BUS230 - Test #2 Study Flashcards
the vertical and horizontal configuration of departments, authority, and jobs within a company
Who reports to whom? Who does what? Where is the work done?
Organizational structure
the collection of activities that transforms inputs into outputs that customers value
How do things get done?
Organizational function
subdividing work and workers into separate organizational units responsible for completing particular tasks
Departmentalization
organizing work and workers into separate units responsible for particular business functions or areas of expertise
Pros: allows to be done by highly qualified professionals, lowers cost by reducing duplication, and easier communication
Cons: cross-department coordination can be difficult, decisions across the company may be made slower as growth continues
Functional departmentalization
organizing work and workers into separate units responsible for producing particular products or services
Pros: allows managers and workers to specialize in one area of expertise, easier for managers to assess performance, faster decision making
Cons: Duplication, which can lead to higher costs
Product departmentalization
organizing work and workers into separate units responsible for particular kinds of customers
Pros: Focuses on customer needs
Cons: Duplication
Customer departmentalization
organizing work and workers into separate units responsible for doing business in particular geographic areas
Pros: companies able to respond to the demands of different markets, costs are lowered because they can use unique organizational resources that are closer to the customers
Cons: Duplication of resources, coordination and communication can be difficult
Geographic departmentalization
a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together
Pros: companies can efficiently manage large, complex tasks,
Cons: Employees report to 2 bosses (one from each core part of the matrix), significant coordination between departments is needed
Matrix departmentalization
the right to give commands, take action, and make decisions to achieve organizational objectives
Authority
the vertical line of authority that clarifies who reports to whom throughout the organization
chain of command
a management principle that workers should report to just one boss
unity of command
the right to command immediate subordinates in the chain of command
Line authority
the right to advise, but not command, others who are not subordinates in the chain of command
Staff authority
an activity that contributes directly to creating or selling the company’s products
line function
an activity that does not contribute directly to creating or selling the company’s products but instead supports line activities
staff function
the assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible
delegation of authority
the location of most authority at the upper levels of the organization
Centralization of authority
the location of a significant amount of authority in the lower levels of the organization
Decentralization
the number, kind, and variety of tasks that individual workers perform in doing their jobs
job design
job composed of a small part of a larger task or process
Job specialization
periodically moving workers from one specialized job to another to give them more variety and the opportunity to use different skills
Job rotation
increasing the number of different tasks that a worker performs within one particular job
Job enlargement
increasing the number of tasks in a particular job and giving workers the authority and control to make meaningful decisions about their work
Job enrichment
an approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes
Job characteristics model (JCM)
