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29 Cards in this Set
- Front
- Back
organization
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the process of coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals
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process departmentalization
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departmentalization that is based on the production process used by the organizational unit; for example, lumber cutting and treatment, furniture finishing, and shipping
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formal organization
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the order and design of relationships within a firm; consists of two or more people working together with a common objective and clarity of purpose
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chain of command
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the line of authority that extends from one level of an organization's hierarchy to the next, from top to bottom, and makes clear who reports to whom
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product departmentalization
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departmentalization that is based on the goods and services produced or sold by the organizational unit; for example, outpatient emergency services, pediatrics, and cardiology
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line-and-staff organization
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an organizational structure that includes both line and staff positions
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decentralization
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the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions
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authority
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legitimate power, granted by the organization and acknowledged by employees, that alloows an individual to request action and expect compliance
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Division of Labor
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the process fo dividing work into separate jobs and assigning tasks to workers
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managerial hierarchy
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te levels of management within and organization; typically, includes top, middle, and supervisory management; also called the management pyramid
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organization chart
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a visual representation of the structured relationships among tasks and the people given the authority to do those tasks
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specialization
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the degree to which tasks are subdivided into smaller jobs
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delegation of authority
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the assignment of some degree of authority and responsibility to persons lower in the chain of command; makes the person lower in the hierarchy accountable to the supervisor
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line positions
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positions in an organization held by individuals who are directly involved in the process used to create goods and services
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line organization
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and organizational structure with direct, clear lines of authority and communication flowing from the top managers downward. Managers have direct control over all activities, including administrative duties
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functional departmentalization
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departmentalization that is based on the primary functions performed within an organizational unit; for example, marketing, finance, production, and sales
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span of control
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the number of employees a manager directly supervises; also called the span of management
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virtual corporation
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a network of independent companies linked by information technology to share skills, costs, and access to one another's markets; allows the companies to come together quickly to exploit rapidly changing opportunities
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consumer departmentalization
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departmentalization that is based on the primary type of customer served by the organizational unit; for example, wholesale or retail purchasers
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departmentalization
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the process of grouping jobs together so that similar or associated tasks and activities can be coordinated
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geographic departmentalization
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departmentalization that is based on the geographic segmentation of the organizational units; for example, U.S. marketing, European marketing, and Asian marketing
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organic organization
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an organizational structure that is characterized by a relativly low degree of job specialization, loose departmentalization, few levels of management, wide span of control, decentralized decision making, and a short chain of command
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centralization
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the degree to which formal authority is concentrated in one area or level of an organization
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staff positions
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positions in an organization held by individuals who provide the administrative and support services that line employees need to achieve the firm's goals; for example, legal counseling, public relations, and human resource management
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mechanistic organization
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an organizational structure that is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command
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informal organization
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the network of connections and channels of communication based on the informal relationships of individuals inside an organization
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committee structure
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an organizational structure in which authority and responsibility are held by a group rather than an individual typically found as part of a larger line-and-staff organization
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reengineering
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the complete redesign of business structures and processes in order to improve operations
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matrix structure
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an organizational structure that combines functional and product departmentalization by bringing together people from different functional areas of the organization to work on a special project; sometimes used in conjunction with the traditional line-and-staff structure; also called the project management approach.
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