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Principles of management unit3

Flashcard 1:

Front: Organizational structure
Back: The vertical and horizontal configuration of departments, authority, and jobs within a company. It addresses questions like “Who reports to whom?” and “Who does what?” and “Where is the work done?”. ABB Ltd.'s rearrangement of its structure to be organized by business divisions instead of country and region aimed to increase accountability.

Flashcard 2:

Front: Organizational process
Back: The collection of activities that transform inputs into outputs that customers value. It answers the question, “How do things get done?”. Microsoft's process of getting customer feedback and iteratively developing software is an example of an organizational process. This view contrasts with the hierarchical view focused on accountability and positions.

Flashcard 3:

Front: Departmentalization
Back: A method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks. Traditionally, organizational structures have been based on some form of departmentalization. There are five traditional methods: functional, product, customer, geographic, and matrix.

Flashcard 4:

Front: Functional departmentalization
Back: Organizes work and workers into separate units responsible for particular business functions or areas of expertise. Common functions include accounting, sales, marketing, production, and human resources. Advantages include specialization, reduced duplication, and easier communication within departments, while disadvantages include difficult cross-department coordination and potentially slower decision-making.

Flashcard 5:

Front: Product departmentalization
Back: Organizes work and workers into separate units responsible for producing particular products or services. Raytheon Technologies, with its divisions like Collins Aerospace and Pratt & Whitney, exemplifies this. Advantages include specialized expertise related to a product line and easier assessment of work-unit performance, while a key disadvantage is duplication of resources.

Flashcard 6:

Front: Customer departmentalization
Back: Organizes work and workers into separate units responsible for particular kinds of customers. Verizon, organized into Verizon Consumer, Verizon Business, and Verizon Media, is an example. The primary advantage is a focus on customer needs, while a disadvantage is the potential for duplication of resources.

Flashcard 7:

Front: Geographic departmentalization
Back: Organizes work and workers into separate units responsible for doing business in particular geographic areas. AB InBev, with its regional groups like North America and Europe/Middle East/Africa, uses this structure. Advantages include better responsiveness to different markets and reduced costs by locating resources closer to customers, while disadvantages include potential duplication and difficulty in coordination across distant departments.

Flashcard 8:

Front: Matrix departmentalization
Back: A hybrid structure in which two or more forms of departmentalization are used together. The most common matrix combines product and functional forms, as seen in Procter & Gamble. Employees typically report to two bosses. Advantages include efficient management of complex tasks and a diverse pool of resources, while a primary disadvantage is the high level of coordination required and potential for conflict.

Flashcard 9:

Front: Chain of command
Back: The vertical line of authority that clarifies who reports to whom throughout the organization. It vertically connects every job in the company to higher levels of management. People higher in the chain have the right to give commands and make decisions concerning activities below them.

Flashcard 10:

Front: Unity of command
Back: The principle that workers should report to just one boss. Matrix organizations violate this principle. It aims to prevent confusion from conflicting commands. Co-CEO arrangements also sometimes violate this and can lead to conflict and negative performance.

Flashcard 11:

Front: Line authority
Back: The right to command immediate subordinates in the chain of command. For example, a CEO has line authority over a division president. Line functions are activities that contribute directly to creating or selling the company’s products.

Flashcard 12:

Front: Staff authority
Back: The right to advise but not command others who are not subordinates in the chain of command. For example, an HR manager might advise a department manager on hiring but cannot order a specific hire. Staff functions support line activities but do not directly create or sell products.

Flashcard 14:

Front: Centralization of authority
Back: The location of most authority at the upper levels of the organization. In centralized organizations, managers make most decisions. Whole Foods centralized purchasing to compete more efficiently.

Flashcard 15:

Front: Decentralization
Back: The location of a significant amount of authority in the lower levels of the organization. It involves a high degree of delegation at all levels, allowing workers closest to problems to make decisions. Gap's former CEO Art Peck instituted decentralization to speed up decisions. Decentralized companies have shown better financial performance in some studies.

Flashcard 16:

Front: Standardization
Back: Solving problems by consistently applying the same rules, procedures, and processes. It is important to stay centralized where standardization is crucial. Volkswagen used standardization to reduce costs and improve quality by decreasing the variety of parts used in its cars.

Flashcard 18:

Front: Job specialization
Back: Occurs when a job is composed of a small part of a larger task or process. These jobs have simple, easy-to-learn steps, low variety, and high repetition. While economical, they can lead to low job satisfaction and high turnover. McDonald's drive-through job is an example.

