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Principles of Management Ch 9

44 cards·by bncannon3
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Organizational Structure
the vertical and horizontal configuration of departments, authority, and jobs within a company
Organizational Process
the collection of activities that transform inputs into outputs that customers value
Advantages of Functional Departmentalization
allows work done by highly qualified specialists lowers costs by reducing duplication makes communication and coordination easier
Disadvantages of Functional Departmentalization
cross-department coordination can be difficult may lead to slower decision making
Advantages of Product Departmentalization
allows people to specialize in one area of expertise makes it easier to assess performance makes decision making faster
Disadvantages of Product Departmentalization
duplication coordination across different product departments
Advantages of Customer Departmentalization
focuses organization on customer needs allows companies to specialize products and services to customer needs
Disadvantages of Customer Departmentalization
duplication of resources workers might please customers but hurt business
Advantages of Geographic Departmentalization
helps companies respond to different markets reduces costs by locating unique resources closer to customers
Disadvantages of Geographic Departmentalization
duplication of resources difficult to coordinate departments
Advantages of Matrix Departmentalization
allows companies to efficiently manage large, complex tasks gives much more diverse set of expertise and experience
Disadvantages of Matrix Departmentalization
requires a high level of duplication confusion and conflict between project bosses requires much more management skill
Chain of Command
the vertical line of authority that clarifies who reports to whom throughout the organization
Unity of Command
workers should report to just one boss
Line Authority
the right to command immediate subordinates in the chain of command
Staff Authority
the right to advise but not command others who are not subordinates in the chain of command
Line Function
an activity that contributes directly to creating or selling the company’s products
Staff Function
does not contribute directly to creating or selling the company’s products, but instead supports line activities
Centralization of Authority
Most authority is at the upper levels of the organization.
Decentralization
Delegate authority to lower levels
Standardization
Solve problems by consistently apply the same rules, procedures and processes Nice to have for centralization
Advantages of Decentralization
Develops employee capabilities Faster decision making More satisfied employees and customers Better employee performance
Job Rotation
Periodically move employees from one specialized job to another
Enlargement
Employees are given several tasks to perform
Enrichment
Employees are given several tasks and the authority to make decisions
Internal Motivation
motivation that comes from the job itself rather than from outside rewards such as a raise or praise from the boss. If workers feel that per
Skill Variety
the number of different activities performed in a job
Task Identity
the degree to which a job, from beginning to end, requires completion of a whole and identifiable piece of work
Task Significance
the degree to which a job is perceived to have a substantial impact on others inside or outside the organization
Autonomy
the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work
Feedback
is the amount of information the job provides to workers about their work performance
Combine Tasks
increases skill variety and task identity by joining separate, specialized tasks into larger work modules
Natural Work Units
arrange tasks according to logical or meaningful groups
Establish Client Relationship
giving employees direct contact with customers
Vertical Loading
push some managerial authority down to workers
Open Feedback Channels
Find additional ways to give employees direct, frequent feedback about their job performance
Intraorganizational Process
The collection of activities that take place within an organization to transform inputs into outputs that customers value.
Reengineering
the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of
Interorganizational Process
A collection of activities that occur among companies to transform inputs into outputs that customers value
Advantages of Modular Organizations
reduced costs
Disadvantages of Modular Organizations
loss of control noncore activities that are outsourced may become source of advantage suppliers to whom work is outsourced can become comp
Virtual Organizations
part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other.
Advantages of Virtual Organizations
shared costs fast and flexible
Disadvantages of Virtual Organizations
difficult to control quality of work done by partners requires tremendous managerial skills