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29 Cards in this Set

  • Front
  • Back
the process of coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals
process departmentalization
departmentalization that is based on the production process used by the organizational unit; for example, lumber cutting and treatment, furniture finishing, and shipping
formal organization
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
chain of command
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
product departmentalization
departmentalization that is based on the goods and services produced or sold by the organizational unit; for example, outpatient emergency services, pediatrics, and cardiology
line-and-staff organization
an organizational structure that includes both line and staff positions
the process of pushing decision-making authority down the organizational hierarchy, giving lower-level personnel more responsibility and power to make and implement decisions
legitimate power, granted by the organization and acknowledged by employees, that alloows an individual to request action and expect compliance
Division of Labor
the process fo dividing work into separate jobs and assigning tasks to workers
managerial hierarchy
te levels of management within and organization; typically, includes top, middle, and supervisory management; also called the management pyramid
organization chart
a visual representation of the structured relationships among tasks and the people given the authority to do those tasks
the degree to which tasks are subdivided into smaller jobs
delegation of authority
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
line positions
positions in an organization held by individuals who are directly involved in the process used to create goods and services
line organization
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
functional departmentalization
departmentalization that is based on the primary functions performed within an organizational unit; for example, marketing, finance, production, and sales
span of control
the number of employees a manager directly supervises; also called the span of management
virtual corporation
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
consumer departmentalization
departmentalization that is based on the primary type of customer served by the organizational unit; for example, wholesale or retail purchasers
the process of grouping jobs together so that similar or associated tasks and activities can be coordinated
geographic departmentalization
departmentalization that is based on the geographic segmentation of the organizational units; for example, U.S. marketing, European marketing, and Asian marketing
organic organization
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
the degree to which formal authority is concentrated in one area or level of an organization
staff positions
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
mechanistic organization
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
informal organization
the network of connections and channels of communication based on the informal relationships of individuals inside an organization
committee structure
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
the complete redesign of business structures and processes in order to improve operations
matrix structure
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.