Organizational Management: Terms and Concepts, Quizzes of Introduction to Business Management

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Organization Chart

The reporting structure and division of labor in an organization TERM 2

Division of Labor

DEFINITION 2 The assignment of different tasks to different people or groups TERM 3

Specialization

DEFINITION 3 A process in which different individuals and units perform different tasks TERM 4

Coordination

DEFINITION 4 The procedures that link the various parts of an organization for the purpose of achieving the organization's overall mission TERM 5

What are the Steps in Effective Delegation?

DEFINITION 5

1. Define the goal succinctly2) Select the person for the task3) Solicit the subordinate's views about suggested approaches4) Give the subordinate the authority, time, and resources (people, money, equipment) to perform the assignment5) Schedule checkpoints for reviewing progress6) Follow through by discussing progress at appropriate intervals

Differentiation

Job specialization and the division of laborand requires Integration TERM 7

Integration

DEFINITION 7 The degree to which differentiated work units work together and coordinate their efforts TERM 8

Coordination refers to...

DEFINITION 8 the procedures that link the various parts of the organizations to achievethe organizations overall mission TERM 9

Delegation

DEFINITION 9 The assignment of new or additional responsibilities to a subordinate TERM 10

Responsibility

DEFINITION 10 The assignment of a task that an employee is supposed to carry out

Accountability

The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance TERM 12

Authority

DEFINITION 12 The legitimate right to make decisions and to tell other people what to do TERM 13

Board of Directors

DEFINITION 13

• Select, assess, reward, and perhaps replace the CEO- Determine the firm's strategic direction and review financial performance- Assure ethical, socially responsible, and legal conduct TERM 14

Chief Executive Officer

DEFINITION 14 The authority officially vested in the board of directors is assigned to the CEO TERM 15

Top Management Team

DEFINITION 15 CEO and other top executives

Centralized organization

An organization in which high level executives make most decisions and pass them down to lower levels for implementation TERM 17

Decentralized Organization

DEFINITION 17 An organization in which lower level managers make important decisions TERM 18

What are the Different types of Coordination?

DEFINITION 18

1. Coordination by Plan2) Coordination by Standardization3) Coordination by Mutual Adjustment4) Coordination and Communication TERM 19

Coordination by Plan

DEFINITION 19 Independent units are required to meet deadlines that contribute to a common goal- Coordination by plan does not require the same high degree of stability and routinization required for coordination by standardization TERM 20

Coordination by Standardization

DEFINITION 20 Establishing common routines and procedures that apply uniformly to everyone

Coordination by Mutual Adjustment

• Units interact with one another to make accommodations in order to achieve flexibility- Involves feedback and discussions to jointly approach problems and devise solutions- Can be effective when problems are novel and cannot be programmed in advance with rules, procedures, or plans TERM 22

Coordination and Communication

DEFINITION 22 Two General Strategies1) Management can act to reduce the need for information2) Management can increase its capacity to handle more information TERM 23

Advantages of Delegation

DEFINITION 23

• Leverages managers' energy and talent- Allows managers to accomplish more than they could on their own TERM 24

Span of Control

DEFINITION 24 The number of subordinates who report directly to an executive or supervisor TERM 25

Span of Control should be wider when..

DEFINITION 25

• The work is clearly defined and unambiguous- Subordinates are highly trained and have access to information- The manager is highly capable and supportive- Jobs are similar and performance measures are comparable- Subordinates prefer autonomy to close supervisory control

What is a Matrix Organization

An organization composed of dual reporting relationships in which some managers report to two superiors - a functional manager and a divisional manager TERM 27

What is Departmentalization?

DEFINITION 27 Subdividing an organization into smaller subunits TERM 28

What is a Functional Organization?

DEFINITION 28 Departmentalization around specialized activities such as production, marketing, and human resources TERM 29

What is Divisional Organization?

DEFINITION 29 Departmentalization that group units around products, customers, or geographic regions TERM 30

What is a Network Organization?

DEFINITION 30 A collection of independent, mostly single-function firms that collaborate on a good or service

Who is a Broker?

A person who assembles and coordinates participants in a network TERM 32

What is Vision?

DEFINITION 32 A mental image of a possible and desirable future state of the organization TERM 33

What is Supervisory Leadership?

DEFINITION 33 Behavior that provides guidance, support, and corrective feedback for day-to-day activities TERM 34

What is Strategic Leadership?

DEFINITION 34 Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future TERM 35

What are the Sources of Power?

DEFINITION 35

1. Legitimate Power2) Reward Power3) Coercive Power4) Referent Power5) Expert Power

Legitimate Power

The right, or the authority, to tell others what to do- Employees are obligated to comply with legitimate ordersEx. a supervisor tells an employee to remove a safety hazard, and the employees removes the hazard because he has to obey the authority of his boss. TERM 37

Reward Power

DEFINITION 37 Control of valued rewards- People comply with the leaders wishes to receive those rewardsEx. a manager works hard to achieve her performance goals to get a positive performance review and a big pay raise from her boss. TERM 38

Coercive Power

DEFINITION 38 Control over punishments- People comply to avoid these punishmentsEx. a manager implements an absenteeism policy that administers disciplinary actions to offending employees. TERM 39

Referent Power

DEFINITION 39 Personal characteristics that appeal to others- People comply because of admiration, personal liking, a desire for approval, or a desire to be like a leaderEx. young, ambitious managers emulate the work habits and personal style of a successful, charismatic executive. TERM 40

Expert Power

DEFINITION 40 Based on expertise or knowledge- People comply because they believe in, can learn from, or can otherwise gain from that expertiseEx. a sales manager gives her salespeople some tips on how to close a deal. The salespeople then alter their sales techniques because they respect the manager's expertise.

