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Flashcards in Chapter 11 Deck (61):
1

Organizing

Deciding how the best group organizational activities and resources.

2

Organizing Structure

The set of building blocks that can be used to configure an organization.

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Job Design

The determination of an individual's work-related responsibilities.

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Job Specialization

The degree to which the overall task of the organization is broken down and divided into smaller component parts

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Benefits of Job Specialization

Workers can become proficient at a task.
Transfer time between tasks is decreased.
Specialized equipment can be easily developed.
Employee replacement is easier.

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Limitations of Job Specialization

Employee boredom and dissatisfaction with mundane tasks.
Anticipated benefits do not always occur.

7

Alternatives to Specialization

Job Rotation
Job Enlargement
Job Enrichment
Job Characteristics Approach
Work Teams

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Job Rotation

Systematically moving employees from one job to another in an attempt to reduce employee boredom. Most frequent use today is as a training device for skills and flexibility.

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Job Enlargement

An increase in the total number of tasks workers perform.

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Job Enrichment

Increasing both the number of tasks the worker does and the control the worker has over the job.

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Job Characteristics Approach

Core Dimensions
Growth-Need Strength

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Core Dimension

Skill variety
Task Identity
Task Significance
Autonomy
Feedback

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Growth-Need Strength

The desire for some people to grow, develop, and expand their capabilities that is their response to the core dimensions.

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Work Teams

An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks.

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Departmentalization

The process of grouping jobs according to some logical arrangement.

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Rationale for Departmentalization

Organizational growth exceeds the owner-manager's capacity to personally supervise all of the organization.
Additional managers are employed and assigned specific employees to supervise.

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Functional Departmentalization

Is the grouping of jobs involving the same or similar activities.

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Advantages of Functional Departmentalization

Each department can be staffed by functional-area experts.
Supervision is facilitated in that managers only need be familiar with a narrow set of skills.
Coordination inside each department is easier.

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Disadvantages of Functional Departmentalization

Decision making becomes slow and bureaucratic.
Employees narrow their focus to the department and lose sight of organizational goals/issues.
Accountability and performance are difficult to monitor.

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Product Departmentalization

The grouping of activities around products or product groups.

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Advantages of Product Departmentalization

All activities associated with one product can be integrated and coordinated.
speed and effectiveness of decision making are enhanced.
Performance of individual products or product groups can be assessed.

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Disadvantages of Product Departmentalization

Mangers may focus on their product to the exclusion of the rest of the organization.
Administrative costs may increase due to each department having its own functional-area experts.

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Customer Departmentalization

Grouping activities to respond to and interact with specific customers and customer groups.

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Advantage of Customer Departmentalization

Skilled specialists can deal with unique customers or customer groups.

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Disadvantage of Customer Departmentalization

A large administrative staff is needed to integrate activities of various departments.

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Location Departmentalization

The grouping of jobs on the basis of defined geographic sites or areas.

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Advantages of Location Departmentalization

Enable the organization to respond easily to unique customer and environmental characteristics.

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Disadvantage of Location Departmentalization

Large administrative staff may be needed to keep track of units in scattered locations.

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Establishing Reporting Relationships

Chain of Command
Narrow vs. Wide Spans
Tall vs. Flat Organizations

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Chain of Command

A clear and distinct line of authority among the positions in an organization.
Unity of Command - Each person within an organization must have a clear reporting relationship to one and only one boss.
Scalar Principle - A Clear and unbroken line of authority must extend from the bottom to the top of the organization.

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Narrow vs. Wide Spans

Span of Management
A. V. Graicunas
Ralph Davis
Lyndall Unwich & General Ian Hamilton

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Span of Management

The number of people who report to a particular manager.

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A. V. Graicunas

Direct - manages a relationship with each subordinate.
Cross - among the subordinates themselves.
Group - between groups of subordinates.

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Ralph Davis

Operative span for lower-level managers up to 30 workers.
Executive span for middle and top managers at 3 to 9.
Span depends on mangers job, company's growth rates, and similar factors.

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Lyndall Unwich & General Ian Hamilton

Executive span should never exceed six persons.

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Tall Organizations

Are more expensive because of the number of managers involved.
Foster more communication problems because of the number of people through whom information must pass.

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Flat Organizations

Lead to higher levels of employee morals and productivity.
Create more administrative responsibility for the relatively few managers.
Create more supervisory responsibility for managers due to wider spans of control.

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Authority

Power that has been legitimized by the organization.

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Delegation

The process by which managers assign a portion of their total workload to others.

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Reasons for Delegation

To enable the manager to get more work done by utilizing the skills and talents of subordinates.
To foster the development of subordinates by having them participate in decision making and problem solving that allows them to learn about overall operations and improve their managerial skills.

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Manager Problems in Delegation

Reluctant to delegate.
Subordinate's success threatens superior's advancement.
Lack of trust in the subordinate to do well.
Disorganization prevents planning work in advance.

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Subordinate Problems in Delegation

Reluctant to accept delegation for fear of failure.
Perceives no rewards for accepting additional responsibility.
Prefers to avoid any risk and responsibility.

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Decentralization

The process of systematically delegating power and authority throughout the organization to middle- and lower-level managers.

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Centralization

Systematically retaining power and authority in the hands of higher-level managers.

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Factors determining the Choice of Centralization

The complexity and uncertainty of the external environment.
The history of the organization.
The nature (cost and risk) of the decisions to be made.

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Coordination

The process of linking the activities of the various department of the organizations.

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The Need for Coordination

Departments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.

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Three Major Forms of Interdependence

Pooled interdependence
Sequential interdependence
Reciprocal interdependence

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Pooled interdependence

When units operate with little interaction; their output is
simply pooled at the organizational level.

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Sequential interdependence

When the output of one unit becomes the input of another unit in sequential fashion.

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Reciprocal interdependence

When activities flow both ways between units.

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Structural Coordination Techniques

The Managerial Hierarchy
Rules and Procedures
Liaison Roles
Task Forces
Integrating Departments
Electronic Coordination

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The Managerial Hierarchy

Placing one manager in charge of interdependent departments or units.

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Liaison Roles

A manager coordinates interdependent units by acting as a common point of contact, facilitating the flow of information.

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Task Forces

Used with multiple units when coordination is complex requiring more than one individual and the need for coordination is acute.

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Integrating Departments

Permanent organizational units that maintain internal integration and coordination on an ongoing basis.

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Electronic Coordination

E-mail, electronic scheduling, PDAs, cell phones

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Differentiating Between Positions

Line Positions
Staff Positions
Administrative Intensity

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Line Positions

Positions in the direct chain of command that are responsible for the achievement of an organization’s goals.
Have formal (legitimate) authority to direct the workforce.

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Staff Positions

Positions intended to provide expertise, advice, and support to line positions.
Have functional authority to enforce compliance with organizational policies and procedures.

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Administrative Intensity

The degree to which managerial positions are concentrated in staff positions.