Ch. 8 Management

A control mechanism for making sure the right people do the right things at the right time is a(n) _____.

hierarchy of authority The hierarchy of authority, or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the company’s culture or organizational culture.
T/F

true

Productivity expert Odette Pollar proposed that "To accomplish more in a day, you must do more and do everything faster."
T/F

False Oakland, California, productivity expert Odette Pollar proposed that "To do more in a day, you must do less—not do everything faster."

A(n) ______ is a system of consciously coordinated activities or forces of two or more people.

Organization **Significant Statement* According to Chester I. Barnard’s classic definition, an organization is a system of consciously coordinated activities or forces of two or more people. By this definition, a crew of two coordinating their activities to operate a commercial tuna fishing boat is just as much an organization as the entire StarKist Tuna Co.

Thomas, an employee for a government contractor, likes the strict culture that he finds with ABC Industries, which supplies equipment parts to several government bases. There is very little focus on the external environment and little company flexibility due to the type of customers they serve. Since the product they sell needs little improvement and there is virtually no competition, few are risks taken. This is an example of an adhocracy culture.
T/F

False A hierarchy culture has an internal focus and values stability and control over flexibility. An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products (new drugs) by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done (drug research).

Hannah, the youngest owner of a family-owned grocery, wants to make sure her company’s culture is embedded in their organization. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees.
T/F

True Embedding organizational culture is essentially a teaching process—that is, a process in which members instruct each other about the organization’s preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems & procedures.

Mutual-benefit organizations are voluntary collectives whose purpose is to advance members’ interests, while nonprofit organizations are formed to offer services to some clients, not to make a profit.
T/F

True Mutual-benefit organizations are voluntary collectives whose purpose is to advance members’ interests (examples: unions, trade associations). Nonprofit organizations are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges). For-profit organizations are formed to make money, or profits, by offering products or services (examples: Microsoft, Dell Computer. Delta Airlines).

Philip, a shift manager in a factory, has 40 employees on his shift that he directly supervises. The 40 workers who report directly to Philip represent his _____.

Span of Control The span of control, or span of management, refers to the number of people reporting directly to a given manager.

Espoused values are _____.

explicitly stated values and norms preferred by an organization

The chain of command is also known as _____.

the vertical hierarchy

The IT network that allows for the movement of organizational information within that company is known as the organizational structure.

False Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization’s members so that they can work together to achieve the organization’s goals.

Ann is a teacher who became interested in helping adults in some of the poorer neighborhoods learn how to read. She plans to start a reading center in a low income area to help residents with reading skills at no cost. Ann’s center is an example of a(n) _____.

Nonprofit organization A nonprofit organization is formed to offer services to some clients, as the Humane Society does, not to make a profit.

Organizational culture appears as five layers: observable artifacts, espoused values, basic assumptions, informal groups, and management groups.
T/F

False Organizational culture appears as three layers: (1) observable artifacts, (2) espoused values, and (3) basic assumptions.

The company dress code and award ceremonies are part of its ____.

observable artifacts At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

According to Chester I. Barnard, an organization is made up of at least one person who strives daily to achieve the organization’s goals.
T/F

False According to Chester I. Barnard’s classic definition, an organization is a system of consciously coordinated activities or forces of two or more people.

Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and beliefs. Greg has encouraged the seasoned employees to retell stories about the company legends, and he plans on bringing back the monthly rewards. Greg is endeavoring to ____.

embed company culture Changing organizational culture is a teaching process in which organizational members teach each other about the organization’s preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms; 1. Formal statements; 2. Slogans & sayings; 3. Rites & rituals; 4. Stories, legends, & myths; 5. Leader reactions to crises; 6. Role modeling, training, & coaching; 7. Physical design; 8. Rewards, titles, promotions, & bonuses; 9. Organizational goals & performance; 10. Measurable & controllable activities; 11. Organizational structure; 12. Organizational systems and procedures.

The arrangement of having discrete parts of a task done by different people is known as a(n) ____.

Division of Labor Division of labor, also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

A hierarchy culture has an internal focus and most values ____.

stability and control

When managers and employees within the same department are brought together in cross-functional teams to solve particular problems, this is a team-based design.
T/F

True

Two advantages of decentralization are that managers are encouraged to not solve their own problems, but ask for assistance as soon as possible, and decisions are made slower, since they are discussed at a higher level of management.
T/F

False An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization’s flexibility and efficiency.

During a meeting, Tammy, the branch manager, was pointing to the corporate organization chart on the wall. Tammy remarked that "These people provide advice, recommendations, and research for us, and they are indicated with a dotted line. Jim, our CEO, and the vice presidents of our organization are up here, indicated on the organization chart by a solid line vertical line." The employees indicated on the organization chart by a solid line are ____, and those indicated by a dotted line are ____.

line managers; staff personnel Staff personnel have authority functions; they provide advice, recommendations, and research to line managers (example: specialists such as legal counsels). Staff positions are indicated on the organization chart by a dotted line (usually a horizontal line). Line managers have authority to make decisions and usually have people reporting to them (examples: the president, the vice presidents, the director of personnel, and the head of accounting). Line positions are indicated on the organization chart by a solid line (usually a vertical line).

