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Intro to Business > chapter 9 > Flashcards

chapter 9 Flashcards

1
Q

what does a manager engaged in organizing do?

A

they allocate resources (people, equipment and money) to achieve a company’s objectives

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2
Q

what does structuring an organization do?

A

it results in resource allocation, the division of labour and setting up departments to do specific tasks and assigning authority to managers

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3
Q

what are the three levels of management?

A

top managers
middle managers
first line managers

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4
Q

what are ornery fayol’s 10 principles of organization?

A

unity of command
hierarchy
division of labour
subordination of individual interest to general interest
authority
degree of centralization
clear communication channels
order
equity
esprit de corps (team spirit)

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5
Q

why is unity a principle of organization?

A

each worker is to report to one, and only one boss to eliminate concussion between different managers objectives

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6
Q

why is hierarchy of authority a principle of organization?

A

all workers should know who they should report to with problems and decisions and managers should have the right to give orders and expect others to follow

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7
Q

why is division of labour a principle of organization?

A

functions are to be divided into areas of specialization such as production, marketing and finance to function as efficiently as possible

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8
Q

why is subordination of individual interest to the general interest a principle of organization?

A

workers are to think of them themselves as a coordinated team, where the goals of the team are more important than individual goals

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9
Q

why is authority a principle of organization?

A

managers have they right to give orders and the power to enforce obedience

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10
Q

why is degree of centralization a principle of organization?

A

the amount of power making vested in top management should vary by circumstances, this degree of centralization can create unity between stores and the company

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11
Q

why is clear communication channels a principle of organization?

A

all workers should be able to reach others in the firm quickly and easily with a formal communication channel

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12
Q

why is order a principal of organization?

A

materials and people should be placed and painted in the proper location and people should be able to find what or who when they need it

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13
Q

why Is equity a principle of organization?

A

a manager should treat employees and peers with respect and justice so people feel like they are a part of a team

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14
Q

why is esprit de corps (team spirit) a principal of organization?

A

a spirit of pride and loyalty should be created among the firm so people are motivated to help the company reach the organizational goal

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15
Q

what did weber study?

A

the hierarchy of many significant historical organizations

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16
Q

what did weber think made employees better?

A

less decision making done by employees and bureaucracy

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17
Q

what were Weber’s 4 organizational principles?

A

job descriptions
written rules
procedures, regulations, policies
staffing/ promotions based on qualifications

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18
Q

why are job descriptions one of webers organizational principles?

A

because job descriptions keeps people focused and know what they should be doing when they come in to work everyday

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19
Q

why are written rules one of webers organizational principles?

A

so there is a written guide line for people to follow

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20
Q

why are procedures, regulations and policies one of webers organizational principles?

A

because they take the decision making out of the employees hands and gives them something to follow

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21
Q

why is staffing and promotions based on qualifications one of webers organizational principles?

A

because this makes a fair work environment for everyone

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22
Q

what does an organizational structure do?

A

it outlines the various roles within an organization and how the organization can departmentalize

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23
Q

what are the two activities that managers engage in to build an organizational structure?

A

specialization
departmentalization

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24
Q

what is specialization?

A

identifying activities that that need to be performed to achieve the organizations objective and breaking those activities in to tasks that can be performed by individuals or groups of employees (dividing tasks in to smaller jobs)

