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MGMT 370 TEST 3 MGMT 370

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This 14 page Study Guide was uploaded by ANM Notetaker on Monday April 18, 2016. The Study Guide belongs to MGMT 370 at Iowa State University taught by Professor Smith in Winter 2016. Since its upload, it has received 19 views. For similar materials see MANAGEMENT OF ORGANIZATIONS in Business at Iowa State University.

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Date Created: 04/18/16
CHAPTER 8 Organizational chart: graphic display of the official lines of authority within the organization Authority: right to give workers orders to others in the organization and is associated with a position within an organization not with the individual occupying that position Formal organization: arrangement of position that dictates where work activities are completed, where decision should be made and the flow of information Informal organization: relationship among position that are not connected by the chart Job specialization: the division of work into smaller task Job design : the process grouping task into jobs Classical Job design: the design of jobs based on the principles of division of labor and specialization Advantages:  more efficient and cost are easier to contain,  available labor pool, learn quickly,  larger markets result in larger amounts of products being sold,  dividing work activities into specialized tasks defines specific work operations for machines to do Disadvantages:  Boring  Poor quality good  Fatigue injuries Behavioral approach to job design: the design of jobs based on the views that workers are independent parts of production process whose individual characteristics should be taken into account in forming jobs. Job enlargements: increasing the number of task that comprises a job. Job rotation: move workers on a consisten basis Job enrichment: design to increase the number of similar task included and umber of task require information processing and decision making. Responsibility: the invidiuals burden of accountability for attainment of the organization’s goals. Span of control: actual number of subordinates over which a position has authority Chain of command: an organizing concept that ensures that all position are directly linked in some way to top management Unity of command: the principle that a subordinate should report to only one immediate superior. Scalar chain: the principle of organizing whereby authority should flow through organization from the top down Delegation: assignment of work activities and authority to an employee or work group Decentralization: when authority is dispersed to several positions at various levels (team environment) –TALL AND FLAT Centralization: the patterns of concentrating authority in a relatively few positions Organizational structure: managers group jobs into departments and divisions Departmentalization: grouping administrative jobs in any one department are similar, for many purposes of the organization Functional structure: the grouping of jobs according to similar economic activities, such as finance, production and marketing Multidivisional structure: groups departments together into larger groups called division Product division structure: the organization of divisions by product Geographic division: support business operations in certain geographic regions Customer divisions: organization divisions by customers. 9banks) Holding companies: an organization composed of several very diff kinds of businesses each of which is permitted to operate largely and autonomously Conglomerate: a corp that diversified into unrelated businesses Hybrid structure: combination of several diff structures. Advantages:  delegation of decision making authority  promote loyalty and commitment  faster and good decisions innovative and creative Disadvantages:  top managers feels losing power when delegate decision making to others  difficult to  realize the economic scale matrix structure: horizontal design used when members of different functional departments are chosen to work together temporarily on a specific contract or project  avoids duplication of functions  work intensely work together  prevents miscommunication  each team members reports to two bosses: functional and project  creates confusion Network organization/ outsourcing: a command unit, does not make a good service but coordinates agreements with other organizations  gives outsiders access to potentially valuable information about the firm Team structure: occurs when groups of employees are used to determines ways to allocate task and assign responsibilities virtual organization: organizational members in diff geo areas use info tech to collab complexity: how much differentiation there is between structural units. Formalization: organizations have rules procedures are enforced. Mechanistic organization: structures that are highly formal and centralized (fast food)_ Organic organization: less formal and decentralized. (salvation army) BIRTH: entrepreneur, low degree of formal and complex GROWTH: formal structure, delegation of authority MATURITY: less innovative less interested in expanding and more interested in maintaining itself REVIVAL: leads to decline. Latent structure. Heavy use of coordinating mechanism to resolve conflicts DECLINE: slowly dying. Stagnant. Strategy: important decisions that all firms need to make to pursue Munificent environment: an environment in which the organization has a large market for its product and has funds needed to continue operations readily available, and other stakeholders groups are satisfied with the performance Scarce environment: the market is stagnant or declining difficult meet demands Stable environment: stakeholder demands and specifically customer desires are well understood and relatively stable over time. Turbulent environment: customer are continuously changing primary techno of firm to keep updated Muni+stable multi and hybrid Muni + turb hybrid or a matrix Turb + scarce outsourcing Scarce+ stable efficient Small batch technology: firm makes small number of goods in response to a specific customer request Mass tech: produce same product at large numbers Continuous tech: raw materials flow continuously through a system that transforms them into finished products Task forces: temporary group of employees responsible for bringing about particular change Liaison personnel: coordinate the efforts of diff people in the organization (enhanced communication) Simple structure: few departments arranged by functions headed by an owner and with few tech support staff Machine bureaucracy: highly structured, formal emphasizes procedures and rules Professional bureaucracy: functional structure, medium sizes, works in stable environment, decentralized Divisionalized form: multidivisional structure or hybrid, large corp and has organized its departments into divisions Adhocracy: centralized, informal but complex organization which maintain flexibility in the face of rapid environmental changes by using matrix or network formal structure CHAPTER 9 Job analysis: the systematic process of gathering information about important work-related aspects of a job Human resource planning; involves forecasting the org future demand for employees, forecasting the future supply of employees within the organization Quantitative: statistical techniques. Qualitative: judgments of experts. Recruiting: the process of attracting potential new employees  provide enough applicants  attract qualified applicants  attract demographically and culturally diversified pool Three ways of fulfilling recruit purpose: the sources which potential applicants are contacted, the information given to applicants and the contacts between the applicant and the company selection the process of collecting systematic information about applicants and using that information to decide which applicants to hire. Training and experience form: application device that presents a small number of the important tasks of a job and asks the applicants whether they have ever performed or been trained in each of the activities Test: Ability test: paper and pencil quizzes Performance or work sample test: applicant’s ability to perform actual job behaviors fro an analysis Assessment center test: managerial test Integrity test: applicant’s attitude and opinions about behaviors such as theft Personality inventories: measures thought feelings and behaviors Physical examinations: physically demanding jobs. Orientation : the process of familiarizing newly hired employees with fellow workers. Training: the process of instructing employees in their job tasks and socializing them into organizations values On job training: employees learn the jobs tasks while actually performing the job Coaching: seniors help guide the decision and actions of new managers Committee assignments: organizations assign inexperience managers to either a permanent committee or a single project committee Job rotation: companies have a specified plan of assignments for new managers in parts of organization Role-playing: managers demonstrate how they would carry out a specific activity in the presence of others Case study: the managers read written description of events in an organization and must make decision about what to do next. Performance appraisal: a formal measurement of the quantity of quality of an employee’s work within a specific period of time. 360 feedback used to get multiple perspectives on an employees performance trait appraisal evaluates an employee’s personal characteristics such as attitude, motivation, cooperation’s an dependability behavioral based appraisal: evaluates how the employee perform job tasks Advantages:  permits supervisor to judge all aspects of work  easier to identify deficient Disadvantages:  errors of judging  A hallo error: one job okay, the rest is doing okay. Compensating employees: organization gives money for exchange in their work Wage and salary survey: study the company how much compensation is paid by comparable firms Job evaluation methods: technique that determines the value of an organization’s jobs and arrange these jobs in order of pay according to their value Benefits: gives employees a menu of diff benefit of options to chose Flexible: gives credits to spend on benefits Pay for time not worked: paid days off, vacations, holidays Mandatory protection programs: protect the employee by law, SSN, unemployment compensation Optional protection: stock ownership plans, wellness programs and educational assistance Private retirement plans: paying into pension plans for the employee’s future retirement promotion the advancement of current job transfer: reassignment of a current employee to another job at the same level as the original job termination: the separation of an employee from the organization for cause terminations: individuals job behavior is