Principles of Management Chapter 8-11

Checkpoint 3

Differentiation

Jobs and jobholders are separated from one another through division of labor and specialization.

Division of Labor

The work of the organization is broken down into smaller tasks.

Specialization

Different individuals and units efficiently perform different tasks.

Integration

The degree to which differentiated work units work together and coordinate their efforts.

Coordination

The procedures that link the various parts of an organization for the purpose of achieving the organization’s overall mission.

Delegation

Assigning new or additional responsibilities to someone under the authority.

Line Departments

Those on the front line who are responsible for the activities of the firm.

Staff Departments

Responsible for research, legal, and accounting.

Functional Organization

Jobs are grouped according to traditional business functions.

Divisional Organization

Units are grouped around products, customers, or geographic regions.

Matrix Organization

A dual-reporting system where managers and staff report to bosses from both a functional and divisional organization.

Unity of Command

Each person should only report to one manager.

Formalization

The presence of rules and regulations governing how people in the organization interact.

Span of Control

The number of subordinates who report directly to an executive or supervisor.

Main disadvantage of a matrix organization

Dual reporting confusion and conflict

Wide span of control

flatter structure with more employee autonomy

Coordination by Plan

Units can be flexible as long as deadlines and objectives towards the common goal are met.

Coordination by Standardization

Routines and procedures apply to everyone

Coordination by Mutual Adjustment

Units interact with one another to make accommodations to achieve flexible coordination.

Network Organization

A collection of independent, mostly single-function firms that collaborate on a good or service.

Adaptive Organization

Well-designed systems, deliver results as needed, and the organization is flexible in a fast changing world.

Ambidextrous

Efficiently performs as needed while seeking new ways to meet future needs.

Mechanistic Organization

A form of organization that seeks to maximize internal efficiency. Not agile.

Organic structure

Agile and emphasizes flexibility

VUCA

Volatility, Uncertainty, Complexity, Ambiguity

Core Capability

The knowledge, expertise, or skill that underlies a company’s ability to be a leader in providing a range of products.

Ordinary Capabilities

Capabilities pertaining to basic administrative and operational functions.

Dynamic Capabilities

Higher-level strategic capabilities involving adapting rapidly to changing environments.

Economies of Scale

An increased level of production offers lower costs per unit of production.

Diseconomies of Scale

Average unit costs increase as the business grows

Economies of Scope

Materials and processes employed in one product can be used to make related products.

Lean Manufacturing

Aims to achieve the highest possible productivity by removing unnecessary steps in the production process.

Flexible Factories

Manufacturing plants that have short production runs, are organized around products, and use decentralized scheduling.

Just In Time Operations

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed.

Concurrent engineering

A design approach in which all relevant functions cooperate jointly and continually in a maximum effort aimed at producing high-quality products that meet customers’ needs.

Continuous Process

Paper manufacturing

Mass Customization

The production of varied, individually customized products at the low cost of standardized, mass-produced products.

Strategic HR Management

VRIO

Value, Rare, Inimitable, Organized

Adverse Impact

When an employment practice has a disproportionately negative effect on a protected group.

Performance Appraisal

The assessment of job performance.

360-degree appraisal

The process of using multiple sources of appraisal to gain a comprehensive perspective on one’s performance.

HR Planning Process

Planning (Competition, Economy, Demand Forecast)

Programming (Recruitment, Selection)

Evaluating (Productivity, Quality)

Glass Ceiling

An invisible barrier that makes it difficult to move beyond a certain hierarchical level.

Monolithic

Having very little diversity or inclusiveness.

Pluralistic

Has a more diverse employee population and tries to train a diverse workforce to avoid discrimination.

Multicultural

An organization that values cultural diversity and seeks to encourage it.

Quid pro Quo

When submission to or rejection of sexual conduct is used as a basis for employment decisions.

Hostile Environment

Unwelcome sexual conduct that interferes with job performance or creates an intimidating work environment.

Awareness Training

Increases the awareness of the meaning and importance of valuing diversity.

Cultivating Inclusion

Actively creating a work environment where every individual feels valued and respected.