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25
what are the 2 advantages to specialization?
efficiency capitalizes on skills
26
why is efficiency an advantage to specialization?
because everyone has specific jobs to people can focus on their job and do it to the best of their abilities
27
why is capitalizes on skills, strengths and experience an advantage of specialization?
it lets people people bring and use their own personal skills to help the company achieve its organizational goal
28
what is the disadvantage of specialization?
repetitive tasks may lead to boredom, employee dissatisfaction, decreased performance, increased absenteeism and turnover
29
why would specialization lead to boredom, employee dissatisfaction, decreased performance, increased absenteeism and turnover?
because employees are coming in and doing the same specific tasks everyday and that could lead to their dissatisfaction
30
what is departmentalization?
departmentalizations is dividing an organization into separate units by their function
31
what is functional organizational structure?
the grouping of workers into departments based on similar skills, expertise or resources use
32
what are the 3 advantages of departmentalization?
employees can develop skills in depth the company can achieve economies of scale and maximize efficiency good coordination within the function and top management can easily direct and control various department's activities
33
what are the 5 disadvantages of departmentalization?
lack of communication about goals among different departments individual employees may begin to identify with their departments goals rather than the goals of the organization the companys response to external changes may be to narrow people may not be trained to take broad based senior managerial responsibilities people in the same department tend to think alike
34
why is lack of communication among goals among different departments a disadvantage of departmentalization?
because different departments might have goals that contradict themselves like; finance cutting budget and marketings new AD campaign, this can lead to disagreement and departments not reaching their departmental goal
35
why is individual employees may begin to identify with their departments goals rather than with the goals of the organization as a whole a disadvantage of departmentalization?
because the employees may become more focused on reaching their departments goals and not reaching the companies goal
36
why is the company response being to narrow to external changes a disadvantage of deparmentalizing?
because when they make changes they keep the departments goals in mind and don't think about the big picture company goals in mind
37
why would people may not be trained to take broad based senior managerial responsibilities a disadvantage of departmentalization?
because people only want to stay a function expert in their department and not want to work in a more broad position
38
why would people in the same department tending to think alike a disadvantage of departmentalization?
because then people and not brining their own individual skills and ideas the to company they start to group think and hinder creativity
39
what are the 5 ways to departmentalize?
by product by function by customer group by geographic location by process (review slides 16&17 of chapter 9 for charts)
40
what is functional organization?
a process of grouping people together who have comparable skills and perform similar tasks
41
who normally uses functional organization?
typically small- medium sized companies group their people by business function
42
what is an example of functional organization?
people in accounting are grouped together people in finance are grouped together people in marketing and sales are grouped people in Human Resources are grouped people in production are grouped people in research and development are grouped
43
why would depth in employee skill development be an advantage of departmentalization by function?
because they work and specialize in one skill so they become really good in their area of work
44
why would economies of scale by centralizing all resources and experts in one area be an advantage of departmentalization by function?
because than the company can operate as efficiently as possible and everyone can work in their specialty and help the company achieve the organizational goal
45
why is better coordination of activity an advantage of departmentalization by function?
because each group knows their task and role in helping the company succeed
46
what is divisional organization?
the process of forming divisions according to products, customers, process or geography so the companies ability to respond to changes in the firms environment is enhanced
47
what are product divisions?
making divisions that strictly work one on product of the company, each product has its own research and development division and marketing team
48
what is the 1 benefit to products divisions?
this allows individuals in the division to focus all their effort on the products produced by their division
49
what is the 1 downside to product divisions?
it results in higher costs because corporate services such as finance and marketing are duplicated
50
what are the 4 kinds of divisional organization?
products customers process geography
51
what is customer divisions?
a company that is structured according to its customer categories
52
what is an example of customer divisions?
Johnson and Johnson's operating companies are groups in to 3 customer based business segments: consumer business (goods sold to the public) pharmaceuticals (prescription drugs sold to pharmacies) professional business (medical devices and diagnostics products used by hospitals and clinics)
53
what is process divisions?
when a company organizes based on the several steps of production
54
what is an example of process divisions?
bowater Thunder Bay, canadian company that harvests treed and processes wood in to news print and pulp. Bowater has the divisions: tree cutting chemical processing finishing
55
what is geographical divisions?
a process that enables companies that operate in several locations to be responsive at the local level
56
what is an example of geographical divisions?
