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Job Specialization
The degree to which the overall task of the organization is broken down and divided into smaller component parts
job rotation
An alternative to job specialization that involves systematically moving employees from one job to another
job enlargement
An alternative to job specialization that increases the total number of tasks that workers perform
job enrichment
An alternative to job specialization that attempts to increase both the number of tasks a worker does and the control the worker has over the job
job characteristics approach
An alternative to job specialization that suggests that jobs should be diagnosed and improved along five core dimensions, taking into account both the work system and employee preferences
work teams
An alternative to job specialization that allows an entire group to design the work system it will use to perform an interrelated set of tasks
Departmentalization
the process of grouping jobs according to some logical arrangement
Functional Departmentalization
grouping jobs involving the same or similar activities
Product Departmentalization
grouping activities around products or product groups
Customer Departmentalization
Grouping activities to respond to and interact with specific customers or customer groups
Location Departmentalization
grouping jobs on the basis of defined geographic sites or areas
chain of command
a clear and distinct line of authority among the positions in an organization
span of management
the number of people who report to a particular manager
authority
power that has been legitimized by the organization
Delegation
the process by which managers assign a portion of their total workload to others
Decentralization
The process of systematically delegating power and authority throughout the organization to middle and lower-level managers
Centralization
The process of systematically retaining power and authority in the hands of higher-level managers
Coordination
the process of linking the activities of the various departments of the organization
pooled interdependence
When units operate with little interaction; their output is pooled at the organizational level
sequential interdependence
when the output of one unit becomes the input for another in sequential fashion
reciprocal interdependence
when activities flow both ways between units
Bureaucracy
A model of organization design based on a legitimate and formal system of authority
situational view of organization design
based on the assumption that the optimal design for any given organization depends on a set of relevant situational factors
Technology
conversion process used to transform inputs into outputs
mechanistic organization
Similar to the bureaucratic model, most frequently found in stable environments
organic organization
very flexible and informal model of organization design, most often found in unstable and unpredictable environments
Differentiation
extent to which the organization is broken down into subunits
Integration
degree to which the various subunits must work together in a coordinated fashion
organizational size
total number of full-time or full-time-equivalent employees
organizational life cycle
progression through which organizations evolve as they grow and mature
Functional Design
based on the functional approach to departmentalization
conglomerate design
used by an organization made up of a set of unrelated businesses
divisional design
based on multiple businesses in related areas operating within a larger organizational framework
matrix design
based on two overlapping bases of departmentalization
team organization
An approach to organization design that relies almost exclusively on project-type teams, with little or no underlying hierarchy
virtual organization
one that has little or no formal structure
learning organization
one that works to facilitate the lifelong learning and personal development of all its employees while continually transforming itself to respond to changing demands and needs
Organizational change
any substantive modification to some part of the organization
planned change
change that is designed and implemented in an orderly and timely fashion in anticipation of future events
reactive change
a piecemeal response to circumstances as they develop
Enterprise Resource Planning (ERP)
A large-scale information system for integrating and synchronizing the many activities in the extended enterprise
business process change
the radical redesign of all aspects of a business to achieve major gains in cost, service, or time
organizational development (OD)
an effort that is planned, organization-wide, and managed from the top, intended to increase organizational effectiveness and health through planned interventions in the organization's process, using behavioral science knowledge
innovation
the managed effort of an organization to develop new products or services or new uses for existing products or services
radical innovations
a new product, service, or technology that completely replaces an existing one
incremental innovations
a new product, service, or technology that modifies an existing one
technical innovations
A change in the appearance or performance of products or services or of the physical processes through which a product or service passes
managerial innovations
a change in the management process in an organization
product innovations
A change in the physical characteristics or performance of an existing product or service or the creation of a new product or service
process innovations
