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

Key Concepts:

Terms in this set (109)

Organizing
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
strategy
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
Authority
-is vested in organizational positions, not people
-is accepted by subordinates
-flows down the vertical hierarchy
Accountability
the mechanism through which authority and responsibility are aligned
Delegation
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
Centralization
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
Matrix
combines functional and divisional approaches
-improve coordination and information
-dual lines of authority
team approach
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
task force
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
differs
The Nature of Leadership
-Many styles of leadership can be effective
-People, influence, and goals
Leadership
-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
leaders
Management
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
consideration
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
Followership
-organization does not exist without followers
-understand followers: critical thinking vs dependent uncritical thinking
-Is the follower active or passive?
Position Power
-Legitimate Power
-Reward Power
-Coercive Power
Personal Power
-Expert Power
-Referent Power
other sources of power
-personal effort
-network of relationships
-information
Both leaders and followers use _____ to get things done.
power
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
Motivation
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
ERG Theory
existence, relatedness, growth
existence needs
the needs for physical well-being
relatedness needs
the needs for satisfactory relationships with others
growth needs
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
Acquired Needs
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
Equity Theory
Individual perceptions of fairness
Perceived inequity can be reduced by
-Changing work effort
-Changing outcomes
-Changing perception
-Leaving the job
inequity
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
E - P
putting effort into a given task will lead to high performance
P - O
successful performance of a task will lead to the desired outcome
Valence
the value or attraction an individual has for an outcome
behavior modification
Reinforcement theory techniques used to modify behavior
Reinforcement
an act that causes a behavior to be repeated or inhibited
Law of Effect
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
self-efficacy
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
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