Exam 3 Flashcards
chapters: 8, 9, 10 (61 cards)
specialization
different people or groups perform those smaller parts of the organizations overall work
differentiation
distinguishes and separates jobs and jobholders from one another
how do you achieve integration?
through structural mechanisms that enhance the collaboration and coordination
the more highly differentiated your firm is….
the greater the need for integration among the different units
formal position authority
generally the primary means of running and organization
informal authority
with particular expertise, experience or personal qualities they might be able to have authority
in corporations who are the owners?
stockholders
stockholders are very busy therefore,
they elect a board of directors to oversee the organization
what are 3 major sets of duties that boards perform?
- selecting, evaluating, rewarding and perhaps replacing the CEO
- determining the firms strategic direction and reviewing financial performance
- ensuring ethical, socially responsible, and legal conduct
board membership usually includes some of company’s top executives called:
inside directors
the best boards tends to be:
active, and thoughtful participants in determining company strategies
many boards focus on legal compliance issues such as:
- audits
- financial reporting
- discrimination laws
board members bring
- credibility and networks that expand business opportunities
- hold executives accountable for their actions
- help company leaders make difficult strategic decisions
top management teams are typically composed of:
- CEO
- president
- chief operating officer
- chief financial officer
- chief information officer
- chief human resource officer
- and other key executives
corporate governance
oversight of the firm by its executive staff and board of directors
what does a hierarchy provide?
management career paths that help organizations retain and develop talented people, giving them gradually more challenging experiences as they prepare for executive positions
span of control
the number of subordinates who report directly to an executive or supervisor
the optimal span maximizes effectiveness because it is:
- narrow enough to permit managers to maintain control over direct reports
- but not so narrow that it leads to over control and too many managers who oversee too few people
what are the steps of the delegation process?
- define the goals succintly
- select the person for the task
- ask for subordinates views about suggested approaches
- give the subordinate the authority, time, and resources to perform the assignment
- review progress at appropriate intervals
vertical structure
authority is the legitimate right to make decisions and to tell other people what to do (board of directors, CEO, top management team)
functional structure
structured around specialized activities such as production, marketing and human resources
divisional structure
a form of departmentalization that groups units around products, customers, or geographic regions
matrix structure
composed of dual reporting relationships which some employees report to two superiors
disadvantages of the matrix structure:
- Unclear responsibilities and competing priorities
- Violation of the unity of command principle
- Accountability Difficult to define
- Conflict and stress for employees who must manage a dual reporting role
- Additional time required for meetings and other communications
- Extensive collaboration needed but not always easy to reward
