MGMT 371 Test 3: Chap 10, 15, & 16

Terms in this set (109)

The deployment of organizational resources to achieve strategic goals.
-division of labor
-lines of authority
-coordination

All organizations wrestle with

structural design and reorganization

Organizing is important because it follows from

Organizing structure defines:

1. The set of formal tasks assigned to individuals and departments
2. Formal reporting relationships
3. The design of the systems to ensure effective coordination

Work Specialization

the degree to which tasks in an organization are divided into separate jobs
AKA division of labor

Chain of Command

an unbroken line of authority that links all individuals in the organization and specifies who reports to whom

-is vested in organizational positions, not people
-is accepted by subordinates
-flows down the vertical hierarchy

the mechanism through which authority and responsibility are aligned

the process managers use to transfer authority and responsibility down the chain

line departments

perform primary business tasks
-Sales
-Production

staff departments

support line departments
-Marketing
-Human Resources
-Accounting
-Research

Span of Management

the number of employees reporting to a supervisor

tall organizations

have more levels and narrow span

flat organizations

have a wide span and fewer levels

Less supervision/larger spans of control

-Work is stable and routine
-Subordinates perform similar work
-Subordinates are in one location
-Highly trained/require little direction
-Rules and procedures are defined
-Few planning or nonsupervisory activities
-Manager's preference

decision authority is located near the top of the organization

Decentralization

decision authority is pushed downward to all levels

factors that influence centralization vs decentralization

-change and uncertainty are usually associated with decentralization
-strategic fit
-crisis requires centralization

Vertical Functional Approach

Grouping of positions into departments based on skills, expertise, work activities, and resource use

Divisional Approach

Grouping based on organizational output
-Product, Program, Business (self-contained unit)
-Geographic or Customer-Based Divisions

Geographic or Customer-based divisions

group activities by geography or customer

combines functional and divisional approaches
-improve coordination and information
-dual lines of authority

a very widespread trend
-Allows managers to delegate authority
-Flexible, responsive

Virtual Network Approach

-Extends idea of horizontal coordination and collaboration (partnerships and alliances)
-Could be a loose interconnected group
(i.e., outsourcing)

virtual network structure

means that the firm subcontracts most of its major functions to separate companies

advantages/disadvantages of functional structural approach

Advantages:
-efficient use of resources; economies of scale
-in-depth skill specialization and development
-top manager direction and control

Disadvantages:
-poor communication across functional departments
-slow response to external changes; lagging innovation
-decisions concentrated at top of hierarchy, creating delay

advantages/disadvantages of divisional structural approach

Advantages:
-fast response, flexibility in unstable environment
-fosters concern for customer needs
-excellent coordination across functional departments

Disadvantages:
-duplication of resources across divisions
-less technical depth and specialization
-poor coordination across divisions

advantages/disadvantages of matrix structural approach

Advantages:
-more efficient use of resources than single hierarchy
-flexibility, adaptability to changing environment
-interdisciplinary cooperation, expertise available to all divisions

Disadvantages:
-frustration and confusion from dual chain of command
-high conflict between two sides
-many meetings, more discussion than action

advantages/disadvantages of team structural approach

Advantages:
-reduced barriers among departments, increased compromise
-shorter response time, quicker decisions
-better morale, enthusiasm from employee involvement

Disadvantages:
-dual loyalties and conflict
-time and resources spent on meetings
-unplanned decentralization

advantages/disadvantages of virtual network structural approach

Advantages:
-can draw on expertise worldwide
-highly flexible and responsive
-reduced overhead costs

Disadvantages:
-lack of control; weak boundaries
-greater demands on managers
-weaker employee loyalty

organizing for Horizontal Coordination

-companies need more flexibility than vertical structure can offer (meet fast-shifting environment, break down barriers between departments, need integration and coordination)
-lack of coordination and cooperation can cause information problems (growing global change)

Business Process Reengineering (Reengineering)

the radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed

a temporary team or committee formed to solve a specific short-term problem involving several departments

cross-functional team

furthers horizontal coordination by including members across the organization

project manager

person responsible for coordinating activities of several departments for the completion of a specific project

Structure follows strategy

-Business performance is influenced by structure
-Strategic goals should drive structure
-Structure should facilitate strategic goals

knowledge, tools, techniques, and activities should match

production activities

manufacturing firms can be organized according to

-small-batch and unit production
-large-batch and mass production
-continuous process production

the technical complexity of each type of firm

The Nature of Leadership

-Many styles of leadership can be effective
-People, influence, and goals

-the ability to influence people toward the attainment of goals
-motivates toward vision and change
-cannot replace management, there should be a balance of both

Contemporary Leadership

- Leadership evolves as the needs of the organization change
- Leadership has evolved with technology, economic, labor, social, and cultural changes
- Responding to the turbulence and uncertainty of the environment

4 approaches for today's turbulent times

-Level 5 leadership
-Servant leadership
-Authentic leadership
-Interactive leadership (gender differences)

Level-Five Leadership

refers to the highest level in a hierarchy of manager capabilities
-lack of ego (humility)
-shy and self-effacing
-fierce resolve to do what is best for organization
-credit other people

Servant Leadership

-Work exists for the development of the worker
-transcend self-interest to serve others
-give away power, ideas, information, recognition, credit, and money

Authentic Leadership

-pursues purpose with passion
-practices solid values
-leads with the heart as well as the head
-demonstrates self-discipline
-connects with others

Interactive Leadership

-Derived from studies of female leaders (gender differences)
-Consistent with Level 5 leadership
-Consensual and collaborative
-Influence derived from relationships

gender differences in leadership behaviors

as a whole, women rated higher
-rated equal w/ men for strategic planning and analyzing issues