Adidas is organized according to the regions of the world that they operate in, they have eight different regions and each one reports in performance separately in their annual reports
57
what is centralized authority?
when decision-making authority is maintained at the top level of management at the company headquarters
58
what is decentralized authority?
when decision-making authority is delegated to lower level managers and employees who are more familiar with local conditions than headquarters management could be
59
what are the 4 benefits of centralized authority?
greater top management control more efficiency simpler distribution stronger brand and corporate image
60
why is greater top management control an advantage of centralized authority?
because the top managers are the ones making the decisions and not delegating the decision making down to the lower level management
61
why is more efficiency an advantage of centralized authority?
because there is no confusion on what the goals are and there are all the same goals throughout the company so with everyone working to achiever the same goal the company will achieve their goals quicker
62
why is simpler distribution system an advantage of centralized authority?
because there is only one line of communication and one person coming up with the goals and making the decisions so the decision can get to all departments and divisions of the company quicker
63
why is stronger brand and corporate image an advantage of centralized authority?
because it sets a universal standard of quality and goals for the whole company making their image of their company stronger
64
what are the 4 disadvantages of centralized authority?
less responsive to customers less empowerment interorganizational conflict lower morale away from headquarters
65
why is less responsive to customers a disadvantage of centralized decision making?
since the decisions need to be made top management they are not able to adapt as quick to please the customers and they don't know the needs of the local market of the customers
66
why is less empowerment a disadvantage of centralized authority?
since all the decision making is done by the top management, the middle managers and employees do not have much say and can make them less engaged in their job due to their lack of evolvement in decision making
67
why is interorganizational conflict a disadvantage of centralized authority?
since the desicions are made form up above the middle managers may see some of the decision and not agree with them or know they will not serve the local market and there can be conflict that arrises from that
68
why is lower morale away from head quarters a disadvantage of centralized decision making?
since headquarters are making the decisions anyone who is not in head quarters can feel unsatisfied and less engaged in their work because they don't have the power to make any decisions
69
what are the 4 advantages of decentralized decision making?
better adaptation to the customers wants more empowerment for workers fast decision making higher morale
70
why is better adaptation to the customer wants an advantage to decentralized decision making?
since the middle managers and employees have more decision making power they are able to adapt quicker and better to the customers wants because the people who are making the decisions are the ones who know the local market
71
why is more empowerment for workers an advantage of decentralized market?
since employees and middle managers have more decision making power they will be more engaged in their job and empowering them more
72
why is faster decision making an advantage of decentralized authority?
because the lower level managers are able to adapt quicker and dont need to wait of top management to tell them what to do
73
why is higher morale an advantage to decentralized decision making?
since managers and employees have more decision making power they will be more satisfied in their job and feel like they have more freedom and power
74
what are the 4 disadvantages to decentralized authority?
less efficiency complex distribution system less top management control weekend corporate image
75
why is less efficiency a disadvantage of decentralized authority?
managers make their own decisions on their own time and might not be as quick as top managers and employees cannot act on those decision as quickly
76
why is complex distribution system a disadvantage of decentralized authority?
because depending on the size of the company there might be a lot of managers and it might be more complex to distribute all of their decisions and goals across the company
77
why is less top management control a disadvantage of decentralized authority?
geographic managers have much more control and might not be implementing what the top managers would have wanted
78
why Is weak corporate image a disadvantage of decentralized authority?
because with all of the geographic managers making the decisions it might not be as good as the top managers and might make their corporate image worse
79
what are the 4 organizational models?
line organization line and staff organizations matrix style organizations self managed teams
80
what are matrix style organizations?
when specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure
81
what is the difference between matrix style organizations and self managed teams?
matrix style the teams are only work together for a certain project but in self managed teams they work together as a team on a long term basis
82
is there a single organization structure that will lead to success?
no
83
what is the goal of an organizational structure?
be the best structure to achieve goals as quickly and efficiently as possible
84
what is benchmarking?
comparing an organizations practices, process and products against the worlds best
85
what are core competencies?
those functions that an organization can do as well as or better than any organization in the world
86
what are the 4 levels in traditional organization hierarchy (from top to bottom)?
top management middle management supervisory management front line workers
87
what are the 3 levels in the inverted organization hierarchy (from top to bottom)?
empowered front line workers (often teams) support personnel top management

Intro to Business (25 decks)

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