MGMT 3000 Test 3

organizing

the deployment of resources to achieve strategic goals

strategy, organizing

________ defines how to achieve goals, and ______________ defines how it will be done in terms of resources

organizing structure includes

• the set of formal tasks assigned to individuals and departments

• formal reporting relationships

• the design of systems to ensure effective coordination of employees across department

organization chart

the visual representation of an organization’s structure

division of labor

the degree to which organizational tasks are subdivided into separate jobs

* also called working specialization

chain of command

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

authority

the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve outcomes/goals

• is vested in organizational positions, not people

• flows down the vertical hierarchy

• is accepted by subordinates

responsibility

the duty to perform the task or activity as assigned

accountability

willingness or obligation to accept responsibility

delegation

the process that managers use to transfer authority and delegate responsibility down the hierarchy

line authority

managers have formal authority to direct and control immediate subordinates - connected via a line in the org chart

* these departments perform tasks that reflect the organization’s mission - generate revenue

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staff authority

authority that includes the right to advertise, recommend, and counsel in the staff specialists’ area of expertise

* these departments support line departments - cost center

span of management

the number of employees reporting to a supervisor

larger spans of control depends on

• work is stable and routine

• subordinates perform similar work

• subordinates are highly trained

• rules and procedures are defined

• support systems and personnel are available

• few nonsupervisory activities

• manager prefers a large span

tall structure

span of management is narrow and therefore has many hierarchical levels, many levels, many layers of management

flat structure

span of management is wide and therefore has few hierarchical levels, fewer levels of management

centralization

decision authority is located near the top of the organization

decentralization

decision authority is pushed downward to lower organization levels

factors that influence centralization

• rapid change and uncertainty in the environment are associated with decentralization

• crisis requires centralization

• fits the strategy

departmentalization

basis for grouping positions into departments and departments into total organization

five approaches to decentralization

• functional

• divisional

• matrix

• team

• virtual network

functional structure

the grouping of activities by common function

* positions are grouped into departments based on similar skills, expertise, work activities, and resource use

divisional structure

departments are grouped together based on similar organizational outputs such as product/service or geographic location

matrix approach

combines both functional and divisional approaches simultaneously, in the same part of the organization

* improves coordination information

cross functional teams

consist of employees from various functional departments who are responsible to meet as a team to resolve mutual problems

virtual network approach

a type of organization structure formed by outsourcing several organizations to develop products and services

coordination

the managerial task of collaborating across departments

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 - to achieve strategy

task force

temporary team or committee designed to solve a problem involving several departments

project manager

person who is responsible for coordinating the activities of several departments for the completion of a specific product

* not a member of one of the departments being coordinated

factors affecting organizational structure

• strategic needs

• operational needs

strategic needs

environment, strategy, goals

operational needs

technology, work processes

structure follows strategy

business performance is influenced by how well structure is aligned with strategy and needs of the environment

mechanistic organizations

efficiency is the goal in a stable environment

organic organizations

innovation is the goal in a rapidly changing environment

human resource management

the process of managing an organization’s employees

* includes all aspects of people management to effectively meet an organization’s goals

human capital

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

Druker said…

our economy has shifted from a dependence on workers who do manual labor to knowledge workers

the strategic role of HRM

• HR drives organizational performance

• human capital cited as top factor in competitive success

top 3 factors for maintaining competitive success

• human capital

• customer relationships

• product and service innovation

HRM related strategic issues

• hiring the right people to become more competitive on a global basis

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

• knowing the right people to retain after mergers, acquisitions, or downsizing

human capital as a source of competitive advantage

• human capital value

• human capital rareness

• human capital imitability

company strategy

• attract

• motivate

• maintain

attract

find the right people

• HRM planning

• job analysis

• forecasting

• recruiting

• selecting

motivate

manage talent

• training

• development

• appraisal

maintain

maintain and effective workforce

• wages and salary

• benefits

• terminations

employment law

laws ensure equal opportunity, stop discrimination, and define enforcement

• discrimination

• affirmative action

• hrm department responsible for ___________ compliance

• EEOC

discrimination

hiring or promoting applicants based on criteria that are not job relevant

* the law identities what groups are protected

affirmative action

requires employers to take positive steps to guarantee equal employment opportunities for people within protected groups

Civil Rights Act

prohibits discrimination in employment on the basis of race, religion, skin color, sex, or national origin

Family and Medical Leave Act

requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies, prohibits gender-based differences in pay for substantially equal work

patient protection and affordable care act

imposes a fee on firms with 50 or more employees if the government subsidizes their employee’s health care coverage; prevents insurers from denying coverage based on preexisting conditions or charging women more than men

new social contract between employer and employee

• Fifty years ago, the trend was that employees stayed in the same job, in the same company for their entire career- companies rewarded employees’ loyalty by offering job stability, a decent wage, and benefits

