Chapter 7 Flashcards
Organizational culture
A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.
Structure
The arrangement or relationship or positions within an organization.
Organizational chart
A visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication.
Specialization
The division of labor into small, specific tasks and the assignment of employees to do a single task.
Departmentalization
The grouping of jobs into working units usually called departments, units, groups, or divisions
Functional departmentalization
The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources.
Product departmentalization
The organization of jobs in relation to the products of the firm.
Geographical departmentalization
the grouping of jobs according to geographic location, such as state, region, country, or continent.
Customer departmentalization
the arrangement of jobs around the needs of various types of customers
Delegation of authority
giving employees not only tasks, but also the power to make commitments, use resoureces, and take whatever actions are necessary to carry out those tasks.
Responsibility
the obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work.
Accountability
the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome.
Centralized organization
A structure in which authority is concentrated at the top, and very little decision-making authority is delegated to lower levels.
Decentralized organization
An organization in which decision-making authority is delegated as far down the chain of command as possible.
Span of management
the number of subordinates who report to a particular manager