Flashcard 19:

Front: Job rotation
Back: Attempts to overcome the disadvantages of job specialization by periodically moving workers from one specialized job to another to provide more variety and skill use. It retains the economic benefits of specialization while reducing boredom.

Flashcard 20:

Front: Job enlargement
Back: Increases the number of different tasks that a worker performs within one particular job. An enlarged job includes several tasks instead of just one. While it increases variety, it can also increase stress.

Flashcard 21:

Front: Job enrichment
Back: Attempts to overcome deficiencies in specialized work by increasing the number of tasks and giving workers the authority and control to make meaningful decisions about their work.

Flashcard 29:

Front: Mechanistic organization
Back: Characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication. Works best in stable, unchanging business environments.

Flashcard 30:

Front: Organic organization
Back: Characterized by broadly defined jobs and responsibilities; loosely defined, frequently changing roles; and decentralized authority and horizontal communication based on task knowledge. Works best in dynamic, changing business environments. Organic organizations were better positioned to respond to the coronavirus pandemic.

Flashcard 31:

Front: Intraorganizational process
Back: The collection of activities that take place within an organization to transform inputs into outputs that customers value. Organic organizational designs are concerned with this.

Flashcard 32:

Front: Reengineering
Back: The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. It changes an organization’s orientation from vertical to horizontal. IBM Credit's loan process redesign is a classic example. It has been criticized for potentially leading to layoffs and hurting morale.

Flashcard 35:

Front: Sequential interdependence
Back: Work must be performed in succession because one group’s or job’s outputs become the inputs for the next group or job. Reengineering decreases this by reducing handoffs.

Flashcard 36:

Front: Reciprocal interdependence
Back: Different jobs or groups work together in a back-and-forth manner to complete the process. Reengineering increases this by making groups responsible for more complete processes.

Flashcard 39:

Front: Interorganizational process
Back: A collection of activities that occur among companies to transform inputs into outputs that customers value. Many companies collaborate to create products or services. Nutella's supply chain illustrates this.

Flashcard 40:

Front: Modular organization
Back: Outsources all remaining business activities (noncore) to outside companies, suppliers, specialists, or consultants, except for core activities they can perform better. Activities can be added or dropped as needed. Virgin America's outsourcing strategy and Amazon's use of Integrity Staffing Solutions are examples. Advantages include lower costs, while disadvantages include loss of control and potential for suppliers to become competitors.

Flashcard 41:

Front: Virtual organization
Back: Part of a network in which many companies share skills, costs, capabilities, markets, and customers with each other. Unlike modular organizations with a central company, virtual organizations work with some, but not all, companies in the network alliance. The relationships are often shorter and more temporary than in modular organizations. Advantages include shared costs, speed, flexibility, and potentially better products and services, while disadvantages include difficulty in controlling quality and the need for strong managerial skills to coordinate the network. They may use brokers and virtual organization agreements to manage the network.

· Work Teams A small number of people with complementary skills who hold themselves mutually accountable for pursuing a common purpose, achieving performance goals, and improving interdependent work processes.

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

· Traditional Work Groups Two or more people who work together to achieve a shared goal, but workers do not have direct responsibility or control over their work; they report to managers.

· Employee Involvement Teams Teams that meet on company time to provide advice or make suggestions to management concerning specific issues; they do not have the authority to make decisions.

· Semi-autonomous Work Groups Groups that not only provide advice but also have the authority to make decisions and solve problems related to the major tasks required to produce a product or service.

· Self-managing Teams Teams where members manage and control all of the major tasks directly related to production of a product or service without first getting approval from management.

· Self-designing Teams Teams that have all the characteristics of self-managing teams but can also control and change the design of the teams themselves, the tasks they do, and the membership of the teams.

· Cross-functional Teams Teams intentionally composed of employees from different functional areas of the organization.

· Virtual Teams Groups of geographically and/or organizationally dispersed coworkers who use a combination of telecommunications and information technologies to accomplish an organizational task.

· Project Teams Teams created to complete specific, onetime projects or tasks within a limited time.

· Team Norms Informally agreed-on standards that regulate team behavior.

· Team Cohesiveness The extent to which team members are attracted to a team and motivated to remain in it.

· Social Loafing Occurs when workers withhold their efforts and fail to perform their share of the work.

