Org. Theory and Design: Chapter 2 (Matching)

Shareholders = Owners of the organization Managers = Responsible for coordinating organizational resources Top managers = Responsible for investing shareholder money Workforce = Non-managerial employees

Money = Shareholders Power = Managers Organizational status = Top managers Skills and knowledge = Workforce

Money and increased stock prices = Shareholders Coordination of organizational resources = Managers Investment of shareholder money = Top managers Task performance skills and knowledge = Workforce

<p>Shareholders = Superior claim to resources Managers = Direct claim on resources Top managers = Investing shareholder money in resources Workforce = Non-managerial claim on resources</p> Signup and view all the answers

<p>Chief Operating Officer (COO) = Managing the organization’s internal operations to ensure they conform to the organization’s strategic objectives Execu ve vice presidents = Overseeing and managing a company’s most significant line and staff responsibilities Senior vice presidents and vice presidents = Senior corporate-level managers in both line and staff functions Functional managers = Responsible for developing the functional skills and capabilities that collectively provide the core competences that give the organiza on its competitive advantage</p> Signup and view all the answers

<p>Agency relationship = Delegation of decision-making authority or control over resources from one person to another Agency problem = Problem in determining managerial accountability when delegating authority to managers Moral hazard problem = Exists when a principal finds it difficult to evaluate how well the agent has performed because the agent possesses an information advantage Self-dealing = Conduct of corporate managers who take advantage of their position in an organization to act in their own interests rather than in the interests of other stakeholders</p> Signup and view all the answers

<p>Stock-based compensation schemes = Monetary rewards in the form of stocks or stock options linked to the company’s performance Promotion tournaments and career paths = Developing organizational career paths that allow managers to rise to the top of the organization Ethical dilemma = Quandary people find themselves in when they have to decide if they should act in a way that might help another person or group and is the ‘right’ thing to do, even though doing so might go against their own self-interest Moral scruples = Thoughts and feelings that tell a person what is right or wrong; they are a part of a person’s ethics</p> Signup and view all the answers

<p>Utilitarian model = An ethical decision that produces the greatest good for the greatest number of people Moral rights model = An ethical decision that best maintains and protects the fundamental rights and privileges of the people affected by it Justice model = An ethical decision that distributes benefits and harms among stakeholders in a fair, equitable, or impartial way Stakeholder balancing = Managers have to balance their interests and the interests of the ‘organization’ against the interests of other stakeholder groups</p> Signup and view all the answers

<p>Customers = Reliability and value of products relative to price Suppliers = Revenue from purchase of inputs Government = Fair competition and adherence to rules and laws Local communities = Economic well-being and success of local businesses</p> Signup and view all the answers

<p>Customers = Revenue from purchase of goods and services Suppliers = Reliable raw materials and component parts Government = Standardizing regulations for all companies Local communities = Employment, housing, and economic well-being</p> Signup and view all the answers

<p>Trade unions = Direct effect on productivity and effectiveness Local communities = Strongly affected by success or failure of local businesses General public = Happy when organizations compete effectively against overseas rivals Government = Wants companies to compete in a fair manner</p> Signup and view all the answers

<p>General public = Compete effectively against overseas rivals Trade unions = Conflict or cooperation impacting productivity Local communities = Act in a socially responsible way Government = Obey agreed-on rules and laws</p> Signup and view all the answers

<p>Shareholders = Return on investment Customers = Reliability and value of products relative to price Managers and employees = Salaries, stock options, conditions of employment Trade unions = Impact on productivity and effectiveness</p> Signup and view all the answers

<p>Choosing stakeholder goals to satisfy = Organizations face this problem as they try to win stakeholders’ approval Allocating organizational rewards to different stakeholder groups = Major problem that organizations have to face Balancing short-term and long-term goals = Problem faced by organizations in decision-making Allocating profits among stakeholder groups = 7.2</p> Signup and view all the answers

<p>Customers = Revenue from purchase of goods and services Suppliers = Reliable raw materials and component parts Government = Standardizing regulations Trade Unions = Direct effect on productivity and effectiveness</p> Signup and view all the answers

<p>Shareholders = Return on investment Customers = Reliability and value of products relative to price Managers and Employees = Salaries, stock options, conditions of employment Top Managers = Control of allocation of resources and strategy</p> Signup and view all the answers

<p>Choosing stakeholder goals to satisfy = Deciding which stakeholder goals to prioritize Allocating organizational rewards to different stakeholder groups = Deciding how to distribute profits among stakeholders Balancing short-term and long-term goals = Deciding how to prioritize immediate objectives versus long-term vision Allocating profits among stakeholder groups = Deciding how to distribute earnings among different stakeholders</p> Signup and view all the answers

<p>Authority = Power to hold people accountable and influence their actions Chain of Command = Hierarchical reporting relationships in a large corporation Inside Directors = Directors who also hold offices in the company's formal hierarchy Outside Directors = Directors not employed by the company, often professional directors or executives of other companies</p> Signup and view all the answers

<p>Board of Directors = Hiring, firing, and disciplining corporate management Chair of the Board = Principal representative of the shareholders with the most authority in an organization Chief Executive Officer (CEO) = Controls allocation of resources and sets organizational strategy Corporate-level Management = Ultimate responsibility for setting goals, allocating resources, and designing structure</p> Signup and view all the answers

<p>Setting organizational goals and designing structure = Responsibility for defining objectives and organizational framework Selecting key executives for top managerial levels = Choosing top-level managers for key positions Determining top management's rewards and incentives = Deciding on executive compensation and motivators Controlling allocation of scarce resources such as money and decision-making power = Managing distribution of limited resources and authority among functional areas or divisions</p> Signup and view all the answers