Management Exam 2

  1. Organizational Structure
    The pattern of organizational roles relationships, and procedures that enable coordinated action among the members of a firm.
  2. Organizers
    Those who believe that more control is warranted in organizational design to ensure that jobs are performed satisfactorily and efficiently
  3. 3 functions of an organization
    • 1. Defines the roles of the labor force
    • 2. Coordinates activities between members
    • 3. Identifies the borders of the firm and external relationships
  4. Bureaucratic approach
    the extreme form of control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and instructions
  5. Behaviorists
    Those who support a more open organizational structure where roles and responsibilities are loosely defined
  6. Clan Approach
    type of control that includes self supervising teams that are responsible for a set of tasks
  7. Organizational Design
    • the process by which managers create a specific type of organizational structure
    • and culture so that a company can operate in the most efficient and effective way.
  8. 3 components of organizational structure
    • 1. Job design
    • 2. Strategic grouping of jobs into departments
    • 3. Strategic linking across departments
  9. Job design
    how to group tasks into individual jobs
  10. Strategic grouping of jobs into departments
    How to group jobs into functions and divisions
  11. Strategic linking across departments
    • How to allocate authority and coordinate
    • or integrate functions and divisions?
  12. Job Design: Division of Labor Tradeoffs
    • Too much specialization
    • -jobs become monotonous
    • -increases coordination costs
  13. Job enlargement
    increasing number of different tasks in a job

    -reduces boredom and fatigue, and may increase motivation
  14. Job characteristics
    • 1. Skill variety- employees use a wide range of skills
    • 2. Task Identity- worker is involved in all tasks of job starting from beginning to end of production process
    • 3. Task Significance- Worker feels task is meaningful to organization
    • 4. Autonomy- employee has freedom
    • 5. Feedback- worker gets direct feedback on how well job is done
  15. Strategic Grouping: Departmentalization
    How to group jobs into functions and divisions

    • Functions- organized according to functions performed
    • Divisions-
    •        productbased on products and services provided 
    •        customer: according to customer served
    •        geographic: according to geographic regions
  16. Departmental:  Divisional
    • Divisions-
    • product: based on products and services provided        
    • customer: according to customer served       
    • geographic: according to geographic regions
  17. Departmental: Functional
    Organized according to functions performed
  18. Hybrid Design in Strategic Grouping (2 TYPES)
    Matrix: combo of function, product, and or customer

    Team/Horizontal/Network: flat structures with teams responsible for processes
  19. Pros and Cons of Functional
    Pros: low cost strategies, eco. of scale, stable environment

    Cons: inability to respond due to lack of coordination
  20. Division Pros and Cons
    Pros: Diversified strategies

    Cons: Lose economies of scale competition
  21. Pros and cons of Matrix
    Pros: Responsiveness strategy 

    Cons: conflicts between bosses, extra meetings
  22. Pros and Cons of Networks, clusters, self-designing
    Pro: Innovative Strategy

    Cons: Resources may be duplicated
  23. Two basic types of unit structures
    market facing units

