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59 Cards in this Set
- Front
- Back
Organizing
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in which the work is divided and a structure of authority is established.
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organization chart
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shows the authority relationships between the various positions and departments in an organization.
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Line authority
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the right to act, to make decisions, and to command.
the authority a superior wields over his direct subordinates. two types of authority are line and staff. |
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Staff authority
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the right to advise, or recommend to line personnel.
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Responsibility
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obligation to achieve some result or perform some task.
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Accountability
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the obligation one gets when he uses authority which has been assigned to him. People with authority can be held accountable for how they use their authority.
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Human Resource Planning
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an organization must decide on whether to adopt a policy of promoting from within, or to simply promote the best candidates it can find.
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promoting from within
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good for employee morale. Other than that, it puts the organization at a disadvantage because it severely restricts the pool of qualified, potential candidates for a position.
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chain of command
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the set of authority-responsibility relationships which link superiors and subordinates in an entire organization.
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reporting relationship
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relationship between a superior and his subordinate.
consists of the superior, who has authority over the subordinate, and the subordinate who is responsible to the superior for his actions. |
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Line positions
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directly related to the purpose of an organization
For example, in a marketing organization, sales is a line position. |
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Staff positions
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support the line positions--for example human resources, or the medical staff.
support those in the line positions and are not directly related to the mission or purpose of the organization. |
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Functional authority
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staff managers have limited authority over subordinates of line managers.
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staff authority
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can only advise line positions, they cannot give orders in a line position's authority or jurisdiction.
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classic management theory/
administrative management |
classic management theory is associated with Henri Fayol.
The five functions of management he proposed were planning, organizing, commanding, coordinating, and controlling. fayol=POCCC |
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Fayol's 14 principles of management
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included unity of command, unity of direction, esprit de corps, authority being equal to responsibility, and others
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unity of command
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states that each subordinate should report to and be accountable to only one superior.
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Unity of direction
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states that there should be one head and one plan for a group working towards an organizational objective
basically means that everyone is working towards accomplishing an organizational goal should be following the same plan under the direction of one person. |
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scalar principle
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also known as the chain of command principle, and basically states that there needs to be a clear-cut established chain of command.
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break-even chart
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the break-even point is that point on the graph where the total revenue equals total costs. Therefore, increasing the overhead for an operation would raise the break-even point. Increasing overhead would raise, or increase, the break-even point. More overhead means more total costs for the company, which means the company would have to bring in more revenue to break even.
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exception principle (Fayol)
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states that management should deal only with the exceptions--the cases where the performance of their subordinates does not meet standards.
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Specialization
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division of labor, is where employees carry out the activities they are more qualified for and adept at performing. Specialization also involves dividing the work into simple tasks; this can be seen in assembly line jobs, where the work is highly specialized. For example, one assembly line worker's entire job may be just to put one screw into each machine that passes by.
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span of control (fayol)
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principle which states that there is a limit to the number of subordinates a manager can effectively supervise.
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Classical management theory
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can result in either a bureaucratic or mechanistic organization. Both are based on rational-legal authority and have a strict structure dominated by rules and policies. They are rigid and inflexible, but suitable for a stable, predictable environment.
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PERT network
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a planning tool which involves breaking down the steps to achieving a goal into a series of events. The events are represented as circles, or nodes, and connected by arrows which represent the time required to reach that event. A PERT network is a popular planning and control tool because it allows planning the sequence of events and the timing. It does not take into account things such as employee motivation, however, and timing can be shorter or longer than predicted
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organic organizations
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more informal, there is less rigid specialization, and there is a greater focus on personal relationships.
