Questions and Answers
What is a primary advantage of departmentation by enterprise function?
Which of the following is a disadvantage of departmentation by enterprise function?
In departmentation by territory or geography, how are activities grouped?
What is the purpose of analyzing each alternative in the decision-making process?
Signup and view all the answers
Which statement best describes departmentation by customer group?
Signup and view all the answers
Which step follows after selecting the best alternative in the decision-making process?
Signup and view all the answers
What is a common characteristic of departmentation by product?
Signup and view all the answers
What characterizes programmed decisions?
Signup and view all the answers
In the context of decision-making, who is most likely to make non-programmed decisions?
Signup and view all the answers
Which step in the decision-making process assesses whether the chosen alternative resolved the initial problem?
Signup and view all the answers
What typically spells out how to respond in programmed decisions?
Signup and view all the answers
What action might a manager need to take if the evaluation of a decision shows it was ineffective?
Signup and view all the answers
What is a key feature of non-programmed decisions compared to programmed decisions?
Signup and view all the answers
What is the primary benefit of equity within an organization?
Signup and view all the answers
What does stability of tenure primarily help to achieve in an organization?
Signup and view all the answers
What does initiative encourage among employees in an organization?
Signup and view all the answers
What is the primary concern when high turnover rates occur in an organization?
Signup and view all the answers
Which type of business structure is typically owned by one individual who manages it directly?
Signup and view all the answers
What is a key advantage of being a sole proprietor in a business?
Signup and view all the answers
Which principle emphasizes the importance of teamwork and unity among employees?
Signup and view all the answers
What type of discipline focuses on self-regulation by individuals in an organization?
Signup and view all the answers
What characteristic does equity in an organization require from management?
Signup and view all the answers
Which principle states that employees should receive orders from only one superior?
Signup and view all the answers
According to Fayol, which principle emphasizes that individual interests should not overshadow the collective goals of the organization?
Signup and view all the answers
What does Fayol propose regarding the remuneration of employees?
Signup and view all the answers
What does the principle of centralization refer to in an organization?
Signup and view all the answers
In Fayol's framework, what is the purpose of the 'scalar chain' principle?
Signup and view all the answers
Which of the following best describes the 'order' principle in Fayol's management theory?
Signup and view all the answers
What does Fayol's concept of 'gang planks' refer to?
Signup and view all the answers
What is the main purpose of the formal organizational structure?
Signup and view all the answers
Which of the following is NOT a characteristic of formal organization?
Signup and view all the answers
According to Classical Theorists, which of the following is NOT one of the four pillars of formal organization?
Signup and view all the answers
How is authority and responsibility structured within a formal organization?
Signup and view all the answers
Which of the following best describes informal organization?
Signup and view all the answers
Membership in an informal organization is characterized by what?
Signup and view all the answers
What is a key characteristic that differentiates informal organization from formal organization?
Signup and view all the answers
Which principle does NOT guide the design of an organizational structure?
Signup and view all the answers
Study Notes
Organizational Principles
- Agreements established by superiors must be clearly defined and understood by all employees.
- Discipline is viewed as the primary strength of an organization, categorized as self-imposed or command discipline.
- Unity of command ensures that employees receive orders from only one superior to prevent confusion.
- Unity of direction maintains that there is one head and one plan for activities with a shared objective, ensuring cohesive functioning (e.g., a single manager for the marketing department).
- Individual interests must align with general interests, emphasizing the need for integration within organizational goals.
Remuneration and Centralization
- Employee remuneration should be fair, maximizing satisfaction for both employees and employers, and should include non-financial incentives.
- The degree of centralization in an organization varies with the size of the company and the quality of its management.
- Centralization increases subordinates' roles, while decentralization diminishes them.
Scalar Chain and Order
- The scalar chain represents a clear chain of authority from the highest to the lowest ranks, indicated in an organizational chart.
- Effective order requires precise knowledge of human resource needs and a balance between resources and requirements.
- "Gang planks" allow communication across departments at the same level, bypassing the top-down approach.
Principles of Equity and Stability
- Equity combines justice and kindness, fostering loyalty through fair treatment; it requires good sense and experience.
- Stability of tenure is essential for employee acclimatization and efficiency, preventing high turnover rates.
Encouraging Initiative and Team Spirit
- Employees should be encouraged to exercise creativity and innovation within their roles.
- Espirit de Corps emphasizes teamwork and unity, illustrating the principle that “union is strength”.
Types of Business Organizations
- Sole proprietorships dominate small businesses; owned and run by a single individual who bears all liability and profits.
- Merits of sole proprietorship: easy to establish, complete control over decision-making, and retention of all business income.
Decision-Making Process
- Decision-making involves identifying alternatives, analyzing their strengths and weaknesses, selecting the best one, and implementing it.
- Evaluation of decision effectiveness determines if the chosen alternative resolved the initial problem.
Types of Decisions
- Programmed decisions are routine, repetitive, and characterized by certainty; they are governed by established rules and procedures.
- Non-programmed decisions are unique, requiring custom solutions usually handled by upper-level management.
Organizational Structure
- The organizational structure is the formal framework for dividing, grouping, and coordinating job tasks.
- Formal organizations emphasize intentional role structures based on division of labor, scalar processes, and efficient operation.
- Informal organizations arise naturally from interpersonal relationships, based on similarities among members.
Departmentation
- Departmentation refers to grouping activities within organizations, which can be by function, geography, customer group, product, or process.
- Each type has its advantages and disadvantages, influencing communication, specialization, and overall organizational performance.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz explores key organizational principles and the importance of fair remuneration practices within a company. It covers topics such as unity of command, discipline, and centralization in relation to employee motivation and alignment with organizational goals. Test your understanding of how these concepts work together to create an effective workplace.