    operating core units
  24. Unit Structure:
    span of control
    the amount of physical and human resources in a managers purview
  25. Invisible elements in a culture
    • values
    • attitudes
    • assumptions
    • beliefs
  26. Diagnostic control systems:
    Span of accountability
    the degree to which a manager makes tradeoffs at a firm to achieve the firms stated strategic goals
  27. Interactive Networks
    Span of influence
    • the breadth of a worker’s
    • activities related to collecting data and attempting to influence others
  28. Shared responsibilities: 
    Span of Support
    how much help employees expect from others in an organization and how much they feel they need to give to others
  29. Visible elements of a culture
    • employee dress
    • product line
    • technology
    • language i.e.: (CEO, CFO)
    • architecture
    • furniture
    • behavior
    • tributes
    • firing practice
    • employee training
  30. Espoused value
    values championed by leadership and management (not always reflecting employees view)
  31. Enacted values
    the values employees actual behavior reflects
  32. Key feature of Organizational Culture
    • -features that are most stable
    • -collective perspective of organizational members
    • - shared by most members of an organization
    • -"passed along" to new members
    • -shapes members views of organization and purposes
    • -shapes members performance
  33. Network
    Intricate web a relatonships that connect employees in a firm
  34. Advice Network
    Who depends on who to solve problems and obtain technical information
  35. Task Related/Communication Network
    The employees who talk about work related matters with each other on a regular basis
  36. Trust Network
    Which employees share political information and back each other in a crisis
  37. Friendship Network
    Who is friends with whom
  38. Network Breadth
    Number of people in ones network
  39. Centrality in a network
    • where someone is positioned in a network
    • and the access to info that person is given as a result of his or her position
  40. brokerage in a network
    • the act of leveraging relationships with
    • central people to generate and control info, which is critical to creating
    • social capital
  41. Central Connectors
    the person that everyone in the group talks to the most
  42. Boundary Spanners
    Eyes and ears to the wider world i.e.: sales force
  43. Information Brokers
    people who connect the various sub networks within the social network
  44. Peripheral specialists
    Usually experts, better off to work alone
  45. Operational Networks
    prescribed by the structure of the organization, helps people manage their internal tasks and responsibilities
  46. Personal network
    Helps people improve their personal and professional development
  47. Strategic Networks
    helps you figure out future priorities and challenges
  48. How to develop external network
    • -utitilize technology
    • -utilize network events
    • -treat people with respect and genuine intention
  49. Leadership
    The ability to influence people toward the attainment of organizational goals
  50. Universal Trait Models
    • "Leaders are Born" 
    • Traits based leadership theory
  51. "Leaders are born"
    started with "great man theory" leadership can be explained through genetically superior and naturally endowed great leaders
  52. Traits Based Leadership Theory
    reveals a set of traits and skills that are relevant in all leadership situations
  53. 3 types of leadership skills
    • 1. cognitive
    • 2. technical
    • 3. interpersonal
  54. Cognitive skill (leadership)
    • A leader’s ability to understand the internal
    • and external environments, make decisions
    • with sound reasoning,
    • and communicate effectively
  55. Technical skills (Leadership)
    a leaders knowledge about an organization and its job related activities
  56. Interpersonal Skills (Leadership)
    A leaders ability to interact with others
  57. Universal Behavior Perspective
    • 1.  "All great leaders behave the same way"
    • 2. "Leadership style stems from two different categories
    •            1. Task oriented behavior 
    •            2. Relationship oriented behavior"
  58. Task oriented behavior
    concerns with group goals, and means to achieve them
  59. Relationship oriented behavior
    concerned with interpersonal relationships, and supporting and developing subordinates
  60. personal characteristics of effective leaders
  61. Transformational Leadership
    • set of behaviors a leader uses to transform, or change, their individuals for the better.
    • -charisma, motivation
    • -inspirational motivation
    • -intellectual stimulation
    • -individual consideration
  62. Transactional Leadership
    • leader providing something to subordinates for somthing in return. 
    • -contingent reward
    • -
  63. Contingency Trait Models
    Match leader to situations based on leadership characteristics

    -Fiedlers Contingency theory
  64. Fiedlers Contingency Theory
    • -leaders have permanent characteristics and cant adapt
    • -leaders cant change their styles

