Chapter 6

Question 1

organizational structure

Answer 1

specification of the jobs to be done within an organization and the ways in which they relate to one another

Question 2

organization chart

Answer 2

a diagram depicting a company’s structure and showing employees where they fit into its operations

Question 3

chain of command

Answer 3

reporting relationships within a company

Question 4

job specialization

Answer 4

process of identifying the specific jobs that need to be done and designating the people who will perform them

Question 5

departmentalization

Answer 5

process of grouping jobs into logical units

Question 6

profit center

Answer 6

separate company unit responsible for its own costs and profits

Question 7

product departmentalization

Answer 7

dividing of an organization according to specific products or services being created

Question 8

process departmentalization

Answer 8

dividing of an organization according to production processes used to create a good or service

Question 9

functional departmentalization

Answer 9

dividing of an organization according to groups’ functions or activities

Question 10

customer departmentalization

Answer 10

dividing of an organization to offer products and meet needs for identifiable customer groups

Question 11

geographic departmentalization

Answer 11

dividing of an organization according to the areas of the country or the world served by a business

Question 12

centralized organization

Answer 12

organization in which most decision-making authority is held by upper-level management

Question 13

decentralized organization

Answer 13

organization in which a great deal of decision-making authority is delegated to levels of management at points below the top

Question 14

flat organization structure

Answer 14

characteristic of decentralized companies with relatively few layers or management

Question 15

tall organizational structure

Answer 15

characteristic of centralized companies with multiple layers of management

Question 16

span of control

Answer 16

number of people supervised by one manager

Question 17

delegation process

Answer 17

through which a manager allocates work to subordinates

Question 18

responsibility

Answer 18

duty to perform an assigned task

Question 19

authority

Answer 19

power to make the decisions necessary to complete a task

Question 20

accountability

Answer 20

obligation employees have to their manager for the successful completion of an assigned task

Question 21

line authority

Answer 21

organizational structure in which authority flows in a direct chain of command from the top of the company to the bottom

Question 22

line department

Answer 22

department directly linked to the production and sales of a specific product

Question 23

staff authority

Answer 23

authority based on expertise that usually involves counseling and advising line managers

Question 24

staff members

Answer 24

advisers and counselors who help line departments in making decisions, but do not have the authority to make final decisions

Question 25

committee and team authority

Answer 25

authority granted to committees or teams involved in a firm’s daily operations

Question 26

work teams

Answer 26

groups of operating employees who are empowered to plan and organize their own work and to perform that work with a minimum of supervision

Question 27

functional structure

Answer 27

organization structure in which authority is determined by the relationships between group functions and activities

Question 28

divisional structure

Answer 28

organizational structure in which corporate divisions operate as autonomous businesses under the larger corporate umbrella

Question 29

division

Answer 29

department that resembles a separate business in that it produces and markets its own products

Question 30

matrix structure

Answer 30

organizational structure created by superimposing one form of structure onto another

Question 31

international organizational structures

Answer 31

approaches to organizational structure developed in response to the need to manufacture, purchase, and sell in global markets

Question 32

informal organization

Answer 32

network, unrelated to the firm’s formal authority structure, of everyday social interactions among company employees

Question 33

intrapreneuring

Answer 33

process of creating and maintaining the innovation and flexibility of a small-business environment within the confines of a large organization