BUAD 304 Final Exam | Questions and Answers

BUAD 304 Final Exam | Questions and Answers How jobs in a company are formally grouped, divided, and coordinated is called organizational structure Name the six aspects of organizational structure (hint SF DC WC) -span of control -formalization -departmentalization -chain of command -work specialization -centralization How wide or lean a company structure is referred to as its span of control How standardized a job is in an organization is called Formalization Just like how the army has a formal level hierarchy, companies do too. This is called the chain of command Instead of having one dude build a car, we have 100 of them work on it at once, each working on only once part. This is called work specialization A company where the decision making is at top-level management is Centralized A company where the decision making is at low-level management is Decentralized What are the 5 types of departmentalization methods? -Function -Product -Geography -Process -Customer The smallest management structure is the simple structure The most standardized management structure is the bureaucracy The structure that breaks the unity of command rule that combines function and product departmentalization is called the matrix structure Give five organizational structure designs -Simple structure -matrix structure -bureaucracy -virtual organization -boundaryless organization What are the tradeoffs of work specialization? Increased productivity for worker boredom/dissatisfaction Unity of command states that each worker should have one and only one supervisor Entrepreneurs prefer ____ structure. Simple As simple structures grow, their inefficiency makes them transform into ______ Bureaucracy What are two pros and two cons of simple structures? they are inefficient and wholly dependent on the decisions of the owner, but they are cheap and flexible What are two pros and cons of bureaucracies? efficient and low in labor costs, but inflexible/rule bound and has coordination problems The matrix structure combines what two departmentalization methods? product and function Unit of command is broken by what organizational structure? matrix structure Give two pros and cons of matrix structures. They can coordinate across multiple products and efficiently use specialists, but there are power struggles/confusion and more stress. This organizational structure places heavy emphasis on negotiation and collaboration in order to succeed. matrix structure - in order to mitigate power struggles Virtual organizations are (organic/mechanistic) organic Matrix structures are (organic/mechanistic) Organic Simple structures are (organic/mechanistic) Organic Organic structures have ____ formalization and are (centralized/decentralized) low, decentralized Mechanistic structures have ____ formalization and are (centralized/decentralized) high, centralized Give two pros and cons of boundaryless structures. They are highly business focused and flexible which reduces control/coordination costs, but they're difficult to implement, require new skillsets/methods, and new information technology. Mechanistic vs organic - contrast. Mechanistic structures are highly formalized and centralized while organic structures have low formalization and are decentralized. What are the four factors that determine organizational structure? -Strategy -Size -Technology -Environment Strategy is a factor that determines organizational structure - give some examples of what this means innovation vs imitation, degree of cost minimization Describe a boundaryless organization They're organic and organized around core processes (product development/sales). They use multidiscipline teams to manage processes and communicate through networked computers. A conflict (must/sometimes/never) involve(s) more than one individual. Must The traditional view of conflict believes that conflict is always bad and dysfunctional What are the differences between functional and dysfunctional conflict? Functional supports the goals of the group and improves performance while dysfunctional lowers performance. What are the three types of conflicts? -Task -Relationship -Process What are the three views of conflict? -Traditionalist -Managed -Interactionist Define process conflict conflict over how work should be done What are some negative repercussions of conflict? creates stress and diminishes trust, cohesion, and respect within the group Describe the managed view of conflict conflict ultimately will affect relationships, so managers must focus on developing resolution strategies and facilitate open discussions What are the five steps of the conflict process? -Potential opposition or compatability -cognition and personalization -intentions -behavior -outcomes In the five steps of conflict process, what are the three aspects of potential opportunities/incompatibility? -Communication -Structure -personal variables In the five steps of conflict process, what is the structural aspect of potential oppositions/compatibility? the innate potential for conflict due to the nature of the organizational structure - accounting's role of budgeting conflicts with marketing's need for more spending In the five steps of conflict process, describe how personal variables are a potential for incompatibility An inherent dislike for someone else, or someone's emotions/mood is a potential cause of conflict. What are the two types of conflicts under the cognition and personalization step of the conflict process? perceived and felt conflict What's the difference between perceived and felt conflict? Perceived conflict is understanding that there is a conflict but not reacting while felt conflict is a physical/emotional response to conflict What is the third step of the conflict process? Describe it. intentions - it's how people plan on acting/handling the conflict What are the two dimensions of the intentions step of the conflict process? cooperativeness and assertiveness What are the five conflict handling intentions? (hint: AACCC) -Competing -Collaborative -Avoiding -Accommodating -Compromising Collaborating is (assertive/unassertive) and (cooperative/uncooperative). assertive, cooperative Avoiding is (assertive/unassertive) and (cooperative/uncooperative). unassertive, uncooperative Accommodating is (assertive/unassertive) and (cooperative/uncooperative). unassertive, cooperative In the five steps of conflict process, what is the behavior step? it's when the conflict is visible, and how people behave On the conflict intensity behavior continuum where the bottom is minor disagreements, functional conflict rests on the (bottom/middle/top) of the continuum Bottom What are three positive effects of functional conflict? increased creativity, performance, interest, and curiosity Techniques of de-escalation of conflict are called conflict management Define conflict management. techniques for de-escalating conflicts What is the final step of the conflict process, and what are the two parts of it? outcomes - functional and dysfunctional outcomes Define negotiation how two parties allocate scarce resources What are the two types of bargaining methods? Distributive and integrative (Distributive/ integrative) bargaining is friendlier and geared towards long-term relationships Integrative Define target point one's ideal outcome in a negotiation Define resistance point the least one can receive in a negotiation in lieu of declining the negotiation altogether How can you improve your chances of successfully engaging in distributive bargaining? impose a deadline, and use the anchoring bias