· Groupthink A phenomenon in highly cohesive groups where members feel intense pressure not to disagree with each other so that the group can approve a proposed solution.

· Cognitive Conflict (c-type conflict) Conflict that focuses on problem-related differences of opinion.

· Affective Conflict (a-type conflict) Conflict that refers to the emotional reactions that can occur when disagreements become personal rather than professional.

· Forming The initial stage of team development, the getting-acquainted stage.

· Storming The second stage of team development, characterized by conflicts and disagreements as different personalities and work styles may clash.

· Norming The third stage of team development, where team members begin to settle into their roles, positive norms develop, and group cohesion strengthens.

· Performing The last stage of team development, where performance improves because the team has matured into an effective, fully functioning team.

· De-norming A stage of team decline where team performance may deteriorate, and the team begins to move away from established norms.

· De-storming A stage of team decline where the intensity of conflict may subside, but it may be due to team members becoming apathetic or disengaged rather than resolving issues.

· De-forming The stage of team decline where the team may dissolve or disband.

· Stretch Goals Extremely ambitious goals that workers don’t know how to reach.

· Structural Accommodation Giving teams the ability to change organizational structures, policies, and practices if doing so helps them meet their stretch goals.

· Bureaucratic Immunity Means that teams no longer have to go through the slow process of multilevel reviews and sign-offs to get management approval before making changes; they are accountable only to top management.

· Individualism-collectivism The degree to which a person believes that people should be self-sufficient and that loyalty to one’s self is more important than loyalty to one’s team or company.

· Team Level The average level of ability, experience, personality, or any other factor on a team.

· Team Diversity Represents the variances or differences in ability, experience, personality, or any other factor on a team.

· Interpersonal Skills Skills such as listening, communicating, questioning, and providing feedback that enable people to have effective working relationships with others.

· Cross-training Teaching team members how to do all or most of the jobs performed by the other team members.

· Skill-based Pay Pay programs that compensate employees for learning additional skills or knowledge.

· Gainsharing Programs in which companies share the financial value of performance gains, such as productivity increases, cost savings, or quality improvements, with their workers.

· Nonfinancial Rewards Ways to reward teams for their performance that are not monetary, such as vacations, T-shirts, plaques, and recognition.

Here are flashcards of important key terms from the sources:

Human resource management (HRM): The process of finding, developing, and keeping the right people to form a qualified workforce.
Bona fide occupational qualification (BFOQ): When sex, age, religion, and the like can be legally used to make employment decisions if "reasonably necessary to the normal operation of that particular business". However, race and color can never be BFOQs.
Disparate treatment: Intentional discrimination that occurs when qualified people are intentionally not given the same opportunities because of their race, color, age, sex, sexual orientation, gender identity, ethnic group, national origin, or religious beliefs.
Adverse impact: Unintentional discrimination that occurs when members of a particular group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained at substantially lower rates than others.
Four-fifths (or 80 percent) rule: A rule used by courts and federal agencies to determine if adverse impact has occurred. It is calculated by dividing the decision rate for a protected group by the decision rate for a nonprotected group; an impact ratio less than 80 percent may indicate adverse impact.
Internal recruiting: The process of developing a pool of qualified job applicants from people who already work in the company.
External recruiting: The process of developing a pool of qualified job applicants from outside the company.
Human resource information system (HRIS): A system used by organizations to collect and manage human resource data, including information from application forms.
Specific ability tests (aptitude tests): Measure the extent to which an applicant possesses the particular kind of ability needed to do a job well.
Cognitive ability tests: Measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude.
Biographical data (biodata): Extensive surveys that ask applicants questions about their personal backgrounds and life experiences, based on the idea that past behavior is the best predictor of future behavior.
Personality test: Measures the extent to which an applicant possesses different kinds of job-related personality dimensions.
Work sample tests (performance tests): Require applicants to perform tasks that are actually done on the job.
Assessment centers: Use a series of job-specific simulations graded by multiple trained observers to determine applicants’ ability to perform managerial work.
Performance appraisal: The process of assessing how well employees are doing their jobs.
Objective performance measures: Measures of performance that are easily and directly counted or quantified.
Subjective performance measures: Require that someone judge or assess a worker’s performance.
Behavior observation scales (BOSs): Require raters to rate the frequency with which workers perform specific behaviors representative of critical job dimensions.
Rater training: Programs designed to improve the accuracy of performance appraisals by training raters to be more accurate. Frame-of-reference training is a type of rater training.
360-degree feedback: Feedback that comes from four sources: the boss, subordinates, peers and coworkers, and the employees themselves.
Compensation: Includes both the financial and the nonfinancial rewards that organizations give employees in exchange for their work.
Employee separation: A broad term covering the loss of an employee for any reason.
Job evaluation: Determines the worth of each job by determining the market value of the knowledge, skills, and abilities needed to perform it.
Piecework: A pay-variability option where employees are paid a set rate for each item produced.
Commission: A pay-variability option where salespeople are paid a percentage of the purchase price of items they sell.
Profit sharing: An organizational incentive where employees receive a portion of the organization’s profits over and above their regular compensation.
Employee stock ownership plan (ESOP): Compensates employees by awarding them shares of the company stock in addition to their regular compensation.
Stock options: Give employees the right to purchase shares of stock at a set price.
Wrongful discharge: A legal doctrine that requires employers to have a job-related reason to terminate employees.
Downsizing: The planned elimination of jobs in a company.
Outplacement services: Provide employment counseling for employees faced with downsizing.
Early retirement incentive programs (ERIPs): Offer financial benefits to employees to encourage them to retire early.
Phased retirement: Employees transition to retirement by working reduced hours over a period of time before completely retiring.
Employee turnover: The loss of employees who voluntarily choose to leave the company.
Functional turnover: The loss of poor-performing employees who choose to leave the organization.
Dysfunctional turnover: The loss of high performers who choose to leave.

