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MGT 3200 Test 2 (Merged Cards)
MGT 3200 Test 2 (Merged Cards)
123
Management
Undergraduate 2
04/04/2012
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Term
Card
 Definition
Mine
Term
1. Is decision making a function of management?
 Definition
No. Decision-making techniques are applicable and valuable to all management functions.
Term
2. Why do we make decisions as managers?
 Definition
a. To accomplish our goals efficiently. Decisions are means to an end rather than ends in themselves.
To achieve operative goals and overall organizational goals.
Term
3. What’s the difference between programmed and non-programmed decisions?
 Definition
 Programmed decisions- are specific procedures that have been developed for repetitive and routine problems
• Decisions are programmed; a specific procedure has been developed
 Nonprogrammer decisions- are specific to management problems that are novel and unique. They are complex and unstructured
• No established procedure for handling them
• Such decisions deserve special treatment.
Term
4. Do managers make more programmed or non-programmed decisions, in general?
 Definition
a. Programmed
Term
5. What is decision-making under conditions of certainty?
 Definition
a. Known probability
Term
6. What is decision-making under conditions of risk?
 Definition
 Decisions under risk are most common
 This condition involves a lack of complete certainty regarding the outcomes of various alternatives, but an awareness of the probabilities associated with their occurrence
 Alternatives are known but outcomes are in doubt
 Example- roll a die you know they are six alternatives but the outcome is in doubt
Term
7. What is decision making under conditions of uncertainty?
 Definition
a. You know the alternatives, but don’t know what they’re going to lead to.
Term
8. Which decision-making condition is most common? Least common? Most difficult?
 Definition
a. Risk = most common
b. Uncertaintly – most difficult
c. Certainty is the easiest and least frequent condition
Term
9. What is the key to making good decisions under risk?
 Definition
a. Accurate probabilities
Term
10. How do programmed/non-programmed decisions and the different decision-making conditions relate?
 Definition
 Certainty- programmed
 Uncertainty- non-programmed
 Risk- can be both
Term
11. What does the traditional economic model assume about decision-makers? (2 assumptions)
 Definition
a. That you are completely rational
b. That you maximize
Term
12. Under what decision-making condition do decisions get made in traditional economic model?
 Definition
Certainty
Term
13. What does the behavioral model assume about decision makers?
 Definition
 Bounded rationality and satisfice
 Descriptive (how you actually make decisions)
 Pretty good decision with less time/effort = more efficient
Term
14. What is bounded rationality? What three things bound one’s rationality?
 Definition
 “Administrative Man” possesses bounded rationality
 Managers are unable to grasp the full complexity of managerial decisions due to both their limited mental capacity and emotions, and the uncertainty of future events
 Manager’s rationality is bounded by these three things
• Limited mental capacity
• Emotions
• Unforeseeable of future events.
Term
15. What is satisficing? How does it differ from maximizing? Is it irrational?
 Definition
a. Select the first alternative that is just good enough. “It’ll do”
b. When you maximize, you have to consider all the alternatives, and choose the best option.
Term
16. What is a heuristic? What are the advantages of and disadvantages of heuristics?
 Definition
a. Heuristics – mental shortcuts (labor-saving devices) that humans use in making decisions.
b. Advantages –
c. Disadvantages – sometimes if you use it without knowing that you’re using it, it can lead to errors.
Term
17. What is the availability heuristic? What factors cause you to overestimate the frequency of an event? Underestimate the frequency of an event
 Definition
a. The availability heuristic is used when managers assess the frequency of an event by the extent to which instances of that event are easily recalled in memory
b. “Easily recalled = got to be frequent.. Not easily recalled = got to be infrequent”
Term
18. What is the representativeness heuristic? What’s the problem with this heuristic?
 Definition
a. The availability heuristic is used when managers assess the frequency of an event by the extent to which instances of that event are easily recalled in memory. Involves the use of stereotypes in making judgments.
b. Problems – Causes the manager to miss important opportunities. Using stereotypes prevents you from seeing the real person.
