Principles of Management Chapters 10, 11, 12, 14

what is organizing

the deployment of organizational resources to achieve strategic goals

differences between strategy and organizing

strategy is what to do, organizing is how to do it

what is organization structure

the set of formal tasks assigned to individuals and departments

formal reporting relationships

design of systems to ensure effective coordination of employees across departments

what is an organizational chart

visual representation of organizations structure

what are characteristics of organizing

division of labor

chain of command

authority, responsibility, and delegation

span of management

tall and flat structures

what is division of labor

degree to which organizational tasks are subdivided into separate jobs

what are benefits of division of labor

production is efficient because employees perform small, well-defined tasks

employees can acquire expertise in their tasks

employees can be selected by ability and attitude

what is a drawback of division of labor

too much specialization (isolation and boredom)

what is chain of command

an unbroken line of authority that links all persons in an organization and shows who reports to whom

what are two categories of chain of commands

unity of command: each employee is help accountable to only one supervisor

scalar principle: clearly defined line of authority in the organization

what is authority

the formal and legitimate right of manager to make decisions, issue orders, and allocate resources

vested in the position, flows down the vertical hierarchy, accepted by subordinates, line and staff

what is responsibility, accountability, and delegation

responsibility: the duty to perform the task or activity assigned

accountability: brings authority and responsibility together; people with authority and responsibility are subject to reporting and justifying outcomes to those above them in the chain of command

delegation: process managers use to transfer authority and responsibility to subordinates

what is line and staff authority

line departments: perform tasks that reflect the organization’s primary goal and mission (production or sale of product) ex: marketing and manufacturing

staff departments: include all those who provide specialized skills in support of line departments ex: HR, legal, R&D, accounting, finance

what is span of management

number of employees reporting to a manager

what are factors that determine span of management

stability of subordinate’s work

subordinates perform similar tasks

subordinates in a single location

skill of subordinates

procedures define tasks

support available for manager

minimum time for non-supervisory tasks

managers’ preferences and skills

what are tall and flat structures

tall structure: has an overall narrow span of management and more levels in the hierarchy

flat structure: wide span, horizontally dispersed, has fewer hierarchical levels

trend is towards larger spans of management as a way to facilitate delegation

what is centralization and decentralization

centralization: decision authority is located near the top of the organization (tall)

decentralization: decision authority is pushed downward to all levels (flat)

what are factors that influence centralization versus decentralization?

change and uncertainty are usually associated with decentralization

strategic fit

crisis requires centralization

what is departmentalization

basis for grouping positions into departments and departments into the total organization

what are structural approaches to departmentalization

functional

divisional

matrix

teams

virtual network`

what is functional structure

activities grouped together by common function

group based on similar skills, expertise, resource use, and work activities

chain of command converges at the top

what is divisional structure

departments grouped based on similar organizational outputs (products, customers, geographic)

chain of command converges midway in hierarchy

what is matrix

combines aspects of functional and divisional

goal to improve horizontal coordination and info sharing

dual lines of authority present (two bosses)

what are teams

trendy

allows managers to delegate authority

flexible and responsive to environmental changes

different people from each department coming together

what is network

extends idea of horizontal coordination and collaboration

could be a loose interconnected group (i.e. outsourcing)

virtual network means that the firm subcontracts most of its major functions to separate companies

what are advantages and disadvantages of functional structure

efficient use of resources; economies of scale; in-depth skill of specialization and development; top manager direction and control

poor communication across functions departments; slow response to external changes; lagging innovation; decisions concentrated at the top of hierarchy, creating delay

what are advantages and disadvantages of divisional structure

fast response; flexibility in an unstable environment; fosters concern for customer needs; excellent coordination across functional departments

duplication of resources across divisions; less technical depth and specialization; poor coordination across divisions

what are advantages and disadvantages of matrix

more efficient use of resources than a single hierarchy; flexibility; adaptability to a changing environment; interdisciplinary cooperation; expertise available to all divisions

frustration and confusion from a dual chain of command; high conflict between two sides of the matrix; many meetings; more discussion than action

what are advantages and disadvantages of team

reduce barriers among departments; increased compromise; shorter response time; quicker decisions; better morale; enthusiasm from employee involvement

dual loyalties and conflict; time and resources spent on meetings; unplanned decentralization

what are advantages and disadvantages of virtual network

can draw on expertise worldwide; highly flexible and responsive; reduced overhead costs

lack of control; weak boundaries; great demands on managers; weaker employee loyalty

what is coordination

the managerial task of collaborating across departments

what is collaboration

joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what could be achieved working alone

what is reengineering

radical redesign of business processes to achieve dramatic improvements

what is a task force

a temporary team or committee formed to solve a specific short-term problem involving several departments

what is a project manager

person responsible for coordinating activities of several departments for the completion of a specific project

what are factors shaping structure

structure follows strategy

strategic goals should drive structure and structure should facilitate strategic goals

ex: cost leadership — needs internal efficiency

ex: diversification — needs to foster innovation

business performance is influenced by structure

what is workflow technology

knowledge, tools, techniques, and activites used to transform organizational inputs into outputs