unacceptable 1) the manager notifies the employee 2) Training development of program 3) Terminate the relationship Layoffs: reduction in force, ends employment of groups because of extreme cases poor economic performance Attrition: the organization stop recruiting and select new employees, allows retirement. Long time to achieve Early retirement programs: incentives, bonuses and nearly full retirement pay Job sharing: two employees shares part time job Group dismissal: a group of employees is terminated such as divisions. Unions: organizations that work with employers to achieve better pay and working conditions Collective bargaining; a process of negotiation through which management and unions reach an agreement regarding employee pay, work condition and hours Labor contract: a formal written document that describes the relationship between employees and management Affirmation action programs: legally mandated plans within organization that attempt to increase job opportunities for traditionally underrepresented areas of the workforce. CHAPTER 10 Organizational change: any modification in the behaviors or ideas of an organization or its units. Performance gap: the difference between an organization’s desired and actual performance lab. Reactive change: organizational members react spontaneously to external and internal forces but do little to modify these forces. Planned change: deliberate structuring of operations and behaviors often in anticipation of environmental force. Degree of Planning: decisions regarding company use of social media Degree of Planned Change: how extensively to use social media Degree of Organizational Members involvement in learning how to change: how many employees are directly and indirectly involved Target of Change: customers/ passengers Amount of Organization Being Emphasized: controls related to employee use of social media on duty/ off duty. Quantum change: a large scale planned change in how the firm operates. Changing strategy: kinds of products, how will they be sold Changing structure and design: departmentalization, reporting relationships Changing technology: manufacturing or service operations to keep pace with massive environmental changes Changing people processes and culture: communicating and motivating. Lewin’s model of change: modification of the forces that keep a system’s behaviors stable. Unfreezing: involves disrupting the forces maintaining the existing state or level of behavior Moving: a transition period during which the behaviors of the organization or department are shifted to a new level Refreezing: stabilizes the organization at a new state of behavioral equilibrium. Congruence model of change: interaction of inputs processes causing change. An outgrowth of the systems approach to organizational theory, emphasizes the interrelationships between the various parts of an organization and how change in one part will cause reactive changes in other parts. Comprehensive model of change: a model step by step plan for implementing major change. - recognizing the need for change: top management or in peripheral parts of an organization. - Creating readiness for the change – similar to unfreezing step. - Overcoming resistance to change Innovation: the act of introducing a new predict method process or approach Transition state: the period of during which the organization learns the behaviors needed to reach the desired future stake. Activity planning – designing the road map and noting specific events and activities that must be times and integrated to produce the change Commitment planning: identifying key political powers in the organization Management structures: help to run things during the transitions. Sustaining the momentum of change: providing resources, develop new competencies and skills, new behaviors and provide a financial buffer if performance drops during the transition period. Organizational development: a system wide application of behavioral science knowledge to the planned development and reinforcement of organizational strategies, structures and processes for improving an organization’s effectiveness. 1) deals with the whole systems as opposed to a single individual or a single function 2) use behavioral conflict resolution 3) planned change 4) creation and reinforcement of change 5) improving organizational effectiveness action research approach: encompasses and further defines the steps of the lewin change model and involves an ongoing process of join, problem discovery, diagnosis, action planning, action implementation and evaluations survey feedback: questionnaires CHAPTER 12 Motivation: inner drive that directs behavior toward goals. Morale: the sum total of employees attitudes toward their jobs, employer and colleagues Importance of motivation: - help employees to satisfy their needs in ways that benefit both the individual and the organization. - Foster employees loyalty and boost productivity The traditional Approach: People are motivated to seek pleasure and avoid pain, hedonism Incentive more productive - concerned with efficiency - generally dislike work - wages as motivating factor - limited concern for employees’ welfare human relations approach: output driven theories - concerned with providing employee feedback - social needs of employees - want their performance be appreciated - social work environment human resource approach goes beyond both traditional and human relations, economic and social needs - workers are complex valuable entities - skills and abilities are important for maximizing utility - uses pay and other benefits to motivate employee maslow’s hierarchy of needs: the order in which people strive to satisfy the five basic needs as theorized by- physiological (water food), security (physical, economic harm), social ( love companion), esteem(respects) and self actualization(maximize potential) Alderfer’s ERG Theory: Existence, relatedness and growth. It simplifies maslows five levels into three External and internal needs distinct. Herzbergs two factor theory: Job and on the environment where work is done.’ Maintenance factors: work setting, adequate wages, comfortable working condition and fair company policies. Motivational factors: aspects of jobs that relate through the content of the work, including achievement, the work itself, involvement responsibility and advancement. Mclelland’s achievement theory: Achievement, affiliation and ower. The need for achievement, desire for goals that are well defined and moderately difficult. Employee participation and feedback - motivated show great initiative and goal oriented - training course: total push: within employees. - Needs for affiliation that alone interact with others - Power influence over others. PROCESS THEORY OF MOTIVATION: Process theories: a set of theories that try to determine how and why employees are motivated to perform Equity theory: a theory stating that the extent to which people are willing to contribute to an organization depends on their assessment of the fairness of the reward they will receive in exchange. Expectancy theory: Which says that motivation depends not only on how much a person wants something but also on the person’s perception of how she likely to get it. Expectancy: a persons expectation that effort will lead a performance. Instrumentality: a person’s expectation that performing a task will lead to a desired outcome/ Valence: the value of each potential outcome, which describes its importance. Goal setting theory: recognizes the importance of goals in improving employee performance. Will this benefit me or just the management Clear , A deadline and a budget. Learning theories: how employees learn to perform desirable behaviors within an organization. Based on observation, behavioral outcomes and beliefs Reinforcement theory: behavior may be reinforced by relating to its consequences. Behaviors modification: changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. Positive reinforcement: strengthens a desired behavior by rewarding it or through providing other positive outcomes. (Praise, recognition, bonuses) Avoidance: allowing individuals to avoid negative consequences by performing the behavior. (Reprimanded or docked for taking log lunch breaks) Punishment: eliminates an undesired behavior by providing consequences. Extinction: weakens by not providing positive consequences. When positive reinforcement is reinforced but not happened. Schedules of reinforcement: the timing of reinforcement is just as important as what kind of reinforcement is used. A fixed interval schedule: provides reinforcement at specified periods of times, regardless of behavior. (weekly paycheck) Variable interval schedule: varies the period of timing. (bring donuts) A fixed ratio schedule: reinforced after a specific periodic time. Giving sales persons a bonus for every fourth sales made A variable ratio schedule: varies the number of behaviors required. Praising an employee after completing third eight board completed. Social learning theory: stating that employees learn not only through direct experience but also through observation and personal qualities. Vicarious training: learning through observation. -Attention: observe and pay attention -Retention: accurately recall the behavior - Reproduction: necessary skills to reproduce behaviors -Motivation: must be motivated to model the behavior. Self-reinforcement: regulate their behavior by offering them rewards for achieving desired performance - Internal satisfactions - Confidence that she can performance task successfully MOTIVATION AND JOB DESIGN. Hackman and oldham’s job characteristic model:trying to identify how managers can motivate workers by helping them to achieve more of their higher level needs 1)identify 5 jo characteristic skill variety- number of diverse activities and skills 2) task identity which employee performs a complete job with a recognizable beginning and ending 3) task significance: degree to which an employee perceives a job as important and having an impact on the company and the consumers. 4) autonomy degree of control employees have in performing the job sense of responsibility 5) feedback extent to employees know how well they are performing the job job characteristic: experience meaningfulness: perceive their work satisfying and rewarding. Experience responsibility employees feel personally responsible for the quality of their work. Autonomy Knowledge result: receive feedback about their performance Growth need strength desires a job that provides personal challenges, a sense of accomplishment and personal growth. Flextime: a work schedule that allows employees to choose their staffing and ending time as long as they are at work during a specified time period Compressed workweek: a four-day period in which an employee works 40 hours. Job sharing: a working arrangement whereby two employees do one job.


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