Organizational Behavior

2. What are the different types of
organizational goals?
What are the hierarchical aspects of
organizations?
How is work organized and coordinated?
What are bureaucracies and what are the
common forms?
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3. Societal goals
Reflect an organization’s intended
contributions to the broader society.
Enable organizations to make
legitimate claims over resources,
individuals, markets, and products.
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4. A written statement of
organizational purpose.
A good mission statement
states whom the firm will serve
and how it will go about
accomplishing its societal
purpose.
Mission
statement
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5. Aflac “To combine innovative strategic marketing with
quality products and services at competitive prices
to provide the best insurance value for consumers.”
Harley-Davidson – “We fulfill dreams through the
experience of motorcycling, by providing to
motorcyclists and to the general public an
expanding line of motorcycles and branded
products and services in selected market segments.
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6. Output goals
Define the type of business the organization
is in.
Provide some substance to the more general
aspects of mission statements.
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7. Systems goals
Concerned with the conditions within the
organization that are expected to increase
the organization’s survival potential.
Typical systems goals include growth,
productivity, stability, harmony, flexibility,
prestige, and human-resource maintenance.
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8. Well-defined systems goals can:
 Focus managers’ attention on what needs to be
done.
 Provide flexibility in devising ways to meet
important targets.
 Be used to balance the demands, constraints,
and opportunities facing the firm.
 Form a basis for dividing the work of the firm.
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9. The formal structure is the foundation for
managerial action
It shows the planned configuration of
positions, job duties, and the lines of
authority among different parts of the
enterprise.
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10. Vertical specialization
An organization’s hierarchical division of
labor that distributes formal authority and
establishes where and how critical decisions
are to be made.
Creates an arrangement of work positions in
order of increasing authority.
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11. Organization charts
 Diagrams that depict the
formal structures of
organizations.
 Typically show the various
positions, the position holders,
and the lines of authority that
link them t o one another .
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13. Span of control
The number of individuals reporting directly to
a supervisor.
New information technologies now allow
organizations to broaden the span of control,
flatten their formal structures, and still
maintain control of complex operations.
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14. Line units
 Work groups that conduct the major business of
the organization (production and marketing
departments).
Staff units
 Work groups that assist the line units by providing
specialized expertise and services to the
organization (accounting and public relations).
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15. Control
The set of mechanisms used to keep actions
and outputs within predetermined limits.
Deals with:
 Setting standards
 Measuring results versus standards
 Instituting corrective action
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16. Output controls
Focus on desired targets and allow
managers to use their own methods to reach
defined targets.
Part of an overall method of managing by
exception.
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17. Process Controls
Attempt to specify the
manner in which
tasks are
accomplished.
Types of process controls
› Policies, procedures,
and rules.
› Formalization and
standardization.
› Total quality
management controls.
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18. Policy
Outlines important objectives and broadly
indicates how an activity is to be performed.
Procedures
Describes the best method for performing a
task; shows which aspects of a task are most
important.
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19. Rules
Describe in detail how a task or a series of
tasks is to be performed, or indicate what
cannot be done.
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20. Formalization
The written
documentation of
rules, procedures,
and policies to guide
behavior and
decision making.
Standardization
The degree to which the
range of allowable
actions in a job or
series of jobs is limited
so that actions are
performed in a
uniform manner.
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21. Total Quality Management
Process approach using control to
improve general operations of the
company.
Outlined by W. Edward Deming’s 14
points.
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22. Centralization
 Degree to which the authority to make decisions
is restricted to higher levels of management.
Decentralization
 Degree to which the authority to make decisions
is given to lower levels in an organization’s
hierarchy.
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23. Benefits of decentralization
Higher subordinate satisfaction.
Quicker response to a diverse series of
unrelated problems.
Assists in on-the-job training of subordinates
for higher-level positions.
A popular approach in many industries.
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24. Horizontal specialization
A division of labor that establishes specific
work units or groups within an organization.
Functional departmentalization
Grouping individuals by skill, knowledge, and
action.
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25. Functional departmentalization
 Grouping individuals by skill,
knowledge, and action.
 Examples include marketing,
finance, production, and
human resources.
 Most popular form of horizontal
specialization found in
organizations.
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27. Divisional departments
Individuals and resources are grouped by
products, territories, services, clients, or legal
entities.
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29. Matrix departmentalization
Uses both the functional and divisional forms
simultaneously.
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30. Coordination
The set of
mechanisms that an
organization uses to
link the actions of its
units into a
consistent pattern.
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31. Personal methods of coordination
Produce synergy by promoting dialogue and
discussion, innovation, creativity, and
learning, both within and across units.
Personal methods allow the organization to
address the particular needs of distinct users
and individuals simultaneously.
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32. Impersonal methods of coordination
Produce synergy by stressing consistency
and standardization so that individual pieces
fit together.
Contemporary use of matrix
departmentalization and management
information systems for coordination.
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33. Bureaucracy
Form of organization that emphasizes legal
authority, logic, clear division of labor,
promotion by merit, and administrative rule.
 Mechanistic - emphasizes vertical
specialization and control.
 Organic – emphasizes horizontal specialization.
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34. Mechanistic bureaucracy
Emphasizes vertical specialization and
control.
Organizations of this type stress rules, policies,
and procedures; specify techniques or
decision making; and emphasize developing
well-documented control systems.
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35. Benefits of the organic type
Better for problem solving and for serving
individual customer needs.
Centralized direction by senior management is
less intense.
Good at detecting external changes and
adjusting to new technologies.
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36. Common types of hybrid bureaucracies
Divisional firm
 Composed of quasi-independent divisions so
that different divisions can be more or less
organic or mechanistic.
Conglomerate
 A single corporation that contains a number of
unrelated businesses.
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