Here are some flashcards based on the information provided in the sources.

Flashcard 2

Front: How does diversity benefit organizations?

Back: Diversity makes good business sense through:

Cost savings by reducing turnover, decreasing absenteeism, and avoiding expensive lawsuits.
Attracting and retaining talent by appealing to a broader and more diverse pool of job applicants.
Driving business growth by tapping into diverse customers and markets and potentially leading to higher-quality problem solving.

Flashcard 3

Front: What is affirmative action?

Back: Affirmative action refers to purposeful steps taken by an organization to create employment opportunities for minorities and women.

Flashcard 4

Front: List three key differences between diversity and affirmative action.

Back:

Focus: Affirmative action has a narrower focus on minorities and women, while diversity includes demographic, cultural, and personal differences.
Creation: Affirmative action is a policy for actively creating diversity, but diversity can exist even without purposeful steps.
Legality: Affirmative action is required by law for certain employers, whereas diversity programs are voluntary.
Purpose: Affirmative action aims to compensate for past discrimination and prevent ongoing discrimination, while diversity programs aim to create a positive work environment where everyone is valued.

Flashcard 5

Front: What is surface-level diversity? Give examples.

Back: Surface-level diversity consists of differences that are immediately observable, typically unchangeable, and easy to measure. Examples include age, sex, race/ethnicity, and physical capabilities. Sexual orientation and gender identity may also be a form of surface-level diversity.

Flashcard 6

Front: What is deep-level diversity? Give examples.

Back: Deep-level diversity consists of differences that are communicated through verbal and nonverbal behaviors and are learned only through extended interaction with others. Examples include personality differences, attitudes, beliefs, and values.

Flashcard 7

Front: What is a special challenge posed by surface-level diversity for managers?

Back: Because dimensions of surface-level diversity are usually immediately observable, managers and workers may use them to form initial impressions and categorizations of others, which can unintentionally lead to discrimination.

Flashcard 8

Front: How does deep-level diversity affect the workplace?

Back: Recognizing deep-level diversity can lead to less prejudice, discrimination, and conflict in the workplace. It can also result in better social integration, where group members are psychologically attracted to working together.

Flashcard 11

Front: What is the glass ceiling?

Back: The glass ceiling is the invisible barrier that prevents women and minorities from advancing to the top jobs in organizations.

Flashcard 17

Front: What is social integration?

Back: Social integration is the degree to which group members are psychologically attracted to working with each other to accomplish a common objective.

Flashcard 26

Front: Describe the learning and effectiveness paradigm for managing diversity.

Back: The learning and effectiveness paradigm focuses on integrating deep-level diversity differences into the actual work of the organization to leverage diversity of thinking for creativity, innovation, risk reduction, and better decision implementation. It aims to achieve organizational plurality.

Flashcard 27

Front: What is organizational plurality?

Back: Organizational plurality is a work environment where: