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  1. Hierarchy
  2. One of the most iconic products of IKEA, maker of inexpensive home furnishings, whose vision is "to create a better life for the many," is the LACK table, a 22-inch by 22-inch side table that sells for only $9.99. This is an example of:
  3. Advantages of decentralized authority
  4. Mutual-benefit organizations
  5. The Organization: Three Types
  6. The Maturity Stage—Very Bureaucratic
  7. Fit Perspective
  8. Google, urges engineers to spend 20% of their time on personal projects. This is an example of:
  9. Four Types of Organizational Culture:
  10. Adhocrasy
  11. Organic Organizations
  12. Organizational Culture
  13. Marc Benioff is founder of cloud computing business Salesforce.com, a San Francisco company known for its great sense of social responsibility and generosity. Its spirit of philanthropy is embodied in a story called the 1-1-1 rule. "When we started the company," Benioff says, "we took 1% of our equity [stock value] and 1% of our profit and 1% of all our employees' time, and we put it into a... public charity. At the time, it was very easy because we had no profit, we had no time, we had no equity. But then, it turned out that our company is worth, you know, tens of billions of dollars."27 Salesforce.com also runs 10,000 nonprofits for free, doesn't charge universities for its services, and, says Benioff, delivers "hundreds of thousands of hours of community service." This is an example of
  14. EEO
  15. Centralized Authority
  16. Narrow Span of Control
  17. Responsibility
  18. Online shoe seller Zappos, encourages managers to spend 10%-20% of their off-work hours with employees. This is an example of:
  19. The Environment: Integration
  20. Coordinated Effort
  21. Reducing Stress
  22. Four Layers of Diversity FIG 11.3
  23. Market
  24. The founders of technology company Hewlett-Packard stressed the "HP Way," a collegial, egalitarian culture that gave as much authority and job security to employees as possible. Which level of organizational culture was the company addressing
  25. Divisional Structure
  26. Five Traits Important in Organizations
  27. Two kinds of information that organization charts reveal about organizational structure are
  28. Workplace Discrimination
  29. The Youth Stage—Prebureaucratic
  30. IKEA employees are expected to work hard, inspired by an anecdote from their Swedish founder, Invar Kamprad, in his 1976 "A Furniture Dealer's Testament," in which he recounts how he was berated by his father for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "'Now by jiminy, I'm going to start a new life,' he determined, setting the alarm for twenty to six and removing the 'off button.'
  31. The Organization Chart
  32. At insurance giant AIG, people worked so hard that the joke around the offices was "Thank heavens it's Friday, because that means there are only two more working days until Monday. Which level of organizational culture were the employees addressing
  33. Hierarchy of Authority
  34. When not to Delegate
  35. Strength perspective
  36. Mechanistic organizations
  37. Sexual harassment
  38. Clan
  39. Advantages of centralized authority
  40. The Big Five Personality Dimensions
  41. For-profit organizations
  42. The Midlife Stage—Bureaucratic
  43. Maslows Hierarchy of Needs
  44. Line Position
  45. Employees of New Belgium Brewery in Fort Collins, Colorado, which makes Fat Tire Ale, are given a cruiser bicycle during their first year. After five years, they get a free brewery-hopping trip to Belgium. Ten years of employment is acknowledged with a tree planted in their name in the campus orchard. (The company boasts a 97% employment retention rate.) This is an example of
  46. AFFIRMATIVE ACTION
  47. Kia Motors, which fires executives who don't meet their sales goals, is an example of a company with a very aggressive and competitive:
  48. Common Purpose
  49. Life Cycle: Four Stages in the Life of an Organization
  50. Department store retailer J. C. Penney Co. has tried to revamp itself from a traditional, hierarchical culture into one that is more informal and flexible by, for example, allowing such observable artifacts as business-casual dress on weekdays and jeans on Fridays. Which level of organizational culture was the company addressing
  51. Span of Control
  52. Common Elements of Organizations
  53. Simple Structure
  54. Four Functions of Organizational Culture
  55. Authority
  56. Functional Structure
  57. The Environment: Differentiation
  58. Four Factors to Consider in Designing an Organization's Structure
  59. Expectancy Theory: The Major Elements
  60. Decentralized Authority
  61. Delegation
  62. The Birth Stage—Nonbureaucratic
  63. Nonprofit organizations
  64. Four Deceptions in Perception
  65. Adaptive Perspective
  66. Matrix Structure
  67. Understanding current employee needs
  68. Division of Labor
  69. Wide Span of Control
  70. 4 Basic Types of Organizational Structures
  71. General Motors and UPS are companies that have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products. This is an example of:
  72. Three Levels of Organizational Culture
  73. Staff Position
  74. Cultures for Enhancing Performance - Three Perspectives
  75. When to Delegate
  76. Strategic HR Planning
  77. Accountability
  78. How Employees Learn Culture:
  79. Culture Plus Structure
  1. a Manager has a limited number of people reporting—three vice presidents reporting to a president, for example, instead of nine vice presidents. An organization is said to be tall when there are many levels with ______________________
  2. b Important decisions are made by higher-level managers. Very small companies tend to be the most _____________, although nearly all organizations have at least some authority concentrated at the top of the hierarchy. Sears and McDonald's are examples of companies using this kind of authority.
  3. c 1. No written rules and little if any supporting staff beyond perhaps a secretary.

    2. The founder may be a lone entrepreneur.

    Michael Dell, who began Dell Computers by selling microcomputers out of his University of Texas college dorm room.
  4. d 1. Organization becomes bureaucratic, a period of growth evolving into stability.

    2. Organization has a formalized bureaucratic structure, staffs of specialists, decentralization of functional divisions, and many rules.

    In the 1980s, Apple Computer became a large company with many of these attributes. In 1983, Pepsi-Cola marketer John Scully was hired as a professional top manager. Jobs became chairman. Wozniak left the company.
  5. e 1. Focuses on achieving equality of opportunity within an organization

    2. Steps include recruitment, elimination of prejudicial questions, & establishment of minority hiring goals

    3.EEO laws do not allow the use of hiring quotas
  6. f 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.

    The means for achieving this are a formal chain of command, standardization of rules and procedures, and use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts.
  7. g These are voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations).
  8. h 1. The vertical hierarchy of authority—who reports to whom, and

    2. The horizontal specialization—who specializes in what work.
  9. i 1. Routine and Technical Matters
    -Always try to delegate routine tasks and
    routine paperwork. When there are technical
    matters, let the experts handle them.

    2. Tasks That Help Your Subordinates Grow
    -Let your employees solve their own
    problems whenever possible. Let them try
    new things so they will grow in their jobs.
  10. j 1. When Looseness & Flexibility Work Best

    2. Authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

    3. Sometimes termed adhocracies because they operate on an ad hoc basis, improvising as they go along.

    Information-technology companies such as Motorola favor the this arrangement because they constantly have to adjust to technological change.
  11. k Unifies employees or members and gives everyone an understanding of the organization's reason for being.
  12. l Thrust: Collaborate
    Means: Cohesion, participation,, communication,
    empowerment
    Ends: Morale, people development, commitment

    Internal Focus
  13. m These are formed to make money, or profits, by offering products or services.
  14. n Thrust:Control
    Means: Capable processes, consistency, process
    control, measurement
    Ends: Efficiency, timeliness, smooth, functioning

    Internal Focus
  15. o 1. Symbols
    2. Stories
    3. Heroes
    4. Rites and Rituals
  16. p
    1. Personality____ - physical & mental characteristics responsible for your identity.

    2. Internal Dimensions______ - gender, age, ethnicity, race, sex, physical abilities.

    3. External Dimensions_____ - education, marital status, religion, income, location, habits.

    4. Organizational Dimensions___- work status, content, management, union.
  17. q
    1. Self Actualization
    2. Esteem
    3. Love
    4. Safety
    5. Physiological
  18. r
    Is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations. This is the family tree-like pattern of boxes and lines posted in staff break rooms and given to new hires.
  19. s 1. Mechanistic vs. Organic organizations
    2. Environment: Differentiation vs. Integration
    3. Life cycle stages
    4. Link between strategy & structure
  20. t The common purpose is realized through________________the coordination of individual efforts into a group or organization-wide effort. Although it's true that individuals can make a difference, they cannot do everything by themselves.
  21. u 1. Rigidity & Uniformity Work Best

    2. Authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

    3. Are bureaucratic, with rigid rules and top-down communication.

    This kind of structure is effective at McDonald's because the market demands uniform product quality, cleanliness, and fast service.
  22. v 1. The Strength Perspective: Success Results When a Firm Has a Strong Culture

    2. The Fit Perspective: Success Results When Culture Fits with the Firm's Business Context

    3. The Adaptive Perspective: Success Results When Culture Helps the Firm Adapt
  23. w
    Assumes that an organization's culture must align, or fit, with its business or strategic context.

    Prior to the arrival of Carleton Fiorina as CEO, Hewlett-Packard's "HP Way" culture from 1957 to the early 1990s pushed authority as far down as possible in the organization and created an environment that emphasized integrity, respect for individuals, teamwork, innovation, and an emphasis on customers and community improvement.
  24. x 1. Understanding current employee needs
    2. Predicting future needs
  25. y Thrust: Compete
    Means: Customer focus, productivity, enhancing
    competitiveness
    Ends: Market share, profitability, achievement

    External Focus
  26. z Thrust: Create
    Means: Adaptability, creativity, agility
    Ends: Innovation, growth, cutting-edge output

    External Focus
  27. aa
    Symbols
  28. ab
    Assumes that the most effective cultures help organizations anticipate and adapt to environmental changes.

    Led by Jerry Garcia, the Grateful Dead lavished special attention on its most loyal fans, known as the Deadheads. It set up a telephone hot-line to alert them to its tour dates ahead of any public announcement. It reserved some of the best seats for some of them, which it distributed through its own mail-order house. "Treating customers well may sound like common sense," says Green. "But it represented a break from the top-down ethos of many organizations of the 1960s and '70s." It was not until the 1980s that competition from Japan compelled American CEOs to adopt a customer-first orientation.
  29. ac Level 1: Observable Artifacts—Physical Manifestations of Culture
  30. ad 1. Job is to enforce __ANTIDISCRIMINATION___ and other employment-related laws

    2. Established under Title _VII_ of 1964 Civil Rights Act
  31. ae
    1. Effort
    2. Performance
    3. Outcomes
    4. Expectancy
    5. Instrumentality
    6. Valance
  32. af Level 1: Observable Artifacts—Physical
    Manifestations of Culture
    Level 2: Espoused Values—Explicitly Stated Values &
    Norms
    Level 3: Basic Assumptions—Core Values of the
    Organization
  33. ag
    People with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.
  34. ah
    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.

    A manufacturing firm will often group people with similar work skills in a marketing department, others in a production department, others in finance, and so on. A nonprofit educational institution might group employees according to work specialty under faculty, admissions, maintenance, and so forth.
  35. ai Adhocracy Culture
  36. aj Market Culture
  37. ak Is the obligation you have to perform the tasks assigned to you. With more authority come more ________________.
  38. al Stories
  39. am Important decisions are made by middle-level and supervisory-level managers. Among the companies using ______________ authority are General Motors and Harley-Davidson.
  40. an
    Assumes that the strength of a corporate culture is related to a firm's long-term financial performance.

    A case could be made that the strong cultures of American automakers for many years made them resistant to the need to make radical adjustments.
  41. ao Have authority functions; they provide advice, recommendations, and research to line managers. Examples: specialists such as legal counsels and special advisers for mergers and acquisitions or strategic planning. Indicated on the organization chart by a dotted line (usually a horizontal line).
  42. ap 1. Consists of unwanted sexual attention that creates an adverse work environment

    2. QUID PRO QUO_ - tangible economic injury; "this for that"

    3. HOSTILE - offensive work environment
  43. aq Also known as the chain of command, is a control mechanism for making sure the right people do the right things at the right time.
  44. ar 1. Job analysis
    2. Job description
    3 Job specification
  45. as Level 2: Espoused Values—Explicitly Stated Values & Norms
  46. at 1. Organization becomes very bureaucratic, large, and mechanistic.

    2. The danger at this point is lack of flexibility and innovation.

    After Jobs was fired in a boardroom struggle in 1985, Apple entered a period in which it seemed to lose its way, having trouble developing successful products and getting them to market. Scully, who emphasized the wrong technology (a "personal data assistant" called Newton, which failed to establish a following), was followed by two more CEOs who were unable to arrest the company's declining market share. In 1997, Jobs was brought back as a "temporary" chairman, and Apple began an unprecedented era of innovation and profitability.
  47. au Managers must report and justify work results to the managers above them.
  48. av 1. Employee Assistance Programs (EAP)
    2. Holistic_ Wellness Program - nutrition, relaxation, exercise
    3. Supportive work environment
    4. Make jobs _interesting___
    5. Provide career counseling
  49. aw Rites & Rituals
  50. ax Heroes
  51. ay 1. For-profit organizations.

    2. Nonprofit organizations.

    3. Mutual-benefit organizations.
  52. az These are formed to offer services to some clients, not to make a profit (examples: hospitals, colleges).
  53. ba Level 3: Basic Assumptions—Core Values of the Organization
  54. bb -System of shared beliefs and values that develops within an organization and guides the behavior of its members

    -Also called corporate culture
  55. bc 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. Indicated on the organization chart by a solid line (usually a vertical line).
  56. bd Culture can powerfully shape an organization's long-term success.

    1. It Gives Members an Organizational Identity

    2. It Facilitates Collective Commitment

    3. It Promotes Social-System Stability

    4. It Shapes Behavior by Helping Employees Make Sense of Their Surroundings
  57. be 1. Managers are encouraged to solve their own problems rather than buck decisions to a higher level.

    2. Decisions are also made more quickly, increasing the organization's flexibility and efficiency.
  58. bf 1. Confidential & Personnel Matters
    -Any tasks that are confidential or that
    involve the evaluation, discipline, or
    counseling of subordinates should never be
    handed off to someone else.

    2. Emergencies
    -By definition, an emergency is a crisis for
    which there is little time for solution, and
    you should handle this yourself.

