-
Division of labor
Dividing up the tasks
-
Job Specialization
Dividing task into smaller jobs
-
Departmentalization
The process of setting up individual departments to do specialized tasks
-
economies of scale
- The situation in which
- companies can reduce their
- production costs if they can
- purchase raw materials in bulk;
- the average cost of goods
- goes down as production
- levels increase.
-
hierarchy
- A system in which one person
- is at the top of the organization
- and there is a ranked or
- sequential ordering from the
- top down of managers who are
- responsible to that person.
-
chain of command
- The line of authority that moves
- from the top of a hierarchy to
- the lowest level.
-
organization chart
- A visual device that shows
- relationships among people
- and divides the organization's
- work; it shows who reports to
- whom.
-
bureaucracy
- An organization with many
- layers of managers who set
- rules and regulations and
- oversee all decisions.
-
centralized authority
- An organization structure in
- which decision-making
- authority is maintained at the
- top level of management.
-
decentralized authority
- An organization structure in
- which decision-making
- authority is delegated to lowerlevel
- managers more familiar
- with local conditions than
- headquarters management
- could be
-
Span of control
- The optimal number of
- subordinates a manager
- supervises or should supervise.
-
tall organization structure
- An organizational structure in
- which the pyramidal
- organization chart would be
- quite tall because of the
- various levels of management
-
flat organization structure
- An organization structure that
- has few layers of management
- and a broad span of control.
-
Departmentalization
- The dividing of organizational
- functions into separate units.
-
line organization
- An organization that has direct
- two-way lines of responsibility,
- authority, and communication
- running from the top to the
- bottom of the organization, with
- all people reporting to only one
- supervisor.
-
line personnel
- Employees who are part of the
- chain of command that is
- responsible for achieving
- organizational goals.
-
staff personnel
- Employees who advise and
- assist line personnel in meeting
- their goals.
-
matrix organization
- An organization in which
- specialists from different parts
- of the organization are brought
- together to work on specific
- projects but still remain part of
- a line-and-staff structure.
-
cross-functional self managed
teams
- Groups of employees from
- different departments who work
- together on a long-term basis.
-
networking
- Using communications
- technology and other means to
- link organizations and allow
- them to work together on
- common objectives.
-
real time
- The present moment or the
- actual time in which something
- takes place.
-
virtual corporation
- A temporary networked
- organization made up of
- replaceable firms that join and
- leave as needed.
-
benchmarking
- Comparing an organization's
- practices, processes, and
- products against the world's
- best
-
core competencies
- Those functions that the
- organization can do as well as
- or better than any other
- organization in the world.
-
digital natives
- Young people who have grown
- up using the Internet and social
- networking.
-
restructuring
- Redesigning an organization so
- that it can more effectively and
- efficiently serve its customers.
-
inverted organization
- An organization that has
- contact people at the top and
- the chief executive officer at
- the bottom of the organization
- chart.
-
organizational (or corporate)
culture
- Widely
- shared values within an
- organization that provide
- unity
- and cooperation to achieve
- common goals.
-
formal organization
- The structure that details lines
- of responsibility, authority, and
- position; that is, the structure
- shown on organization charts.
-
informal organization
- The system that develops
- spontaneously as employees
- meet and form cliques.
- relationships, and lines of
- authority outside the formal
- organization.
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