Mgmt Chapter 5

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  1. Organizing
    Mgmt function involves determining what tasks are to be done, how to group tasks, who reports to whom, where decisions are to be made.
  2. Organizational Structure
    How job tasks are formally divided, grouped and coordinated w/i an org
  3. Organizational Design
    • Develop or change an orgs structure.
    • Involves 6 key elements, work specialization, departmentalization, chain of command, span of control, centralization, decentralization, formalization
  4. Work Specialization
    • Degree to which tasks in an org are subdivided into separate jobs. 
    • Division of labour
  5. Departmentalization
    • Basis on which jobs are grouped together.
    • Group common tasks or jobs together
  6. Chain of Command
    • Continuous line of authority that extends from top of org to lowest level. 
    • Clarifies who reports to whom.
  7. Authority
    Rights inherent to position
  8. Responsibility
    Obligation to perform duties
  9. Accountabilty
    Need to report and justify work to a managers superiors
  10. Unity of Command
    Employees receive commands from only one supervisor
  11. Delegation
    • Assignment of authority to another person to carry out specific duties. 
    • Allows employee to make some decisions.
  12. Span of Control
    • # of employees a manager can efficiently and effectively manage. 
    • Employee performance could suffer if span is too large.
    • Width of span affected by skills and abilities, complexity of tasks, physical proximity, strength of org culture, preferred mgmt style
  13. Centralization
    • Degree to which decision making is concentrated at a single point in the org.
    • Org is never totally centralized
    • Eg. CEO makes all the decisions
  14. Decentralization
    • Degree to which lower level employees provide input or actually make decisions.
    • Org is never totally decentralized
  15. Formalization
    • Degree to which jobs are standardized and employee behaviour is guided by rules and regulations. 
    • Many companies today are less reliant on strict rules. 
    • Some are needed to ensure consistency.
    • HIGH - little decisions, McDonalds
    • LOW - more decisions, news reporter
  16. Mechanistic
    • High specialization
    • Rigid departmentalization
    • Clear chain of command
    • Narrow spans of control
    • Centralized
    • High formalization
  17. Organic
    • cross functional teams
    • Free flow of info
    • Wide span of control
    • Decentralized
    • Low formalization
  18. Contingency Factors
    • Structural decisions are influenced by several variables
    • Orgs strategy - innovation or franchise
    • Orgs size - Size affects structure, bigger size, more centralized and departmentalized
    • Use of tech - communication = more productive
    • Environmental uncertainty - could constrain decisions
    • Imitation - base decisions on what others, competitors, are doing
  19. Org Strategy (Contingency Factors)
    Innovation or franchise
  20. Orgs size (Contingency Factors)
    • Size affects structure
    • Bigger size, more centralized and departmentalized
  21. Use of Tech (Contingency Factors)
    Communication = more productive
  22. Environmental Uncertainty (Contingency Factors)
    could constrain decisions
  23. Imitation (Contingency Factors)
    Base decisions on what others are doing
  24. Common Org Decisions
    • Traditional - simple structure, functional, divisional structure
    • Contemporary - team structures, matrix structure, project structure, boundaryless org
  25. Simple Structure (Traditional Designs)
    Org structure w/ low departmentalization, wide spans of control, authority centralized in a single person, little formalization
  26. Functional (Traditional Org Design)
    Groups similar or related job specialties together
  27. Divisional Structure (Traditional Org)
    • Org that contains separate business units or divisions 
    • Eg. HR, finance, R&D
  28. Team Structure (Contemporary Org Decisions)
    • Entire org is made up of work groups or teams.
    • No mgmt authority.
  29. Matrix Structure (Contemporary org decision)
    • Assigns specialists from different functional departments to work on one or more projects.
    • Report to 2 managers, project and department
  30. Project Structure (Contemporary Org Decision)
    • Employees continuously work on projects. 
    • No formal departments
    • Fluid and flexible
  31. Boundaryless Org (Contemporary Org Decisions)
    • org is not defined by a chain of command
    • Places no limits on spans of control and replaces departments w/ empowered teams
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Mgmt Chapter 5
2013-12-12 03:35:26
Final Mgmt Management

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