-they are supposed to be flexible and well-suited for a rapidly changing environment; i.e. computer software development. |
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Acceptance Theory of Authority
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Chester Barnard
states that authority's effectiveness depends on whether or not the subordinates accept the authority over them. opposes the classical idea that authority is ordained by position. |
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System 4 organization
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Rensis Likert
which emphasizes that each manager works with his team to make the best possible decision. It is based on a decentralized, interlocking participative-group structure. |
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linking
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the leader of a group is often a subordinate in a higher decision making group. He is known as a linking. This leader would be known as a "linking pin," because he links two groups together. In system 4, each manager acts almost as a representative for his team, and is a subordinate in a higher level team, whose leader is part of an even higher level team, and so on.
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Departmentation
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the process of dividing large groups into smaller, more workable groupings. Departmentation involves grouping together positions with their functions and responsibilities under other parts of the organization structure.
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internal bases
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which departmentalize within a company by function or product
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external bases
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which involve departments divided based on geography (location) and customers
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functional departmentation
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positions are grouped based on a common organizational purpose or function. For example, finance, marketing, and engineering are functionally organized.
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performance appraisals
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should evaluate employees in an objective, consistent and fair way. Performance appraisals should be fair and unbiased. Companies are under both social and legal obligation to be objective.
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Process departmentation
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grouping positions according to the different steps in a process. For example, a manufacturing plant may be divided into drilling, grinding, welding, assembling and finishing departments.
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Product Departmentation
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where positions which support or are directly related to a product or product category are grouped together. For example, General Motors has Chevrolet, Pontiac, Buick, and other divisions for the different brands of cars it produces.
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Customer departmentation
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based on the customers or types of customers. For example, in a clothing department store, there may be a teen shop, a junior shop, and a bridal shop.
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Territorial departmentation
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First is the mission statement, second is setting of goals, and next is strategic planning, in the hierarchy of plans. Strategic planning, also known as long-range planning comes after setting the goals. In this stage is where a broad idea of how to achieve the set goals is determined.
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Matrix departmentation
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hybrid type of departmentation and is used when a company needs to complete a project which demands close, integrated work between people from various departments. An example is if a company is developing a new fighter aircraft--a project manager would be in charge of a semi-permanent department consisting of people from engineering, research, finance, etc..
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Span of control
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number of subordinates reporting to a given superior
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narrow span of control
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indicates few supervised
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broad span of control
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one manager supervises many.
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HR Planning
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determining the personnel needs for a company--i.e. the kind, skills, and number of people needed in the future, and how to meet this need
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organization's shape
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depends on the number of levels of management
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tall organizational structure
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has many levels of supervision and narrow spans of control
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flat structure
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would have few levels of management and broad spans of control.
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Centralization
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organizational structure in which the authority and responsibility to make the most important decisions are at the top of the organization.
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Formalization
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the extent to which an organization depends or written rules and procedures
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Mechanistic organizations
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more formalized than organic organizations.
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Decentralization
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involves an organizational structure in which the authority and responsibility to make decisions is not all kept in a central headquarters, but in lower levels out in the field.
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Delegation
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where a manager allocates authority downward to a subordinate. Responsibility still falls on the manager, and cannot be delegated.
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Joan Woodward defined three types of technology
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unit and small batch, mass production/assembly line, and continuous process technology.
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Mechanistic structure of organization
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works best with mass production/assembly line technology based organizations
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Continuous technology (CPT)
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where the company produces the same product for long periods of time, automatically taking in raw materials and turning them into finished products.An example of an organization using CPT is an oil refinery, or a soap factory.
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Job enrichment
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involves adding vertically to a job by giving the position planning and controlling responsibilities. Job enrichment is designed to increase worker motivation by giving them responsibility, and opportunities for professional growth and achievement
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Job enlargement/horizontal loading
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involves adding to the position horizontally, by requiring more duties of a similar level of skill.
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staffing function of management
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provides the people to fill the positions created by the organizing function
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Human resources management
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also known as personnel management and is the administration of the staffing function.
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Manpower planning
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the planning portion of the staffing function, and involves determining the kind of people which will be required in the future, and how to insure that they will be available
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