Organizing
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Terms in this set (189)
Span of ManagementThe number of employees reporting to a supervisor; sometimes called span of controlDepartmentalizationThe basis for grouping individual positions into departments and departments into the total organization.DecentralizationMeans that decision authority is pushed down to lower organization levelsTall StructureAn organizational structure characterized by an overall narrow span of management and a relatively large number of hierarchical levels.CentralizationMeans that decision authority is located near top organization levels.Staff AuthorityThe right to advise, counsel, and recommend in the manager's area of expertise.Flat StructureAn organizational structure characterized by an overall broad span of management and relatively few hierarchical levels.Functional StructureAn organizational structure in which activities are grouped together by common function from the bottom to the top of the organization.Two-Boss EmployeesIn a matrix structure, a person who reports to two supervisors simultaneously.Matrix BossA functional or product supervisor responsible for one side of the matrix.Top LeaderIn a matrix structure, the person who oversees both the product and the functional chains of command and is responsible for the entire matrix.Divisional StructureAn organizational structure that groups employees and departments based on similar organizational outputs (products or services), such that each division has a mix of functional skills and tasks.Matrix ApproachA structural approach that uses both functional and divisional chains of command simultaneously, in the same part of the organization.Cross-functional teamsA group of employees from various functional departments that meet as a team to resolve mutual problems.Virtual-Network StructureAn organizational structure in which the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.Coordinationthe managerial task of adjusting and synchronizing the diverse activities among different individuals and departmentsPermanent Teamsa group of employees from all functional areas permanently assigned to focus on a specific task or activityTeam-based StructureStructure in which the entire organization is made up of horizontal teams that coordinate their activities and work directly with customers to accomplish the organization's goals.CollaborationA joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.Mass Productioncharacterized by long production runs to manufacture a large volume of products with the same specificationsRelational CoordinationFrequent horizontal coordination and communication carried out through ongoing relationships of shared goals, shared knowledge, and mutual respect.Small-batch ProductionA type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specification.Task Forcea temporary team or committee designed to solve a problem involving several departmentsRe-engineeringThe radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.Project ManagerA manager who is responsible for a specific work project that involves people from various functions and levels of the organization.Technical ComplexityThe degree to which complex machinery is involved in the production process to the exclusion of people.Continuous Process Productioninvolves mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineriesService Technologycharacterized by intangible outputs and direct contact between employees and customersDecision MakingThe process of identifying problems and opportunities and then resolving them.Decisiona choice made from available alternatives.Programmed DecisionsA decision made in response to a situation that has occurred often enough to enable managers to develop decision rules that can be applied in the future.Nonprogrammed DecisionsA choice made in response to a situation that is unique, is poorly defined and largely unstructured, and has important consequences for the organization.RiskMeans that a decision has clear-cut goals and good information is available, but the future outcomes associated with each alternative are subject to chance.Certaintya situation in which all the information the decision maker needs is fully available.UncertaintyOccurs when managers know which goals they want to achieve, but information about alternatives and future events is incomplete.NormativeMeans that it defines how a manager should make logical decisions and provides guidelines for reaching an ideal outcome.Administrative ModelA decision-making model that includes the concepts of bounded rationality and satisficing and describes how managers make decisions in situations that are characterized by uncertainty and ambiguity.DescriptiveAn approach that describes how managers actually make decisions in complex situations rather than dictating how they should make decisions according to a theoretical ideal.Classical ModelA decision-making model based on the assumption that managers should make logical decisions that are economically sensible and in the organization's best economic interest.AmbiguityA condition in which the goals to be achieved or the problem to be solved is unclear, alternatives are difficult to define, and information about outcomes is unavailable. worst possible scenarioBounded RationalityMeans that people have the time and cognitive ability to process only a limited amount of information on which to base decisions.IntuitionAn aspect of administrative decision making that refers to a quick comprehension of a decision situation based on past experience but without conscious thought.SatisficingRefers to choosing the first alternative that satisfies minimal decision criteria, regardless of whether better solutions are presumed to exist.Problema situation in which organizational accomplishments have failed to meet established goalsCoalitionan informal alliance among managers who support a specific goal or solutionOpportunitya situation in which managers see potential organizational accomplishments that exceed current goalsQuasirationalitycombining intuitive and analytical thoughtDiagnosisThe step in which managers analyze underlying causal factors associated with the decision situation.Implementationinvolves using managerial, administrative, and persuasive abilities to translate the chosen alternative into action5 WhysA question-asking method used to explore the root cause underlying a particular problem. The first "why" generally produces a superficial explanation for the problem, and each subsequent "why" probes deeper into the causes of the problem and potential solutions.Risk Propensitywillingness to undertake risk with the opportunity of gaining an increased payoffAnchoring BiasWhen a manager allows initial impressions, statistics, or estimates to act as anchors to subsequent thoughts and decisionsDecision Stylesdifferences among people with respect to how they perceive problems and make choicesSunk Cost EffectThe tendency to continue investing in a failing project in the hope of turning it around.Confirmation Biasthe tendency to put too much value on evidence that is consistent with a favored belief or viewpoint and too little on evidence that contradicts itBrainstormingA technique that uses a face-to-face group to spontaneously suggest a broad range of alternatives for making a decision.Electronic BrainstormingBrainstorming that takes place in an interactive group over a computer network, rather than meeting face to face.Devil's Advocatea person who is assigned the role of challenging the assumptions and assertions made by the group to prevent premature consensusEvidence-Based Decision MakingA process founded on a commitment to examining potential biases, seeking and examining evidence with rigor, and making informed and intelligent decisions based on the best available facts and evidence.Point-CounterpointA technique that breaks a decision-making group into two subgroups and assigns them different, often competing, responsibilities.GroupthinkThe tendency of people in groups to suppress contrary opinions in a desire for harmony.Escalating CommitmentRefers to continuing to invest time and money in a decision despite evidence that it is failing.After-Action ReviewA disciplined procedure whereby managers review the results of decisions to evaluate what worked, what didn't, and how to do things better.Goala desired future state that the organization wants to realizePlanningThe management function concerned with defining goals for future performance and how to attain them.Plana blueprint specifying the resource allocations, schedules, and other actions necessary for attaining goalsMissionAn organization's purpose and reason for existing; its long-term goals.Strategic GoalsA broad statement of where an organization wants to be in the future; pertains to the organization as a whole rather than to specific divisions or departments.Mission StatementA broadly stated definition of the organization's basic business scope and operations that distinguishes it from similar types of organizations.Strategic Plansthe action steps by which an organization intends to attain strategic goalsTactical Goalsthe outcomes that major divisions and departments must achieve for the organization to reach its overall goalsOperational GoalsA specific, measurable result that is expected from departments, work groups, and individuals.Key Performance Indicators (KPI)tools used to asses what is important to an organization and how well the organization is progressing toward attaining its strategic goal, so that managers can establish lower-level goals that drive performance toward the overall strategic objectiveTactical Plansdesigned to help execute major strategic plans and to accomplish a specific part of the company's strategyManagement by Objectives (MBO)A method whereby managers and employees define goals for every department, project, and person and use them to monitor subsequent performance.Operational PlansSpecifies the action steps toward achieving operational goals and supports tactical activities.Management by means (MBM)An approach that focuses people on the methods and processes used to attain results, rather than on the results themselves.Contingency Plansidentifies important factors in the environment and defines a range of alternative responses to be taken in the case of emergencies, setbacks, or unexpected conditionsDecentralized PlanningAn approach where top executives or planning experts work with managers in major divisions or departments to develop their own goals and plans.Stretch Goalsreasonable yet highly ambitious and compelling goals that energize people and inspires excellenceScenario BuildingAn approach where managers look at trends and discontinuities and imagine possible alternative futures to build a framework within which unexpected future events can be managed.Strategic Managementrefers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goalsStrategythe plan of action that describes resource allocation and activities for dealing with the environment, achieving a competitive advantage, and attaining goalsCompetitive Advantagerefers to what sets the organization apart from others and provides it with a distinctive edge in the marketplaceSWOT AnalysisAn audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance.Differentiation StrategyA strategy with which managers seek to distinguish the organization's products and services from those of others in the industry.BCG MatrixA concept developed by the Boston Consulting Group (BCG) that evaluates strategic business units with respect to two dimensions—business growth rate and market share—and classifies them as cash cows, stars, question marks, or dogs.Cost-Leadership StrategyA strategy with which managers aggressively seek efficient facilities, cut costs, and use tight cost controls to be more efficient than others in the industry.Diversificationstrategy of moving into new lines of businessCore Competencesomething that the organization does particularly well in comparison to othersFocus StrategyA strategy where managers use either a differentiation or a cost leadership approach, but they concentrate on a specific regional market or buyer group.Ethicsthe code of moral principles and values that governs the behaviors of a person or group with respect to what is right or wrongEthical DilemmaA situation in which all alternative choices or behaviors have potentially negative consequences.Utilitarian ApproachA method of ethical decision making saying that the ethical choice is the one that produces the greatest good for the greatest number.Individualism ApproachA decision-making approach suggesting that actions are ethical when they promote the individual's best long-term interests, because with everyone pursuing self-interest, the greater good is ultimately served.Justice Approachsays that ethical decisions must be based on standards of equity, fairness, and impartialityMoral-Rights Approachholds that ethical decisions are those that best maintain the fundamental rights of the people affected by themDistributive Justicerequires that different treatment of individuals not be based on arbitrary characteristicsProcedural Justiceholds that rules should be clearly stated and consistently and impartially enforcedCompensatory Justiceargues that individuals should be compensated for the cost of their injuries by the party responsible, and individuals should not be held responsible for matters over which they have no controlPractical ApproachA decision-making approach that sidesteps debates about what is right, good, or just, and bases decisions on the prevailing standards of the profession and the larger society.StakeholderAny group or person within or outside the organization that has some type of investment or interest in the organization's performance.Corporate Social Responsibility (CSR)the obligation of organizational managers to make choices and take actions that will enhance the welfare and interests of society as well as the organization.Stakeholder MappingA systematic way to identify the expectations, needs, importance, and relative power of various stakeholders.Concious Capitalismfollowing organizational policies and practices that both enhance the success of a company and advance the economic and social conditions of the communities in which the company operates.GreenwashingEfforts to portray a company as being more environmentally minded that it actually is.Sustainabilityeconomic development that generates wealth without compromising environmental responsibility and social stewardship, thus meeting the current and future needs of stakeholders while preserving society and the environment for the needs of future generations.Triple Bottom LineRefers to measuring the organization's financial performance, social performance, and environmental performance.Code of Ethicsa formal statement of the organization's values regarding ethics and social responsibilityEthics CommitteeA group of executives (and sometimes lower-level employees as well) charged with overseeing company ethics by ruling on questionable issues and disciplining violators.Chief Ethics Officera manager who oversees all aspects of ethics and legal complianceBenefit CorporationA for-profit organization that has a stated purpose of creating a positive impact on society; is required to consider the impact of decisions on all stakeholders; and voluntarily holds itself to high standards of accountability and transparency.Whistle BlowingThe disclosure by employees of unethical, illegitimate, or illegal practices by an organizationOrganizational Ecosystemincludes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thriveOrganizational Environmentincludes all elements existing outside the boundary of the organization that have the potential to affect the organizationTask Environmentincludes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performanceGeneral Environmentindirectly influences all organizations within an industry and includes five dimensionsInternal Environmentincludes elements within the organization's boundaries, such as employees, management, and corporate cultureLabor MarketThe people available for hire by the organization.Supply Chaina network of multiple businesses and individuals that are connected through the flow of products or servicesSuppliersprovide the raw materials the organization uses to produce its outputCustomersPeople and organizations that acquire goods or services from a company.Competitiorsorganizations within the same industry or type of business that vie for the same set of customersInternational DimensionIn the external environment, represents events originating in foreign countries, as well as opportunities for U.S. companies in other countriesTechnological Dimensionof the general environment, includes scientific and technological advances in societyLegal-Political Dimensionincludes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behaviorEconomic Dimensionrepresents the general economic health of the country or region in which the organization operatesNatural DimensionIncludes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.Sociocultural Dimensionincludes demographic characteristics, norms, customs, and values of a population within which the organization operatesStrategic IssuesAn event or force that alters an organization's ability to achieve its goals.Mergerwhen two or more companies join to form a single firmBoundary Spanninglinks to and coordinates the organization with key elements in the external environmentStorya narrative based on true events that is repeated frequently and shared among organizational employeesSymbolan object, act, or event that conveys meaning to othersJoint Venturestrategic alliance or program by two or more organizationsCulturethe set of key values, beliefs, understandings, and norms shared by members of an organizationheroa figure who exemplifies the deeds, character, and attributes of a strong cultureInvolvement Culturea culture that places high value on meeting the needs of employees and values cooperation and equalityCeremonyA planned activity at a special event.SloganA phrase, such as Disney's "The happiest place on earth," that succinctly expresses a key corporate value.Achievement CultureA results-oriented culture that values competitiveness, personal initiative, and achievement.Adaptability Culturecharacterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responsesConsistency Culturevalues and rewards a methodical, rational, orderly way of doing thingsCultural LeaderDefines and articulates important values that are tied to a clear and compelling mission.High-Performance CultureEmphasizes both cultural values and business results.LeadingUsing influence to motivate employees to achieve the organization's goals.Managementthe attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resourcesControllingIs concerned with monitoring employees' activities, keeping the organization on track toward meeting its goals and making corrections as necessary.Effectivenessthe degree to which the organization achieves a stated goalEfficiencyThe amount of resources—raw materials, money, and people—used to produce a desired volume of output.Organizationa social entity that is goal directed and deliberately structuredPeformancean organization's ability to attain its goals by using resources in an efficient and effective manner.Conceptual SkillsThe cognitive ability to see the organization as a whole and the relationships among its parts.Rolea set of expectation's for one's behaviorTime Managementusing techniques that enable you to get more done in less time and with better results, be more relaxed, and have more time to enjoy your work and your lifeTechnical Skillsthe understanding of and proficiency in the performance of specific tasksClassical PerspectiveTakes a rational, scientific approach to management and seeks to turn organizations into efficient operating machines.Administrative Principles ApproachA subfield of the classical perspective that focuses on the total organization rather than the individual worker and delineates the management functions of planning, organizing, commanding, coordinating, and controlling.Quantitative TechniquesThe use of mathematics, statistics, and computer technology to facilitate management decision making.Bureaucratic Organizations ApproachEmphasizes management on an impersonal, rational basis through elements such as clearly defined authority and responsibility, formal recordkeeping, and separation of management and ownership.Scientific ManagementA subfield of the classical perspective that emphasizes scientifically determined changes in management practices as the solution to improving labor productivity.Management ScienceUses mathematics, statistical techniques, and computer technology to facilitate management decision making, particularly for complex problems. Also called the quantitative perspective.Information Technology (IT)The hardware, software, telecommunications, database management, and other technologies used to store, process, and distribute information.QuantsRefers to financial managers and others who make decisions based primarily on complex quantitative analysis.Humanistic PerspectiveEmphasizes understanding human behavior, needs, and attitudes in the workplace.Human Resources Perspectivesuggests that jobs should be designed to meet people's higher-level needs by allowing employees to use their full potentialHawthorne StudiesA series of research efforts that was important in shaping ideas concerning how managers should treat workers.Human Relations Movementstresses the satisfaction of employees' basic needs as the key to increased productivityBehavioral Science Approachdraws from psychology, sociology, and other social sciences to develop theories about human behavior and interaction in an organizational settingSystemset of interrelated parts that function as a whole to achieve a common purposeSystems ThinkingLooking not just at discrete parts of an organizational situation, but also at the continually changing interactions among the parts.Supply Chain Managementmanaging the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to consumersBig Data AnalyticsTechnologies, skills, and processes for searching and examining massive, complex sets of data that traditional data processing applications cannot handle to uncover hidden patterns and correlations.Subsystemsparts of a system that depend on one another for their functioningContingency Viewtells managers that what works in one organizational situation might not work in othersSynergyA concept that says that the whole is greater than the sum of its parts.EngagementAn emotional and mental state in which employees enjoy their work, contribute enthusiastically to meeting goals, and feel a sense of belonging and commitment to the organization.Social Businessusing social media technologies for interacting with and facilitating communication and collaboration among employees, customers, and other stakeholdersSocial Media ProgramsInclude online community pages, social media sites, microblogging platforms, and company online forums that enable managers to interact electronically with employees, customers, partners, and other stakeholders.