Term
19. Under what decision-making conditions do decisions get made in the behavioral model?
 Definition
 Risk and uncertainty
Term
20. What does the irrational/implicit favorite model of decision-making say about decision-making?
 Definition
 Decision maker selects a favorite early on in the evaluation of alternatives
 Once this “implicit” favorite is chosen the rest of the alternatives are evaluated against it
 Basically, the decision maker distorts information and selects decision rules in order to favor their implicit favorite
 This model assumes that the decision maker simply goes through the motions of generating and evaluating more alternatives as a way to justify their initial choice (favorite). (NOTE: this is irrational behavior and it’s also a waste of time and money because a decision has already been made)
Term
21. What types of decisions are made irrationally?
 Definition
 Nonprogrammer decisions
Term
22. What is the basic purpose of a brainstorming session?
 Definition
a. We generate ideas. We never evaluate them during the brainstorm.
Term
23. What are the four rules in brainstorming?
 Definition
a. Criticism is prohibited
b. Freewheeling is desired. The more off the wall, the better
c. More quantity is desired. Quality will take care of itself.
d. Combine and improve ideas
Term
24. Can inhibitions be totally eliminated in brainstorming sessions?
 Definition
a. No
Term
25. What two creativity techniques does synectics use in helping the group to generate better idea?
 Definition
a. Analogy
b. Fantasy
Term
27. In synectics, what is the job of the facilitator? Technical expert?
 Definition
a. We generate as well as evaluate ideas. The facilitator helps you come up with better ideas. The technical expert helps you evaluate the feasibility (pros and cons).
Term
28. What‘s the problem with synectics?
 Definition
a. They combine the creative process with the evaluation process, and it can prevent people from coming up with new ideas.
Term
29. What research is NGT based on?
 Definition
 Inspired by research that discovered more and better ideas are discovered by several persons working alone/separately than by the same persons working in an interacting group
Term
30. How is NGT different from brainstorming and synectics?
 Definition
a. People generate their ideas alone in NGT.
Term
31. What in NGT does one try to eliminate to improve the decision-making process?
 Definition
a. The negative aspects of the group, aka social loafing, undue persuasion, politicking, process losses.
Term
32. What are the steps in NGT?
 Definition
a. 1. Everyone is familiarized with the problem.
b. 2. Group members come up with ideas alone
c. 3. Group members share their ideas in a structured manner.
d. 4. Evaluate the ideas (one positive and one negative per person about each idea)
e. 5. Vote on the ideas, rank the ideas
Term
33. What are the defining characteristics of the Delphi technique?
 Definition
a. NGT is expanded upon. You do the polling, voting, sharing of information via anonymous survey. The group members never meet and you remain anonymous.
Term
34. What is the reasoning behind the Delphi technique?
 Definition
a. You’re trying to eliminate the negative reasoning behind the group process.
Term
35. What are some of the problems that can be encountered when using the Delphi technique?
 Definition
a. If it takes too long between surveys, they can lose interest.
Term
36. What is the stepladder technique?
 Definition
 Form 2 person group out of 5 people and they make decision
 Then 3-person group challenges to re-think and form own solution
 Then 4-person….
 Use when decision has to be right the 1st time
Term
37. What is the stepladder technique designed to prevent? Promote?
 Definition
 Prevent- social loafing: everyone to carry own weight
 Allows group multiple chances to reconsider decision
Term
38. What are operations research techniques? What are they designed to do? What kind of data do they usually require? Are they an aid or substitute for managerial decision-making? What do managers need to think critically about when they use these techniques? Are they applicable to all decisions that managers make?
 Definition
A) OR techniques are useful as an aid for evaluating alternatives
B) They cannot replace the need for managers to think independently and to make judgments
C) They should be viewed as an aid/supplement to less systematic forms of decision making. OR techniques generally require quantitative data
D) For many problems where factors can seldom be quantified, OR techniques may not be applicable.
