Organization and Management Exam 3: Cedarville University

Organizational Structure

Vertical and horizontal configuration of departments, authority, and jobs within a company

Organizational Process

Collection of activities that transform inputs into outputs that customers value

Departmentalization

Method of subdividing work and workers into separate organizational units responsible for completing particular tasks

Methods of Departmentalization

Functional, product, customer, geographic, matrix

Functional Departmentalization

Typically young or small orgs - units are responsible for particular business functions

Product Departmentalization

Units are responsible for producing particular products or services

Customer Departmentalization

Units are responsible for particular kinds of customers

Geographic Departmentalization

Units are responsible for doing business in particular geographic areas

Matrix Departmentalization

Hybrid organizational structure (2+)

Centralization

Most of the authority is located at the upper levels of the organization. Managers make most decisions, even the relatively small ones

Decentralization

A significant amount of authority rests in the lower levels of the organization. Workers closest to problems are authorized to make decisions

Product Departmentalization Disadvantages

-Duplication

-Coordination across different product departments

Standardization

Solving problems by consistently applying the same rules, procedures, and processes

Authority

The right to give commands, take action, and make decisions to achieve organizational objectives

Chain of Command

Vertical line of authority that clarifies who reports to whom throughout the organization

Unity of Command

Principle that workers should only report to one boss/manager

(does not apply in matrix organization)

Delegation of Authority

Assignment of authority and responsibility to a subordinate to complete a manager's tasks

Line Function

Activities related directly to creating or selling the company's products

Organizational Processes

-Intraorganizational (within)

-Interorganizational (between)

Mechanistic Organizations

Stable, unchanging business environments

Structure

Characterized by specific jobs and responsibilities

Organic Organizations

Increasingly dynamic environments

Reengineering

Fundamental rethinking and radical redesign of business

Modular Organizations

Outsource non core business activities to outside companies

Virtual Organizations

Network of independent companies that work together

(Temporary/Task oriented)

Work Teams

Small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependency

Advantages of Teams

-Focus on specific customers can increase customer satisfaction

-Improve product and service quality

-Increase speed and efficiency in product development

-Increase job satisfaction (Cross Training)

-Share benefits of group decision making (Multiple Perspectives)

Disadvantages of Teams

-Initial high turnover

-Social loafing

Disadvantages of Group Decision Making

-Groupthink: Members of highly cohesive teams feel the pressure not to disagree with each other

-Member Domination: One or two people dominate group discussions

Autonomy

The degree to which workers have the discretion, freedom, and independence to decide how and when to accomplish their jobs

Kinds of Teams Based on Autonomy

-Traditional Work Groups/Teams

-Employment Involvement

-Semi-autonomous Work Teams

-Self Managing Teams

-Self Designing Teams

Special Kinds of Teams

-Cross-functional Teams

-Virtual teams

-Project teams

Work Team Characteristics

-Norms

-Cohesiveness

-Size

-Conflict

If standardization is important, organization MAY want to stay centralized

True

One of the disadvantages associated with product departmentalization is costly...

Duplication

Social loafing is defined as a team member failing to perform because of a lack of laziness

False

Team Norms

Informally agreed-on standards that regulate team behavior

Team Cohesiveness

Extent to which members are attracted to the team and motivated to remain in it

Team Size

-6-9 members

-Should be small enough for members to get to know each other and feel comfortable contributing

Greater Team Size

Opposes the risk of domination

Team Conflict

Arises from disagreement over team goals

Types of Conflict

Cognitive (c-type): Focuses on problem related differences of opinion (Functional/Constructive)

Types of Conflict

Affective (a-type): Emotional reactions that occur due to personal disagreement (Dysfunctional/Destructive)

Enhancing Work Team Effectiveness

- Setting Team Goals & Priorities

- Setting Specific Team Goals

- Setting Challenging Goals

- Setting Stretch Goals

Types of Employee Compensation

Skill-Based Pay: employees are paid for learning additional skills or knowledge.

