Chapter 7 Flashcards
Define an organizational structure
Specification of the jobs to be done and how they are related, required by all organizations to meet specific needs
What factors influence organizational structure
- purpose, mission, strategy
- size, technology, what changes in enviro.
- can be carefully planned OR develop as organization evolves
Define chain of command
Organizational chart showing employee positions and the flow of decision-making power
Define specialization
Process of identifying the specific jobs that need to be done and the people who will perform them
Define departmentalization
Determining how tasks should be grouped together into logical units to make the workplace more efficient
How are specialization and growth related
- small companies have fewer employees (less specialization)
- large companies become more efficient through specialization
How is departmentalization beneficial (4)
- increases efficiency (division of labour)
- better control and coordination
- easier to monitor performance
- profit centres are accountable
What are the bases of departmentalization (5)
Functional, customer, product, geographic, process
Define decision-making hierarchy
Who is responsible for making certain decisions
Define the 3-step process
- assigning tasks
- performing tasks
- distributing authority
What takes place in step 1 of the 3-step process
Assigning Tasks
1. Responsibility: duty to perform an assigned task
2. Authority: power to make decisions to complete a task
What takes place in step 2 of the 3-step process
Performing Tasks
1. Delegation: assignment of a task, responsibility, or authority to a subordinate
2.Accountability: obligation of subordinates to finish tasks and justify outcomes
What takes place in step 3 of the 3-step process
Distributing Authority
1. Centralization: top managers reserve most of the decision-making rights
2. Decentralization: lower- and middle-level managers have some discretion in making decisions on their own
Define span of control + types (2)
number of subordinates that a manager is responsible for supervising
1. wide span: many subordinates
2. narrow span: very few subordinates
How do complicated tasks relate to span of control
Complicated tasks require more supervision and a narrow span of control
What are the 3 forms of authority
Line, staff, committee/team
Define line authority
direct chain of command (indicated by a solid line in the org. chart)
Define staff authority
staff that advise/support line managers (indicated by a dotted line in the organizational chart)
Define committee/team authority
authority granted to committees/work teams (permanent or temporary); plan their work and complete the task independently
Define functional structure
units are formed based on the job functions (i.e. payroll, accounting, sales & purchasing)
Define divisional structure
divisions operating as semi-autonomous units and profit centres (ex products, customers, geography)
Define project organization
used by organizations with new product opportunities or special projects
How is project organization used in a matrix organization
project manager and regular line managers share authority until the project is completed
Define international organization
designed to help a company succeed in international markets; international departments & divisions, integrated global organization
What are the types of organizational design (4)
Boundaryless
Team
Virtual
Learning
Define informal organization
network of social interactions and relationships among employees unrelated to the formal structure;
Define informal groups
groups of individuals who decide to interact among themselves even though they are not required to do so
Define organizational grapevine
an informal communication network that carries gossip and other information
How do organizational grapevine and informal groups relate to each other
powerful force that can alter the formal structure
How are managers involved in organizational grapevine
must maintain open channels of communication and respond to inaccurate information to minimize damage
How do managers use organizational grapevine to their advantage (3)
measure employee reactions, gain information and improve decision making
