MGT 320 TEST #3 STUDY GUIDE
Organizing has two parts (1/2): - Answers - Grouping jobs and creating a hierarchy
Organizing has two parts (2/2): - Answers - Coordination: Links the parts of the
organization horizontally
a. how to make sure that whatever the part of an organization works in harmony with
another part of the organization; linking things horizontally
b. The horizontal structure
Henri Fayol: - Answers - 14 principles of management; Principals/ decisions related to
structure
Principle of management: Division of labor and specialization: - Answers - a.
Effectiveness and efficiency
b. Today it's also seen as a source of motivation
Principle of management: Chain of command: - Answers - a. Scalar principle}} Scalar
chain: There must be an unbroken line of authority from the top to the bottom of the
organization.
c. Need to remember: The person with authority (right) must also have responsibility
(obligatory) and accountability (justification)
Principle of unity of command: - Answers - no one takes orders from more than an
immediate supervisor; this leads to confusion (is also inefficient) and pushes the
decision to a level where it is ineffective.
Delegation of authority: - Answers - one- to- one informal transfer of authority from a
manager to a subordinate: informal and can be reversed at anytime; The manager
remains accountable
Principle of Management: Should the organization be centralized or decentralized?: -
Answers - Centralized vs. decentralized:
Centralized: - Answers - more authority is held in higher level job positions. (A
purposeful and thoughtful decision)
Leads to: higher quality decisions, slower in coming to lower level decisions
Decentralization: - Answers - More authority is held in lower level jobs.
Leads to: faster decisions at lower levels. Develops the skills of lower level managers
Principal of management: Separation of line and staff authority: - Answers - This
reduces some potential for conflict of interest
Principal of management: Span of control (management): - Answers - Two components:
, - Overall, in the organzation
- Specific to an individual manager
Number of immediate subordinates a manager has: Wide: - Answers - More
subordinates (6 or more)
Number of immediate subordinates a manager has: Narrow: - Answers - Less
subordinates (5 or less)
Wider spans: - Answers - Flatter organizations (structures):
A long-term and still current trend, it comes from and results from fewer layers of
management
Narrow Spans: - Answers - Taller organizations (structures):
Individual spans depend on: - Answers - 1) Stability of the subordinates work
a. More stable} wider the span
2) Support for the manager
a. More support} wider the span
3) The subordinates talk maturity.
- Two components: Both need to be high for the subordinate to be task mature.
§ More task maturity} wider the span
o Skill level
o Confidence
Principal of management: Departmentalization: - Answers - - Grouping jobs together
o Departments
o Units
o Functional areas, etc.
Functional: - Answers - Groups jobs together based on their performance of like
activities.
o Marketing, accounting, finance, production
functional structures have some advantages: - Answers - -There is a more efficient use
of resources (less job redundancies)
-Develops specialists
-More top management control
-Higher quality control
Divisional: Jobs are grouped based on; - Answers - -Product, geography, and customer
-Advantages compared to a functional structure:
-More responsive and flexible
- The people in the divisions identify with the division} bigger picture thinking.
- Better functional coordination
- Develops
Organizing has two parts (1/2): - Answers - Grouping jobs and creating a hierarchy
Organizing has two parts (2/2): - Answers - Coordination: Links the parts of the
organization horizontally
a. how to make sure that whatever the part of an organization works in harmony with
another part of the organization; linking things horizontally
b. The horizontal structure
Henri Fayol: - Answers - 14 principles of management; Principals/ decisions related to
structure
Principle of management: Division of labor and specialization: - Answers - a.
Effectiveness and efficiency
b. Today it's also seen as a source of motivation
Principle of management: Chain of command: - Answers - a. Scalar principle}} Scalar
chain: There must be an unbroken line of authority from the top to the bottom of the
organization.
c. Need to remember: The person with authority (right) must also have responsibility
(obligatory) and accountability (justification)
Principle of unity of command: - Answers - no one takes orders from more than an
immediate supervisor; this leads to confusion (is also inefficient) and pushes the
decision to a level where it is ineffective.
Delegation of authority: - Answers - one- to- one informal transfer of authority from a
manager to a subordinate: informal and can be reversed at anytime; The manager
remains accountable
Principle of Management: Should the organization be centralized or decentralized?: -
Answers - Centralized vs. decentralized:
Centralized: - Answers - more authority is held in higher level job positions. (A
purposeful and thoughtful decision)
Leads to: higher quality decisions, slower in coming to lower level decisions
Decentralization: - Answers - More authority is held in lower level jobs.
Leads to: faster decisions at lower levels. Develops the skills of lower level managers
Principal of management: Separation of line and staff authority: - Answers - This
reduces some potential for conflict of interest
Principal of management: Span of control (management): - Answers - Two components:
, - Overall, in the organzation
- Specific to an individual manager
Number of immediate subordinates a manager has: Wide: - Answers - More
subordinates (6 or more)
Number of immediate subordinates a manager has: Narrow: - Answers - Less
subordinates (5 or less)
Wider spans: - Answers - Flatter organizations (structures):
A long-term and still current trend, it comes from and results from fewer layers of
management
Narrow Spans: - Answers - Taller organizations (structures):
Individual spans depend on: - Answers - 1) Stability of the subordinates work
a. More stable} wider the span
2) Support for the manager
a. More support} wider the span
3) The subordinates talk maturity.
- Two components: Both need to be high for the subordinate to be task mature.
§ More task maturity} wider the span
o Skill level
o Confidence
Principal of management: Departmentalization: - Answers - - Grouping jobs together
o Departments
o Units
o Functional areas, etc.
Functional: - Answers - Groups jobs together based on their performance of like
activities.
o Marketing, accounting, finance, production
functional structures have some advantages: - Answers - -There is a more efficient use
of resources (less job redundancies)
-Develops specialists
-More top management control
-Higher quality control
Divisional: Jobs are grouped based on; - Answers - -Product, geography, and customer
-Advantages compared to a functional structure:
-More responsive and flexible
- The people in the divisions identify with the division} bigger picture thinking.
- Better functional coordination
- Develops