Term
39. What is meant by the term “confirmatory bias” in decision-making?
 Definition
 When we make decision, we tend to look for positive info about our decision
 If we look for negative it will tell us we made a bad decision
 We tend to accept information that confirms what we already believe
Term
40. What is the gambler’s fallacy?
 Definition
a. After 10 hands, the 11th hand will be a winner.
Term
41. In decision making, do people pay more attention to descriptive, qualitative information or statistical, quantitative information?
 Definition
a. Descriptive, qualitative information
Term
42. In making decisions, people often violate the law of large numbers. What does that mean? Why does it occur?
 Definition
a. They go with their own superficial “experience” and ignore larger sets of data
Term
43. How does the framing of a decision affect decision-making? Positive framing? Negative framing?
 Definition
a. Negative – framing in terms of a loss
b. Positive – framing in terms of a gain
c. You will get more __ in a negative framing
Term
44. What is group decision making a function of?
 Definition
 GDM= Individual Contributions + Assembly Effects – Process Losses
Term
45. What is an assembly effect? Process loss?
 Definition

§  Assembly Effect- positive consequences of bringing a group together such as synergy, more information, diverse viewpoints, checking errors, and substantive conflict

§  Process Loss- negative consequences of bringing a group together such as destructive, interpersonal conflict, free-riding or social loafing, domination by a few, and more time and expenses

 
Term
46. What is the optimal size for a decision making group?
 Definition
a. Smaller groups of 5-7. Assembly effects go up, process loss goes down.
Term
47. What are the advantages of group decision making?
 Definition
 More information is available to help solve the problem: greater pooled resources.
 Evaluation is superior because you have a wide range of viewpoints. This wide range of viewpoints allows a clearer view of the strengths and weaknesses of each alternative.
 Individuals who participate in decisions are more satisfied with the decision and are more likely to support it. Greater acceptance leads to more commitment to the decision which, in turn, leads to better implementation
 Individuals get a better understanding of the decision that is made and as a result, it is easier for them to communicate the decision to their subordinates.
 Fulfills need for personal growth for some employees. They are allowed to participate and have greater autonomy on their jobs which fulfills their need to grow through their jobs.
 Helps individuals learn new skills (e.g., how to make a decision, how to get along with other people who don’t always agree with you). It helps to develop conceptual and human skills.
 Perceived as being more fair than decisions made by sole individuals—sets up a fairness image.
 Reduces stress by lowering role ambiguity (i.e., being unclear about one is supposed to be doing on his/her job) and role underutilization (i.e., one’s skills and abilities are not being on the job to their fullest potential). Now, individuals have a clear idea of what they are to do and what is expected of them (prevents role ambiguity).
 Overall, GDM provides a greater sense of control for the employee.
Term
48. What are the disadvantages of group decision making?
 Definition
 Takes longer than individual decision making it is costlier
 Indecisiveness: groups can have a difficult time making a decision
 Domination by a few powerful members or by a leader can negate the many virtues of group processes
 Free-riders are a problem in groups. As groups become larger, the less effort each person puts forth. This phenomenon is known as social loafing.
 With corporate power and personal pride at stake, disagreements over important matters that occur in groups can often lead to bad feelings, ill-will, and destructive conflict between group members
 Escalation of demands: people may want to participate in things that are inappropriate for them to participate in.
 Social motives may prevail over hard-headed task orientation: much time can be wasted in socializing or playing that is irrelevant to GDM.
Term
49. What is the leveling effect?
 Definition
a. The compromise in group decision making that lowers the quality of the decision, but increases the acceptance of the decision.
Term
50. When does a manager (under what conditions) use individual decision making rather than group decision making?
 Definition
 little time to make decision
 subordinates don’t get along well in groups
 subordinates don’t share the goals of the org
 manager possesses all knowledge and expertise
• use group when you’re concerned about subordinates acceptance
Term
51. Rank the following in terms of decision making accuracy: group, average individual in the group, and best member in the group.