    3. Special Tasks That Your Boss Asked You to
    Do—Unless You Have His or Her Permission
    -If your supervisor entrusts you with a special
    assignment, such as attending a particular
    meeting, don't delegate it unless you have
    permission to do so.
  59. bg Hierarchy Culture
  60. bh 1. Stereotyping_________
    -Attribute characteristics to an individual based on the group to which they belong (sex, age, race)

    2. Halo-effect________
    -Formation of an opinion based on a single trait

    3. Recency effect_______
    -The most recent impressions are the ones that count

    4. Casual Attributions______
    -Inferring causes for observed behavior(attribute poor performance to lack of effort rather than training)
  61. bi 1. Common Purpose: The Means for Unifying Members

    2. Coordinated Effort: Working Together for Common Purpose

    3. Division of Labor: Work Specialization for Greater Efficiency

    4. Hierarchy of Authority: The Chain of Command

    5. Span of Control: Narrow (or Tall) Versus Wide (or Flat)

    6. Authority, Responsibility, & Delegation: Line Versus Staff Positions

    7. Centralization Versus Decentralization of Authority
  62. bj Also known as work specialization, is the arrangement of having discrete parts of a task done by different people.
  63. bk
    Organization combines functional and divisional chains of command in a grid so that there are two command structures—vertical and horizontal.

    The functional structure usually doesn't change—it is the organization's normal departments or divisions, such as Finance, Marketing, Production, and Research & Development.

    The divisional structure may vary—as by product, brand, customer, or geographic region.
  64. bl Refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

    In the military, of course, orders are given with the expectation that they will be obeyed, disobedience making one liable to a dishonorable discharge or imprisonment. In civilian organizations, disobeying orders may lead to less dire consequences (demotion or firing), but subordinates are still expected to accept that a higher level manager has a legitimate right to issue orders.
  65. bm is the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.
  66. bn 1. Locus of control

    2. Self Efficacy

    3. Self-Monitoring

    4. Emotional Intelligence

    5. Organizational Behavior
  67. bo 1. The organization is in a stage of growth and expansion.

    2. The company has a product that is making headway in the marketplace, people are being added to the payroll (more clerical than professional), and some division of labor and setting of rules are being instituted.

    For Apple Computer, this stage occurred during the years 1978 to 1981, with the establishment of the Apple II product line.
  68. bp
    Often found in a firm's very early, entrepreneurial stages, when the organization is apt to reflect the desires and personality of the owner or founder.

    Authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

    Both Hewlett-Packard and Apple Computer began as two-man garage startups that later became large.
  69. bq This means a manager has several people reporting—a first-line supervisor may have 40 or more subordinates, if little hands-on supervision is required, as is the case in some assembly-line workplaces. An organization is said to be flat when there are only a few levels with ________________________
  70. br Clan Culture
  71. bs 1. Simple
    2. Functional
    3. Divisional
    4. Matrix
  72. bt 1. Occurs when people are hired or promoted, or denied _OPPORTUNITIES__, for reasons not relevant to the job

    2. Two types of discrimination
    a. ADVERSE IMPACT_ - employment practices result in unfavorable outcomes to a protected class
    b. DISPARATE TREATMENT___ - when employees from protected groups are intentionally treated differently
  73. bu
    1. Clan
    2. Adhocrasy
    3. Hierarchy
    4. Market
  74. bv The tendency of the parts of an organization to disperse and fragment. The more sub-units into which an organization breaks down, the more highly differentiated it is.

    For example, a company producing dental floss, deodorants, and other personal care products might have different product divisions, each with its own production facility and sales staff.
  75. bw
    Once a strategy has been created that reflects an organization's vision, managers must design the kind of culture and structure that will motivate and coordinate employees in achieving the organization's goals.
  76. bx 1. Stage 1. The Birth Stage—Nonbureaucratic
    2. Stage 2. The Youth Stage—Prebureaucratic
    3. Stage 3. The Midlife Stage—Bureaucratic
    4. Stage 4. The Maturity Stage—Very Bureaucratic
  77. by 1. There is less duplication of work, because fewer employees perform the same task; rather, the task is often performed by a department of specialists.

    2. Procedures are uniform and thus easier to control; all purchasing, for example, may have to be put out to competitive bids.
  78. bz Also known as span of management, refers to the number of people reporting directly to a given manager.
  79. ca
    1. Extroversion__________
    -how outgoing, talkative, sociable, and assertive a person is
    2. Agreeableness__________
    -how trusting, good-natured, cooperative,
    and soft-hearted one is
    3. Conscientiousness_____________
    -how dependable, responsible,
    achievement-oriented, and persistent one
    is
    4. Emotional Stability_________
    -how relaxed, secure, and unworried one is
    5. Openness________ to __experience__________
    -how intellectual, imaginative, curious, and
    broad-minded one is