Chapter 7 Flashcards
Organization
the order & design of relationships within a company/firm
Division of Labor
the process of dividing work into separate jobs and assigning tasks to workers
Specialization
the degree to which the tasks are subdivided into small jobs
Departmentalization
grouping people, tasks, and resources into organizational units
Organization Chart
a visual representation of the structured relationships among tasks and the people given the authority to do those tasks
Functional Departmentalization
based on the primary functions performed within an organizational unit; marketing, financing, production, sales, etc.
Product Departmentalization
based on the goods or services produced or sold by the organizational unit; outpatient/ER, pediatrists, cardiology, etc.
Process Departmentalization
based on the production process used by the organizational unit; lumber cutting, treatment, furniture furnishing, shipping, etc
Customer Departmentalization
based on the primary type of customer served by the organizational unit; wholesale or retail purchasers
Geographic Departmentalization
based on the geographic segmentation of organizational units; US & Canadian marketing, European, Latin America
GBU
Global Business Unit
SMO
Selling & Marketing Operations
GBS
Global Business Service Division
Line Organization
designed with direct, clear lines of authority & communication flowing from the top managers downward
Line & Staff Organization
added staff positions to the line organization provided specialized advisory & support services to line managers
Line Positions
individuals directly involved in the processes used to create goods & services
Staff Positions
individuals who provide administrative & support services that line employees need to achieve the firm’s goals
Matrix Structure (Project Management)
combines two different forms of departmentalization, functional & product, that have complementary strengths & weaknesses
Committee Structure
authority and responsibilities are held by a group rather than an individual
Norm
implicit behavioral guidelines of the group, or the standards for acceptable & unacceptable behavior
Group Cohesiveness
the degree to which group members want to stay in the group & tend to resist outside influences
Work Groups
share resources & coordinate efforts to help members better perform their individual duties & responsibilities
Work Teams
require not only coordination but also collaboration, the pooling of knowledge, skills, abilities, & resources in a collective effort to attain a common goal
Problem-Solving Teams
typically made up of employees from the same department or area of expertise & from the same level of organizational hierarchy
Self-Managed Work Teams
autonomous groups that are allowed greater responsibilities in decision making, implementing solutions, & monitoring outcomes
Cross-Functional Team
made up of employees from the same hierarchical level but different functional areas
Managerial Hierarchy (Management Pyramid)
defined by the levels of management within an organization
Chain of Command
the line of authority that extends from one level of the organization to the next
Unity of Command Principle
everyone reports to & gets instructions from only one boss
Authority
Legitimate power, granted by the organization & acknowledged by employees that allow an individual to request action & expect compliance
Power
ability to influence others to behave in a particular way
Delegation of Authority
makes the employees accountable to their supervisor
Accountability
responsibilities for outcomes
Span of Control (Management)
the number of employees the manager directly supervises
Centralization
the degree to which formal authority is concentrated in one area or level of the organization
Decentralization
the process of pushing decision-making authority down the organizational hierarchy
Mechanistic Organization
characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision-making, & a long chain of command
Organic Organization
characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, & a short chain of command
Informal Organization
the network of connections & channels of communication-based on the informal relationships of individuals inside the organization
Grapevine/Rumor Mill
informal channels of communications used by the informal organization
Re-engineering
the complete redesign of business structures and processes in order to improve operations
Virtual Corporation
a network of independent companies linked by information technology to share skills, costs, & access to one another’s markets
