Chapter 6
Name and understand the 3 types of decision making that managers utilize to make decisions
classical model
political model
administrative model
Understand the differences between staff and line authority in terms of chain of command and departments.
Line authority means that people in management positions have the formal authority to direct and control immediate subordinates.
◦ Staff authority is narrower and includes the right to advise, recommend, and counsel in the staff specialists’ area of expertise
Know and understand the possible tactics for overcoming resistance to change.
• top management support
important when change involves multiple departments or when resources are being reallocated
communication and education
◦ solid information about the change is needed by users and others who may resist implementation
• participation
◦ involves users and potential resisters in designing the change
• negotiation
◦ uses formal bargaining to win acceptance and approval of a desired change
• coercion
◦ managers use their formal power to force employees to change
Locus of control
The extent to which individuals believe they have control over events in their lives.
What is the relationship between performance and satisfaction
The relationship between performance and satisfaction is complex, with studies suggesting that higher job satisfaction can lead to better performance, but high performance does not always result in satisfaction.
Define and understand Machiavellianism.
Machiavellianism refers to a personality trait characterized by manipulation, deceit, and a focus on personal gain, often at the expense of others.
differences between a tall and flat organization.
A tall structure has an overall narrow span and more hierarchical levels.
◦ A flat structure has a wide span, is horizontally dispersed, and has fewer hierarchical levels
Know and understand the following terms; exit interviews, diverse workforce, EEOC, internal recruiting, interviews, corporate university, glass ceiling, and job satisfaction.
exit interviews-
Diverse workforce-
EEOC-
Internal recruiting-
Interviews-
Corporate university-
Glass ceiling-
Job satisfaction-
Relationship management
The ability to maintain and develop positive relationships with others.
In terms of the 5 “Steps to Getting Organized,” describe the three options to “decide the next action.”
Do it (if it takes less than two minutes).
◦ Delegate it (if someone else can handle it).
◦ Defer it (if it requires more time or planning).
Define and understand the differences between program and non-programmed decisions.
program- often occurring situations with developed rules
◦ non-programmed- made in unique unstructured situations that are important
What is the relationship between organization and strategy?
strategy is what to do, organizing is how to do it
Strategy is first, organizing is second
Know and understand why people resist change.
believe it conflicts with their self-interests
◦ fear of personal loss
distrust intentions behind a change or do not understand the intended purpose of change
uncertainty = lack of information about future
people effected might react differently than managers and above
Job satisfaction
The level of contentment employees feel toward their work.
Describe the differences between Type A and Type B behaviors.
Type A individuals are highly competitive, impatient, aggressive, and driven by urgency, while Type B individuals are more relaxed, patient, and less stressed about time constraints.
Define and understand the 4 personal decision styles managers go about making decisions
directive style- simple clear cut solutions to problems. quick decision making. less information, rely on existing rules or procedures
◦ analytical style- complex solutions as much data as possible, carefully consider alternatives, best possible decision
◦ conceptual style- consider broad amount of information, socially oriented talk to others, get information from people and systems, solve problems creatively
◦ behavioral style- deep concern for other individuals, talk to people understand feelings, personal development, help others achieve goals
• Why do managers make bad decisions?
◦ Bing influenced by initial impressions (bias)
◦ justifying past decisions (sunk cost effect)
‣ stick with pas decisions bc they've invest resource into it
◦ seeing what they want to see (conformation bias)
◦ perpetuating the status quo
◦ being influenced by emotions
◦ being overconfident
Name and understand the Understand the differences between functional, product, matrix, and customer departmentalization including the advantages and disadvantages of each.
1. Functional Departmentalization:
‣ Groups employees based on their shared skills, functions, and specializations (e.g., marketing, sales, finance, HR).
Advantages:
‣ Specialized expertise and efficiency within each function.
‣ Clear hierarchy and accountability.
‣ Simplified training and development.
◦ Disadvantages:
‣ Can lead to silos and limited communication between departments.
‣ May hinder innovation and adaptability.
‣ Focus on functional goals over overall organizational objectives.
Product Departmentalization:
◦ Organizes departments based on specific product lines or services.
◦ Advantages:
‣ Enhanced focus on individual product lines, leading to improved efficiency and innovation.
‣ Improved responsiveness to customer needs for specific products.
‣ Clearer accountability for product performance.
◦ Disadvantages:
‣ Can lead to duplication of resources and functions across product departments.
‣ May overlook company-wide policies and strategies.
‣ Can create internal competition between product departments.
◦ 3. Matrix Departmentalization:
◦ Combines functional and product departmentalization, creating a grid-like structure where employees report to both a functional manager and a project or product manager.