 Definition
a. 1. Best member
b. 2. Group
c. 3. Average Indvidual
Term
52. Which is more efficient: group or individual decision making? Consider both short term and long term efficiency)
 Definition
a. It depends on time frame. Long run efficiency = group. Short term efficiency = individual.
Term
53. Where do you have greater creativity: five individuals generating ideas alone? Or those same ive individuals generating ideas as a group?
 Definition
 Alone- NGT
Term
54. Which leads to greater acceptance of the decision and better implementation of the decision: individual or group decision making?
 Definition
 Group decision making
Term
55. What function of management is concerned with job design and organizational function?
 Definition
a. Organizing – dividing up the work between individuals, and coordinate their efforts to achieve the goal.
Term
56. What are the three aspects of job design?
 Definition
a. Specify its major duties and responsibilities
b. Specify its work methods and procedures, equipment and tools
c. Specify how this job must work with other jobs to get things done.
Term
57. What is skill variety?
 Definition
a. The extent to which your job allows you to perform a wide range of tasks. The more tasks you do, the more skills you must have.
Term
58. What is task identity?
 Definition
a. The extent to which you do a whole piece of work. You can identify the results of your efforts.
Term
59. What is task significance?
 Definition
a. The extent to which your job and its performance exerts considerable impact on the lives of other people.
Term
60. What is autonomy?
 Definition
a. The extent to which your job gives you the freedom of control of what work you do.
Term
61. What is feedback?
 Definition
 Performance feedback - the degree to which employees, as they are working, receive information that reveals how well they are performing on the job
 Can come from co-workers, supervisors, subordinates, clients, or even the job itself. Also, feedback can come from performance appraisal, awards and promotions, and personal evaluations of one’s own feelings
Term
62. What is job breadth and job depth?
 Definition
a. Breadth – horizontal. How many different tasks you perform on your job. Wide to narrow.
b. Depth – vertical. How much decision-making power you have over your job.
Term
65. What job design is least prevalent today? Most prevalent today?
 Definition
 Least- craft jobs
 Most- specialized jobs
Term
66. What is a specialized job and how does it load on the five task characteristics?
 Definition
 Results from the division of labor into smaller and smaller task elements
 LOW breadth, depth, autonomy, task significance, task identity, skill variety
 Instrumental motivation- job having means to an end; ex/ Kevin the brother
 Assembly line determines quantity; human workforce determines quality
Term
67. What are the advantages of specialized jobs?
 Definition
 Less skilled employees can be hired because of the simplicity of job assignments can pay them less.
 Jobs can be learned in less time reducing training costs.
 Constant repetition leads to an area of limited expertise, which increases productivity
 More opportunities for utilizing the primary talents of the employee
 Work is performed quicker because the employee does not lose time shifting from one activity to another
 Dependence on particular employee skills is minimized
Term
68. What are the disadvantages of specialized jobs?
 Definition
 Low employee motivation
 Low job satisfaction
 Low quality job performance
 High absenteeism- withdrawing behavior
 High turnover (quitting jobs)- withdrawing behavior
 Sabotage and strikes- b/c not in control
 Alcohol and drug abuse
 TEST- not all negative effects happen- depends on the person in the job
Term
69. What is the purpose of job enlargement?
 Definition
a. To break up monotony of jobs
Term
70. What two task characteristics does job enlargement increase?
 Definition
 Increased breadth and increased task identity
Term
71. The motivational benefits of job enlargement are short-lived or long-lived?
 Definition
 Short Lived
Term
72. What is job rotation?
 Definition
 Job rotation- shifting workers through a set of jobs in planned sequence in order to increase their capabilities and understand various aspects of the operation; rotate through series of specialized jobs