    Leaders are either Task oriented or People oriented
  65. Weaknesses of fiedlers theory
    • simplistic
    • division of task oriented and people oriented leaders, ignores that a leader can be both
  66. Path goal theory
    • 1. Clarify Path
    • 2. Clear Path
    • 3. Offer rewards
  67. Leader Member Exchange Theory (LMX)
    • Leaders treat each other differently, therefore they develop unique relationships with each other 
    • -stranger phase-->aquintance-->partnership
  68. In groups
    favored subordinates who are assigned more interesting tasks
  69. out groups
    subordinates who are expected to simply comply with rules
  70. LMX Relationship life cycle
    • Stranger phase- 
    • Acquaintance phase-
    • Mature Partnership Phase-
  71. Substitues for Leadership
    • -acts in the place of a leader and makes leadership unnecessary
    • -worker empowerment or self managed work teams reduce leadership needs
  72. neutralizer for leadership
    policies that get in the way of management
  73. Attribution Theory
    • false claims that someone is a leader because it fits their idea of who a leader is and what a leader does
    • (Leaders have only limited impact on their organization when compared to the variables that affect an organization)
  74. Power
    The potential of a person, team, or organization to require others to do certain things
  75. Countervailing Power
    Power that subordinates have to their superiors
  76. Properties of Power
    • -neutral
    • -perceptual
    • -inter-personal
    • -two way street
    • -context-dependant
    • -relative
  77. Power comes from two general bases
    Position & Person
  78. Position Power : Legitimate Power
    When one person believes that the other person has the right to influence him or her (influence) i.e.: policeman
  79. Positions Power: Reward Power
    One on believes that a person can and will provide or withhold rewards
  80. Position Power: Coercive Power
    One person believes the other can and will provide or withhold punishment
  81. Personal Power:  Expert Power
    one person believes another person has desired expertise and is willing to share or withhold it
  82. Personal Power:  Referent/Charismatic Power
    when one person finds another personally attractive and wants to be associated or affiliated with that person
  83. Sources of Power (5)
    • Hierarchical Position
    • Expertise
    • Control over information
    • Network of allies
    • Individual attributes
  84. Contingencies of Power (4)
    • Substitutability
    • Centrality
    • Discretion
    • Visibility
  85. Substitutability
    the ability of alternative resources
  86. Centrality
    degree and nature of interdependence between the power holder and others
  87. Discretion
    freedom to exercise judgment, make decisions without permission or referring to the rules
  88. Visibility
    The extent to which a power holder is known, or visible to others
  89. Difference between influence and power
    influence is power in action!
  90. Silent authority
    when someone complies with a request because of role expectations and the requester's legitimate hierarchical power
  91. assertiveness
    applying hierarchical power to influence others
  92. network building
    actively seeking and establishing relationships with people who may prove useful in the future
  93. Exchange
    the promise benefits or resources in exchange for another party's compliance with your request
  94. Coalition Formation
    a group of people that comes together to cooperate in attaining a certain goal
  95. appeal to higher authority
    attempts to exert influence by passing over immediate superior and appealing to someone higher in the organization
  96. ingratiation
    attempts to increase the extent to which someone likes you
  97. impression management
    the process of actively shaping one's public image
  98. persuasion
    the use of reason through factual evidence and logical arguments
  99. information control
    explicit manipulation of others access to information so as to change their attitude and behavior
  100. Cialdinis six principles of influence
    • reciprocity/exchange
    • consistency
    • social validation
    • liking 
    • authority
    • scarcity
  101. consistency
    cognitive dissonance theory- we have an inner drive to maintain consistency between our attitudes and beliefs
  102. social norms/validation
    what is normal in a perspective
  103. liking
    similarity attraction, flattery, and humor
  104. authority
    one of 6 of cialdinis influence
  105. scarcity
    one of 6 f cialdinis influence
  106. ethics
    what is right and wrong
  107. ethical dilemma
    arises in a situation concerning right or wrong when values are in conflict
  108. ethical frame work: Confucianism
    • to be able under all cirmustances practice 5 things constitutes perfect virtue:
    • -gravity, generosity of soul, sincerity, earnestness, and kindness
  109. Ethical framework: Aristotle
    • -life of honor
    • -life of pleasure
    • -life of virtue
  110. ethical framework: utilitarianism
    morally right course of actions in any situation is the one that produces the greatest balance of benefits over harms for everyone affected.
  111. Ethical framework: profit maximization
    maximize profits
  112. ethical framework: universalism
    if somethings right for me, its right for you, if its wrong for you, it's wrong for me.
  113. rational decision making theory
    when individuals are confronted with a choice, they try to make the best possible decision and on that maximizes their expected utility
  114. Bounded rationality
    In decision making, rationality of individuals is limited by the information they have, the cognitive limitations of their mind, and the finite amount of time they have to make a decision
  115. 3 cognitive heuristics for decison making
    • 1. availability
    • 2. representativeness
    • 3. adjustment or anchoring
  116. availability heuristic
    individuals asses frequency, probability, or likely cause of an event by the degree to which instances or occurances of that event are readily "available" in memory
  117. representativeness heuristic
    individuals tend to look for traits in another person or situation tha corresponds with previously formed stereotypes.
  118. Adjustment and Anchoring
    individuals make estimates or choices based on a certain starting point (and fail to adjust adequately)
  119. Framing
    Alternative wordings of the same information that significantly alter a decision
  120. Confirmation bias
    • bias search for information
    • biased interpretation
    • biased memory
  121. escalation of commitment
    • decision makers commit themselves to a particular course of action beyond the level suggested by rationality as means of justifying previous commitments
    • -attempting to avoid admitting a mistake by continuing to invest in a losing proposition can result in a far greater error
  122. status quo bias
    the tendency to favor the "here and now" and to reject potential change

