the vertical and horizontal configuration of departments, authority, and jobs within a company
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organizational process
the collection of activities that transform inputs into outputs that customers value
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Departmentalization
subdividing work and workers into separate organizational units responsible for completing particular tasks
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Functional departmenatlization
organizing work and workers into separate units responsible for particular business functions or areas of expertise
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Product Departmentalization
organizing work and workers into separate units responsible for producing particular products or services
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Customer Departmentalization
organizing work and workers into separate units responsible for particular kinds of customers
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Geographic Departmentalization
organizing work and workers into separate units responsible for doing business in particular geographic areas
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Matrix Departmentalization
a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together
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simple matrix
a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
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complex matrix
a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems
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authority
the right to give commands, take action, and make decisions to achieve organizational objectives
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chain of command
the vertical line of authority that clarifies who reports to whom throughout the organization
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unity of command
a management principle that workers should report to just one boss
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line authority
the right to command immediate subordinates in the chain of command
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staff authority
the right to advise, but not command, others who are not subordinates in the chain of command
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line function
an activity that contributes directly to creating or selling the company's products
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staff function
an activity that does not contribute directly to creating or selling the company's products but instead supports line activities
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delegation of authority
the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible
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centralization of authority
the location of most authority at the upper levels of the organization
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Decentralization
the location of a significant amount of authority in the lower levels of the organization
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standardization
solving problems by consistently applying the same rules, procedures, and processes
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Job Design
the number, kind, and variety of tasks that individual workers perform in doing their jobs
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Job Specialization
a job composed of a small part of a larger task or process
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job rotation
periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
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job enlargement
increasing the number of different tasks in a given job by changing the division of labor
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job enrichment
increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work
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Job Characteristics Model
an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes
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internal motivation
motivation that comes from the job itself rather than from outside rewards
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skill variety
the number of different activities performed in a job
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task identity
the degree to which a job requires completion of a whole and identifiable piece of work
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task significance
the degree to which a job is perceived to have a substantial impact on others inside or outside the organization
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autonomy
the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the job
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Feedback
the amount of information the job provides to workers about their work performance
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mechanistic organization
an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication
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organic organization
an organization characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge
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intraorganizational process
the collection of activities that take place within an organization to transform inputs into outputs that customers value
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Reengineering
fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed
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task interdependence
the extent to which collective action is required to complete an entire piece of work
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pooled interdependence
work completed by having each job or department independently contribute to the whole
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sequential interdependence
work completed in succession, with one group's or job's outputs becoming the inputs for the next group or job
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reciprocal interdependence
work completed by different jobs or groups working together in a back-and-forth manner
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empowering workers
permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions
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Empowerment
feelings of intrinsic motivation in which workers perceive their work to have impact and meaning and perceive themselves to be competent and capable of self-determination
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interorganizational process
a collection of activities that take place among companies to transform inputs into outputs that customers value
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modular organization
an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants
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Virtual organizational
an organization that is part of a network in which many companies share skills, costs, capabilities, markets, and customers to collectively solve customer problems or provide specific products or services
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Human resouce management
the process of finding, developing, and keeping the right people to form a qualified workforce
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Bona Fide Occupational Qualification (BFOQ)
an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." BFOQs are strictly monitored by the Equal Employment Opportunity Commission
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Disparte Treatment
intentional discrimination that occurs when peopler purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, age, ethic group, national origin, or religious beliefs
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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
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Four-Fifths Rule
Rule of thumb that finds evidence of discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.
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sexual harassment
a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job
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quid pro quo sexual harassment
a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment
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hostile work environment
a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment
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Recruiting
the process of developing a pool of qualified job applicants
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job analysis
a purposeful, systematic process for collecting information on the important work-related aspects of a job
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job description
a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job
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job specification
a written summary of the qualifications needed to successfully perform a particular job
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internal recruiting
the process of developing a pool of qualified job applicants from people who already work in the company
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External recruiting
the process of developing a pool of qualified job applicants from outside the company
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Selection
the process of gathering information about job applicants to decide who should be offered a job
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Validation
the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be
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human resource information system
a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process
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employment references
sources such as previous employers or coworkers who can provide job-related information about job candidates
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background checks
procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants
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Specific ability tests (aptitude tests)
tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well
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Cognitive Ability Tests
tests designed to measure such mental abilities as verbal skills, quantitative skills, and reasoning ability
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Biographical Data
extensive surveys that ask applicants questions about their personal backgrounds and life experiences
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personality tests
an assessment that measures the extent to which an applicant possesses different kinds of job-related personality dimensions
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work sample tests
tests that require applicants to perform tasks that are actually done on the job
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assessment centers
a series of managerial simulations, graded by trained observers, that are used to determine applicants' capability for managerial work
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interview
a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job
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unstructured interview
interviews in which interviewers are free to ask the applicants anything they want
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structured interviews
interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions
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training
developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance
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needs assessment
the process of identifying and prioritizing the learning needs of employees
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performance appraisal
the process of assessing how well employees are doing their jobs
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objective performance measures
measures of job performance that are easily and directly counted or quantified
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subjective performance measures
measures of job performance that require someone to judge or assess a worker's performance
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behavior observation scales
rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance
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Rater training
training performance appraisal raters in how to avoid rating errors and increase rating accuracy
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360-degree feedback
a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves
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compensation
the financial and nonfinancial rewards that organizations give employees in exchange for their work
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employee separation
the voluntary or involuntary loss of an employee
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piecework
a compensation system in which employees are paid a set rate for each item they produce
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commission
a compensation system in which employees earn a percentage of each sale they make
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profit sharing
a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation
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Employee Stock Ownership Plan (ESOP)
a compensation system that awards employees shares of company stock in addition to their regular compensation
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stock options
a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price
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job evaluation
a process that determines the worth of each job in a company by evaluating the market value of the knowledge, skills, and requirements needed to perform it
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wrongful discharge
a legal doctrine that requires employers to have a job-related reason to terminate employees
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downsizing
the planned elimination of jobs in a company
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outplacement services
employment-counseling services offered to employees who are losing their jobs because of downsizing
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Early retirment incentive programs
programs that offer financial benefits to employees to encourage them to retire early
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phased retirement
employees transition to retirement by working reduced hours over a period of time before completely retiring
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employee turnover
loss of employees who voluntarily choose to leave the company
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functional turnover
loss of poor-performing employees who voluntarily choose to leave a company
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dysfunctional turnover
loss of high-performing employees who voluntarily choose to leave a company
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diversity
a variety of demographic, cultural, and personal differences among an organization's employees and customers
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Affirmative Action
purposeful steps taken by an organization to create employment opportunities for minorities and women