Mgt 304

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  1. Societal Goals
    • Reflect an organization's intended contributions to the broader society
    • Enable organizations to make legitimate claims over resources, individuals, markets, and products
  2. Mission statement
    • A written statement of organizational purpose
    • A good one of these states whom the firm will serve and how it will go about accomplishing societal purpose
  3. Output Goal
    • Define type of business the organization is in
    • Provide some substanance to the general aspects of mission statements
  4. Systems Goals
    • Concerned with the conditions within the organization that are expected to increase the organization's survival potential
    • Typical (blank) include growth, productivity, stability, harmony, flexibility, prestige, and human resource management
  5. System Goals (well defined)
    • Focus managers' attention on what needs to be done
    • Provide flexibility in devising ways to meet important targets
    • Be used to balance the demands, constraints and oppotunities facing the firm
    • Form a basis for dividing the work of the firm
  6. Chain of Command
    The line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
  7. Formal Structure
    • The foundation for managerial action
    • It shows the plannned configuration of positions , job duties, and the lines of authority among diferent parts of the enterprise
  8. Organizational Chart
    • Graphic representation or diagram of organizational structure
    • An illustration showing chain of command and division of labor
  9. Division of Labor
    • Process of dividing the many tasks within an organization into specialized jobs
    • (who does what. How the work is divided)
  10. Hierarchal Aspects
    • The number of individuals reporting directly to a supervisor
    • New information technologies now allow organizations to broaden the span of control, flatten their formal structure, and still maintain control of complex operations
  11. Large Span of Control in Administrative hierarchy
    • Span of control= 16 (16 ppl working for one man)
    • Number of levels of hierarchy= 2
  12. What are the hierarchchical aspects of organizations?
    • Line Units
    • Staff Units
    • Output Controls
    • Process Controls
    • Process Controls
    • Centralization
    • Decentralization
  13. Line Units
    Work groups that conduct the major business of the organization (production and marketing departments)
  14. Staff Units
    Work groups that assist the line units by providing specialized expertise and services to the organization (accounting and PR)
  15. Output Controls
    • Focus on desired targets and allow managers to use their own methods to reach defined targets
    • Part of an overall method of managing by exception
  16. Process Controls
    Attempt to specify the manager in which tasks are accomplished
  17. Types of process controls
    • Policies, procedures and rules
    • Formalization and standardization
    • Total quality management
  18. Policy
    Outlines important objectives and broadly indicates how an activity is to be performed
  19. Procedures
    Describes the best method for performing a task; shows which aspects of a task are most important.
  20. Rules
    Describe in detail how a task or a series of tasks is to be performed, often indicate what can and cannot be done
  21. Total Quality Management
    • Process approach to continual improvement based on statistical analyses of the frims operations
    • Deming's 14 Points
  22. Centralization
    Degree to which the authority to make decisions is restricted to higher levels of management
  23. Decentralization
    Degree to which the authpority fo make decisions is given to lower levels in an organization's hierarchy
  24. Benefits of Decentralization
    • Higher subordinate satisfaction
    • Quicker response to a diverse series of unrelates problems
    • Assists in on-the-job training of subordinates for higher level positions
    • A popular approach in many industries
  25. Functional departmentalization
    • Grouping individuals by skill, knowledge, and action
    • Examples include marketing finance, production, and human resources
    • Most popular form of horizontal specialization found in organizations
  26. Advantages of Functional Specialization
    • Yields very clear task assignments, consistent with an individual's training
    • Individuals within a department can easily build on one another's knowledge, training and experience
    • Provides excellent training ground for new managers
    • It is easy to explain
    • Takes advantage of employee technical quality
  27. Disadvantages to Functional Specialization
    • 1. May reinforce narrow training objectives
    • 2. May yield narrow boring job routines
    • 4. Communication across technical area is complex and difficult
    • 5. Individuals may look up to the organizational hierarchy for direction and reinforcement rather than focus on products, services, or clients
  28. Divisional Departments
    Individuals and resources are grouped by products, territories, services, clients, or legal entities.
  29. Advantages of Divisional Specialization
    • Promotes adaptability and flexibility in meeting the demands of important external groups
    • Allows for spotting external changes as they emerge
    • Provides for the integration of specialized personel
    • Focuses on the success or failure of particular products, services, clients, or territories
  30. Disadvantages of Specialization
    • 1. Does not provide a pool of highly trained individuals with similar expertise to solve problems and train others
    • 2. Allows duplication of effort, since each division attempts to solve similar problems
    • 3. May give priority to divisional goods over the health and wealfare of the organization
    • 4. Creates conflit between divisions over shared resources
  31. Bureaucracy
    • A structure with highly routine operating tasks achieved through specialization
    • Very formalized rules and regulations, tasks that are grouped into functional departments
    • Centralized authority at the top levels
    • Narrow spans of cotrol
    • Decision making that strictly follows the chain of command
  32. Mechanistic bureaucracy
    • Emphasized vertical specialization and control
    • Organizations of this type stress rules, policies, procedures; speficy techniques or decision making; and emphasize developing well-documented control systems
  33. Hybrid Bureaucracies
    • Divisional Firm
    • Conglomerate
  34. Divisional Firm
    Composed of quasi-independent divisions so that different divisions can be more or less organic or mechanistic
  35. Conglomerate
    A single corporation that contains a number of unrelated businesses
  36. Product Based
    Dutoes are divided by products i.e. P&G
  37. Departmentalization by product or service
    • a. Colgate Research processing and packaging
    • b. Pet food products, household, and oral hygiene products
  38. Matrix Design
    • Creates a dual lines of authority
    • Uses both functional (or product) and divisional forms simultaneiously
    • One form of superimposed on the other
  39. Boundryless
    Chains of command are totally eliminated or non-existant, unlimited span of control
  40. Network designing
    Web of highly empowered individuals or teams
  41. Virtual Design
    • A small, core organization that oursources major business functions
    • Often network or modular organization
  42. Implications for Managers
    • Internal structure contributes to explaining and predicting behavior
    • Constrains Employees
    • Performance Issues
    • Satisfaction
  43. Advantages/Disadvantages
    • $$$
    • Span of Control
    • Communication/Coordination
    • Reporting lines
    • Division of labor
    • Does is make sense
    • Clear line of authority
    • Fairness
    • Report to ONE individual
    • Emporerment
    • Misc.
Card Set
Mgt 304
Org Behav
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