    -creates resistance to change in organizations
  123. Classical model of decision making
    seeks to minimiz economic or other outcomes using a rational choice process
  124. administrative model
    acknowledes that managers may be unable to make economically rational decisions because they lack sufficient info
  125. political model of decision making
    most organizational decisions invovle many mnagers who have different goals and who have to share info to reach an agreement
  126. garbage can model of decision making
    no viewed as a sequence of rational steps but rather that "playfulness" is encouraged in the flow of solving problems and other actions to taken to spark organizational creativity and innovation
  127. 6 ways to Managing biases
    • 1. aqcuire experience and expertise
    • 2. reduce bias in your judgement
    • 3. engage in analogical reasoning
    • 4. take an outsiders view
    • 5. implement statistical models
    • 6. understand biases in others
  128. 7 trends supporting continued globalization
    • New competitors,
    • rise of global standards,
    • privatization,
    • disintegrating borders,
    • global products/customers,
    • growing trade and investment
    • internet and information technology
  129. disintegrating border
    • -trade agreements
  130. WTO
    formal structure for continue negotiations and for settling trade disputes among nations
  131. Regional trade agreements
    agreements among nations to reduce tariffs and develop similar technical and economic standards
  132. Transition
    countries in the process of changing from government controlled economic systems to capitalistic systems
  133. Global Standards, Products & Consumers
    • -companies make one or only few versions of product for the world market
    • -drive to develop common standards to save money
    • -international organizaiton for standardization (ISO) in Geneva, Switzerland
    • -Consumers drive this too: The needs of customers for many products and services are growing more similar
  134. Privatization
    sale of gov. owned business to private investors

    • two types contribute to global economy, developed and developing countries
    • -DEVELOPED use privatization to make formerly government-controlled enterprises more competitive in global economy
    • -DEVELOPING use privatization to jump-start their economies or to speed the transition from a communist to a capitalist system
  135. New competitors
    • Free market reforms are creating a potential group of new competitiors
    • "emerging giants"
  136. Internet and Information Technology
    • Electronic communication
    • -allows multinationals to communicate with company locations throughout the world
    • -put more elements of the value chain in other countries more easily
    • -spurring a borderless financial mkt
  137. Culture
    acquired knowledge that people use to interpret experience and generate social behavior. forms values, creates attitudes, and influences behavior.
  138. Characteristics of culture
    • symbols (easy to misinterpret)
    • norms & values (most effective source to understand culture)
    • assumptions & beliefs (difficult to assess)
  139. Hofstede identifies
    • individualism/collectivism
    • power distance
    • uncertainty avoidance
    • masculinity/femininity
    • long-term/short-term orientation
  140. Trompenaars 7d cultural model
    • 1. universalism vs. particularism
    • 2. individualism vs. communitarianism
    • 3. neutral vs. emotional
    • 4. specific vs. diffuse
    • 5. achievement vs. ascription
    • 6. time: sequential vs. synchronous
    • 7. environment: inner-directed vs. outer-directed
  141. The GLOBE project
    mostly confirms hofstede and trompenaars research with greater emphasis on differences in managerial leadership styles
  142. challenges global managers face
    • -more demands than domestic/single country managers
    • -wider and more frequent boundary spanning
    • -heightened ambiguity surrounding decisions and related outcomes/effects
    • -more challenging ethical dilemmas related to globalization
    • -heightened need for cultural understanding and knowledge of diversity due to increasing opportunities for "cultural collisions"
  143. cultural implications for individual and managerial effectiveness
    • -developing cultural intelligence is important to effective management in global business
    • -organizations must consider the characteristics of the natioal setting as well as their own companys internal management capabilities to determine the international strategy
Card Set
Management Exam 2
2nd management test Carlson School of Management