Types of Employee Compensation

Gainsharing: companies share the financial value of performance gains with their workers.

Types of Employee Compensation

Non-financial Rewards: most effective when teams or team-based interventions are first introduced.

Human Resource Management

Process of finding, developing, and keeping the right people to form a qualified work force

Adverse Impact

Unintentional discrimination that occurs when members of a particular race, sex, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others

Disperate Treatment

Intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, ethnic group, national origin, or religious beliefs

Sexual Harassment

Form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs

Quid pro quo

This for that

Recruiting

Process of developing a pool of qualified job applicants

Job Analysis

Purposeful, systematic process for collecting information on the important work-related aspects of a job

Job Description

Responsibilities of an employee

Job Specification

Qualifications needed to successfully perform a job

Internal Recruiting

Process of developing a pool of qualified job applicants from people from within the company

(Job posting, word of mouth, direct approach)

External Recruiting

Process of developing a pool of qualified job applicants from outside the company

(Advertising, employee referrals, walk-ins, internet job sites, social media, etc)

Selection

Process of gathering information about job applicants to decide who should be offered a job

Validation

Process of determining how well a selection test or procedure predicts future job performance

Topics to Avoid in an Interview

-Children

-Age

-Disabilities

-Physical Characteristics

-Citizenship/arrested

Unstructured Interviews

Interviews in which interviewers are free to ask the applicants anything they want

Structured Interviews

All applicants are to ask the same set of standardized questions

Training

Providing opportunities for employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance

Needs Assessment

Process of identifying and prioritizing the learning needs of employees

Performance

Process of assessing how well employees are doing their jobs

Compensations

Financial and non financial rewards given to employees in exchange for their work

Job Evaluation

Determines the worth of each job in a company

(Helps to set pay structures)

Pay-Level

Decisions related to paying workers below, above, or at current market wages

Pay Variability

Decisions related to linking pay to organizational performance

Pay Structure

Decisions related to employees receiving different levels of pay

Employee Separation

Involuntary or voluntary loss of an employee

Downsizing/Layoffs

Planned elimination of jobs

Retirement

Early retirement/Phased retirement

Employee Turnover

Employees choose to leave the company

Diversity

Variety of demographic, cultural, and personal differences among an organization's employees and customers

Affirmative Action

Refers to purposeful steps taken by an organization to create employment opportunities for minorities and women... eliminating unlawful discrimination

Affirmative Action

Required by law for private employers with 50 or more employees and federal contracts of $50,000 or more

Purpose for Affirmative Action

Create a positive work environment where no one is advantaged or disadvantaged

Diversity is NOT Affirmative Action

True, they are related but not the same

Surface Level Diversity

Differences that are observable, typically unchangeable, and easy to measure

Deep-Level Diversity

Differences are communicated through verbal and nonverbal behaviors and learned only through extended interaction with others

Studies show that getting to know and understand each other reduces prejudice and conflict

True

Social Integration

Degree to which group members are psychologically attracted to working with each other to accomplish a common objective

Personality

Relatively stable set of behaviors, attitudes, and emotions

Big Five Personality Dimensions

-Extraversion (Extroversion)

-Emotional Stability

-Agreeableness

-Conscientiousness

-Openness to Experience

Skills-Based Diversity Training

Teaches employees the practical skills they need for managing a diverse work force

Awareness Training

Designed to raise employees' awareness of diversity issues and to challenge underlying assumptions or stereotypes we may have about others

Diversity Audits

Formal assessments that...

-Measure employee and management attitudes

-Investigate the extent to which people are advantaged or disadvantaged with respect to hiring and promotions

-Review companies' diversity-related policies and procedures

Diversity Pairing

People of different cultural backgrounds, sexes, or races/ethnicities are paired for mentoring

What does Scripture say?

-Be proactive

-Carefully and faithfully following and enforcing federal and state laws

-Treat differences as important but not special

-Finding the common ground

CH11 Common Theme

Human Resource Chart

Human Resource Management Process