resolution
Diversity pairing
a mentoring program in which people of different cultural backgrounds, sexes, or races/ethnicities are paired so that they can get to know each other and change any stereotypical beliefs and attitudes