what are woodwards categories

small batch production: firms produce goods in batches of one or few products designed to customer specification

mass production: standardized production runs off a large volume of identical products

continuous process production: entire workflow is mechanized and runs without stopping

what is technical complexity

degree to which machinery is used in production without people

what is the strategic role of human resource management

to drive organizational performance

what is HRM

is the design and application of formal systems in an org to ensure the effective and efficient use of human talent to accomplish org goals

what is human capital

is the economic value of the combined knowledge, experience, skills, and capabilities of employees

ex: education, data analysis, coding, certifications

what. are factors that maintain competitive success

human capital, customer relationships, product and service innovation

what does effective HRM and alignment of HRM strategies with org goals lead to

a positive impact on org performance (competitive success)

i.e. improved employees, stronger financial results

what are strategic issues for HRM

hiring the right people: often globally to become more competitive

hiring the right people: for improving quality, innovation, and customer service

hiring the right people: to apply new AI technology to HRM processes

what are the three goals of HRM

find the right people, manage talent, maintain an effective workforce

what is the impact of federal legislation on HRM

HRM professionals need to be well versed in federal laws governing employment, compensation/benefits, and health and safety

what are some key federal laws

equal employment opportunity

EEOC discrimination: can’t hire or promote applicants based on criteria that are not job relevant (ex: race, gender, housing, age)

compensation/benefit laws

health and safety laws

what is leading edge HR practices

blind hiring, AI based hiring, skills-based hiring

what is blind hiring

managers focus on an applicant’s job skills and performance rather than educational credentials, appearance, or prior experience; clear resumes of information that might bias readers

what is AI based hiring

AI algorithms can be used to reduce bias in hiring decisions. view preference and recommendations

what is skill-based hiring

managers evaluates candidates on their skills rather than on college degrees or conventional credentials

what is human resource planning

forecasting of HR needs and the projected matching of individuals with anticipated vacancies

based on new tech impact, business volume, turnover rate

what is recruiting

activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied (ex: indeed, linkedin)

involves:

assessing jobs (job analysis, job descriptions, job specifications)

realistic job previews (RJP)

virtual recruiting

internships

what is selecting

assess applicants’ characteristics in an attempt to determine the ‘fit’ between the job and applicant characteristics

application form: used to collect info on education, previous jobs; avoid irrelevant questions, avoid questions with adverse impact

employment tests: cognitive ability tests, personality tests

online checks

application and interviews: cannot violate EEO guidelines; types of interviews —> structures interview questions, behavioral interview questions, work sample

what is training and development

training - teaching people how to perform tasks related to their present jobs

development - teaching broader skills that may aid in current position and prepare them for greater responsibilities in future jobs

Tools: on the job training, social learning, corporate universities, promotion from within

what is performance appraisal

observing and evaluating performance, recording assessment, and providing feedback

assessing performance accurately: system should evaluate relevant performance —> performance review ranking systems pit employees against each other; 360 degree feedback: uses multiple raters, including self-rating to appraise employees and development. guides employee development and increases awareness of strengths and weaknesses

what are rewards

compensation: all monetary payments and all goods or commodities —> wage and salary systems (job based pay, skill/competency based pay)

compensation equity: fairness and equity

pay for performance: ties part of compensation to employee effort and performance (aka incentive pay)

benefits

social security, unemployment compensation, and workers’ compensation are required by law

cafeteria-plan benefits packages allow employees to select benefits for themselves

additional benefits offered to attract and maintain effective workforce —> include vacation time, on-site centers, educational reimbursement; new benefits that appeal to younger workers are help with student loan payments and mental health

what is termination

employees leave voluntarily retire, are rightsized, or fired for poor performance

exit interview used to learn about reasons for leaving: a bad manager, lack of career growth, pay

what is self awareness

being aware of the internal aspects of one’s nature, such as personality, traits, beliefs, emotions, and perceptions, and appreciating how your patterns affect other people

effective leaders know who they are and what they stand for

to be a good manager, self-reflection is essential

what are the two keys to self-awareness

soliciting feedback and using self-assessments

what are blind spots

attributes about themselves that people are not aware of or don’t recognize as problems

what is a self assessment

reflection to gain insights into oneself from the results of self-assessment instruments

self efficacy: an individuals strong belief that he or she can accomplish a specific task or outcome successfully

self confidence: general assurance one has of their own ideas, judgement, and capabilities

what are attitudes

an evaluation (either positive or negative) that predisposes a person to act in a certain way

attitudes determine how people perceive the work environment, interact with others, and behave on the job

managers what to reinforce positive attitudes

job satisfaction: a positive attitude towards one’s job

organizational commitment: an employee’s loyalty to and engagement with the organization

what are the four elements to develop trust with a team

agree on expectations: agree on the most important things each party needs from the other to succeed in their work

meet regularly: dedicated time to review progress and obtain what is needed to be successful

request feedback: ask their advice on a problem or on how you can improve

be vulnerable and admit limitations and mistakes: taking accountability means not looking for someone else to blame

what is perception

the cognitive process people use to make sense of the environment by selecting, organizing, and interpreting information from the environment