to your advantage Compromise is (good/bad) in integrative bargaining. Why? bad. both parties must creatively work towards a win-win outcome What distinguishes integrative bargaining from distributive bargaining? Integrative bargaining has much more collaboration/information sharing, and is geared for a long term relationship whereas distributive bargaining always has a loser In negotiations, what is the idea of the fixed pie? it is how an advantage for one correlates to a disadvantage for the other, hence the negotiation is like splitting a pie What are the five steps of the negotiation process? Preparation and planning, definition of ground rules, clarification and justification, bargaining and problem solving, closure and implementation Expand BATNA and explain its usage best alternative to negotiated agreement - it's what the alternative would be if the negotiation fails. Anything higher than the BATNA is fair game What do you do during the planning and preparation phase of the negotiation process? Understand the goals and background of both your and the other party. Figuring out who, where, when, and determining what happens if an impasse occurs is a part of the ____ phase of the negotiation process definition of ground rules What is the clarification and justification step of the negotiation process? It's when parties explain, justify, bolster, and amplify their original demands During what phase of the negotiation process does the gruntwork of giving, taking, and working out a solution take place in? bargaining and problem solving phase When an agreement is reached, the final step called _______ takes place, and both parties will ______. closure and implementation; formalize an agreement via contract, handshake, etc. (Agreeable & extrovert/not agreeable & introverted) people negotiate better Not agreeable & introverted Do moods affect negotiations? Why or why not? Yes, because an angry boss is a more powerful boss in a negotiation Give at least 4 examples of third party negotiators. -Mediators -Arbitrators -Conciliators -Consultants What do mediators do, and how do they do it? they facilitate negotiations by being neutral and providing reasoning/persuasion Mediators are effective up to (high, moderate, low) levels of conflict Moderate What do arbitrators do? they dictate an agreement to a negotiation What is a con of using an arbitrator as a 3rd party negotiator? the issue may resurface later since people may feel angry or wronged What do conciliators do? They pass messages between two parties What do third party negotiation consultants do? They facilitate, encourage problem solving and improve relations What third party negotiator is best for improving long-term relations? Consultant Culture (does/does not) affect negotiations Does Collectivist societies are more ______ while individualistic are more ______ during negotiations. avoiding and compromising; open and direct Define organizational culture Shared values and meanings held by members that distinguishes the organization Give the 7 aspects that determine organizational culture (Hint: Isotope/AISATOP) -attention to detail -innovation/risk taking -stability -aggressiveness -team orientation -outcome orientation -people orientation What's the difference between dominant and subculture? The dominant culture is the majority's core values while subcultures share the majority's core values while having their own group-specific culture A strong culture is _____ and _____. intensely held and widely shared What's the difference between culture and formalization? formalization is a standard enforced by managers while culture is socially enforced Give five functions of organizational culture -allows for a distinction between organizations -creates a sense of identity -allows for commitment beyond individual self interest -enhances stability -is a sense-making/controlling tool that shapes attitudes and behaviors The environment and how positive or negative people feel in an organization is called organizational climate Give four cons of organizational culture -Institutionalization -barriers to change -barriers to diversity -barriers to acquisitions/merges Define institutionalization and its impact on an organization it's when an organization's culture is valued more than the organization's produced goods/services. This creates a larger focus on culture maintenance which impedes innovation An organizational culture that does not support the organization's effectiveness is a barrier to _____ Change The paradox of encouraging diversity while encouraging homogenous company culture is a ______ barrier to diversity/drawback of organizational culture After two organizations merge, conflicts arise because of differing organizational cultures. This exemplifies organizational culture as a ______ barrier to acquisition/merger Where does company culture usually originate from? The founder(s) What are the three ways to sustain an organization's culture? -selection -behavior of top management -socialization What are the three stages of socialization? -Prearrival -encounter -metamorphosis Give in detail the process of forming organizational culture. The values of founders are transmitted over time through a selection criteria that hires people would fit into the culture. They are then socialized under the influence of top level management to create organizational culture. What does the selection aspect of sustaining an organizational culture refer to? selecting/hiring individuals who are likely to fit into the culture How does top level management contribute to the sustenance of an organization's culture? they establish norms that filter down to influence the organization's culture Define socialization in the context of sustaining an organizational culture. helping new employees adapt to the organization's culture Describe the encounter phase of socialization. it's when a new employee compares his/her expectations of what the organization is like with what the organization is in reality. What are the five variables of metamorphosis? -formals vs informal -individual vs collective -fixed vs variable -investiture vs divestiture -serial vs random What is the serial vs random variable of the metamorphosis phase of socialization? it's whether role models are provided or withheld What's the difference between investiture and divestiture? investiture values employee's prearrival values and allow him/her to keep some of these values while divestiture focuses on changing a new employee to fit a specific role The military has a (formal/informal) and (individual/collectivist) approach to metamorphosing employees in the socialization phase. formal and collectivist A company that allows an employee into the culture "when he/she is ready" has a (fixed/variable) metamorphosis period. Variable What are four ways that organizational culture is spread? -stories -rituals -material symbols -language An organization's employees chant every week to reinforce organizational culture. This is a _____. Ritual Whether or not a company has a corporate jet/lush or barren offices spreads organizational culture. These are examples of ______ material symbols Members of Royco feel united under the organizational culture because they have their own unique jargon. This method of spreading organizational culture is called ____ Language What are the five principals of creating an ethical organizational culture? -visible role model -communicate ethical expectations -reward ethical behavior/ punish unethical behavior -provide protective mechanisms -ethical training Give an example of ethical training.