a change in the way a product or service is manufactured, created, or distributed
Intrapreneurs
Similar to entrepreneurs except that they develop new businesses in the context of a large organization
Human Resource Management (HRM)
set of organizational activities directed at attracting, developing, and maintaining an effective workforce
human capital
reflects the organization's investment in attracting, retaining, and motivating an effective workforce
Title VII of the Civil Rights Act of 1964
Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship
adverse impact
when minority group members pass a selection standard at a rate less than 80% of the pass rate of majority group members
Equal Employment Opportunity Commission
Federal agency charged with enforcing Title VII of the Civil Rights Act of 1964
Age Discrimination in Employment Act
outlaws discrimination against people older than age 40; passed in 1967, amended in 1978 and 1986
Affirmative Action
Intentionally seeking and hiring qualified or qualifiable employees from racial, sexual, and ethnic groups that are underrepresented in the organization
Americans with Disabilities Act
Prohibits discrimination against people with disabilities
Civil Rights Act of 1991
Amends the original Civil Rights Act, making it easier to bring discrimination lawsuits while also limiting punitive damages
Fair Labor Standards Act
Sets a minimum wage and requires overtime pay for work in excess of 40 hours per week; passed in 1938 and amended frequently since then
Equal Pay Act of 1963
Requires that men and women be paid the same amount for doing the same job
Employee Retirement Income Security Act of 1974 (ERISA)
regulates how organizations manage their pension funds
Family and Medical Leave Act of 1993 (FMLA)
requires employers to provide up to 12 weeks of unpaid leave for family and medical emergencies
National Labor Relations Act
Passed in 1935 to set up procedures for employees to vote on whether to have a union; also known as the Wagner Act
National Labor Relations Board (NLRB)
Established by the Wagner Act to enforce its provisions
Labor Management Relations Act
Passed in 1947 to limit union power; also known as the Taft-Hartley Act
Occupational Safety and Health Act of 1970
Directly mandates the provision of safe working conditions
employment at will
A traditional view of the workplace that says organizations can fire their employees for whatever reason they want; recent court judgments are limiting employment-at-will
job analyisis
a systematized procedure for collecting and recording information about jobs within an organization
replacement chart
Lists each important managerial position in the organization, who occupies it, how long he or she will probably remain in the position, and who is or will be a qualified replacement
employee information system
Contains information on each employee's education, skills, experience, and career aspirations; usually computerized
recruiting
The process of attracting individuals to apply for jobs that are open
internal recruiting
Considering current employees as applicants for higher-level jobs in the organization
external recruiting
Getting people from outside the organization to apply for jobs
Realistic Job Preview (RJP)
Provides the applicant with a real picture of what performing the job that the organization is trying to fill would be like
Validation
Determining the extent to which a selection device is really predictive of future job performance
training
teaching operational or technical employees how to do the job for which they were hired
development
teaching managers and professionals the skills needed for both present and future jobs
performance appraisal
A formal assessment of how well an employee is doing his or her job
Behaviorally Anchored Rating Scale (BARS)
A sophisticated rating method in which supervisors construct a rating scale associated with behavioral anchors
360-degree feedback
Performance appraisal of managers done by their boss, peers, and subordinates
compensation
the financial remuneration given by the organization to its employees in exchange for their work
job evaluation
an attempt to assess the worth of each job relative to other jobs
Benefits
things of value other than compensation that an organization provides to its workers
labor relations
process of dealing with employees who are represented by a union
collective bargaining
The process of agreeing on a satisfactory labor contract between management and a union
grievance procedure
The means by which a labor contract is enforced
knowledge workers
Workers whose contributions to an organization are based on what they know
psychological contract
the overall set of expectations help by an individual with respect to what he or she will contribute to the organization and what the organization will provide in return
contributions
What the individual provides to the organization
inducements
what the organization provides to the individual
person-job fit
the extent to which the contributions made by the individual match the inducements offered by the organization
individual differences
personal attributes that vary from one person to another
Personality
the relatively permanent set of psychological and behavioral attributes that distinguish one person from another
Big Five Personality Traits
A popular personality framework based on five key traits
Agreeableness
a person's ability to get along with others
Conscientiousness
the number of things a person can effectively work on at one time
Neuroticism
extent to which a person is poised, calm, resilient, and secure
Extraversion
a person's comfort level with relationships