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Questions and Answers
What are the key elements necessary to achieve maximum efficiency?
Purpose, Structure, Rewards, Sanctions, Relationships and Culture, Leadership
What does the purpose of an organization state?
The purpose states the direction of the company, including its goals, targets, and objectives.
Which of the following are included in the concept of 'structure' within an organization? (Select all that apply)
A reward system refers only to financial incentives provided to employees.
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The element covering administrative penalties or disciplinary actions is called ______.
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What is essential for a healthy organizational culture and relationships? (Select all that apply)
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What must prevail for a business to move towards its goals?
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What are the components of a reward system? (Select all that apply)
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Study Notes
Creating a Favorable Organization Climate
- A favorable organization climate ensures maximum efficiency and productivity.
- Key elements for achieving maximum efficiency are: purpose, structure, rewards, sanctions, relationships and culture, and leadership
Purpose
- Sets the direction of the company by defining the purpose of its existence, desired results, and strategies for achieving goals.
- Key components: corporate vision, goals, targets, and objectives
Structure
- Provides a framework for dividing, arranging, and administering tasks to maximize efficiency and productivity.
- Includes: well-defined division of labor, systems, policies, and procedures to regulate the flow of work.
- Key considerations:
- Tasks to be accomplished
- Who is in command
- Lines of authority
- Power structure
- Limitations
- Classification of positions
- Lines of communication
- Job duties, responsibilities, accountabilities, and boundaries
- Company policies and procedures
- Control systems
- Job evaluation
- Monitoring system
- Feedback and problem-solving
Reward System
- Provides incentives and forms of recognition for satisfactory performance.
- Key features:
- Employee incentives and benefits
- Competitiveness of rewards compared to other establishments in the same category
- Affordability of benefits for the company
- Basis for incentive distribution based on performance merit
- Measurement of satisfactory performance
- Job evaluation system for job and wage classification
- Company practices to boost employee morale
- Employee recognition and appreciation for effort
- Rapport between: managers/supervisors and staff, and managers and owners
Sanctions
- Administrative penalties or disciplinary measures given to employees for unjustified infractions, deviations from standards, and performance/behavioral deficiencies.
- Key elements:
- Systems for detecting infractions and enforcing disciplinary action
- Clear definition of productivity standards, quality of work, cost, efficiency, etc.
- Communication of standards to all employees
- Defined acceptable level of performance and measurement methods
- Code of ethics or house rules defining undesirable behavior
- Classification of offenses (minor, major, and grave)
- Appropriate and just sanctions for each offense
- Due process for misconduct determination and processing
- Detection and documentation of infractions and misconduct
- Accountability of erring staff for infractions, variances, and questionable transactions
- Consistent and fair administration of sanctions
Culture and Relationships
- Focuses on the working relationship between staff at various levels, teamwork, cooperation, and the prevailing culture governing relationships and corporate practices.
- Fosters a healthy working relationship governed by positive corporate beliefs, values, and practices.
- Key aspects:
- Defining and actualizing core company values, such as quality, cost, productivity, dignity of labor, employee morale, customer satisfaction, etc.
- Implementation of core values through policies and practices
- Recognition and understanding of prevailing myths and beliefs within the organization
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Description
This quiz explores the essential components needed to establish a favorable organizational climate that enhances efficiency and productivity. Key topics include the purpose, structure, rewards, sanctions, relationships, culture, and leadership within an organization. Test your understanding of how these elements interact to create a thriving workplace environment.