 Benefits are short lived and new jobs can be more boring than original job
Term
73. What is job enrichment? How is it different from job enlargement?
 Definition
 Strategy represents a move backward toward craft jobs where employees perform a larger and more complete segment of the work
 The intent of enriched jobs is to increase the meaningfulness of work and the experienced responsibility of work outcomes by increasing job content
 Difference: critical difference is depth
• Job enrichment necessarily involves job enlargement
• Job enlargement doesn’t necessarily lead to job enrichment
• Example, you can give a person twenty more boring things to do (job enlargement) but it will not give the person discretion over his job (job enrichment)
 Both- Increasing breadth and autonomy
Term
74. What are the advantages of job enrichment? [take problems with specialized jobs and SWITCH them]
 Definition
 High employee motivation
 High job satisfaction
 High quality job performance
 Low absenteeism
 Low turnover (quitting job)
 TEST- why is there no high quantity because moving back to craft job
Term
75. What are the three moderators that influence the effectiveness of job enrichment? How do they influence it?
 Definition
 Knowledge and skill of employee (ability)
 Growth need strength (motivation)- need as the employee
 “context” satisfactions (surroundings)
 Influence- TEST- weak skill level on enriched job advantages of enriched job go away; need expressive motivation
• Dissatisfied with environment job enrichment decreases
• Which will reduce effectiveness of job enrichment
Term
76. What are the five steps in redesigning a job so it will be enriched? What happens at each step and what task characteristics are increased?
 Definition
a. 1. Employee’s skill
b. 2. Employee’s strength
c. 3. Employee’s Context Satisfaction
Term
78. What step in the redesign process is job enlargement?
 Definition
 Combing Tasks
Term
79. What step in the redesign process is most important?
 Definition
 Vertical Loading
Term
80. What are the disadvantages of job enrichment?
 Definition
 Some workers many not want enriched jobs
 Workers even when they desire enriched jobs may not have the skills necessary to perform enriched jobs; would have to train them cost more
 Enriched employees may also want great extrinsic rewards such as pay due to greater responsibility [gaining better quality but increases expenses too]
 Unions less than enthusiastic about design- think mgt. getting more work out of less people
• TEST- any redesign attempt unions hate it no matter what
 Supervisors of employees of enriched jobs may have “disenriched” jobs as result of enrichment [supervisors have to train new promotions resentment]
Term
81. How does strategy influence job design?
 Definition
 Ability- if job needs trained employee have to train them so their ability matches the job needed
 Motivation
 Economic Factors- specialized job enriched job costs money to redesign jobs
 Technological Factors
 Union Cooperation
 Management Support- management has to support the plan in order for it to succeed less time spent on it if the manager agrees
Term
82. What employee factors should be taken into consideration when designing jobs?
 Definition
 Specialized- sees job as means to a paycheck- instrumental motivation
 Enriched/craft- sees job ass means of personal fulfillment- expressive motivation
Term
83. What type of motivation is best suited to specialized jobs? Enriched jobs?
 Definition
 Instrumental Motivation- job having means to an end; better for specialized jobs [ex/Kevin the brother]
 Emotional Motivation- do the job because they want to (artist)- sees job as an end in itself; wants to grow through his/her work
Term
84. What is instrumental motivation? Expressive motivation?
 Definition
 Relates performance and arousal with an inverted U
 Too little arousal/challenge  performance decreases
 Too high arousal/challenge performance decreases due to freaking out
 Want moderate level of arousal/challenge
Term
86. When someone is hyper-sensitive to their environment, what type of job design should they be given? Why?
 Definition
 Hyper-sensitive- need relatively little stimulation to get them to activation level (moderate level of arousal) to get high performance
 Sensitive to their environment
 Job design- specialized jobs
Term
87. When someone is hypo-sensitive to their environment, what type of job design should they be given? Why?
 Definition
 Hypo-sensitive- need a lot of stimulation from their external environment to achieve activation level
 Job design- enriched jobs, craft jobs [ex/ Mr. Saulley]- because provides them with lots of stimulation
Term
88. How does technology affect job redesign efforts?
 Definition
 The more the design of the job is influenced by technological factors the less job design flexibility that exists
 For example, it is easier to redesign craft work than assembly line work which, in turn, is easier to redesign than automated work.
