Exam 3 COPY Flashcards
What is departmentalization?
A method of subdividing workers and work into separate organizational units that take responsibility for completing particular tasks. ex: Advertising, Printing, Scheduling.
What are the 5 types of departmentalization?
- Functional.
- Matrix.
- Product.
- Customer.
- Geographic.
What are the advantages of geographic departmentalization?
- Reduces costs by locating unique resources closer to customers.
- Helps companies respond to different markets.
What are the disadvantages of geographic departmentalization?
- Difficult to coordinate departments.
- Duplication of resources.
What is an example of geographic departmentalization?
Having a lumber department in Washington State, processing in Chicago, selling in New York.
What are the advantages of functional departmentalization?
- Lowers costs by reducing duplication.
- Allows people to specialize in one area of expertise.
- Performance appraisal and management development.
- With everyone having similar work experience or training, coordination (and control)is less problematic for department managers.
What are the disadvantages of functional departmentalization?
- “Thought worlds”-coordination across departments and potential miscommunication.
- Potential issues of claiming credit (for accomplishments or failures).
- Desire to do what’s necessary for their function than focus on the entire organization.
What is an example of functional departmentalization?
A water bottle company that has a finance department, bottling department, advertising department, marketing department all in one processing plant.
What are the advantages of product departmentalization?
- Allows people to specialize in one area of expertise.
- Faster decision-making because workers and managers are responsible for the entire product line rather than for separate functional departments.
- Easy for top managers to assess work-unit performance.
What are the disadvantages of product departmentalization?
- Challenge of coordinating across product departments.
- Departmentalization duplication (and resultant higher costs).
What is an example of product departmentalization?
A car company that has a motor department, a suspension department, a brakes department, etc.
What are the general characteristics of matrix departmentalization?
- Requires significant coordination between managers in different parts of the matrix.
- Employees report to 2 bosses.
- More cross-functional interactions.
What are the advantages of matrix departmentalization?
- Avoids duplication.
- Gives much more diverse sets of expertise and experience.
- Allows companies to efficiently manage large, complex tasks (like R&D, global business, and marketing).
What are the disadvantages of matrix departmentalization?
- Requires much more cross-functional interaction and management skill than other forms.
- Confusion and conflict between project bosses-most employees report to two bosses, one for each core part of the matrix.
What is an example of matrix departmentalization?
What are the advantages of customer departmentalization?
- Allows companies to specialize services and products to customer needs.
- Focuses organization on customer needs.
What are the disadvantages of customer departmentalization?
- Workers might please customers, but hurt business.
- Duplication of resources.
What is an example of customers departmentalization?
A company that custom etches dinnerware, drinkware, and signs. One part of the factory handles state orders, another regional orders, and another national.
What are the characteristics of mechanistic organization?
- Specialized jobs and responsibilities.
- Focus on organizational structure.
- Rigid departmentalization.
- Clear chain of command.
- High formalization.
- Centralization.
- Narrow spans of control.
*Works best in stable, unchanging business environments. ex: Lumber.
What are the characteristics of organic organization?
- Characterized by broadly defined responsibilities and job.
- Focus on intraorganizational process.
- Low formalization.
- Cross-functional teams.
- Decentralization.
- Cross-hierarchical team.
- Wide spans of control.
- Free flow of information.
*Works best in dynamic, changing business environments. ex: Tech.
What is reengineering?
A radical redesign and fundamental rethinking of business processes to achieve dramatic improvement in critical measures of performance (speed, quality, cost, service).
What does reengineering do to a company?
- Complicates work.
- Changes the orientation from vertical to horizontal.
What are the 3 types of intraorganizational processes?
- Pooled interdependence.
- Sequential interdependence.
- Reciprocal interdependence.
What are the 2 types of interorganizational processes?
- Modular.
- Virtual.
What is a modular organization?
An organization that outsources non-core business activities to outside companies, suppliers, consultants, or specialists.
What is the advantage of a modular organization?
Lower cost than traditional organizations because outsourcing is only paid for as needed.
What is the disadvantage of a modular organization?
Loss of control occurring when key business activities are outsourced to other companies.
What is a virtual organization?
An organization that is part of a network in which many companies share skills, capabilities, costs, customers, and markets to collectively solve customer problems or provide specific services or products.
