Term
| What is happening today to American businesses? |
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Definition
| They are adjusting to changing markets. That is a normal function in a capitalist economy. There will be big winners, like Google and Facebook, and big losers as well. The key to success is remaining flexible and adapting to changing times. |
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Term
| What are the principles of organization management? |
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Definition
| Structuring an organization means devising a division of labor (some-times resulting in specialization), setting up teams or departments, and assigning responsibility and authority. It includes allocating resources (such as funds), assigning specific tasks, and establishing procedures for accomplishing the organizational objectives. Managers also have to make ethical decisions about how to treat workers. |
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Term
| What are Fayol's basic principles? |
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Definition
| Fayol introduced principles such as unity of command, hierarchy of authority, division of labor, subordination of individual interests to the general interest, authority, clear communication channels, order, and equity. |
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Term
| What principles did Weber add? |
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Definition
| Weber added principles of bureaucracy such as job descriptions, written rules and decision guidelines, consistent procedures, and staffing and promotions based on qualifications. |
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Term
| What are four major choices in structuring organizations? |
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Definition
Choices to make in structuring and restructuring organizations cover:
1. Centralization vs. decentralization
2. Breadth of span control
3. Tall vs. flat organization structures
4. Type of departmentalization. |
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Term
| What are the latest trends in structuring? |
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Definition
| Departments are often replaced or supplemented by matrix organizations and cross-functional teams that decentralize authority. The span of control becomes larger as employees become self-directed. Another trend is to eliminate managers and flatten organizations. |
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Term
| What are two major organizational models? |
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Definition
1. Line organizations: clearly defined responsibility and authority, is east to understand, and provides each worker with only one supervisor.
2. Line-and-staff organizations: the expert advice of staff assistants in a line-and-staff organization helps in areas such as safety, quality control, computer technology, human resource management, and investing. |
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Term
| What are the key alternatives to the major organizational models? |
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Definition
| Matrix organizations assign people to projects temporarily and encourage inter-organizational cooperation and teamwork. Cross-functional self-managed teams have all benefits of the matrix style and are long-term. |
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Term
| What are the major concepts involved in inter-firm communications? |
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Definition
Networking uses communications technology and other means to link organizations and allow them to work together on common objectives.
A virtual corporation is a networked organization of replaceable firms that join and leave as needed.
Benchmarking tells firms how their performance measures up to that of their competitors in specific functions.
The company may then outsource to companies that perform its weaker functions more effectively and efficiently. The functions that are left are the firms core competencies. |
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Term
| What is an inverted organization? |
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Definition
| An inverted organization places employees at the top of the hierarchy; managers are at the bottom to train and assist employees. |
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Term
| What is organizational culture? |
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Definition
| Organizational (or corporate) culture consists of the widely shared values within an organization that foster unity and cooperation to achieve common goals. |
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Term
| What is the difference between the formal and informal organization of a firm? |
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Definition
The formal organization details lines of responsibility, authority, and position. It's the structure shown on organization charts.
The informal organization is the system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization. It's the human side of the organization. The informal organization is an invaluable managerial asset that often promotes harmony among workers and establishes the corporate culture. As effective as the informal organization may be in creating group cooperation, it can still be equally powerful is resisting management directives. |
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