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Departmentalization

The process of dividing an organization into different departments that can take on different tasks.

Functional Departmentalization

Groups employees based on work performed, such as engineering or accounting.

Product Departmentalization

Groups employees based on major product areas in the corporation.

Customer Departmentalization

Groups employees based on customers' problems and needs.

Geographic Departmentalization

Groups employees based on location served, such as regions like North or South.

Process Departmentalization

Groups employees based on the basis of work or customer flow.

Coercive Power

Power based on fear.

Reward Power

Power based on the ability to distribute something that others value.

Legitimate Power

Power based on one's position in the formal hierarchy.

Expert Power

Power based on one's expertise or special skill.

Referent Power

Power based on identification with a person who has desirable resources or traits.

Team Structure

A structure in which the entire organization is made up of work groups or teams.

Matrix Structure

A structure where specialists from different functional departments work on projects led by a project manager.

Boundaryless Structure

An organization design not limited by predefined structures.

Walking Management (MBWA)

A management style that involves being active in observing and interacting with employees.

Skill-based Pay

A pay system that rewards employees for the skills they demonstrate.

Variable Pay

A compensation system that is contingent on performance.

Critical Incidents Method

A performance appraisal method that focuses on significant behaviors affecting performance.

Adjective Rating Scales

A performance appraisal method that uses descriptive performance factors with numerical ratings.

360-Degree Appraisal

Feedback from all organizational levels that interact with an employee.

Equity Theory

Theory that employees compare their input-to-outcome ratio with that of relevant others.

Expectancy Theory

Theory suggesting individuals act based on expected outcomes and their attractiveness.

Maslow's Hierarchy of Needs

A theory of human motivation outlining five levels of needs from physiological to self-actualization.

Expectancy

Effort-performance linkage

Instrumentality

Performance-reward linkage

Valence

Attractiveness

Early Leadership Theories

The person (Trait Theories)

The behaviors (Behavioral Theories of Leadership)

University of lowa

Democratic style

Autocratic style

Laissez-faire style

Ohio State Studies

Consideration

Initiating structure

University of Michigan Study

Employee oriented

Production oriented

Managerial Grid

Concern for people

Concern for production

(measure scale 1 to 9)

Fiedler’s three contingency dimensions

Leader-member relations

Task structure

Position power

Telling (high task-low relationship)

Both unable and unwilling to take responsibility.

Followers are not competent or confident.

Selling (high task-high relationship)

Unable but willing to do the necessary job tasks.

Followers are motivated but lack the appropriate skills.

Participating (low task-high relationship)

Able but unwilling to do what the leader wants.

Followers are competent, but do not want to do something.

Delegating (low task-low relationship)

Both able and willing to do what is asked of them.