Good management is

essential to organizations

Good managers must be

provides stability, order, and problem solving

manager qualities

focus on the organization
-rational
-maintains stability
-assigns tasks
-organizes
-analyzes
-position power

leader qualities

focus on people
-visionary
-promotes change
-defines purpose
-nurtures
-innovates
-personal power

effective leaders possess

varied traits and combine these with their strengths

2 leadership behaviors

-Task-oriented behavior
-People-oriented behavior

Ohio State Studies

identified two major behaviors:
-consideration
-initiating structure

people oriented
-mindful of subordinates
-respects ideas and feelings
-establishes mutual trust

initiating structure

task behavior
-task oriented
-directs work activities toward goals

Michigan Studies

Compared the behavior of effective and ineffective supervisors
-employee-centered leaders (most effective)
-job-centered leaders (not effective)

employee-centered leader behavior

-establish high performance goals
-display supportive behavior

job-centered leader behavior

-less concerned with goal achievement/human needs
-focus on meeting schedules, cost-management, and efficiency

Contingency Approaches

-Situational Model of Leadership
-Leadership Model (Fiedler)
-Substitutes for Leadership Concept

Situational Theory of Leadership

-extension of behavioral theories
-focus on characteristics of followers
-seek appropriate leadership behavior
-leadership is based on relationship with followers and readiness level of followers

Fiedler's Contingency Theory

-leader's style is task oriented or relationship oriented (relatively fixed leadership style difficult to change)
-goal is to match the leader's style with organizational situation
-analyze the leader's style to the favorability of the situation

substitutes for leadership

-organizational variables
-task characteristics
-group characteristics

Charismatic & Visionary Leadership

-attractive ideal future
-inspire and motivate people to do more
-speak to the hearts of employees to be a part of something big

Transactional Leadership

-clarify tasks
-initiate structure
-provide awards
-improve productivity
-hard working
-tolerant & fair-minded
-focus on management

Transformational Leadership

-innovative
-recognize follower needs
-inspire followers
-create a better future
-promote significant change

-organization does not exist without followers
-understand followers: critical thinking vs dependent uncritical thinking
-Is the follower active or passive?

-Legitimate Power
-Reward Power
-Coercive Power

-Expert Power
-Referent Power

other sources of power

-personal effort
-network of relationships
-information

Both leaders and followers use _____ to get things done.

7 interpersonal influence tactics

-use rational persuasion
-make people like you
-rely on the rule of reciprocity
-develop allies
-be assertive - ask for what you want
-make use of higher authority
-reward the behaviors you want

the arousal, direction, and persistence of behavior

A manager's job is to channel

motivation toward the accomplishment of goals

simple model of motivation

need, behavior, rewards, feedback (repeats)

Content Perspectives on Motivation

If managers understand employees' needs, they can design appropriate reward systems
-needs motivate people
-needs translate into an internal drive that motivates behavior
-people have a variety of needs

Maslow's Hierarchy of Needs

physiological needs, safety needs, belongingness and love needs, esteem needs, self-actualization

existence, relatedness, growth

existence needs

the needs for physical well-being

relatedness needs

the needs for satisfactory relationships with others

the needs that focus on the development of human potential and the desire for personal growth

frustration-regression principle

failure to meet a high-order need may cause a regression to an already satisfied lower-order need

Herzberg's Two-Factor Theory

proposed that work satisfaction and dissatisfaction arise from two different factors
-satisfaction: motivating factors
-dissatisfaction: hygiene factors

need for achievement, need for affiliation, need for power

How people select behavioral actions

-Goal-Setting Theory
-Equity Theory
-Expectancy Theory

Goal Setting Theory

Increase motivation by setting goals
-goal specificity
-goal difficulty
-goal acceptance
-feedback

Individual perceptions of fairness

Perceived inequity can be reduced by

-Changing work effort
-Changing outcomes
-Changing perception
-Leaving the job

occurs when the input-to-outcome ratios are out of balance

Expectancy Theory

Motivation depends on individuals' expectations about their ability to perform tasks and receive desired rewards

putting effort into a given task will lead to high performance

successful performance of a task will lead to the desired outcome

the value or attraction an individual has for an outcome

behavior modification

Reinforcement theory techniques used to modify behavior

an act that causes a behavior to be repeated or inhibited

Positively reinforced behavior tends to be repeated and unreinforced behavior inhibited

positive reinforcement

pleasant and rewarding consequences following a desired behavior

Social Learning Theory

individual's motivation can result from thoughts, beliefs, and observations

vicarious learning

observational learning from seeing others' behaviors and getting rewarded for them

self-reinforcement

motivating yourself by reaching goals and providing positive reinforcement for yourself

belief about your own ability to accomplish tasks

Job Design for Motivation

-Job Simplification
-Job Rotation
-Job Enlargement
-Job Enrichment

The Job Characteristics Model

A model of job design that considers core job dimensions, individuals' critical psychological states, personal and work outcomes, and employee growth-need strength.

Core Job Dimensions

-skill variety
-task identity
-task significance
-autonomy
-feedback

Innovative Ideas for Motivating

-Organizations are using various types of incentive compensation to motivate employees to higher levels of performance
-Variable compensation is a key motivational tool
-Incentive plans can backfire
-Incentives should reward the desired behavior

Empowering People to Meet Higher Needs

-Employees receive information about company performance
-Employees have knowledge and skills to contribute to company goals
-Employees have the power to make substance decisions
-Employees are rewarded based on company performance

Giving meaning to work through engagement

-Instill a sense of support and meaning
-Help employees obtain intrinsic reward
-Focus on learning, contribution, and growth

;