What is the Trait Approach?

A leadership perspective that attempts to determine the personal characteristics that great leaders share. TERM 42

Drive

DEFINITION 42 Drive refers to a set of characteristics that reflect a high level of effort. Drives includes high need for achievement, constant striving for improvement, ambition, energy, tenacity, and initiative. TERM 43

Leadership motivation

DEFINITION 43 extraversion is consistently related to both leadership emergence and leadership effectiveness.Also important is a high need for power TERM 44

Integrity

DEFINITION 44 Honest and credibility are especially important for leaders because these traits inspire trust in others. TERM 45

Self-Confidence

DEFINITION 45 Self confidence allows a leader to overcome obstacles, make decisions despite uncertainity, and instill confidence in others

Knowledge of the business

Leaders must have the intelligence to interpret vast quantities of information.-The ability to perceive the needs and goals of others and to adjust one's personal leadership approach accordingly. TERM 47

Behavioral Approach

DEFINITION 47 The behavioral approach to leadership attempts to identify what good leaders do --that is, what behaviors they exhibitPersonal characteristics are considered less important than the actual behaviors that leaders exhibit. TERM 48

Task Performance Behavior

DEFINITION 48 Actions taken to ensure that the work group or organization reaches its goals TERM 49

Group Maintenance Behavior

DEFINITION 49 Actions taken to ensure that satisfaction of group members, develop and maintain harmonious relationships, and preserve the social stability of the group TERM 50

Autocratic Leadership

DEFINITION 50 A form of leadership in which the leader makes decisions on his or her own and then announces them to the group

Democratic Leadership

A form of leadership in which the leader solicits input from subordinates TERM 52

Laissez-faire

DEFINITION 52 A leadership philosophy characterized by an absence of managerial decision makingThe leader made no decisions. TERM 53

Situational Approach

DEFINITION 53 Leaderships perspective proposing that universally important traits and behaviors do not exist and that effective leadership behavior varies from situation to situationThe leader should first analyze the situation and then decide what to do. TERM 54

Contingency Model

DEFINITION 54 A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation TERM 55

Motivation

DEFINITION 55 Forces that energize, direct, and sustain a person's efforts

Goal-setting Theory

A motivation theory stating that people have conscious goals that energize them and direct their thoughts and behaviors toward a particular end TERM 57

Psychological Contract

DEFINITION 57 A set of perceptions of what employees owe their employers and what their employers owe them TERM 58

Positive Reinforcement

DEFINITION 58 Applying consequences that increase the likelihood that a person will repeat the behavior that led to it TERM 59

Negative Reinforcement

DEFINITION 59 Removing or withholding an undesirable consequence TERM 60

Punishment

DEFINITION 60 Administering an aversive consequence

Extinction

Withdrawing or failing to provide a reinforcing consequence TERM 62

Valence

DEFINITION 62 The value an outcome holds for the person contemplating it TERM 63

Maslow's Need Hierarchy

DEFINITION 63 Top: Self Actualization EGO Social SocietyBottom: Physiological TERM 64

McClelland's Needs

DEFINITION 64

1. Need for achievement2) Need for affiliation3) Need for power TERM 65

Need for Achievement

DEFINITION 65 Characterized by a strong orientation toward accomplishment and an obsession with success and goal attainment

Need for affiliation

Reflects a strong desire to be liked by other people TERM 67

Need for Power

DEFINITION 67

• A desire to influence or control other people- Can be a negative force --personalized power --if expressed through manipulation and exploitation- Can be a positive motive -- socialized power--if channeled toward constructive improvement of organizations or societies TERM 68

Expectancy Theory

DEFINITION 68 A theory proposing that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcomeEffort- to-performance links (expectancy)Performance-to-outcome links (outcome, instrumentality, and valence) TERM 69

Extrinsic Rewards

DEFINITION 69 Rewards given to a person by the boss, the company, or some other person TERM 70

Intrinsic Rewards

DEFINITION 70 Rewards a worker derives directly from performing the job itself

Job Rotation

Changing from one routine task to another to alleviate boredom TERM 72

Job Enlargement

DEFINITION 72 Giving people additional tasks at the same time to alleviate boredom TERM 73

Herzberg's two-factory theory

DEFINITION 73 1)Hygienefactor2) Motivators TERM 74

Hygiene

Factor

DEFINITION 74 characteristics of the workplace- Associated with job environment. Needed to avoid dissatisfaction1. Salary 6. Working Conditions2. Status 7. Fringe Benefits3. Supervision4. Other workers5. Company policies TERM 75

Motivating

Factor

DEFINITION 75 factors that make a job more motivating such as additional jobresponsibilities, opportunities for personal growth and recognition, and feelings of achievement- Associated with job content. Needed to provide job satisfaction1. Feeling of job accomplishment2. job recognition3. on the job challenge4. growth on the job

Equity Theory

A Theory stating that people assess how fairly they have been treated according to two key factors:Outcomes and Inputs TERM 77

Job Enrichment

DEFINITION 77 jobs are restructured or redesigned by adding higher levels of responsibility. TERM 78

Law of Effect

DEFINITION 78 behavior that is followed by positive consequences will likely be repeated.