◦ Advantages:
‣ Promotes collaboration and cross-functional teamwork.
‣ Flexibility and adaptability to changing project needs.
‣ Improved resource sharing and utilization.
◦ Disadvantages:
‣ Can lead to confusion and conflict due to dual reporting lines.
‣ Requires strong leadership and communication skills.
‣ Can be complex and costly to implement.
◦ 4. Customer Departmentalization:
◦ Organizes departments based on specific customer types or segments (e.g., retail, wholesale, government).
◦ Advantages:
‣ Better understanding of customer needs and preferences.
‣ Improved customer relationships and satisfaction.
‣ Facilitates adaptation to changing customer demands.
◦ Disadvantages:
‣ Can lead to duplication of effort and resources across customer segments.
‣ May create silos and hinder communication between customer departments.
‣ Can be difficult to implement and manage.
• Describe the differences between coordination and collaboration.
◦ Coordination refers to the managerial task of adjusting and synchronizing the diverse activities among different individuals and departments.
◦ Collaboration means a joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose.
• Describe the differences between Mass production, large-batch production, small batch production, and continuous production?
◦ mass production- long production runs to manufacture a large volume of products with the same specifications.
◦ large-batch production- A large volume of products is produced, and all customers receive the same product. Standard products go into inventory for sale as customers need them
◦ small batch production- type of manufacturing technology that involves the production of goods in batches of one or a few products designed to customer specifications.
◦ continuous production- mechanization of the entire workflow and nonstop production, such as in chemical plants or petroleum refineries.
• Describe the differences between centralized and decentralized management styles.
◦ centralization- decision authority is located near the top of the organization
◦ decentralization- decision authority is pushed downward to lower organization levels
Define sexual harassment, hostile work environment, discrimination.
sexual harassment
Hostile work environment
discrimination
Self-serving bias
The tendency to attribute successes to internal factors and failures to external factors.
Define and understand the perception process
Perception is the process by which individuals interpret and organize sensory information to make sense of their environment. It involves selective attention, interpretation, and response.
Know and understand the following terms; decision, satisficing, uncertainty/certainty, bounded rationality, brainstorming, risk, coalition, and groupthink.
decision- a choice made from available alternatives
◦ satisficing- decision makers choose the first solution alternative that satisfies minimal decision criteria
◦ uncertainty- managers know which goals they wish to achieve but information about alternatives and future events is incomplete
◦ certainty- all the information the decision maker needs is fully available
◦ bounded rationality- people have limits or boundaries on how rational they can be
◦ brainstorming- face-to-face interactive group to spontaneously suggest as many ideas as possible for solving a problem
◦ risk- a decision has clear-cut goals and good information is available but future outcomes associated with each alternative are subject to some chance of loss or failure
◦ coalition- informal alliance among managers who support a specific goal
◦ groupthink- the tendency of people in groups to suppress contrary opinions
Know and understand the following terms; span of management (control), reengineering, mechanistic, organic, pure functional structure, and work specialization.
span of management is the number of employees reporting to a supervisor and determines how closely a supervisor can monitor subordinates
◦ re-engineering- radical redesign of product or processes to achieve dramatic improvements in cost quality service and speed task forces, teams, and project management
◦ mechanistic- Goals of efficiency and a stable environment, vertical structure is appropriate for a cost leadership strategy, which typically occurs in a stable environment
◦ organic- goals of innovation and a rapidly changing environment, however, the organization tends to be much looser, free-flowing, and adaptive, horizontal approach is needed for a differentiation strategy and when the organization needs flexibility to cope with an uncertain environment.
◦ pure functional structure- appropriate for achieving internal efficiency goals in a stable environment.
◦ work specialization- degree to which organizational tasks are subdivided into separate jobs.
Know and understand the following terms; Organizational change, idea champion, idea incubator, disruptive innovation, JIT, and skunkworks.
organizational change
Idea champion- person who sees the need for and champions productive change within the organization
Idea incubator- mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics
Disruptive innovation- innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers
JIT- just in time, product gets to warehouse when ready to sell
Skunkworks- separate small informal highly autonomous and often secretive group that focuses on breakthrough ideas
Emotional stability
The ability to remain calm and composed under stress.
Know and understand the Big Five Personality factors.
Openness: Creativity and willingness to try new things.
◦ Conscientiousness: Organization, responsibility, and dependability.
◦ Extraversion: Sociability, assertiveness, and energy.
◦ Agreeableness: Compassion, cooperation, and kindness.
◦ Neuroticism (Emotional Stability): Tendency to experience negative emotions.