 TEST- where is it easiest to redesign jobs? GM Shreveport, sally’s craft shop, Exxon plastics Sally’s craft because can make it into assembly line…hardest Exxon because technology determines how, what, when job gets done
Term
89. How do unions feel about any attempt from management to redesign jobs?
 Definition
 Unions less than enthusiastic about design- think mgt. getting more work out of less people
 Original members were craft afraid of specialists; now they are specialist afraid of going back to craft
 TEST- any redesign attempt unions hate it no matter what
Term
90. How do economic factors affect redesigning of jobs?
 Definition
a. It’s very expensive to re-design jobs because jobs are codependent. If you redesign one, you have to redesign many.
Term
91. What is the relationship between specialization and coordination according to the specialization-coordination dilemma?
 Definition
a. The more you specialize, the harder it is to coordinate.
Term
92. Where is it more difficult to coordinate, within departments? Or between? Why?
 Definition
a. Easier within, harder between.
Term
93. What is the primitive/agency organizational design? What are the advantages/disadvantages?
 Definition
a. Agencies – each employee is an “agent” of the boss.
b. As you add more employees, it starts to fail because the boss has a harder time managing everything.
Term
94. What is the functional organizational design? How are activities grouped?
 Definition
a. Functional, product, and matrix
b. Jobs are grouped according to function. i.e. everyone in marketing is grouped into marketing. Accounting into accounting, etc.
Term
95. What are the advantages of a functional design?
 Definition
a. (Go back to specialization/coordination)
Term
96. What are the disadvantages of a functional design?
 Definition
 Same as Coordination Disadvantages
Term
97. When does one use the functional design?
 Definition
 When you have a stable environment.
 When you have one or a few product lines.
 When efficiency and quality are your goals.
 When the organization is small to medium in size.
Term
98. What is the product design? How are activities grouped?
 Definition
a. The focus isn’t on your specialty; it’s on your product.
Term
99. What are the advantages of a product design?
 Definition
 Same as Coordination Advantages
Term
100. What are the disadvantages of a product design?
 Definition
 Same as Specialization Disadvantages
 Instead of 10 go to 1 HR person then they become jack of all trades specialization goes down
Term
101. When does one use the product design?
 Definition
 When you have a highly uncertain environment that requires rapid adaptation.
 When the organization is large.
 When the organization has multiple product lines.
 When the goals of the organizations are external effectiveness and adaptation, multiple products, and client satisfaction.
Term
102. What is a profit center and what are its benefits?
 Definition
 Each problem in product design is a profit center- get rid of the one that is failing (dog); star reinvest
 Establishes accountability and success of product with VP
 Each product in product design has revenues, expenses..so you can see which products make/lose$
• Hold people accountable
 CEO is only one responsible in final design, but in product, many people responsible
Term
103. What is a matrix design? How are activities grouped?
 Definition
 Design born out of necessity- we HAVE to do this, don’t want to
 These projects needed to be completed on time, on budget, and according to specifications. These projects required a great deal of technical expertise.
 A matrix design- is basically a product design overlaid onto a functional design. The matrix design is structured to reap the benefits of both these designs while avoiding the disadvantages associated with each.
Term
104. What are the advantages of a matrix design?
 Definition
a. Efficient, develops a high level of technical expertise, changes rapidly.
Term
105. What are the disadvantages of a matrix design?
 Definition
a. You’re killing your employees. “Human meat grinder”. Adds stress to your employees.
Term
106. When does one use the matrix design?
 Definition
 Same as Product Design “when to use”
 One major change- prospect high tech. problems instead of low tech.
Term
107. What is the job of a project manager in the matrix design?
 Definition
a. Coordination. Make sure the project gets completed on time, according to specifications, and on budget.
