management

• Six key elements in organizational design:

  • Work specialization: tasks divided into separate jobs completed by different people
  • Chain of Command: continuous line of authority from upper to lower levels, clarifies who reports to whom
  • Span of control: effective span depends on employee experience, task similarity, and complexity
  • Centralization vs. decentralization: decision making at upper vs. lower levels
  • Formalization: extent of job standardization and employee behavior guidance
  • Departmentalization
• Contingency factors favoring mechanistic vs. organic model of organizational design:

  • Strategy and Structure: simple strategy with simple structure vs. elaborate strategy with complex structure
  • Size and Structure: organic for less than 2,000 employees, mechanistic for more than 2,000 employees
  • Technology and Structure
  • Environment and Structure: stable environment favors mechanistic, dynamic environment favors organic
• Comparison of traditional and contemporary organizational designs:

  Traditional Organizational Designs:

  • Functional Structure: groups similar occupational specialties, advantages of economies of scale, minimal duplication, but may lose sight of best interests
  • Divisional Structure: separate business units or divisions, focuses on results but leads to duplication of activities and resources
• Contemporary Organizational Design:

  • Team Structure: entire organization made up of work teams
  • Matrix and Project Structures
  • Boundaryless Structure
• A group is of two or more interacting and interdependent individuals who come together to achieve specific goals
• Formal groups are work groups defined by the organization's structure with designated work assignments and specific tasks for organizational goals
• Informal groups are social groups that occur naturally in the workplace around friendships and common interests
• Stages of group development: Forming, Storming, Norming, Performing, Adjourning
• Some groups may not progress beyond forming or storming stages, leading to interpersonal conflicts and poor performance
• Conflict can be conducive to high group performance, and groups may not always proceed sequentially through the stages
• Roles in group behavior refer to behavior patterns expected of someone in a social unit
• Employees adjust their roles based on group expectations and may face role conflict with conflicting expectations
• Norms are acceptable standards shared by group members, focusing on effort, performance, and dress codes
• Examples of norms include engaging mentally and emotionally, speaking honestly and respectfully, and maintaining confidentiality
• Status refers to prestige, position, or rank within a group, impacting behavior and motivation
• Status systems involve perceived rankings and status symbols given by the organization
• Group size affects behavior, with social loafing causing individual productivity to decline as the group expands
• Group cohesiveness is the degree to which members are attracted to each other and share the group's goals
• Building cohesiveness involves recruiting similar members, keeping the team small, being a participative leader, presenting challenges, and tying rewards to performance
• Types of teams include cross-functional teams, self-managed work teams, problem-solving teams, and virtual teams
• Cross-functional teams comprise individuals from various specialties to find innovative solutions
• Self-managed work teams operate without a manager and are responsible for a complete work process
• Problem-solving teams aim to improve work activities or solve specific problems within the department
• Virtual teams collaborate online using various tools for communication
• Team effectiveness factors include team member abilities, personality, role allocation, diversity, team size, flexibility, and preferences
• Teams need technical expertise, problem-solving skills, and interpersonal skills for performance
• Important work design elements for team motivation and effectiveness include autonomy, using a variety of skills, completing identifiable tasks, and impacting others
• Team processes involve a common plan and purpose, specific goals, team efficacy, the right conflict, and minimizing social loafing
• Effective teams need direction, commitment, focus on results, and the ability to handle conflict
• Shaping team behavior involves key member selection and teamwork training
• Organizational Change:

  • External factors that can lead to organizational change include changing consumer needs and wants, government laws and regulations, changing technology, labor markets/marketplace, and economic changes
  • Changing consumer needs and wants reflect the importance of being responsive to consumers
  • Changes in technology and consumer tastes can create challenges but also opportunities for businesses
  • Technology creates the need for organizational change, impacting how information is accessed, products are sold, and work is done
• • Fluctuations in labor markets can force managers to initiate changes, such as redesigning jobs and altering rewards and benefits packages
  • Competition between businesses in the marketplace can lead to ongoing improvements and innovations in products and services
• Kurt Lewin’s Theory of Change:

  • Involves two forces (push and pull forces) where equilibrium leads to stability and no change
  • A manager, as a change agent, must find ways to increase, reduce, or both change
  • Strategies must surpass inertia and lead to change
  • Three steps involved in implementing change according to Lewin: Unfreezing, Movement, Refreezing
  • Refreezing step must be taken seriously and managed effectively for successful change
• Initiating Change:

  • Change agents are people who act as catalysts and manage the change process
  • Any manager or non-manager can be a change agent
  • For major system-wide changes, internal management may hire outside consultants for advice and assistance
• Resistance to Change:

  • Factors contributing to resistance include uncertainty, habit, concern over personal loss, and belief that change is not in the organization's best interests
• Reducing Resistance to Change:

  • Negotiation for change can help reduce resistance
• In a situation where employees are anxious about potential job loss due to upcoming restructuring, the company is likely to use education and communication to deal with resistance to change
• The nature and importance of control:

  • Effective managers follow up to ensure tasks are being done and goals are achieved
  • Empowering employees by providing information and feedback on performance
  • Protecting the workplace from threats like natural disasters, financial scandals, and workplace violence
  • Help to protect assets
• The three steps in the control process:

  • Measuring performance using sources like personal observation, statistical reports, oral reports, and written reports
  • Range of variation: setting standards and comparing actual performance to goals
  • Correcting performance through immediate and basic corrective actions, and revising standards if needed
• Types of controls organizations and managers use:

  • Feedforward control: prevents problems before activities start
  • Concurrent control: takes place while work activities are in progress
  • Feedback control: occurs after work activities are done, such as financial analysis and analyzing employee performance