• Today’s workforce is more mobile, less loyal, and more diverse

employee new contract aspirations

• employability; personal responsibility

• partner in business improvement

• learning; skill development

employer new contract aspirations

• creative development opportunities

• lateral career moves; incentive compensation

• challenging assignments

• information and resources; decision-making authority

blind hiring

managers focus on an applicant’s job skills and performance rather than educational credentials, appearance, or prior experience

artificial intelligence

AI algorithms can be used to reduce bias in hiring decisions

things Chat GPT can do

• Generate relevant interview questions

• Provide real-time support to new hires by answering questions about company policies, procedures, benefits

• Send announcements and reminders to employees

• Develop employee surveys

employer brand

promoting an organization as a highly desirable place to work

1 in 4, 80

nearly ______ organizations uses AI to support HR related activities, nearly _ % of these companies use AI for recruiting and hiring purposes

matching model

match between what the org has to offer and the needs of the individual

requirements and rewards

jobs are characterized by their _______________ in the matching model

qualifications and motivation

individuals are characterized by their _____________ in the matching model

HR planning

planning for departures and growth, the forecasting of HR needs and the projected matching of individuals with expected job vacancies

• what new technologies are emerging and how will these affect the work system and employees needed?

• how is the volume of business likely to change in the next five to ten years?

• what is the turnover rate, is any avoidable?

recruiting source

• search film

• internet

• walk-ins

• recruiting

• job analysis

• realistic job preview

• virtual recruiting

• internship

recruiting

activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied

job analysis

systematic process of gathering and interpreting information about the essential duties, tasks, responsibilities, and context of a job

job description

summary of the tasks, duties, and responsibilities of a job

realistic job preview

gives applicants all pertinent and realistic information about the job and the organization

* contributes to employee satisfaction and reduces turnover because it facilitates matching people to positions

internship

arrangement whereby an intern exchanges free or low-cost labor for the opportunity to explore a career or gain valuable work experience in a particular field

top job search sites

• ziprecruiter

• linkedin

• career builder

• monster

• flex jobs

selection

process employers use to assess applicant to determine the fit between the job and applicant

* most frequently used devices include the application form, interview, and employment test

60%

about ____ % of recruiters use video technology in the hiring process

* one way video interview platforms- receive questions on screen and then record answers
* save companies and candidates’ time
* help eliminate human bias

structured interview

set of standardized questions that are asked of every applicant so comparisons can be easily made

behavioral questions

ask people to describe how they have performed a certain task or handled a specific problem

testing

• employment tests

• background check

employment tests

cognitive ability, physical ability, personality inventories, and other assessments

background check

search a candidate’s criminal record, credit history and other indications of honesty, integrity, and stability as well as view a candidate’s presence on social media

training

teaching employees the skills, abilities, knowledge to perform current job

development

developing employees for future promotions

performance appraisal

observing and evaluating employee performance, recording assessment, and providing feedback

compensation

all direct and indirect financial payments plus all rewards given to employees

benefits

some required by law

* social security, unemployment compensation, and workers’ compensation

termination

valuable in maintaining an effective workforce

• poor performing employees can be dismissed

• exit interviews can be used to learn about dissatisfaction and reason for departure

first female ceo

Katherine Graham (The Washington Post) 1972

First latino ceo

Roberto Goizueta (Coca Cola) 1981

first chinese american ceo

Gerald Tsai (American Can) 1986

first african american ceos

Franklin Raines (Fannie May) 1999, Lloyd Ward (Maytag) 1999 

most popular DEI positions

• Director of Diversity, Equity, and Inclusion

• Director of Diversity and Inclusion

• Chief Diversity Officer

• Inclusion Teacher

• Inclusion Specialist

1/3

around _______ of DEI positions are in higher education, nonprofit management and financial services sectors

diversity

the presence of differences within a given setting

* in the workplace, can mean differences in race, ethnicity, gender identity, age, and more

inclusion

the practice of ensuring that people feel a sense of belonging and support from the organization

managing diversity and inclusion

creating climate in which potential advantages of diversity for organizational or group performance are maximized while potential disadvantages are minimized

traditional diversity

age, race, gender, pay level, disability, lifestyle

inclusive diversity

race, gender, lifestyle, pay level, function, competency, income, parent, language, work style, military experience, position, nationality, personality

diversity of thought

achieved when a manager creates a heterogeneous team made up of individuals with diverse characteristics who bring different ideas, viewpoints, and ways of thinking and reasoning

advantages of cognitive diversity

• increases the chance of creating a hard to replicate competitive advantage

• pushes people to work harder cognitively to bridge differences and understand one another’s ideas and viewpoints

dividends of workplace diversity

• better use of employee talent

• increased understanding of marketplace

• enhanced breadth of understanding among managers

• better team problem solving

• lower costs related to turnover absenteeism, lawsuits

bias

a personal tendency, inclination, or prejudice toward or against something or someone

* some are positive but others are based on stereotypes, rather than actual knowledge of an individual or circumstance