Term
108. What is the job of a functional manager in the matrix design?
 Definition
 Specialization- making sure people are up to date with training
 Send out experts to go to which projects
 Has all the power- can control people, the best people they have
Term
109. Which type of manager has no formal authority in the matrix design?
 Definition
a. The Functional Managers
Term
110. In which organizational design type is it most difficult to replace the CEO from within the organization? Why is this the case?
 Definition
a. Functional design
Term
111. Which organizational design type accommodates growth readily
 Definition
a. Product and matrix
Term
112. What is scalar chain or chain of command? What functions does it serve? What structural mechanism does one use to bypass the strict chain of command in organization?
 Definition
a. You bypass it most in functional. You bypass it least in matrix. Chain of command is not clear in matrix.
Term
113. What is unity of command? Why does one try not to violate this principle of organizing?
 Definition
 Refers to the fact that subordinates should report to one and only one boss. Violation of this principle occurs to varying degrees in all organizations and the greatest violation comes in the matrix design.
 Clarifies responsibility and who reports to whom. It supplements the scalar chain.
Term
114. Where is unity of command violated? In what organizational design type is unity of command violated to the greatest extent?
 Definition
a. Everywhere
Term
115. What is delegation of authority? Why do managers delegate authority?
 Definition
 Delegation of authority- extends a manager’s reach; enables a manager to identify and utilize employee talents.
 It empowers your employees, giving them freedom to think and experiment. When one delegates, you are providing the employee with a chance to grow and develop. You give the employee freedom to succeed.
 Why do this- because you can’t do it all yourself
 Allows you to use the talents and skills of employees
 Make sure before you delegate- they are able, motivated, and know what to do- need all three to happen
Term
116. What cannot be delegated when a manager delegates authority?
 Definition
 Responsibility- you’re still responsible- they mess it up it’s your fault too
 When managers delegate they don’t reduce their accountability, they remain responsible for their own actions and the actions of their subordinates. You can delegate authority but not responsibility.
Term
117. Why do managers resist delegating authority?
 Definition
 Manager feels like he/she lacks trained subordinates.
 Manager feels like he/she is only capable of doing the work.
 Manager may fear that the subordinates will make costly mistakes.
 Manager may fear that if the subordinate handles the task well then the subordinate could become a competitor. The manager might be “shown up” by the subordinate.
 Manager may believe that delegating makes them look lazy
 Manager may find that it is easier to do it themselves. This is especially true when
 Manager has difficulty communicating directions clearly.
 Manager resists delegating for fear of losing control.
Term
118. What do the terms “centralized” and “decentralized” mean as they pertain to delegation of authority?
 Definition
 Centralized-extent to which authority isn’t delegated, but concentrated at higher levels of management.
 Decentralized- extent to which authority is delegated.
 Remember these are relative terms and not absolutes. They represent opposite ends along a delegation of authority continuum. Usually, you won’t find a completely centralized or decentralized organization.
Term
119. What are the signs that one’s organization is becoming decentralized?
 Definition
a. When decision making power is handed to lower parts of the organization
Term
120. What are the benefits of decentralized organizations?
 Definition
a. Decisions can be made faster
Term
121. When does an organization need to be decentralized?
 Definition
a. As the business becomes larger in size, and becomes more dynamic
Term
122. What does span of control mean?
 Definition
a. The number of employees that directly report to you
Term
123. What is the relationship between span of control and organizational height?
 Definition
a. Widen = decrease management levels. Narrow = increase management levels
Term
124. What is the paradox of managerial control as it relates to span of control?
 Definition
a. When there are more management levels, the organization as a whole gets more control, but the top management has a harder time controlling bottom level employees.
Term
126. What is the optimal span of control?
 Definition
a. There is no optimal span of control, or it depends on the situation.
Term
127. What are the factors that narrow span of control? Widen span of control?
 Definition
a. Dynamic environment = narrower span of control
b. Stable environment = wider span of control
Term
 EXTRA CREDIT- performance is a function of
 Definition
ability x motivation x role clarity
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