observe —> screen —> organize

what are perceptual distortions

errors in perceptual judgement

stereotyping: generalizing about group or individuals

halo effect: impression based on one characteristic

what are attributions

judgements made about what caused a person’s behavior

internal: characteristics of the person caused the behavior

external: situation caused behavior

what are biases when making attributions

fundamental attribution error: underestimating the influence of external factors and overestimating the influence of internal factors

self-serving bias: giving too much credit for oneself when a job is done well, and blaming external factors for failure to perform

what are personality traits and the big five personality factors

personality traits: fairly consistent characteristics that a person exhibits

big five: extroversion, agreeableness, conscientiousness, emotional stability, openness to experience

what is grit

passion and persistence for achieving a long-term goal

what is authoritarianism

power and status differences should exist within organization

what is machieaveliianism

acquiring power and manipulating others for personal gain

what are different problem solving styles

myers-briggs type indicator assessment

what are emotions

a mental state that arises spontaneously within a person based on interactions

managers can influence positive or negative emotions as work

emotional contagion

good managers pay attention to people’s emotion

what is negativity bias

term used to describe how the human mind reacts more quickly and strongly to perceived bad things than it does to good things

what is self management and the basic principles of it

the ability to engage in self-regulating thoughts and behavior to accomplish all your tasks and handle difficult or challenging situations

principles: clarity of mind, clarity of objectives, an organized system

what steps are used to get organized

empty your head —> decide the next action —> get organized —> perform a weekly review —> do it

what is stress, stressor, and resilience

stress: individual’s physiological and emotional response to external stimuli that create physical or psychological demands that exceed the individuals knowledge, abilities, or resources when important outcomes are at stake

stressor: stimuli that produce a combination of frustration and anxiety

resilience: the capacity to persevere and to bounce back from adversity, conflict, and failure

what are personal, workplace, and managerial ways to reduce stress

personal: destroy sources of stress, find support, meditate, find work-life balance

workplace: quite rooms, wellness programs, training programs, manager intervention, work-life balances initiatives

managers can: provide support, give employees more control

what is organization innovation

is the creation of a new idea, solution, or behavior by an organization

what can change come from

outside forces: via customers, suppliers, competitors, government regulations, etc

inside forces: by managers looking to initiate change

what are ambidextrous organizations

incorporating structures and processes that are appropriate both for the creative impulse and for the systematic implementation of innovations

exploration: encouraging creativity, risk taking, experimentation, and the development of new ideas —> create, experiment, breakthroughs, long term, loose&flexible

exploitation: implementing new ideas with established capabilities and routines —> operate, execute, standardization, short term, tightly structured

what is produce innovation

change in the org’s produce or service outputs

what are process innovation

a change in the organization’s production processes

what are three innovation strategies

1.) discovery: design org. for creativity

2.) horizontal collaboration/open innovation: create conditions/systems for coord. and knowledge sharing

3.) innovation roles/structures: procedures and structure for idea acceptance and implementation

what is discovery

discovery is the stage where ideas for new products and technologies are born

creativity: generation of novel ideas that might meet perceived needs or respond to opportunities for the organization

bottom-up approach: encouraging the flow of ideas from lower levels

what are characteristics of innovative companies

work with customers to understand needs and develop solutions

use new technology effectively

shared new product development process supported by top management

members from key departments cooperate in development of new product or service

cross functional team guides project from beginning to end

what is horizontal linkage model

research, manufacturing, sales, and marketing simultaneously contribue to new product and technologies

what is open innovation

search for and commercialization of new ideas beyond the organization and industry

crowdsourcing: approach to open innovation that involves obtaining information, ideas, or opinions from a large group of people

innovation by acquistion: buying start-up companies

what are innovation roles/structures

corporate entrepreneurship: development of an internal entrepreneurial spirit, philosophy, and structure to encourage employees to act like entrepreneurs

idea champion: person who sees the need for and enthusiastically supports productive change within the organization

idea incubator: organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy or politics

new-venture teams: give free rein to creativity

what is the goal

goal is to change how employees think, change mind-set

people change: training (skills) and development (growth and progression), T&D common approach to changing mind-sets

culture change: organizational development (OD) , survey-feedback activities and team building

what goes into implementing change

change: adoption of a new idea by an organization

three stage model for implementing change: unfreezing: making individuals aware of problems and motivating them to change movement: individuals experiment with new behavior and learn skills to use in the workplace refreezing: individuals acquire new attitudes or values and are rewarded for them by the organization

a problem or crisis lowers resistance to change

managers must help people feel the need for change: disparity between existing and desired performance levels

understand the resistance to change: self-interest, lack of understanding and trust, uncertainty, different assessments and goals

what are tactics for implementing changes and when to use them

top management support: use when change involves multiple departments or reallocation of resources, users doubt the legitimacy of the change

communication, education: change is technical, users need accurate information and analysis to understand the change

participation: users need to feel involved, design requires information from others, users have the power to resist

negotiation: group has the power over implementation, group will lose out in the change

coercion: a crisis exists, initiators clearly have the power, other implementation techniques have failed