Chapter 1-3 Flashcards
Organization
A tool people use to coordinate their actions to obtain something they desire or value.
Entrepreneurship
Process where people recognize opportunities to satisfy needs and then gather and use resources to meet those needs.
Organizational Environment
The set of forces and conditions that operate beyond an organizations boundaries but affect its ability to acquire and use resources to create value.
Economies of Scale
Cost savings that result when goods and services are produced in large volume on automated production lines.
Economies of Scope
Cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across different products or tasks.
Transaction Costs
The costs relating to negotiating, monitoring, and governing exchanges between people within an organization
Organizational Theory
The study of how organizations function and how they affect and are affected by the environment in which they operate.
Organizational Structure
The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.
Organizational culture
The set of shared values and norms that controls organizational members’ interactions with each other and with suppliers, customers, and other people outside the organization.
Organizational Design
The process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.
Organizational Change
The process by which organizations redesign their structures and cultures to move from their present state to a desired future state to increase their effectiveness.
External Resource approach
Evaluates the organizations ability to secure, manage and control scarce and valued skills and resources.
Internal Systems approach
Evaluates an organizations ability to be innovative and function quickly and responsively (Ability internally)
Technical approach
Evaluates the organizations ability to convert skills and resources to goods and services efficiently. (Product specification)
Operative goals
Specific long-term and short-term goals that guide managers and employees as they perform the work of the organization.
Stakeholders
People who have an interest, claim, or stake in an organization, in what it does, and in how well it performs.
Contributions
The skills, knowledge, and expertise that organizations require of their members during task performance.
Inducements
Rewards such as money, power, and organizational statements. (This induces the employees to…)
Shareholders
The owners of an organization and generally are the highest up in the hierarchy. Their claims carry more weight in comparison to other stakeholders.
Managers
These are employees responsible for coordinating organizational resources and ensuring that an organizations goals are met successfully.
The Workforce
They consist of all non managerial employees. They have task responsibilities and duties that they are accountable for performing at the required level.
Trade Unions
This is an organization of workers who would work hand in hand with managers to focus towards the productivity and effectiveness of the organization and the union.
Local communities affect on organizations
Local communities have a stake in the performance of organizations as factors such as housing, employment, and the general economic well-being of a community are strongly affected by the success or failure of local businesses.
Chain of command
The system of hierarchal reporting relationships in an organization.