According to productivity expert Odette Pollar, "To do more in a day, ____."

you must do less—not do everything faster *******

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to ____.

effect corporate change Changing organizational culture is a teaching process in which organizational members teach each other about the organization’s preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance; measurable and controllable activities; organizational structure; and organizational systems and procedures.

The clan culture has a(n) _____.

internal focus and values flexibility has that rather than stability and control

Organizational design is concerned with an organization developing ____.

optimal structures of accountability and responsibility to execute its strategies Organizational design is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies. We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open boundaries between organizations.

Important decisions are made by middle-level and supervisory-level managers with ____.

decentralized authority With decentralized authority, important decisions are made by middle-level and supervisory-level managers.

Sometimes culture can be strong enough to take the place of an organization’s ____.

formal rules and regulations Sometimes culture can be strong enough to take the place of bureaucracy; that is, the expectations of the culture replace formal rules and regulations.

In a highly integrated organization, the specialists work together to achieve ____.

a common goal Integration is the tendency of the parts of an organization to draw together to achieve a common purpose. In a highly integrated organization, the specialists work together to achieve a common goal.

Employees and customers are treated like a family at Bayou Seafood Café. Paul and Betsey, the owners, work to encourage unity to increase their employees’ job satisfaction and commitment. At their café, Paul and Betsey have built a(n) ____.

clan culture A clan culture has an internal focus and values flexibility rather than stability and control. Like a family-type organization, it encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement.

Bob, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and delivering the results that customers want. He pushes his managers to continually exceed their productivity goals, and stresses that profits take precedence over employee development and satisfaction. Bob feels "there is not enough time for training." However, his employees are regularly rewarded for their success in meeting company goals. This is an example of a(n) ____ culture.

Market A market culture has a strong external focus and values stability and control. Kia Motors, which fires executives who don’t meet their sales goals, is an example of a company with a very aggressive and competitive market culture.

Symbols, stories, heroes, and rites and rituals are ways in which ____ is(are) most often transmitted to employees.

culture Culture is transmitted to employees in several ways, most often through such devices as symbols, stories, heroes, and rites and rituals.

The structure of Shoe Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. This is an example of a _____.

functional structure In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)

According to Chester I. Barnard’s classic definition, an organization is a ____.

system of consciously coordinated activities or forces of two or more people

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ____.

observable artifacts of organizational culture

Jim was recently promoted to the position of dining room supervisor, and he is now responsible for making decisions on numerous matters in the dining room and giving orders to the serving staff. At the same time, Jim has the obligation to perform the many new tasks assigned to him as a supervisor, such as overseeing the closing work and cleaning the dining room. Jim’s new obligations are known as his _____.

Responsibility Responsibility is the obligation you have to perform the tasks assigned to you.

A hierarchy culture has a(n) ____.

internal focus and values stability and control….. …over flexibility

Artem, the president of Instructor Services, told one of his new hires that "Managers are encouraged to solve their own problems rather than to buck the decision to a higher level, and decisions are made more quickly, which increases our organization’s flexibility and efficiency." These advantages that Artem spoke of are attributed to ____.

decentralized authority An advantage in having decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization’s flexibility and efficiency.

According to Lawrence and Lorsch, the stability of an organization’s environment determine(s) the degree of ____.

differentiation or integration that is appropriate The stability of the environment confronting the parts of the organization, according to Lawrence and Lorsch, determines the degree of differentiation or integration that is appropriate.

With a modular structure, a firm _____.

assembles portions of product provided by outside contractors In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.

Which of the following is an accurate conclusion from the "Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework’s Theoretical Suppositions" study involving the culture of 1,000 companies?

Managers can use elements of these cultures to boost innovation and quality. Twenty-five years of research on the relationship between organizational culture and various measures of organizational effectiveness demonstrated that the eight types of organizational outcomes had significant and positive relationships with clan, adhocracy, and market cultures, especially with the outcomes of job satisfaction and organizational commitment. One general conclusion was that managers can build into their organizations characteristics of some or all of these three cultures—clan, adhocracy, and market—to increase innovation and improve the quality of their products.

According to the competing values framework, clan, adhocracy, market, and hierarchy are ____.

organizational cultures According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy (see Figure 8.2).

The process of assigning managerial authority and responsibility to lower-level managers and employees is known as ____.

Delegation Delegation is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

Joe, a salesperson for a landscaping company, is working with a longtime customer who is interested in either cutting back on the services or getting a better price due to the tight economy. Joe tells his manager, "I want to take care of the customer with the best value. So what do you think is the best package to offer in this situation?" Joe and his manager are trying to utilize the _____.

contingency design The process of fitting the organization to its environment is called contingency design. Managers taking a contingency approach must consider environmental and life-cycle factors in designing the best kind of structure for their particular organization at that particular time.

Rites and rituals are ____.

the activities and ceremonies that celebrate important occasions and accomplishments for an organization

Astrid, a customer service representative, was asked by one of her customers if her company would be interested in joining the chamber of commerce to meet potential customers. Astrid believes this is a very good idea and approached her manager, Alan, about becoming a chamber member. Alan told Astrid that "Since the cost of membership is over $500 and you will have to leave the office to attend meetings, I will have to get approval from management above me." This is an example of how important decisions are made in organizations with _____.

centralized authority … decisions made by higher-level managers