MGMT Exam 3

A process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about 

Conflict

Supports the goals of the group and improves performance 

Functional conflict

Hinders group performance

Dysfunctional conflict

Conflict over work content and goals

Task conflict

Conflict over interpersonal relationships

Relationship conflict

Conflict over how the work is done

Process conflict

Stages of the Conflict Process

1. 1. Potential Opposition

2. 2. Cognition and Personalization

3. 3. Intentions

4. 4. Behavior

5. 5. Outcomes

Process that occurs when two or more parties decide how to allocate scarce resources 

Negotiation

Goal of Distributive Bargaining

Get as much of the pie as possible

Motivation of Distributive Bargaining

Win-lose

Focus of Distributive Bargaining

Positions (“I can’t go beyond this point on this issue”)

Interests of Distributive Bargaining

Opposed

Information sharing of Distributive Bargaining

Low (Sharing information will only allow other party to take advantage)

Duration of relationship in Distributive Bargaining

Short term

Goal of Integrative Bargaining

Expand the pie so that both parties are satisfied

Motivation of Integrative Bargaining

Win-win

Focus of Integrative Bargaining

Interest (“Can you explain why the issue is so important to you?”)

Interests in Integrative Bargaining

Congruent

Information Sharing in Integrative Bargaining

High (Sharing information will allow each party to find ways to satisfy interests of each party)

Duration of relationship of Integrative Bargaining

Long term

Essentials of Integrative Bargaining

• Parties must be open with information and candid about their concerns  

• Both parties must be sensitive regarding the other’s needs 

• Parties must be able to trust each other  

• Both parties must be willing to be flexible  

Basic third-party roles

Mediator, Arbitrator, Conciliator

neutral third party who facilitates a negotiated solution by using reasoning, persuasion and suggestions for alternatives 

Mediator

third party to a negotiation who has the authority to dictate an agreement 

Arbitrator

trusted third party who provides an informal communication link between the negotiator and the opponent

Conciliator

Defines how job tasks are formally divided, grouped, and coordinated  

Organization structure

Key elements of Organization Structure:

• Work specialization  

• Departmentalization  

• Chain of command 

• Span of control 

• Centralization and decentralization 

• Formalization 

• Boundary spanning 

Describes the degree to which activities in the organization are subdivided into separate jobs  

Work Specialization

Work specialization is also known as

division of labor

Benefits of work specialization

Greater efficiency and lower costs

Costs of work specialization

Human costs when carried too far and job enlargement as a solution

Basis by which jobs are grouped together so that common tasks can be coordinated  

Departmentalization

Common bases of departmentalization:

• Functional (synonym is department, ex: finance, human resources, etc.) 

• Product or service 

• Geography 

• Process and customer  

Unbroken line of authority that extends from the top of the organization to the lowest levels to clarify reporting and accountability relationships  

Chain of command

Authority vs. Unity of command in Chain of Command

Authority: positional rights

Unity of Command: one boss

The number of employees a manager is expected to effectively and efficiently direct  

Span of control

Trend is toward ______ spans of control

wider

Wider span of control depends on __________ employees

knowledgeable

Span of control affects:

speed of communication and decision making

Degree to which decision making is concentrated at a single point in the organization

Centralization

_____ centralization when top managers make all the decisions

High

__________ when front line employees and supervisors make decisions

Decentralized

Centralization only includes formal authority:

positional rights

Trend is toward ______ decentralization

increased

Degree to which jobs within the organization are standardized

Formalization

minimum discretion over what is to be done, when it is done, and how in formalization

Formal

freedom to act is necessary in formalization

Informal

When individuals form relationships outside their formally assigned groups 

Boundary Spanning

Characteristics of boundary spanning:

• Liaison roles

• Developmental activities (ex: Job rotations)

• Organizational goals and shared identity

Common organizational designs:

• Simple Structure

• Bureaucracy

• Matrix Structure

Characteristics of simple structure

• Low degree of departmentalization

• Wide spans of control

• Authority spans of control

• Authority centralized in a single person

• Little formalization

• Difficult to maintain in anything other than small organizations

• Usually, a startup or a family business

Highly routine operating tasks achieved through specialization 

Bureaucracy

Characteristics of Bureaucracy

• Formal rules and regulations  

  Centralized authority  

  Narrow spans of control  

  High degree of specialization 

  Tasks grouped by functional departments  

  Decision making follows the chain of command  

  Usually have predictable promotional pathways  

  Slower than something with less layers  

• Well-designed for taking a hit  

groups employees by their similar specialties, roles, or tasks in bureaucracy

Functional structure

groups employees into units by product, service, customer, or geographic market area bureaucracy

Divisional structure

Combines two forms of departmentalization

Matrix structure

Advantages of matrix structure

facilitates coordination and efficient allocation of specialists  

Disadvantages of matrix structure

possible confusion, fosters power struggles, stress

Determinants of structure

• Organizational strategy

  • Structure supports strategy

• Organizational size

  • Move toward mechanistic structure as size increases

• Technology

  • Routine activities prefer mechanistic structures, non-routine prefer organic structures

• Environment

  • Dynamic environments lead to organic structures; Capacity; Volatility; Complexity

• Institutions

  • Act as guidelines for appropriate behavior

A system of shared meaning held by members that distinguishes the organization from other organizations 

Organizational Culture

Seven Characteristics of Organizational Culture:

• Innovation and risk taking

• Attention to detail

• Outcome orientation

• People orientation

• Team orientation

• Aggressiveness

• Stability

• *Note: these are on a spectrum, not a yes we have it or no we don’t

The ________ culture expresses the core value that are shared by a majority of the organization’s members 

dominant

_______ tend to develop in large organizations to reflect common problems, situations, or experiences of members 

Subcultures

Subcultures mirror the ________ culture but may add to or modify the core values

dominant