What are the advantages of a virtual organization?
- Lets companies share costs.
- Fast and flexible.
What are the disadvantages of a virtual organization?
- Difficult to control quality of outsourced work.
- Tremendous managerial skills required to make a network of independent organizations work well together.
What is motivation?
Refers to forces within an individual that account for the level, persistence, and direction of effort expended at work.
What are the 4 content theories?
- ERG Theory.
- Maslow’s hierarchy of needs.
- Acquired needs theory.
- Herzberg’s two-factor theory.
What is Maslow’s hierarchy of needs from bottom to top?
- Physiological needs (Lower-order need).
- Safety needs (Lower-order need).
- Social needs (Lower-order need).
- Esteem needs (Higher-order need).
- Self-actualization needs (Higher-order need).
What falls under physiological needs?
- Biological needs (Bathroom, shelter, etc.).
- Food.
- Water.
What falls under safety needs?
- Security.
- Stability.
- Protection.
*In interpersonal and physical events.
What falls under social needs?
- Love.
- Sense of belongingness.
- Affection.
*In one’s relationships with other persons.
What falls under esteem needs?
- Prestige.
- Respect.
- Recognition.
- Self-esteem.
- Mastery.
- Personal sense of competence.
- Esteem of others.
What falls under self-actualization?
- Most creative excellence.
- Need to fulfill oneself.
- Grow and use abilities to fullest.
What is purpose of Maslow’s hierarchy of needs?
To define the order in which the needs of a human need to be met and that each need is foundational to the next one.
What is Alderfer’s ERG Theory of Motivation?
The theory that three different needs can be met simultaneously and are not dependent upon one another.
What are the E, R, and G in Alderfer’s ERG Theory of Motivation?
- Existence.
- Relatedness.
- Growth.
What is the definition of existence?
The desire for material and physiological well-being.
What is the definition of relatedness?
The desire for satisfying interpersonal relationships.
What is the definition of growth?
The desire for continued personal development and growth.
What is McClelland’s Acquired Needs Theory?
The theory that what a person need in the work place falls into one of three categories. Using an image test (thematic apperception test), the need they prioritize can be determined. Based on the determined need, this can help guide them to a career field that suits that need.
What are the 3 needs in McClelland’s Acquired Needs Theory?
- Need for Power (nPower).
- Need for Achievement (nAch).
- Need for Affiliation (nAff).
What is need for power?
The desire to control others, to be responsible for others, or to influence their behavior.
What is need for achievement?
The desire to do something more efficiently or better, to master complex tasks, or to solve problems.
What is need for affiliation?
The desire to maintain and establish warm and friendly relations with others.
What is Herzberg’s two factor theory/motivation-hygiene theory?
A theory that suggests that a person’s needs in the workplace can be split into factors that affect job dissatisfaction in job context (hygiene) and job satisfaction in job content (motivation).
What are examples of hygiene factors?
- Base wage or salary.
- Organizational policies.
- Security and status.
- Quality of supervision.
- Relationships with co-workers.
- Working conditions.
What are examples of motivation factors?
- Responsibility.
- Work itself.
- Advancement.
- Recognition.
- Growth.
- Achievement.
What are the 3 process theories?
- Equity theory.
- Expectancy theory.
- Organizational justice.
What is equity theory?
Any perceived inequity becomes a motivating state. People are motivated to behave in ways that restore or maintain a sense of balance-perceived equity-in their minds.
What are the two possible results of comparing personal rewards/inputs to others’ rewards/inputs?
- Perceived equity.
- Perceived inequity.
What is the reaction to perceived equity?
The individual is satisfied and does not change behavior.
What is the reaction to perceived inequity?
The individual feels discomfort and acts to eliminate the inequity.
What is valence?
The value a person assigned to rewards and other work-related to outcomes.
“How highly do I value work outcomes?”
What is expectancy?
The belief that working hard will result in a desired level of performance.
“Can I achieve the desired level of task performance?”
What is instrumentality?
The belief that successful performance will be followed by rewards.
“What work outcomes will be received as a result of the performance?”
What is motivation constructed of?
Valence x Expectancy x Instrumentality.
How is valance maximized?
Making the person understand the value of various possible rewards and work outcomes.
What methods are used to maximize valance?
- Adjust rewards to match these needs.
- Identify individual needs.